Talking Real Estate with Hope Leitner, June 2022
This eNewsletter strives to give you information that will help you make an informed decision around your real estate goals. The news is relevant to the market this summer.
I am here to support you whatever your real estate needs might be. When you are ready to make the decision to buy or sell, give me a call.
PONDER THIS - "The way to get started is to quit talking and begin doing" - Walt Disney - What are you waiting for? Now is the time to do the things you want and need to do. End up in your dream - How can real estate help you get there?
As always, I am here for you, your family, and friends.
Hope Leitner, CalDRE #01874321
Hope Opens Doors
HOMEBUYING, HOME SELLING, CONTRACTS, MARKET CONDITIONS
Housing Sales Take a Breath
If you’ve been anxious about being able to buy a home, you’ll like the latest news in March 2022 from the National Association of REALTORS (NAR) and the Mortgage Bankers Association (MBA). Housing sales are slowing down. In February 2022, existing home sales were down 2.4% from one year ago and down 7.2% from January. Supplies of listed but not-yet-sold homes totaled 870,000 units, up 2.4% from January, but remain 15.5% lower than a year ago (1.03 million.) The supply is 1.7 months at the current sales pace, up from 1.6 months on hand in January.
As interest rates cross the 4% threshold and prices continue rising, monthly house payments have risen by 28%, says NAR Chief Economist Lawrence Yun. The median existing-home sales price rose to $357,300, up 15.0% from a year ago ($310,600), marking 120 consecutive months of year-over-year price increases. This is the longest-running streak on record, according to NAR.
Rising interest rates are conflating with rising home prices, which is impacting new home construction and sales. With mortgage interest rates a full point higher than they were a year ago, applications to purchase a new home were down for the third consecutive month, hitting the lowest sales pace in seven months at 791,000 units. And the MBA Builder Application Survey showed that mortgage applications for new home purchases decreased 3.9% year-over-year in February 2022.
The good news is you may be able to get a proverbial foot in the door soon.  HOMEOWNERS, HOMEBUYERS, LUXURY
Homeownership Builds Middle Class Wealth
A new study by the National Association of REALTORS (NAR) found that between 2010 and 2020, nearly 980,000 households shared $2.1 trillion in housing wealth. How did they do it? Time and patience.
NAR defines a middle-class homeowner as one earning an income of over 80% to 200% of the area median income in markets with 50,000 or over middle incomers. If they purchased in 2010 at $162,600, they were likely to accumulate $229,400 in housing wealth, 86% of which is attributable to price appreciation over time. Within these markets, median single-family residences appreciated by 8.3%.
The top 10 rising middle-income housing markets were Phoenix-Mesa-Scottsdale (103,690), Austin-Round Rock (61,323), Nashville-Davidson-
Another word for housing wealth is equity – the percentage of ownership you have in your home as opposed to the bank. When the housing market is good, it raises the value of your home because homebuyers want homes like yours. You can also build equity by paying down your mortgage, making extra payments toward your principal, and making attractive improvements to your home.
Housing typically increases in value by two to three percent annually, so the record gains of the past few years are atypical. However, housing inflation plus mortgage interest rates well below overall inflation are inspiring homebuyers to leap into the market. While quick gains are possible, the buy and hold strategy works better for most homeowners.
|
Comments
Post a Comment