Jun 2, 2016 | Financial Reports
March home prices were again dominated by the Northwest with Portland, Oregon posting a year-over-year gain of 12.30 percent followed by Seattle, Washington’s year-over-year gain of 10.80 percent.
Denver, Colorado rounded out the top three cities with a year-over-year gain of 10.00 percent. San Francisco, California, which consistently posted double-digit gains in recent months slipped to a year-over-year gain of 8.50 percent. This may indicate that prices in high cost metro areas are nearing their peak.
S&P Dow Jones Chair David M Blitzer attributed outsized price gains to the shortest supply of available homes since the mid-1980s. Homes for sale account for only two percent of U.S. households. To put rapidly increasing home prices in context, the S&P Case-Shiller 20-City Home Price Index was 11.50 percent below its peak in March, 2006.
Case-Shiller’s 20-City Home Price Index posted a 5.40 percent gain year over year, which was equal to its year-over-year price gain in March 2015. Month-to month home prices gained 0.90 percent; analysts had estimated year-year growth of 5.10 percent and a month-to-month gain of 0.70 percent. All cities in the 20-City Housing Market Index posted gains in month-to-month and year-over-year readings.
Pending Home Sales Exceed Expectations
Pending home sales in April supported trends noted in Case-Shiller’s 20-City Home Price Index. Regional results for pending home sales in April rose by 1.20 percent in the Northeast while pending sales were unchanged in the Midwest. The South posted pending sales gain of 6.80 percent and the West recovered with an 11.40 percent rise in pending sales for April.
Based on April’s pending home sales readings, real estate pros expect a jump in closed sales in May. Home buyer demand remains resilient according to Lawrence Yun, chief economist for the National Association of Realtors. Mr. Yun also said that the key to continued expansion of home sales is providing buyers sufficient supplies of affordable homes. Builders may provide relief by increasing construction, but have cited shortages of labor and developed land as constraints on new construction. Active demand for high-end homes has also focused construction on higher priced homes.
Mortgage applications are also increasing, which indicates that more homes are being purchased by owner-occupant buyers than investors. Relatively low mortgage rates and waning investor interest could provide buyers relying on financing a leg-up in competing for available homes.
Jun 1, 2016 | Home Buyer Tips
It is common for home buyers to take steps to keep their out-of-pocket expenses to a minimum, and many will try to avoid paying for optional services for this reason. While you may not want to pay for all optional services, there are some that can be truly beneficial to you even if they are not required. After learning more about the services provided to you by a real estate attorney, you may be ready to seek out these professional legal services for your upcoming purchase.
Explaining the Contract
A real estate sales contract can be confusing to understand because parts of it use real estate or legal jargon. Your real estate attorney can review the contract for you to ensure that your rights are protected, and he or she can also help you to better understand your obligations and requirements under the contract.
Assisting With Title Research
A real estate attorney can also assist you with researching the title. Everything from liens and covenants to easements and more may impact your ownership of the property. The real estate attorney will provide you with more information to ensure that you have title to the property free and clear.
Helping You With the Mortgage Documents
A mortgage is a legally binding agreement. You will be contractually bound by the terms of the mortgage. From the monthly payment obligation to the ability of the lender to foreclose on the property if you do not follow through on the terms of the mortgage, there are many legal nuances to consider. The real estate attorney can review these documents on your behalf before you sign them.
Representing You at Closing
Your closing is both a financial and a legal process. This is where you will sign all of the mortgage, title and sales documents to finalize the purchase. Generally, after closing, you will own the property and will be contractually tied to the mortgage. While many documents will be available for your attorney to review before closing, there may be last minute changes or other documents available at closing that your attorney has not reviewed. Your attorney can represent your interests and answer your questions at the closing table.
You do not need a real estate attorney to assist you throughout the purchase process. However, you can see that there are many beneficial services provided to you by an attorney. Contact your trusted local real estate professional for more information.
May 31, 2016 | Mortgage Rates
Last week’s economic reports included new home sales, pending home sales along with weekly mortgage rates and new jobless claims.
New Home Sales Surpass Expectations
Sales of new homes surpassed expectations and the prior month’s reading. April’s reading of 619,000 sales exceeded expectations of 523,000 new homes sold and 531,000 new homes sold in March. New home sales rose by 16.60 percent on a seasonally adjusted annual basis, which was the highest increase in 24 years.
Analysts said that April’s new home sales indicate that builders are increasing production of new homes to meet high demand for homes. Short inventories of available homes are credited with driving up demand and home prices. Buyers seeking family homes are contending with investor buyers and cash buyers in popular markets.
With affordability becoming limited in many cities, first time and moderate income homebuyers aren’t buying as many homes as they once did. This development contributes to slowing markets, as move-up buyers generally rely on first time buyers to purchase their homes.
Shortages of available homes has pressured home builders to break ground on new home construction projects, but builders continue to cite labor shortages and a lack of buildable lots as reasons why they aren’t building homes as fast as homes are needed.
Pending Home Sales Numbers Suggest Peak Buying Season Returns
Pending home sales were also higher than forecast in April with a reading of 5.10 percent as compared to expectations of 0.80 percent for April and the March reading of 1.60 percent. Pending home sales gauge future closings for home sales and reached their highest level in 10 years and posted a year-over-year gain of 4.60 percent.
Three of four regional readings for pending home sales posted gains, with home sales in the Midwest posting slower growth. On a year-over-year basis, he South posted a gain of 6.80 percent and the Northeast posted a gain of 1.20 percent. The West saw a jump in pending sales with a reading of 11.40 percent after posting a negative reading in March.
April’s expansion in new and pending sales suggests that the peak home buying season is back.
Mortgage Rates Rise; New Jobless Claims Fall
Freddie Mac reported higher average mortgage rates. The rate for a 30-year fixed rate mortgage was six basis points higher at 3.64 percent; the rate for a 15-year mortgage rose eight basis points to 2.89 percent. The average rate for a 5/1 adjustable rate mortgage rose seven points to 2.87 percent. Discount points averaged 0.50 percent for all mortgage types.
New jobless claims dipped last week to 268,000 as compared to an expected reading of 275,000 new claims and the prior week’s reading of 278,000 new claims. Analysts said that New York school employees that were eligible for benefits boosted jobless claims earlier in May due to a non-typical law that allows some school workers to draw unemployment during school closures such as spring break or labor disputes.
What‘s Ahead This Week
This week’s scheduled economic news includes Case-Shiller Home Price Indices, construction spending and reports on inflation, core inflation and consumer sentiment. No reports were scheduled for Monday due to the Memorial Day holiday.
May 27, 2016 | Home Seller Tips
Many people think that staging a home effectively is a matter of money, but there are easy ways to dress it up and make it shine that don’t come with a high cost. If you’re looking for some economical tips that will go a long way in making a positive impression, here are a few ways to get your home prepared.
Pack Away The Personal
There are certain unique features in any house that can have a positive impact on potential homebuyers, but personal items will actually make it harder for guests to imagine themselves in your home. For a cost-free save, ensure that you pack away personal mementos and pictures so that guests aren’t distracted by the details of your life.
Keep It Clutter Free
An untidy home will have an instantly negative impact on the perception of your visitors, so you may want to enlist the help of your entire family to clean it from top to bottom. Instead of keeping papers and magazines that have been sitting around for years, sift through any coffee table piles and bedroom corners and discard all the things that will catch the eye too easily.
Take Out The Toolbox
If you’ve been postponing a few minor fix-ups like a damaged shelf or a loose door, now is the time to head to the hardware store and get these jobs done. Potential homebuyers will be looking at every aspect of your home, and maintenance will figure heavily into how interested they are, so an inability to deal with the small details can cue them to a home they shouldn’t invest in.
Do A Deep Clean
Cleaning the house, especially a sizeable one, can be the bane of many a homeowner but there’s no other time that cleaning properly is more important than when you’re staging it. While a dirty, dusty house may mean your guests won’t pay attention to your home’s best features, a newly clean home will provide visitors with a blank canvas from which to draw their conclusions.
From major overhauls to unique decorations that draw the eye, there are many great ways to stage a home, but making the small fixes and doing a deep clean are easy to do and don’t require a lot of cash. If you’re preparing to put your home on the market, you may want to contact one of our local real estate professionals for more information.
May 26, 2016 | Home Buyer Tips
When you’ve found the perfect home and you’re preparing for all of the final details to be sorted, there are a few important things that should not be forgotten about. As a home inspection is among the last steps in the transfer of the home, here’s why it’s very important to find the right person for the job.
Assessing All The Elements
Purchasing a home is among the most important and expensive decisions you will ever make, and for this reason it’s necessary to hire a professional that has experience with how a home should function. Because there are so many things that make a house run smoothly, the right inspector will be able to assess any major issues for you so that you’re not forced to pay a high price for fix-ups when the deal is already set in stone.
What The Inspector Will Look For
There are a number of things a home inspector will look at that encompass all of the main functioning systems of a house, and this should determine if your home will be a good investment for you. There will be items that need regular or routine maintenance that will be identified, but the most important issues like a cracking home foundation or mold can be a major expense. From start to finish, a home inspector will be able to give you a written report of any minor and major issues that will help you determine the value of your investment.
How To Find The Ideal Inspector
One of the most important factors when it comes to the right inspector is experience, and no piece of paper can make up for this. While your inspector should certainly have professional certification from organizations like the National Association of Home Inspectors (NAHI) or the International Conference of Building Officials (ICBO), they should have a number of years under their belt and have seen enough to know what to look for.
There are a lot of things to think about when buying a home, but finding the right inspector can go a long way in positively impacting your purchase. If you’re currently on the market for a home and are considering your options, contact your trusted real estate professional for more information.
