This is Christina Swain with The Swain Team of Keller Williams. Here with your August monthly market update. We saw a slow down in the housing market in July. Most likely due to vacations. As August begins I am sure we will see a pick up as it is our last summer month and the kids will be headed back to school.
On July 31st the Federal Reserve lowered interest rates for the first time since 2008. Interest rates, which affect the cost of borrowing for mortgages and credit cards, are now set to hover between 2% and 2.25%.
When I checked in with one of my loan officers this morning she quoted me a rate of 3.375 for a conventional loan and 3.625 for a FHA loan.
So what does this mean for our local housing market you may ask?
It is a great time to buy.
And Land purchases and financing will be cheaper for homebuilders. And an increase in building will lead to the increase in the overall supply of homes.
We are seeing a slow down in the increase in home prices as they have risen faster than income levels.
Homebuilders also claim that mounting labor and supply costs have made it difficult to build single-family homes at affordable prices.
August Local Market Update
Wow! 20,000 over asking price! The seller attended our Home Selling Seminar and began a year in advance to prepare the home for the market. To educate herself she interviewed other realtors, and she said by far we stood out. Not only was our level of marketing much greater but we also offer a free promotional pre market home inspection. We sat down reviewed it with her and made some repairs then marketed the home with the inspection report. The inspection report combined with the Coming Soon Campaign helped facilitate a stress free sale that netted her the most money possible. We started showings on a Friday and by Monday we had 6 offers! This buyer came in $20,000 over and waived inspections allowing the seller to just focus on packing.
July Monthly Market Update
The summer market has continued to be crazy! There are a number of buyers out there that are getting desperate because they have been putting offers on homes and have been rejected multiple times. The level of inventory is still too low to support the number of buyers out in the market now. Quite often, there are multiple bids on a home for sale making it extremely difficult to buy your dream home.
Every buyer is scrambling trying to figure out an angle to get a house before it goes on the market or what drives the sellers motivation and capitalize on that. It’s not always about the highest price although in most cases it is.
Because of this demand the average sales price has increased in PA when we compare June 2018 to June of 2019. We have seen a decrease in NJ although demand there for homes has continued to be high as well.
Lets take a look at the average sales price in June 2018 vs June 2019.
Obviously , as I say every month it is a great time to sell. The demand is high. If you are thinking about selling in the future come out to our next home selling seminar at the Warwick Twp at 6:30pm on August 21st. We will review many important changes in the market as well as innovative marketing methods designed to net you the most with the least hassle.
For buyers rates have remained low! If you are thinking about purchasing in the future it does not hurt to start exploring your options now. It is important to educate yourself to the process. Come out to our next home buying seminar at the Warwick Twp at 6:30pm on August 22nd. We will review the different types of loans, the purchase process and tips on how to save the most.
July Monthly Market Update
Types of Home Loans
There is a lot of misconception about the different types of loans. So let’s discuss the basics.