Number Of Showings Up Over Last Year
If you want an accurate read of how many interested home buyers are active in the housing market right now, you can’t do much better than a measure of appointments to view available homes. The number of showings potential buyers set up provides a pretty good snapshot of how much demand there is from qualified buyers. And, according to ShowingTime’s Showing Index – which tracks appointments to view homes – there’s a lot. “Showing activity continued to increase overall as we moved into 2018, with several markets outpacing the National Index,” ShowingTime’s chief analytics officer, Danii Cherkasskiy, said. “Some areas in the South region saw relative increases in showing activity in January, compensating for the slowdowns experienced in the fourth quarter due to Hurricane Irma.” Overall, showings were up 5.2 percent year-over-year in January – a good indication that buyer demand will remain elevated this year. Among the reasons prospective home buyers are active right now, still-low mortgage rates, a stronger job market, and growing economic stability top the list. More here.
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Single Home Buyers Face Added Challenges
Without the benefit of two incomes, single home buyers face some added challenges when looking to buy a house. For one, it takes longer to save for a down payment. In fact, according to a new analysis, married or partnered couples can save a 20 percent down payment on the typical home in less than five years. For single home buyers, it takes closer to 11 years. Add to that, single home buyers are more likely to be looking for a smaller, affordable home – which is precisely the type of house that is currently in highest demand. Zillow senior economist, Aaron Terrazas, says two incomes helps with savings but also with increasing the number of homes available to buy. “Single buyers typically have more limited budgets, which means they are likely competing for lower-priced homes that are in high demand,” Terrazas said. “Having two incomes allows buyers to compete in higher priced tiers where competition is not as stiff.” Of course, your individual financial situation and local market conditions will ultimately determine how much you’ll need to save and how much competition you’ll face for available homes. But single, married, or otherwise, it’s best to be as prepared as possible before heading out to look for a house to buy. More here.
Contracts To Buy Homes Rise For 3rd Straight Month
If you look at just about any reading of the current housing market, you’ll find that there are a lot of Americans interested in buying a home right now. Whether it’s because of pent-up demand that built up in the years following the housing crash or a drive to buy now while mortgage rates are still well below their historical norm, the fact is buyer demand is high. The most recent National Association of Realtors’ Pending Home Sales Index provides more evidence of this. That’s because the index – which measures the number of signed contracts to buy homes – ended the year with its third consecutive monthly increase. Lawrence Yun, NAR’s chief economist, says the housing market has started the year with a little bit of momentum. “Another month of modest increases in contract activity is evidence that the housing market has a small trace of momentum at the start of 2018,” Yun said. “Jobs are plentiful, wages are finally climbing and the prospect of higher mortgage rates are perhaps encouraging more aspiring buyers to begin their search now. More here.
Home Price Increases Mean Buyers Need To Prepare
It isn’t news that home prices have been headed upward for awhile now. And, according to the latest S&P Case-Shiller Home Price Indices, they are continuing to climb at around the same pace as they have been in recent months. Which is to say, the price increases haven’t yet slowed. Of course, how quickly prices are increasing depends on where you’re looking to buy. Large metropolitan areas – and especially those in the West – are seeing the sharpest increases, while the price gains are more muted in the Midwest. But, no matter where you are, the best way to prepare for higher prices is to know what you want, what you can afford, and where your limits are. In competitive and higher priced markets, having a firm idea of what you can spend and where you’ll compromise will make it less likely that you’ll end up going over budget because of a bidding war or buying more house than you can comfortably afford. Making sure you’re prepared before heading out to look at homes also means securing financing in advance, so you’ll be ready to make an offer when you find a home you love. More here.
Young Adults Hold Key To This Year’s Market
First-time home buyers are an important demographic when tracking the health of the housing market. That’s because, they typically make up nearly half of all home sales. In recent years, however, young Americans have been buying fewer homes than in the past. In fact, Freddie Mac’s most recent monthly outlook says 15 percent of young adults between the ages of 25 and 35 are living in their parents’ home – a five percent increase from 2000. However, it isn’t because they’re not interested in homeownership. Largely, the economy and a lack of affordable starter homes have been to blame for a lower-than-normal number of first-time home buyers. But with an improved economy and job market, will more young adults become buyers this year? Len Kiefer, Freddie Mac’s deputy chief economist, says there’s reason for optimism. “Starting off the year, things are looking pretty good for the U.S. economy and housing markets,” Kiefer says. “Mortgage rates are low, economic growth has accelerated in recent quarters, and housing is coming off its best year in a decade.” More here.
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What To Do If You Live In A Competitive Market
These days, competition and affordability are two of home buyers’ main concerns. This isn’t surprising, as no one likes to pay more for less. Naturally, we prefer to find a bargain and we certainly don’t want to have to fight off other interested buyers to get it. That’s why recent research looking at the country’s most competitive markets is of interest. The results show the most competitive markets are located in the West, though in just about any desirable neighborhood you could find more buyers than available homes. That means, even if you aren’t living in San Francisco or Seattle, you should be ready for the possibility that you won’t be the only home buyer interested in the house you choose. So what’s the best way to increase your odds of beating the competition and getting the house you want? Preparation. Be prepared and get prequalified before you start shopping. Buyers with financing in place before they start looking at houses are more appealing to sellers. If you’ve got your financing in place and a firm idea of what your price range and budget are, you will be in better position should you find yourself in a bidding war. More here.
Buying More Affordable Than Rent In Most Markets
When it comes time to make a move, most of us are choosing between renting a place or buying a house. And making that calculation has a lot to do with where you are in your life and what your goals are. But it also has a lot to do with your financial situation. Because of this, ATTOM Data Solutions analyzes the average rent for a three-bedroom property, weekly wage data, and home price information in 540 counties nationwide in an effort to determine whether renting or buying is the more affordable choice. According to their most recent Rental Affordability Report, buying a home is still the more affordable choice in a majority of markets. However, the data is a bit more complicated than that. In fact, though buying is more affordable in the majority of markets, it isn’t in a lot of the country’s most populated counties. The data shows that many markets where the population is above 1 million have affordability challenges not seen in areas further from major metropolitan centers. More here.