More good news for real estate and the economy and what it means for home buyers…
Not Since Disco Was In Style
Was disco ever really in style? I am sure to some people, the nights they spent in the disco were some great times. But something else that was great way back in the 70’s was the way that home prices were increasing!
RealtyTrac is Reporting:
- US home prices rose by 11.9% year-over-year for June 2013
- 48 states reported rising home prices
- 99 of the 100 largest U.S. cities reported gains in home prices
Great news for real estate and the economy from RealtyTrac. They are also saying that the economy is getting better because of the improvements in the housing market.
Mark Fleming, chief economist for CoreLogic, said that home prices are rising at their fastest pace since 1977. While this is great news for sellers, anyone looking to buy a home may look at this differently. Rising home prices and mortgage rates means home buyers are finding fewer available homes in their price range.
The good news for buyers is that even though home prices are rising, they are still lower. In fact, US home prices are still about 19% below the peak back in April 2006.
Fewer Available Homes
We keep hearing about a shortage of homes. This could be because many home owners are underwater and waiting on home prices to rise even more. However, this could be a long wait if they bought back during the boom years.
I am sure you have either read or experienced the frustration of competing with cash buyers. In some areas, cash buyers are making it difficult for home buyers using a mortgage to compete. Which means it is super important for home buyers to do everything they can to find out about homes BEFORE the cash buyers do.
I would suggest finding a Buyers Agent and to NOT rely upon websites such as Zillow or Trulia. By the time a home hits those websites, it is very possible that the home already has offers. In real estate, time is of the essence! In other words, if you snooze, you lose!
Another problem that some home buyers are dealing with is multiple offers. I have never understood why some people think they are being hoodwinked when there is another buyer interested in the same home. If you think a home is nice, then it stands to reason another buyer is going to think the same thing.
There are ways to get the upper hand on other buyers though. Get pre-approved for a mortgage and commit to working with just one experienced local Buyers Agent. Make sure that your Buyers Agent has a copy of your Pre-Approval Letter to submit with your offer.
It is also good that RealtyTrac is estimating 25% fewer foreclosure this year compared to last year. Foreclosed homes usually sell for less. If there are a high number of foreclosed homes within an area, it will hurt home prices. Fewer foreclosed homes is a good thing for house prices, home owners and communities.
Without Hope There is No Hope
I know it seems bad for home buyers right now.
You keep hearing about rising home prices and mortgage rates.
But if you work with an experienced Buyers Agent, you can still find the home of your dreams and get a smoking hot deal. Despite all the hysteria, both home prices and mortgage rates are still much lower than just a few years ago.
How long this opportunity for home buyers continues is hard to say…