condo management Archives

Improvement In New Home Market Is Good For Buyers

The number of new homes being built and sold has become an important indicator for the housing market in recent years. Thatâ€™s because, a shortage of homes for sale has caused prices to steadily increase. And, since the quickest way to add inventory to any particular market is to build new homes, there has been a lot of focus lately on the new home market and how it impacts home buyers and sellers. According to the latest numbers, last year saw an 8.3 percent increase in new home sales over the year before. Thatâ€™s good news for real estate, as an increasing number of sales should lead to an increasing number of new homes being built. And, to that end, there were 295,000 new homes for sale at the end of December, which is the highest level since April 2009. In short, if builders continue to build more homes, the increased inventory should help moderate price increases which will make affordability conditions more favorable for the rising number of Americans who say theyâ€™re interested in buying a home. More here.

Existing Home Sales Reach 11-Year High

According to new numbers from the National Association of Realtors, last year was the best in more than a decade for sales of previously owned homes. Existing home sales ended the year at an estimated 5.51 million sales, surpassing last year’s mark and proving Americans have a strong desire for homeownership. Lawrence Yun, NAR’s chief economist, said sales should’ve been even higher. “Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” Yun said. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.” However, Yun believes rising wages and an expanding economy will help boost housing even further in 2018, helping to push last year’s gains even higher.

Eager Home Buyers Get Jump On Spring Season

Home buyers may be getting an early start on the spring buying season this year, according to new numbers from the Mortgage Bankers Association. In fact, demand for purchase loan applications was up 6 percent last week from one week earlier and at its highest level since April 2010. And the increase comes at a time when mortgage rates are higher than theyâ€™ve been since March of last year. So what explains the high level of buyer interest? Lynn Fisher, MBAâ€™s vice president of research and economics, told CNBC she thinks buyers may be trying to get a jump on the competition. â€œA combination of being left on the sideline last summer due to a lack of inventory for sale and the prospect of slowly rising interest rates over the near term appears to have buyers in a hurry to start the spring buying season,â€ Fisher said. Whatever the case, the number of potential home buyers requesting loan applications to buy homes last week was 7 percent higher than during the same week last year. More here.

Showings Up As Home Buyer Interest Remains High

If you had any doubt that thereâ€™s been a high level of home buyer interest lately, new data on the number of showings across the country should convince you. Thatâ€™s because, according to the ShowingTime Showing Index â€“ which tracks the average number of appointments an active listing receives â€“ showings were up 8.5 percent last year. In other words, homes on the market last year received a lot of interest from potential buyers. Daniil Cherkasskiy, ShowingTimeâ€™s chief analytics officer, says last yearâ€™s numbers may be an indication that 2018â€™s housing market will feature a high level of home buyer demand. â€œWhile, unsurprisingly, December is always the slowest month for showings, activity in December 2017 was substantially higher than the previous year due to lack of inventory,â€ Cherkasskiy said. â€œThis points toward higher demand in early 2018 because of new buyers and those coming back to the market from last year.â€ More here.

What To Do If You Live In A Competitive Market

These days, competition and affordability are two of home buyersâ€™ main concerns. This isnâ€™t surprising, as no one likes to pay more for less. Naturally, we prefer to find a bargain and we certainly donâ€™t want to have to fight off other interested buyers to get it. Thatâ€™s why recent research looking at the countryâ€™s most competitive markets is of interest. The results show the most competitive markets are located in the West, though in just about any desirable neighborhood you could find more buyers than available homes. That means, even if you arenâ€™t living in San Francisco or Seattle, you should be ready for the possibility that you wonâ€™t be the only home buyer interested in the house you choose. So whatâ€™s the best way to increase your odds of beating the competition and getting the house you want? Preparation. Be prepared and get prequalified before you start shopping. Buyers with financing in place before they start looking at houses are more appealing to sellers. If youâ€™ve got your financing in place and a firm idea of what your price range and budget are, you will be in better position should you find yourself in a bidding war. More here.

Builders Confident 2018 Will Be A Good Year

If anybody knows the new home market, itâ€™s builders. After all, they are the ones supplying the homes and, if thereâ€™s no demand, they likely wouldnâ€™t bother doing the work. So, when it comes to assessing the health of the market for newly built single-family homes, asking a builder is a pretty good place to start. For that reason, the National Association of Home Builders has been doing exactly that each month for the past 30 years. And, according to their most recent Housing Market Index â€“ which measures builder confidence â€“ builders are feeling excited about the year ahead. Randy Noel, NAHBâ€™s chairman, says builders are particularly optimistic about the economy and the growing demand for new homes. â€œBuilders are confident that changes to the tax code will promote the small business sector and boost broader economic growth,â€ Noel said. â€œOur members are excited about the year ahead, even as they continue to face building material price increases and shortages of labor and lots.â€ So what does this mean for home buyers? Well, it means more new homes will be built, which increases choices and also dampens price spikes. In other words, optimistic builders are a good sign for home buyers in 2018.

Mortgage Rates Rise, So Does Application Demand

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates increased last week, reaching their highest level since March of last year. Rates were up across all loan categories â€“ including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But, despite the rise, borrowers drove demand for mortgage applications higher than the week before. In fact, total mortgage application demand was up 4.1 percent from one week earlier. So whatâ€™s going on? Well, one theory, is that buyers are motivated because they feel conditions may be as good as theyâ€™re going to get. Joel Kan, an MBA economist, told CNBC borrowers are looking to take advantage of conditions while theyâ€™re good. â€œDespite the increase in rates, applications increased for both purchase and refinance,â€ Kan said. â€œThese increases were partly due to an upswing following the holiday season lull and potentially more borrowers trying to refinance before mortgage rates increase further.â€ The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Buying More Affordable Than Rent In Most Markets

When it comes time to make a move, most of us are choosing between renting a place or buying a house. And making that calculation has a lot to do with where you are in your life and what your goals are. But it also has a lot to do with your financial situation. Because of this, ATTOM Data Solutions analyzes the average rent for a three-bedroom property, weekly wage data, and home price information in 540 counties nationwide in an effort to determine whether renting or buying is the more affordable choice. According to their most recent Rental Affordability Report, buying a home is still the more affordable choice in a majority of markets. However, the data is a bit more complicated than that. In fact, though buying is more affordable in the majority of markets, it isnâ€™t in a lot of the countryâ€™s most populated counties. The data shows that many markets where the population is above 1 million have affordability challenges not seen in areas further from major metropolitan centers. More here.

Should Today’s Buyer Expect To Pay Above Asking?

Even if youâ€™ve never purchased a house before, you likely know that â€“ unlike buying a hammer at the hardware store â€“ a homeâ€™s price is up for negotiation. Depending on market conditions, a home seller may be willing to sell for less than their asking price or, if theyâ€™ve got a number of offers, may expect to get more than they asked for. Either way, knowing what to expect when you start your home search can help you set your budget and limits before youâ€™re competing with another buyer for a home you love. In other words, itâ€™s smart to plan ahead. And, if this year is anything like last year, you might want to plan for competition. Thatâ€™s because, new research shows nearly a quarter of all homes sold last year sold for above their list price. In fact, on average, homes sold for $7,000 more than what they were listed at. However, this isnâ€™t true for all markets. For example, home buyers in cities like Orlando and Phoenix were far less likely to pay above asking price than buyers in markets like San Francisco and Seattle. More here.

Luxury Home Listings Up 4% Year-Over-Year

The luxury home market didnâ€™t suffer the effects of the housing crash as severely as the rest of the market. It also rebounded faster. But, according to new research, there are a growing number of luxury listings and the additional inventory is changing conditions for buyers and sellers. In fact, the number of luxury home listings rose 4 percent in 2017 over the year before. As a result, prices for luxury homes increased 5.1 percent last year, compared to the 6.9 percent increase the overall market experienced. Luxury properties also took longer to sell than they did the year before. Javier Vivas, director of economic research with the National Association of Realtors, says the market is strong but supply is beginning to outpace buyer demand. â€œAlthough 2017 was another strong year for the luxury housing market, it was once again outperformed by the US market overall,â€ Vivas said. â€œAge of inventory in the top 5 percent of the market slowed significantly over last year â€“ a tell tale sign that the supply in the luxury sector continues to outpace demand.â€ In other words, home buyers interested in buying a luxury home, as either a primary or secondary residence, may find more choices, opportunities, and balance among the housing marketâ€™s most expensive homes. More here.