We are seeing positive moves in key indicators in the housing market. Sales of existing homes rose in July even as inventories across the country shrunk. According to the National Association of REALTOR®s this is the fifth straight month of price increases. Locally we are seeing year over year price increases as well. The increases are small, less than 5%, but any increase is good news.
There are still issues srurounding shadow inventory. There are theories about the reasons banks are holding onto foreclsoed homes but regardless of the reasons the banks are holding onto inventory that we could be selling to investors and first time home buyers. NAR is asking the government to release the inventory they own more quickly to help the market recover. These would include FANNIE & FREDDIE backed loans as well as FHA/HUD properties. These are the homes priced more for investors and they appeal to the first time buyer too.
Overall, this is all good news and seems to indicate a recovery has started. If you ahve been on the fence about buying, now is the time. Freddie Mac just released a report showing rates for 30-year fixed rate mortgages are increasing, and have been for the last four weeks. Rates are averaging 3.66%, up from 3.62%. It’s not a huge increase but it does indicate that rates can’t stay this low forever.
What does the inventory look like in this area? How has the value of your home been affected? How do you qualify for a mortgage? Contact us today and we will help answer these questions and more.