With buyer demand high and the number of houses for sale low, today’s market is favorable for homeowners who want to sell. But though they’re likely to find interested buyers, homeowners shouldn’t expect that everything will always go their way. In fact, a home’s sale almost always involves a negotiation and home sellers, just like buyers, should expect to have to compromise here and there. For example, 76 percent of sellers said they had to make at least one concession when selling their home, according to one recent survey. That means, even in markets that favor sellers, homeowners should have some flexibility when it comes to working out the details of the final sale. Home sellers should also be prepared to make some pre-sale improvements to their house, as the vast majority of recent home sellers also said they had to fix up their home before listing it. In short, regardless of how hot your local market is, you still have to get your house in shape and work with your home’s buyer to ensure the sale is a success on both ends. More here.
Housing Outlook Says Take The Long View
If you spend any time following the real estate market or economy, you know there’s no shortage of data. Nearly every day there’s a new report detailing some corner of our economic lives, whether it’s consumer spending, mortgage rates, jobs, or home sales. But reading the day-to-day news reports can sometimes give you a distorted view of what’s really happening. That’s because monthly updates on the housing market’s ups-and-downs can be more volatile than a look at annual results. And so it’s important to take a big-picture view of the market from time to time. For example, Fannie Mae’s most recent Economic and Housing Outlook says, despite a slower-than-expected first quarter, the economy will continue to grow. And, according to Doug Duncan, Fannie Mae’s chief economist, home sales will also continue to improve, despite a more challenging environment for buyers. “Soft residential investment last quarter should prove temporary, as home sales resume their slow upward grind, with inventory shortages playing friend to prices but foe to affordability and sales.” More here.
Homes Sell At Fastest Recorded Pace In 2017
Making big decisions quickly is not usually a recipe for success. However, in today’s housing market, that’s exactly what home buyers have to do. That’s because homes are selling faster than ever these days. In fact, according to a recent analysis, the average home took 81 days to sell last year. And that includes closing, which usually takes four to six additional weeks. In other words, since many markets have more buyers than they do available homes, houses for sale are selling fast. So what should buyers do to prepare for possible competition? Well, for starters, adjust your expectations. A recent report from Zillow found the average buyer spends just over four months searching for a home and makes two offers before successfully buying a house. That means, expect a process. Outside of that, be prepared. Get prequalified, know what you want, what you want to spend, and what your dealbreakers are. The more prepared you are, the more likely you’ll make good decisions, even if they have to be made quickly. More here.
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More Home Buyers Sign Contracts In February
If you want to get a feel for how many home buyers there are currently active in the housing market, the National Association of Realtors’ Pending Home Sales Index is a good place to start. It tracks the number of contracts to buy homes signed during the month and, because it measures contract signings and not closings, it’s a good future indicator of where home sales will be a month or so down the road. In short, if there are a lot of pending sales, there will likely be a lot of final sales. Which is why, February’s results are a pretty good indication that the spring season is ramping up. Contract signings were up 3.1 percent in February and rebounded in all four regions of the country. The largest increase was in the Northeast, though pending sales also saw significant improvement in the South. Still, despite the gains, NAR chief economist Lawrence Yun says the pace falls short of last year’s level. “Contract signings rebounded in most areas in February but the gains were not enough to keep up with last February’s level, which was the second highest in over a decade,” Yun said. More here.
Homes Stay On The Market For Fewer Days
These days, there are a lot of people interested in buying a house. A stronger economy, more jobs, and years of pent-up demand have led to a rising number of Americans who are eager to make a move. But while that’s positive, more buyers active in the market also means homes sell faster. In fact, according to Nationwide’s recent Health of Housing Markets Report, the average home was on the market for just 67 days in 2017 – with houses in some market going in half that time. That means, buyers need to do their homework, cause they may not have the luxury of being able to take their time debating each home’s pros and cons. It also means good news for sellers. “As we head into spring and the traditional season when sales heat up, buyers will find that desirable homes won’t be on the market for long,” says David Berson, Nationwide’s senior vice president and chief economist. “Today, the average home is on the market almost half the length of time that it was six years ago. Of course, that is good news for people looking to sell their home.” More here.
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Income Has Risen But Will It Lead To Home Sales?
A rising number of Americans surveyed for Fannie Mae’s monthly Home Purchase Sentiment Index say their income is higher than it was last year at this time. But has more money made them more likely to buy or sell a house? Well, according to February’s survey results, it’s hard to say. That’s because, after an increase in January, housing sentiment fell in February – with respondents expressing less confidence in a number of categories. In fact, the number of participants who said it’s a good time to buy a house was down, as was the percentage of participants who said it was a good time to sell. But if January saw increases in housing confidence, why the drop in February? Doug Duncan, Fannie Mae’s senior vice president and chief economist, says some of the uncertainty has to do with changing economic headlines. “Volatility in consumer housing sentiment continued in February, with the new tax law beginning to impact respondents’ take-home pay and the stock market creating negative headlines due to early-month turbulence,” Duncan said. In short, people have more money but they’re still a bit unsure of what lies ahead for the market. More here.
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Conditions Are Ripe For Spring Home Buyers
As the spring home buying season approaches, there are many moving parts analysts and experts look at to determine how home buyers and sellers might fare. Economic growth, the job market, interest rates, home prices, buyer demand, and inventory are just some of the factors that will determine how many hopeful home buyers find new homes this year. According to one outlook – from Fannie Mae’s Economic and Strategic Research Group – conditions are good for buyers, except for one specific, long-standing obstacle. “We don’t expect rates to play much of a role in total home sales, especially with anticipated stronger disposable household income growth,” Doug Duncan, Fannie Mae’s chief economist, said. “The ongoing inventory shortages should constrain sales despite otherwise ripe home buying conditions.” In other words, though mortgage rates may inch upward this year, so will household income. That leaves inventory as the main challenge to buyers this spring. With fewer homes for sale, there will be more competition and pressure on prices. More here. 