According to the National Association of Realtors home prices in May were up from last year amounts by just under 10%. This is excellent news for Sellers as home inventory is just above six months. Demand is staying strong while inventory is held steady. Are you thinking of placing your home up for sale? Make sure you have the right agent working for you to ensure you get the most out of your home in this strengthening economy.
You may be asking yourself, ‘is the market recovering?’, or ‘is now a good time to list my home for sale?’. Many signs point to yes, the market is on it’s way back to proper health. Based on data from the National Association of Realtors the Pending Home Sales index is up on a national scale of 12.8% from this time last year. That means we have many more homes under contract, bringing down inventory and in some areas causing prices to increase. The first quarter sales have been the highest in the past 5 years, and statistics by NAR point to an equally success in the second quarter. What does this mean for Sellers? It means that we are going to see their listings on the market for a shorter amount of time, and due to supply shrinking we’ll continue to see slight increases in price. If you’re a buyer, don’t feel frustrated and think that you’ve missed your opportunity to find an affordable home. It’s going to be many years before we see the prices reach the heights that they were at in the prior decade.
With the recent pushes by the Obama Administration, it looks like many homeowners that were unable to refinance in the past may soon be able to. The updates to the HARP rules would open the doors of refinancing for another million estimated homeowners or more. These updates will decrease the restrictions on refinancing, allowing homeowners to take advantage of the record low interest rates. With much lower interest rates, monthly savings can be quite large for homeowners which should lead to a decrease in future foreclosures. Foreclosures are one of the principal impediments to maintaining strong real estate values, so anything that can be done to stymie foreclosures will be a positive mark on our real estate economy.
There’s a detailed article over at the Wall Street Journal if you’d like to read further into the updates.