The American housing market is stronger than ever!
Home values, prices and sales had their strongest numbers in 2016, all signs of a healthy market. According to the Home Price Indexfrom the Federal Housing Finance Agency (FHFA), property values have increased in 58 of the last 62 months and have increasedmore than 35 percent nationally. Homeowners continue to build equity in their largest investment—their homes.
FIRST-TIME BUYERS ARE BACK.
Housing forecasts from National Association of Realtors (NAR),the Mortgage Bankers’ Association, Freddie Mac and FannieMae all predict existing-home sales will surpass 6 million in2017, higher than anticipated sales for 2016. Who’s driving thesurge? According to NAR, millennials who have put off buyinga home are ready to buy. While they may have avoided buyinga home due to student debt and limited employment, manyare entering their 30s, a time when their attention turns tomarriage, family and setting roots with homeownership.They’re predicted to be the driving force behind homeand condominium sales from now until into 2020.
HOME PRICES ARE ON THE RISE.
According to the NAR, the median existing-home price notonly increased 6.0 percent year-over-year in October, it’s alsothe 56th consecutive month of year-over-year increases.Prices are approaching the pre-recession peak.What does this mean to you? Home prices, and subsequentlyhome values, are increasing. If you’ve been waiting to list yourhome until you know you can sell it for what you think it’sworth, now is a great time to do so.
RENTERS ARE EMBRACING HOMEOWNERSHIP.
Additionally, many renters who’ve resisted buying are startinghome searches due to the economic weight of rising rents. Thisyear’s home buyers seek to take advantage of comparativelylow interest rates and, in most cases, static payments eachmonth—an advantage of home ownership. Rental costs willonly continue to rise; if you’re thinking of buying, now is anideal time to do so.
IF YOU’RE IN THE MARKET TO BUY,BE PREPARED TO ACT.
Homes were on the market for the shortest amount of timerecorded since 2009: 52 days. The increase of qualified buyersin the market along with the increasing efficiency of the realestate process means homes are selling faster than ever, andin many cases buyers are engaging in bidding wars andpaying over the list price to get the home of their dreams.
LOOKING FOR A NEW HOME?
New-home construction will increase to an average of 1.5million per year to 2024, according to a report from NAR.However, experts anticipate housing starts will only increaseto 1.22 million in 2017, which is less than the 1.5 million newhomes required to keep up with growing demand. Thisinventory shortage of new entry-level homes—typicallypurchased by first-time buyers—may drive up prices insome areas. Home builders have been focusing on multi-familyconstruction for the last few years, but this type of constructionhas begun to level off providing hope that builders will onceagain focus on single-family home construction. However,stricter proposed immigration policies may impact newhome construction and tighten inventory
The NAR Affordability Index is 170.2 (composite) and 169.8(fixed), meaning a family earning the median family incomehas 170.2 percent of the income necessary to buy a median priced,single-family home. Nationally, the qualifying incomeis $41,616, but it varies by region. In the Northeast, thequalifying income is $45,024. In the Midwest, it’s $32,640.In the South, it’s $36,960. In the West, it’s $61,824
AFFORDABILITY PRESSURES ARE INCREASINGIN MANY MARKETS.
Housing affordability in many of the nation’s largest citieshas declined over the past few years, a trend that is expectedto continue in 2017. However, there is hope. NAR created theAffordability Index to measure the affordability of homesacross the Unite States. The Affordability Index assesseswhether the typical family earning the median family incomecan qualify for a mortgage on a typical home based on theprevailing mortgage interest rate on loans closed on existinghomes from the Federal Housing Finance Board.
3 THINGS TO DO NOW IF YOU PLAN TOBUY THIS YEAR.
1. Get pre-approved for a mortgage. If you plan to financepart of your home purchase, getting pre-approved for amortgage will allow you to put in an offer on a home andmay give you an advantage over other buyers.
2. Start looking. While most buyers start their searches online,be sure to look at homes in neighborhoods you’d like to livein as well. This will help you narrow down where to look andwhat to look for in your next home.
3. Call, Text or Email Today. We can help you find a home thatfits your needs and budget. Give us a call to make anappointment today!
3 THINGS TO DO NOW IF YOU PLAN TOSELL THIS YEAR.
1. Make repairs. Most buyers want a home they can moveinto right away, without having to make extensive repairs.Making the repairs now will give your home a competitiveadvantage over other similar homes on the market.
2. Get a Comparative Market Analysis (CMA). A CMA notonly gives you the current market value of your home, it’llalso show how your home compares to others in the area.This will help you price your home to sell. Call us for yourfree CMA!
3. Start packing. Help your buyers see themselves in yourhome by packing the items you don’t use regularly andstoring them. This will make your home easier to stage aswell as make it easier to move later on.
Remember, real estate is local. While these statistics shed lighton the national market, we can give you all the informationyou need to know about our local market. If you’re thinkingof buying or selling, or just want to know how much yourhome is worth, give us a call!
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
Darryl talks about why it's important to have a Realtor® at your side
"Working with eXp Realty was a pleasure. When we started, we had no idea what we wanted, but our buyer agent helps us figure out the pros and cons of all our options. Our agent went the extra mile willing to put in the extra effort to answer our questions, to make sure we were happy with our decisions, and educated about the market and local area.