- More Listings Coming To Market
Homes that are listed in the spring will represent increased competition to any seller. According to The National Association of Realtors (NAR), more sellers listed their homes in 2015 during the months of April, May and June.
Last year, nationally, the number of homes available for sale in January was 1,860,000. That number spiked to 2,280,000 by May. Enrolling children in school is one primary reason people want to purchase and move during those months.
In both Davie and Cooper City, during December of 2015, 405 homes were for sale – a decrease of 5.6% from 2014; 112 sold which was a decrease of 3.4% from 2014; however, 95 pended – an increase of 4.4% over 2014.
The average list price increased 21% and sold prices increased 9.2%. Both cities experienced 3.6 months of inventory (in December 2015).
- Buyers Renting After the “Bubble” Making a Comeback
According to TransUnion’s latest study, 1.5 million homeowners who were negatively impacted by the housing crisis could re-enter the housing market in the next three years.
During the mortgage bubble in 2006, nationally, 43% of credit-active consumers in the U.S., had a mortgage, more than 8% of these consumers were impacted, and 5 Million consumers will be eligible for a mortgage in the next four years.
Here are the numbers of consumers who will meet mortgage guidelines over the next four years:
- Interest rates slated to rise
According to NAR, mortgage rates continue to fall, with the 30-year fixed-rate mortgage now averaging well below 4 percent.
“The yield on the 10-year Treasury stabilized around 2 percent this week, and the 30-year mortgage rate dipped 2 basis points to 3.79 percent,” stated Sean Becketti, Freddie Mac’s chief economist. “The recent market turmoil has given the Fed pause.” As was universally expected, the Fed stood pat this week but kept its options open for a rate increase in March. . . .A hesitant Fed, sub-4-percent mortgage rates, at least for a little while longer, and strong housing fundamentals should generate a three percent increase in home sales this year.
With interest rates below 4%, buyers may be getting off the fence to act now to purchase a new home. However, interest rates are slated to rise during 2016 as follows:
With the exception of Fannie Mae, the experts agree that interest rates will increase by three-quarters of a percentage point. Even a small increase in interest rates affects buying power.
If you were thinking about selling, now would be the time to contact a professional for a market analysis of your home and to look at options for purchasing a new one. Take advantage of these historically low interest rates, increasing home prices and rebound buyers coming back into the marketplace and LIST NOW.