Perks in the Housing Market For Present-Day Buyers and Sellers

The current housing market offers perfect opportunities for both buying and selling a home. In today's

market, there are a couple of perks for both home buyers and sellers that are hardly ever available.

This is a perfect time to purchase a home because of the historic low mortgage rates. The average mortgage interest rate has hit an all-time low. In fact, it is the lowest in the history of the Freddie Mac survey which dates back to 1971. Today's buyers can actually obtain a mortgage rate lower than the past two generations of homebuyers.

“Purchasing power rose 10% year-over-year…With interest rates hitting record lows, buyers were able to afford $32,000 “more house” as of July 23 than they could the year before with the same monthly payment,” according to the National Mortgage News.

Buyers will not only save money on a home, but they will have the opportunity to get more home for the money. This is especially appealing with today's pandemic pushing work from home. Homeowners are re-evaluating the amount of space they need in a home.

As for current sellers in the market, the low inventory has definitely been an advantage. According to the National Association of Realtors (NAR) the inventory of homes coming into the market continues to decline.  Even before the pandemic hit, the inventory was low. In today's market, houses are selling faster than they are being listed.

Bidding wars are the norm now. The fuel of low mortgage rates and low inventory is pushing buyers into bidding wars.

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” says Lawrence Yun, Chief Economist for NAR.

If you are in the market for a home or want to sell your current home, now is the time. Contact a Realtor in your area who can help you through the process.

Click Here For the Source of the Information.

Data Released Shows November 2020 Gains in Single-Family Permits

The National Association of Home Builders' Eye on Housing reported that there was a 12.2% increase of single-family permits on a year-over-year basis from November 2019. The November 2020 number reached to 888,217 while the November 2019 level just hit 791,452.

The South had an increase of 14.4% single-family permits which was the highest in all four regions. The other three regions were as follows, Midwest had an 11.7% increase, the West had an 8.5% increase and the Northeast had the lowest at 8%.

Delving even more into the data, 45 states saw an increase in single-family permits while 5 states and the District of Columbia saw a decline. The highest record was Vermont with a 37.8% increase while the District of Columbia saw the lowest at a decline of 19.6%. The ten highest states issuing the highest number of single-family permits were Vermont, Maine, New Hampshire, South Dakota, Delaware, Nebraska, Arizona, Missouri, Utah, and Texas. These states totaled 61.3% of the country's total single-family permits issued.

At the local level, below are the top 10 metro areas that issued the highest number of single-family permits.

Metropolitan Statistical Area	Single-family Permits: Nov (Units #YTD, NSA)
Houston-The Woodlands-Sugar Land, TX	43,458
Dallas-Fort Worth-Arlington, TX	39,492
Phoenix-Mesa-Scottsdale, AZ	28,376
Atlanta-Sandy Springs-Roswell, GA	25,559
Austin-Round Rock, TX	19,375
Charlotte-Concord-Gastonia, NC-SC	16,399
Tampa-St. Petersburg-Clearwater, FL	14,629
Orlando-Kissimmee-Sanford, FL	14,169
Nashville-Davidson-Murfreesboro-Franklin, TN	12,759
Washington-Arlington-Alexandria, DC-VA-MD-WV	12,254

Click Here For the Source of the Information.

Tips To Making A Competitive Offer On A Home

Today's housing market is definitely a seller's market. A buyer has to stand out in order to successfully win a bidding war. Here are five tips to follow in order to set yourself above other buyers.

 

Listen to Your Real Estate Agent

Going at it alone is not a wise move when it comes to finding and purchasing a home. According to an article from Freddie Mac, purchasing a home can be very emotional and a professional can help an emotional buyer stay on track.

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

Understand Your Finances

Know what you can afford before you begin even searching for a new home. It is a must to have a complete understanding of your budget. Again, a professional can help you with this portion of the process. Find a mortgage lender who can get you pre-approved for a loan. Taking a pre-approval letter to a seller shows that you are serious and can follow through with your offer. Forty-four percent of homebuyers in the current market get pre-approved. In order to stand out, you must get pre-approved.

Be Ready to Move Quickly

The average property listed in today's market is receiving more than three offers in the first few weeks of being listed. This data comes from the National Association of Realtors' monthly publication called Realtors Confidence Index. This means as a buyer you need to be willing to make a move on the spot if you find the right home for your needs. Be prepared to submit an offer as quickly as possible.

Make A Fair Offer

Both the buyer and seller want to get the best deal possible. As a buyer, you do not want to overpay for a home, but you also do not want to give a low-ball offer. If a seller receives a low offer, they might question how serious you are about purchasing their property. Your Realtor will be able to guide you in the decision when it comes to your offer price. You will want to make your offer based on the market value of the home.

Be a Flexible Negotiator

A seller has the right to accept an offer, reject it or counter with an offer. In today's market with such little inventory and so many buyers, you must stay flexible with things such as move-in dates, a higher offer price than the home is listed for, or minimal contingencies. When it comes to contingencies, conditions you set that the seller must meet for the purchase to be finalized, Freddie Mac warns to stay firm when it comes to a home inspection.

Even in today's hot market, buyers can find and purchase the home of their dreams for the right price. Remember to always contact a Realtor who can help you along the way.

Click Here For the Source of the Information.

More 2021 Buyers Want a Newly-Built Home

 The National Association of Home Builders' Housing Trends Report for the final quarter of 2020 shows a dramatic increase in buyers' interest in new construction homes. The report revealed that 41% of prospective buyers were looking for a newly-built home which is more than twice the percentage reported in 2019.

The NAHB Economics team researches and produces the Housing Trends Report each quarter. The teamsurveys and measures prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time. All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.

According to the report, Q419 looks very different from Q420 when it comes to the type of home buyers are looking for. In 2019 40% of homebuyers wanted an existing home, this decreased to 30% in 2020. Those buyers who would purchase a new or existing home fell from 41% in 2019 to 29% in 2020. For new homes in 2019, only 19% of buyers said they would just purchase a new construction home while in 2020 buyers who saught only new construction rose to 41%.

As far as the data broken down by generations, 50% of millennials are looking for a new construction build while 50% of baby boomers prefer to purchase an existing home. Out of the Gen X buyers, 48% prefer a new construction home while 38% of Gen Z buyers want to purchase an existing home.

The report also shows a difference in preferences in each region of the country. Most potential buyers in the Northeast (53%) and the West (51%) are looking for a new build. In the South only 33% preferred a new construction home and in the Midwest only 24%.

Click Here For the Source of the Information.