Research shows that Americans are confident in the economy. In fact, a recent Gallup poll states that Americans view the economy more positively since the election in November than they did in the previous nine years.
The housing market has remained steady, since last spring. We did not home sales dip in Novemeber, December or January. Normally, spring is thought to be the optimal time to sell however demand for housing did remain high over the winter.
Jonathan Smoke, the chief economist at realtor.com, stated in his latest article that “In most markets most years, the optimal time to list is in the spring so that the maximum number of potential buyers view the home. This year, the conventional wisdom of buying and selling may need to change. Inventory levels at the beginning of 2017 are at multi-year lows. Sellers now face very little competition.”
As I am sure you know Interest rates on the rise.
In a recent survey of loan officers that asked them how they thought rising rates will impact demand for mortgages, 16.7% said it would have no impact because there is not enough supply to fulfill current demand. Another 16.7% said rising rates will weaken demand. I agree with that assertion. The vast majority of people moving on—they’re just going to have to pay more.
If you’re a first-time buyer or a seller who’s thinking about buying, you have to take into consideration that if you wait until later in the year, you will have to spend more money. All experts are projecting that interest rates will continue to rise throughout the year.
Let’s take a look at where the experts are projecting rates to be in the next three quarters:
If we look at the average interest rates are going to rise about a tenth of percent each quarter. So why wait?
I have had clients reach out to me and ask if interest rates go up, will my home value decrease?
In this economy, that does not appear to be the case. The fact remains that there is low inventory out there and that drives the demand up.
CoreLogic Chief Economist Frank Nothaft said, “Very low mortgage rates sparked demand, and with inventories low, the result has been a pickup in home-price growth.”
If you have any questions about our market or are thinking about buying or selling a home, please don’t hesitate to reach out to us. (215) 757-7257 or TheSwainTeam@gmail.com.
In the meantime, be on the lookout for my next video market update.
Needless to say business has been very busy! And we want to thank all our loyal clients for their referrals. We really do appreciate when our client's go out of their way to tell friends and family about us. After all, don't you want your friends and family to have the same positive selling or buying experience?
As you will see the market has been steady. The same trends that we are going to discuss hold true for Montgomery & Philadelphia Counties as well. We are going to compare the statistics for January 2015 - July 2015 to January 2016-June 2016. Then I am going to offer you our insight and the trends we are seeing off the paper.
Listings on the rise in March.
Each year in March, we see the number of seller's listing their home rise because the spring market actually begins in March. And why is that? Well think about it. Home buyers with children want to move once school is over and school is over in mid June, making March the ideal time to start looking. Homes Pended begin to rise as well in March and peak in June typically each year. June and July are historically the months for the most closings. Homes being listed begin to drop slightly in June & July because everyone is ready for vacation.
Interestingly enough we saw less seller's putting their home on the market in 2016. However, the units sold in 2016 are higher than 2015 during the same time period. This illustrates the trends we are seeing. There are more buyers out this year than in previous recent years. There is much more competition for nicer well maintained homes. Desirable homes are selling with multiple offers. We have had multiple buyers this year lose out on a few homes because their were multiple offers on the property and the seller took another offer. Multiple offers can drive the price of a home up. This is making home appraisals more challenging. Appraiser's are keeping the market in check this time around being careful not let the market artificially inflate.
So what does this mean to buyers and sellers?
If you are a seller it is a great time to sell! There are a lot of buyer's out there. Price the home right and you have a good chance of getting multiple offers. If you are a buyer, be prepared for a low inventory. If a home comes on the market that you like, go see it right away. Don't wait. Put an offer in, and don't low ball the seller because there maybe a few other buyer's behind you ready to make a fair reasonable offer.
It is our goal to continue to grow our business through helping and educating our clients. If you have a market question we are happy to offer our insight.
If you are in the market for an Expert Realtor Contact us at (215) 757-7257 or TheSwainTeam@gmail.com and we will setup an appointment with you and review your needs.