Market Trends-Existing-Home Sales Report
Existing-Home Sales Report
Existing-home sales fell in February after sustained gains the previous three months, according to a recent report by the National Association of Realtors (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, fell 9.6 percent compared to the previous month. Analysts have revised their forecast and are predicting 4.88 million existing-home sales for 2011. This figure is 2.8 percent off the pace recorded at this time last year.
NAR Chief Economist Lawrence Yun expects fluctuation in the recovery process. "Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers," Yun said. "This tug and pull is causing a gradual but uneven recovery. Existing-home sales remain 26.4 percent above the cyclical low last July."
Investors accounted for 19 percent of February's existing-home sales, down from 23 percent reported in January. First-time home buyers purchased 34 percent of the existing homes sold during that time, up over the 29 percent reported the previous month. The rest were repeat home buyers. “We’d be seeing greater numbers of traditional home buyers if mortgage credit conditions return to normal,” Yun said.
Housing inventory picked up 3.5 percent to 3.49 million existing homes for sale. This represents an 8.6 month supply at the current sales pace.
The Low Cost of Financing
According to Freddie Mac, the average commitment rate for a thirty-year, conventional fixed-rate mortgage loan was at 4.95 percent in February, which is down from 4.99 percent in February 2010. Home financing costs are at historic lows, making home ownership a reality for many first time buyers! Many experts see rate increases on the horizon, as our nation seeks to balance spending. If you are considering a home purchase or a refinance, be sure to work with a loan officer who understands your needs, has a reputation for excellence, and is able to fund your property in a timely manner. A little homework can save you thousands of dollars. Contact us today for our list of local recommended mortgage lenders.
The Best Spring Selling Strategy
Sellers, you have an excellent opportunity to sell your home this season, if you have the right pricing strategy in place from the start! Studies show that the longer a property stays on the market, the less the seller will net upon the sale. It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.
An Overpriced Home:
· Minimizes offers
· Decreases agents response
· Limits qualified buyers
· Decreases showings
· Decreases prospects
· Limits financing
· Wastes advertising dollars
· Nets less for the seller
When you are ready, contact me today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!
View some of Phyllis Wolborsky and The Wolborsky Groups Listings and let us know if we might schedule a showing.
http://www.phyllisdiditagain.com/Properties
If you are in the market to buy or sale real estate please visit my website at www.PhyllisDidItAgain.com or www.AllenTate.com/PhyllisWolborsky to view all of my featured listing and the listings offered by our MLS service. Call Phyllis Wolborsky at 919-876-2372, Visit Brian Wolborsky at www.Raleighhomeguide.com, or call 919-427-9508, call Mitchell Wolborsky at 919-270-1049, Kevin Wolborsky at 919-608-2000, Rick Freeman and Amy Davis at www.HomeSearchRaleigh.com or call 919-649-2941, or 919-649-6638.
Have a great day and it would be our pleasure to assist you with all of your real estate needs.
