Home Price Slump Helps to Spur Sales

 

Sales of existing homes posted the biggest jump in nearly three years in February, though sellers got the gains the way Detroit automakers spur sales - by cutting prices.

 

The National Association of Realtors said recently that home sales rose 3.9 percent last month to an annual rate of 6.7 million from a revised 6.4 million pace in January. It was the biggest percentage increase since March 2004.

 

Economists surveyed by Briefing.com had looked for a slowdown to a 6.3 million pace.  But even though sales rose from January, the pace was still down 3.6 percent from February 2006.

 

The report also showed the median price of a home sold in February fell 1.3 percent to $212,800 from a year earlier.  That was the seventh straight month that prices fell from a year earlier.  While home prices can swing widely from month to month, a drop in prices from a year earlier is relatively rare - and is sign of how weak the housing market has become.

There were 3.7 million homes for sale last month, up nearly 6 percent from the 3.5 million in January, and up by a quarter from a year earlier.  Many home buyers have an opportunity now that was only a dream a few years ago when the markets were all white hot.

 

Are you a potential home buyer wondering if now is the time to make your move?  Contact us, or leave us a comment below.

 

 

Buyer's Market or Seller's Market?

 

In a buyer's market, there are a lot of homes on the market, and they may take a while to sell. To sell a house, the seller might need to offer a really good price, plus additional incentives such as help with financing. If you're buying a home in this type of market, you can take your time looking and can usually strike a pretty good deal.

 

In a seller's market, houses aren't on the market for long. In fact, they may sell before they are even listed. Because the market is so strong, many owners will decide to sell their homes themselves; you'll see a lot of for-sale-by-owner (FSBO) homes. If you're selling a house in this market, you're lucky. You'll probably get many good offers and not need to offer any additional incentives. If you're buying a house in this market, you may have to work hard to find a house that you like and can make an offer on before it is sold…To get your offer accepted, you should be financially ready (prequalified). Also, don't expect to submit and have accepted a contract with a lot of contingencies.

 

The general consensus these days are, we are in a "buyer's market."  What do you think?  Leave us your comment.

 

 

Existing Home Sales Post Biggest Rise

 

U.S. existing-home sales unexpectedly climbed in February, but subprime-market woes could chill demand farther down the road.

 

According to the National Association of Realtors, home resales rose to a 6.69 million annual rate, a 3.9% increase from January's revised 6.44 million annual pace. January's rate was originally estimated at 6.46 million.

 

The median home price was $212,800 in February, compared with a revised $210,900 in January and a revised $215,700 in February 2006.

 

The February resales level was above Wall Street expectations of a 6.33 million sales rate for previously owned homes.

 

Delinquency rates for subprime mortgage loans rose at the end of last year. Wall Street is worried tighter lending standards for borrowers with less-than-sterling credit could slow home sales in the future.

 

NAR chief economist David Lereah predicts subprime problems could cost between 100,000 and 250,000 annual sales of new and existing homes over the next couple years. "Will it affect the housing market? Yes," he said. "But it's not going to lead to an economic recession."

 

If you wish to comment on the above article you can do so by clicking on the comment link below.

 

 

How Much Home Can You Afford?

 

An experienced homeowner knows the price of the house is not the only cost to consider when buying a new home.  Here we present other additional costs that will help any future buyer to assess how much house he/she can afford:

 

• Utility Payments ­
  A homebuyer can always ask a seller to show him some recent utility bills.  Although every family uses utilities in its own way, the recent bill always gives a homebuyer an idea about his/her future payments.

 

• Up-front Costs Appraisal Fee ­
  If requested by your mortgage company you will need to have an appraisal done on the property you plan to buy. Cost: Approximately $300

 

• Deposit
  If you offer to purchase a property you may need to put down a deposit.  Cost: around 5% of the purchase price

 

• Down Payment ­
  Conventional mortgages vary, but most usually require 10-20% of the purchase price.

 

• Home Inspection ­
  The price of the house inspection depends on the size of the house.  Cost: usually between $300 and $500.

 

•  Legal Fees and Disbursements ­
  This fee is usually paid at closing. Cost: Approximately $500

 

• Property Insurance
  It is paid to cover the costs of replacing the structure. It protects the homeowner and the mortgage lender, since the property is security for the mortgage.

 

• Property Survey ­
  May be required by the mortgage lender. Cost: Approximately $300

 

Other costs are: gardening equipment, decorating materials, moving expenses, hookup fees, window treatments.

 

Before deciding how much house you can afford consider all the costs above to avoid ending up “house poor” and enjoy living in your new home.

 

 

Dream Homes Vary By Generation

 

What's your dream house? A marble manse stuffed with art? A swinging pad where the stereo's always thumping and the hot tub's always bubbling? A clean, well-lighted place … that also has a Viking range and a Sub-Zero fridge?

 

Your answer says a lot about your values and attitudes — and may have a lot to do with when you were born. So say the authors of a new study of 1,000 home owners nationwide. The market research company GfK Roper Reports asked Americans to prioritize the amenities they'd have in their dream home — not necessarily amenities they already have, or will have in their next home. The different responses, from baby boomers through first-time generation-Y buyers, reflect how different features appeal to different ages and also how tastes have shifted over time.

 

Take a look at the different value sets among the generations…