Home Sales Continue to Climb
Existing-home sales rose again and remain above a year ago, according to the National Association of Realtors®. Also released were periodic benchmark revisions with downward adjustments to sales and inventory data since 2007, led by a decline in for-sale-by-owners.
The latest monthly data shows total existing-home sales increased 4.0 percent.
Lawrence Yun, NAR chief economist, said more people are taking advantage of the buyer’s market. “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing,” he said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record-low 3.99 percent at the end of 2011. (records date back to 1971)
Total housing inventory at the end of the year fell 5.8 percent to 2.58 million existing homes available for sale, which represents a 7.0-month supply at the current sales pace.
Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 29 percent of sales in 2011, compared with 33 percent in 2010.
Single-family home sales rose 12.9 percent to a seasonally adjusted annual rate of 3.95 million in 2011. Existing-home sales in the West rose 3.6 percent.
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The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
See full article featured in Realtor.org, "Existing-Home Sales Continue to Climb in November"
Staging can make the difference between whether or not the home sells, the time it takes to sell, and the selling price.
Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting.
Sales of previously owned homes got a boost last month while the number of homes on the market continued to decline, according to data released Monday by the National Association of Realtors (NAR).
LAYTON — Bringing more people to the city was not the main purpose of the new Layton Parkway. In fact, the goal for the road is to help residents leave the city.
Given that the economy hasn't been the greatest strength during the past few years, it isn't overly surprising that the housing industry will show signs of improvement--because it couldn't get too much worse! Even with this observation, improvement is still positive and is a sign of overall economic success:
1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (down payment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market.
3. Predictability: Well, as long as you have a fixed-rate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on.
A monthly index that tracks pending sales of U.S. resale homes rose in September compared to a year ago.
The economy grew at an annual rate of 2.5 percent in the three months ending Sept. 30, the government reported, easing fears that the nation would fall into a second recession.
Today's experts spout off the latest statistics about long-term wealth, home values, and interest rates, yet there's a much more sentimental side to homeownership. In fact, many home buyers are drawn to homeownership for these warm and fuzzy reasons.
U.S. house prices have plunged by nearly a third since 2006, and homeownership rates are falling at the fastest pace since the Great Depression.
If someone were to tell you that home values were lower this year than they were last year, it would only surprise the small percentage of humanity that live in caves. But what may surprise you is the value INCREASE (that's not a typo) that is happening as a result of lowering home inventory. This is not to say we're out in the clear, but the following research does offer some light at the end of the tunnel.
The stock market is up and down daily, the economy still struggles, and real estate prices are low. That's the bad news.
