With continuously low interest rates, now is an opportune time to buy for owner occupants and investors. This recent Realtor.com article suggests that home prices on average are rising while inventory remains steady which translates to higher demand for homes and more instances of multiple bidding. In a seller’s market, owners are able to be more selective about which offers to accept and may have more negotiating power. Buyers looking to take advantage of the rates should consider purchasing before the market becomes more favorable for sellers.
From the article:
Existing-home sales edged up in January, while a seller's market is developing and home prices continue to rise steadily above year-ago levels, according to the National Association of Realtors®. Sales rose in every region but the West, which is the region most constrained by limited inventory.
Lawrence Yun, NAR chief economist, said tight inventory is a major factor in the market. "Buyer traffic is continuing to pick up, while seller traffic is holding steady," he said. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."
Here are some interesting, relevant statistics from the article:
- The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases
- According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December
- Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 4.34 million in January from 4.33 million in December
- Existing condominium and co-op sales rose 1.8 percent to an annualized pace of 580,000 in January from 570,000 in December
- Regionally, existing-home sales in the Northeast increased 4.8 percent to an annual rate of 650,000 in January and are 12.1 percent above January 2012. The median price in the Northeast was $230,500, up 2.4 percent from a year ago
These real estate tip excerpts brought to you by Realtor.org. You should not treat any opinion expressed here as a specific inducement to follow a particular real estate strategy, but only as an expression of opinion. SR Real Estate Group does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. You should always conduct your own research and due diligence and obtain personalized professional advice before making any decision. SR Real Estate Group and Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in this blog.
Original article can be found here: Link
Rahul and Smitha Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com, http://www.SRRealEstateGroup.com, andhttp://www.TheTownhouseExpert.com.
Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station,Denville, East Hanover,Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains,Morris Twp., Mountain Lakes, Parsippany, Randolph,Rockaway, Whippany
