Tag: Property management NYC

From all accounts, there are a lot of Americans interested in buying a home this year. Whether it’s because of sustained job market improvement or mortgage rates that remain low compared to where they’ve been historically, home buyers are ready to buy. However, in many markets, there are too few homes available for sale to accommodate the level of buyer interest. Because of this, home sales numbers may start to reflect the imbalance. For example, the National Association of Realtors’ most recent Pending Home Sales Index shows the number of contracts to buy homes last month was down 0.8 percent from the month before, marking the third consecutive decline. Lawrence Yun, NAR’s chief economist, says supply is the issue. “Buyer interest is solid, but there is just not enough supply to satisfy demand,†Yun said. “Prospective buyers are being sidelined by both limited choices and home prices that are climbing too fast.†So what does that mean for buyers this summer? Simply put, home buyers should expect to find competition for available homes. That means, buyers need to be pre-approved, prepared to make a strong offer, and ready to move quickly when they find a home that matches their needs and goals. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were largely flat last week, with little significant movement on rates for 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But though rates remained steady, demand for mortgage applications fell from the week before. Michael Fratantoni, MBA’s chief economist, told CNBC the drop in application demand was driven by buyers seeking jumbo loans, rather than entry-level home buyers. “We’re seeing indications that entry level buyers continue to come into the market as jumbo borrowers looking at bigger homes step back,†Fratantoni told CNBC. “Last week, the average loan size for home purchase dropped to its lowest level since January.†Despite last week’s drop, however, application demand for loans to buy homes remains 8 percent higher than it was at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Like any market, the housing market has its ups-and-downs. For the last several years, though, it’s consistently been on the rise with no sign of slowing down. That means, home buyers have increasingly been met with higher home prices and listings that sell more quickly with every passing month. On the other hand, homeowners who have recently sold a house have enjoyed all the benefits of a seller’s market. But for how long? One recent report says there are signs that prices may soon begin to moderate and surveyed Americans seem to agree. The research, from ValueInsured, shows consumers overwhelmingly feel now is a good time to sell a house but they are less sure about the future. In other words, there’s a feeling that prices may have peaked and things are going to begin to level off. And there’s evidence that’s already happening in a few areas of the country where the housing market rebounded more quickly than in others. However, like anything else, conditions can change from one neighborhood to the next and, while price increases may be starting to slow in one area, they may still be on the rise in another. More here.

Following news that sales of previously owned homes rose in May, the U.S. Census Bureau and the Department of Housing and Urban Development released their estimate of how many new homes were sold during the month. According to the report, new home sales were up 2.9 percent and are now nearly nine percent above last year’s level. The increase is welcome news after April sales experienced the largest one-month decline since last year. However, the report also contains news that new home prices are now at a record high. The median sales price of new homes sold in May was $345,800; the average price was $406,400. Price increases are largely being driven by a lower-than-usual number of homes for sale combined with high buyer demand. But why, if there are so many buyers, aren’t builders building more houses? Well, one reason is a lack of available building lots. The shortage of lots has been a consistent complaint among builders, who have been eager to take advantage of elevated buyer traffic. But despite fewer homes for sale, a strengthened labor market and still-low mortgage rates are keeping buyers interested and active in the market. More here.

Following the ups-and-downs of the housing market can be difficult for the average home buyer or seller. Because of this, many Americans get in the market without a basic understanding of the forces currently driving home prices, mortgage rates, demand, etc. However, it can be beneficial to have a big-picture understanding of where things are and where they’re headed before you make a move. These days, if you want a better grasp of what’s happening in real estate, you have to start with inventory. So far this year, a lower than normal number of homes for sale has been the primary factor influencing home prices and overall sales. Take the most recent outlook from Fannie Mae’s Economic & Strategic Research Group, for example. According to their forecast, inventory remains the big story, as it has been for the past year. “The narrative for the housing market hasn’t changed over the past year,†Doug Duncan, Fannie Mae’s chief economist, says. “A labor shortage continues to restrain homebuilding, and tight inventory is constraining sales and boosting home prices.†Despite those challenges, Duncan says the group expects mortgage rates will stay low enough to support buyers and home sales should rise 3.2 percent this year. More here.