"Home prices accelerate" sums up the most-recent commentary from the S&P Dow Jones Indices. Every area of the country revealed year-over-year price gains. Other indicators also point out the housing market's strength, comments S&P Dow Jones. Foreclosures are down and new home construction is sharply higher over the past twelve months.
Low mortgage rates and better employment prospects in many areas are making consumers more confident about purchasing a residence now. Economists say homeowners on average can expect their properties to be worth at least five percent more a year from now. One adds that if mortgage rates stay low, "home values could surge 35 percent without stretching housing affordability," according to the National Association of Realtors (NAR). Valuation firm Veros Real Estate Solutions states "the national real estate market has hit bottom and is now in a full recovery."
Job growth and pent-up demand for residences are contributing to home sales, adds NAR. A stronger real estate market provides a boost to America's economy, as well. Building and furnishing houses creates many jobs for U.S. workers. We're ready to help you take advantage of today's great rates and attractive home prices. Call us now to discuss how you can benefit from current opportunities.
Home purchasers still benefit from attractive property prices and great mortgage rates. Together these factors produce low monthly payments that you can take advantage of for years. But it's important to act on your real estate intentions soon. House values are advancing over much of the nation. Mortgage rates also are expected to rise as our economy improves. Some buyers are putting "escalation clauses" in their offers to sellers. Doing so lets you boost your bid if you need to gain an advantage on other potential purchasers.
For instance, your offer may state that you'll top any other offer by $2,500, up to a set limit. Providing that incentive can make you stand out from competing buyers. If you offer $220,000 and have an escalation clause up to $240,000, then you can come out ahead even if someone else offers $230,000 on that home. Use the unique characteristics of today's marketplace to accomplish your objectives!
A shortage of houses available for purchase is causing real estate prices to increase in many communities. Buyers are discovering if they don't act decisively once they've found a property that suits them, they could wind up disappointed. Every home is individual, so it's helpful to be ready to make a competitive offer when you spot a residence that's right for you. Knowing how much you can spend while maintaining realistic payments is crucial to completing a smart transaction.
Start by asking us to show you what mortgage payments you can expect after purchasing. Today's low rates continue to be a big reason buyers are able to plan important moves now. Young Americans in particular are excited about their homebuying prospects. Baby boomers' children – the "millennial generation" – now are between the ages of 18 and 34, and ready to make their mark on the world.
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Changing market conditions call for new approaches to buying and selling residences. Owners who need to move but aren't sure they can sell for the price they want have several options to mull. First, they can turn their current property into a rental unit. Income properties provide additional tax benefits that other owners can't claim. Or they may be able to attract a great tenant by offering a lease with an option to purchase the house in the future.
Good prospects for this approach are households with solid incomes who can't obtain a mortgage now. Typically they've either had past credit issues, or haven't yet saved enough for a down payment. You'll be helping someone gain a clear path to homeownership. In exchange for an above-market rent, you'll credit some of their lease payments as a down payment on your home. However, many areas of the country are experiencing a shortage of properties on the market. You'll probably find it's much easier to sell your current house for a good price now than it was a year or so ago.
Higher home prices across the nation show that real estate has reached "a turning point," according to economist Diane Swonk. "What was once an overhang in homes for sale has become a shortage," she explains. Swonk forecasts a twelve percent increase in home sales this year. "Home prices are expected to rise between six and eight percent," she adds.
Market fluctuations usually overshoot their long-term trends, states John Burns Real Estate Consulting. Several years ago home prices advanced faster than normal, the firm notes in a commentary. Since then property values have fallen sharply in many areas. Yet the cycle has turned, John Burns states. "The case is very strong that the bottom is essentially defined and there is a great deal of room for recovery."
A strengthening in real estate markets "in itself creates a major force driving appreciation of home prices over the next several years," Burns adds. "A substantial recovery is not only possible but likely." It's advisable to buy a house primarily because you need a nice place to live in, and not for its potential for appreciation. Yet Burns Consulting points out that "a home is a hedge against inflation for the average person."
Our goal is to help you make the most of today's real estate marketplace. We'll answer your questions about home financing, and show you how easy it is to move into a great home soon.
Currently they're entering the prime period of life for starting a household and buying your own place. Sheer numbers could mean a rush by millennials to buy houses would have a big impact on real estate markets. Today the millennials are a larger demographic group than the baby boomers. And a recent survey reveals that millennials want ample living space. About 90 million Americans are millennials. "An onslaught of this group into the housing industry could create a boom larger than anything the U.S. has ever seen before," observes Yahoo! Finance.
Escalating rents are encouraging millennials to look into buying a home. And their baby boomer parents are supportive, since they're eager for their offspring to set up their own households. If you're thinking about making a first-time property purchase – or know someone who's ready to buy soon – ask them to contact us right away. We're experienced at turning renters into homeowners.
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