New estimates from the National Association of Realtors show home sales at their highest annual pace since February 2007. In fact, sales of previously owned homes increased 1.8 percent in May, marking the third consecutive monthly sales gain. Lawrence Yun, NAR’s chief economist, says most of the sales activity is from repeat buyers. “This spring’s sustained period of ultra-low mortgage rates has certainly been a worthy incentive to buy a home, but the primary driver in the increase in sales is more homeowners realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize,” Yun said. “With first-time buyers still struggling to enter the market, repeat buyers using the proceeds from the sale of their previous home as their down payment are making up the bulk of home purchases right now.” Regional results show sales up in the South, West, and Northeast. The Midwest, on the other hand, saw a 6.5 percent decline – though sales remain 3.2 percent above last year’s level. Also in the report, the number of homes available for sale rose in May. At the current sales pace, unsold inventory represents a 4.7-month supply. Typically, a six month supply is considered a healthy market. More here.
Tag: Home
Rising Incomes Help Hopeful Home Buyers
The current housing market is a mixed bag. On the one hand, mortgage rates remain near record lows. At the same time, home price increases are causing affordability concerns. Additionally, home buyer demand is high but the number of homes available for sale is low. Because of this, recent results of Fannie Mae’s monthly Home Purchase Sentiment Index have been volatile. In March, sentiment hit an 18-month low. Then, according to the most recent release, it reached an all-time survey high in May. Partly, the increase in optimism was due to a 7 percent jump in the number of Americans who said their income was significantly higher than it was a year ago. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says rising incomes and low mortgage rates could help home buyers facing higher prices and fewer choices. “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” Duncan said. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” More here.
New Homes Now 61% Bigger Than 40 Years Ago
In 2015, the median size of a completed single-family home was 2,467 square feet, according to new numbers from the U.S. Census Bureau’s annual Characteristics of New Housing. That’s 61 percent larger than it was 40 years ago and 11 percent bigger than a decade ago. And, in addition to the extra square footage, today’s new homes are also packed with more features than they used to have. For example, more than 90 percent of new homes built last year had air conditioning and at least two bathrooms. By comparison, a little less than half of the new homes built in 1975 had air conditioning and only 60 percent of them had two bathrooms. But along with becoming bigger, new homes have also climbed in price. In fact, the median sales price of new single-family homes sold last year was $296,400. That sets a new record and partly explains the reason why first-time home buyers have had difficulty finding affordable homes this spring. With the average new home selling for around $300,000, buyers looking for an affordable, starter home in many markets are limited to choosing from previously owned homes – as the majority of new homes are priced beyond their budget. Also in the report, among new homes built last year, 47 percent had four or more bedrooms, more than half were two stories, and a majority had two-car garages. More here.
How Do I Get Money to Make Repairs?
Whit, I need to sell my home, but I really don’t have the money to do the repairs, updates, paint, carpet, etc.
I hear this a lot. It is very common for a homeowner to become frustrated when wanting to sell their home, but cannot make the repairs or updates to their home.
How do I get money to make repairs or update?
First, you need to know the CMV (Current Market Value) and the ARV (After Repair Value). As a License Real-Estate Broker with BHHS, I have access to various data, analytics and systems that will help you to determine what your property is worth in its current condition. We will also be able to determine what the property will be worth after we repair the property. If we determine that repairing the property is your best option, now we need to find the money!
Hopefully you know how much you still owe on your property. What you owe on the property will be determined by the balance of any mortgage liens, whether you have a first or second mortgage, and what the payoffs are on these mortgages. We also will need to make sure your property taxes are up to date, as well as your HOA (Home Owner Association) fees. It’s extremely important to find out if you have any additional liens that have been assessed on the Title of your property. If you can’t clear your title, you will have a difficult time selling your property. Never purchase a home without title insurance. Guess what: you can’t get title insurance without clear title!
Now, having owned a mortgage company for many years, I understand how and where to get funding (MONEY). Actually, getting the funds to repair your home is the easy part.
One easy way of getting funding is to establish Business Credit lines with no proof of income or assets. This is one of the biggest kept secrets in our country. 
Let’s be honest, if you don’t have the money to complete the repairs on your home, then that means you need more money, right? Well, why not get the money to start a business, borrow from the line of credit to complete the work and when you sell you home pay the business line of credit off.
Check out my review on my business credit software. Learn how to get money for your business. I’ll even let you try the software for FREE. I have had many clients start a real estate investing business, establish a business line of credit and use that line to buy properties and make repairs to their own property.
You can also apply for a loan or refinance your home to get access to money for repairs. Interest rates are low, so if your credit is good, give it a shot.
Remember, if you have any questions, hit me up!
No question is a “bad” question!