If you’re currently trying to sell your home on the local housing market, great news: it’s about to get very, very busy for you.
That’s because national real estate experts are projecting that this spring will see even more home buying activity than is already expected for this time of year.
Why? Because of pent-up home buyer demand from the unusually cold winter we had. Home buyers who might have navigated the market in late 2013 and early 2014 ended up holding off because of the bad winter weather. Can you blame them? House hunting in frigid temperatures while trudging around in the snow and bad weather is no fun at all.
So now that it’s warming up outside, these home buyers – along with those who would have normally entered the market in spring – are flooding the real estate market.
More Trends to Expect This Spring on the National Housing Market
According to a recent Bloomberg article, the spring home buying market (which usually runs from March to June) was delayed because of the unusually bad winter we’ve had across the country.
This late start meant that home sales declined in February to the lowest level since mid-2012. And the number of contracts signed reached the lowest level since 2011.
Meanwhile, applications for mortgages to buy homes dropped to the lowest since 1995 during the month of February.
While this may all indicate a slowdown, experts are saying that a lot of this activity was related to the unseasonably bad winter. Consequently, they expect home buying to surge over the next few months.
Here are the predictions provided by real estate market experts:
- Sales of existing homes will increase to 5.14 million in 2014, compared with 5.07 million last year.
- Mortgage lending will total $661 billion, compared with $652 billion last year.
- The average U.S. rate for a 30-year fixed mortgage will continue to rise from last year’s figure, when it was 3.57 percent.
- First time home buyers will continue to increase in the market. For instance, in January, they made up 26 percent of the market. And in February, that figure rose to 28 percent.
- The inventory of available homes will decrease. As of recently, the inventory was at 5.2 months.
- Some markets are leaner than others. For instance, in Boston and Boulder, the number of homes for sale in February was down about 30 percent from the year before.
Keeping You Updated With the Real Estate 411
Happy spring home buying season to all the sellers out there! It’s definitely a great time to capitalize on the home buying energy and get a great price for your property.
And make sure to check back here again in a couple of weeks. You’ll be provided with even more news that will aid you as you navigate the market.
Corelogic just released some exciting news from the national housing market: Home prices are back on the rise!
The real estate data provider reported that home prices increased 0.9 percent in January after falling 0.1 percent in December.
And this is indicative of a larger trend, Corelogic reported. After all, over the last 12 months, prices have actually risen a total of 12 percent, which is the biggest year-over-year gain in over eight years!
Home sellers are sure to be encouraged by this recent development because it means that they have a better chance of getting the price they want for their property.
Housing Market Gaining Strength, According to Recent Data
Here’s an overview of recent activity on the national housing market:
- Although home prices increased, total home sales actually dropped in January. The National Association of Realtors reported that sales dropped to their lowest level in 18 months.
- However, the total number of available homes for sale remained low, which is why experts believe prices increased, at least in part.
- The average rate on a 30-year mortgage showed a 1 percent year-over-year increase, which means that home buying costs are a little higher.
- Meanwhile, builders started working on 16 percent fewer homes in January when compared to December. That marks the second straight month for decline.
- Despite recent increases, national home prices are still 17 percent lower than when they were at the peak of the housing market bubble in April 2006.
- In three states (Louisiana, Nebraska and Texas), prices have set highs. Meanwhile, in 19 additional states, prices are within 10 percent of their peaks.
- Those states with the largest year-over-year price gains in January were: Nevada (up 22.2 percent), California (up 20.3 percent), Oregon (up 14.3 percent), Michigan (up 13.7 percent) and Georgia (up 13.4 percent).
- Mississippi was the only state to show declines in home prices.
Homes With Negative Equity are Decreasing
Also recently, Core Logic reported that a total of 4 million U.S. homes returned to positive equity in 2013.
This means that the total number of mortgaged residential properties in the country is now at 42.7 million!
Meanwhile, roughly 6.5 million homes (or about 13.3 percent of all mortgaged homes in the country), still had negative equity by the end of 2013.
The decrease in homes with negative equity is another piece of good news for home sellers because it means that home prices throughout the community will be on the rise! And that is sure to affect the price they can get for their own property.
Your One-Stop Shop for National Real Estate News
Check back to our website on April 1 for more pertinent national real estate news that affects you.
After all, one of the keys to ensuring a successful outcome on the local housing market is to enter it as an informed and prepared buyer or seller.