Housing Inventory Hits A New Low

Every summer, families across the country decide if this will be the year they sell their current house and move into their dream home.

Mortgage rates have hovered around 4% for all of 2017, forcing buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Trulia reported that “U.S. home inventory has tumbled 8.9% over the past year and has now fallen for nine consecutive quarters.” There is now 20% less inventory than there was five years ago.

Here is a chart showing the decrease in inventory levels by category:

Colorado Connection

Locally here in our Colorado Springs market our total active listings in the month of June was down 18% compared to last year. While inventory has gone down the Median Sale Price has increased by $23,000! So the effect of inventory down, price up is holding very strong. Also the days on market for a home is at a low as well, 26 days compared to last Junes 31, this means homes are going fast and for top dollar. These stats do vary home to home but it's impossible to ignore that these numbers show that the inventory is low, and price points are up. Plus, with demand for homes very strong right now, and competition (other homes for sale) at a historically low level, if you are thinking of selling in 2017, now may be the perfect time. If you have any questions, or believe now is the time to sell, contact the Springs Summit Group. We are here to assist with any of your Real Estate needs and make it the smoothest process possible.

Article Content courtesy of: 

https://www.keepingcurrentmatters.com/2017/07/24/u-s-housing-inventory-hits-a-new-low-list-your-house-today/

https://www.greatcoloradohomes.com/blog/june-2017-colorado-springs-real-estate-statistics.html

Article Edited by Seth Worthey

3 Questions to Ask Yourself When Buying a Home

If you are debating purchasing a home right now, you are probably getting a lot of advice from a lot of different sources. Though your friends and family will have your best interests at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Ask yourself the following 3 questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place? 

This is truly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a survey by Braun showed that over 75% of parents say, “their child’s education is an important part of the search for a new home.”

This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. They are:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason when it comes to you deciding to purchase or not.

2. Where are home values headed?

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in May (the latest data available) was $252,800, which is up 5.8% from last year. This increase also marks the 63rd consecutive month with year-over-year gains.

If we look at home prices year over year, CoreLogic is forecasting an increase of 5.3% over the next twelve months. In other words, a home that costs you $250,000 today will cost you an additional $13,250 if you wait until next year to buy it.

What does that mean to you?

Simply put, with prices increasing each month, it might cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy. 

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), NAR, and Fannie Mae have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision. All of us here at Springs Summit Group would be more than happy to help you as well. Whether it is buying or selling we'd be happy to help make your real estate transaction as smooth and efficient as possible. 

Content Courtesy of: 

https://www.keepingcurrentmatters.com/2017/07/17/3-questions-to-ask-before-you-buy-your-dream-home/

Edited by:

Seth Worthey

What Time Is It?

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. Two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house. Especially in exploding markets, such as the one here in Colorado Springs. According to Realtor.com Colorado Springs is the 8th hottest market in the U.S. and there is even more data to support why now is the time to sell!

Let’s take a look at the data covered in the latest REALTORS® Confidence Index and Existing Home Sales Report.

REALTORS® CONFIDENCE INDEX

Every month, NAR surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions.” This month, the index showed (again) that home-buying demand continued to outpace supply in May.

The map below illustrates buyer demand broken down by state (the darker your state, the stronger the demand is there).

In addition to revealing high demand, the index also mentioned that “compared to conditions in the same month last year, seller traffic conditions were ‘weak’ in 24 states, ‘stable’ in 25 states, and ‘strong’ in D.C and West Virginia.” 

Takeaway: Demand for housing continues to be strong throughout 2017, but supply is struggling to keep up, and this trend is likely to continue into 2018.

THE EXISTING HOME SALES REPORT

The most important data revealed in the report was not sales, but was instead the inventory of homes for sale (supply). The report explained:

• Total housing inventory rose 2.1% to 1.96 million homes available for sale
• That represents a 4.2-month supply at the current sales pace
• Unsold inventory is 8.4% lower than a year ago, marking the 24th consecutive month with year-over-year declines

According to Lawrence Yun, Chief Economist at NAR:

“Current demand levels indicate sales should be stronger, but it’s clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions.”

In real estate, there is a guideline that often applies; when there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see appreciation. Between 6-7 months is a neutral market, where prices will increase at the rate of inflation. More than a 7-month supply means we are in a buyer’s market and should expect depreciation in home values.

As we mentioned before, there is currently a 4.2- month supply, and houses are going under contract fast. The Confidence Index shows that 55% of properties were on the market for less than a month when sold.

In May, properties sold nationally were typically on the market for 27 days. As Yun notes, this will continue, unless more listings come to the market.

“With new and existing supply failing to catch up with demand, several markets this summer will continue to see homes going under contract at this remarkably fast pace of under a month.”

Takeaway: Inventory of homes for sale is still well below the 6-month supply needed for a normal market. And the supply will continue to ‘fail to catch up with demand’ if a ‘sizable’ supply does not enter the market.

Bottom Line

If you are going to sell, now may be the time to take advantage of the ready, willing, and able buyers that are still out searching for your house. The average days on market is at a consistent low and sellers can get top dollar for their property. If you have considered selling or have any questions on the Real Estate process please call (719-651-0085) OR contact us. We are The Springs Summit Group and we would be more than happy to assist you!

Article content: 

https://www.keepingcurrentmatters.com/2017/07/03/nar-data-shows-now-is-a-great-time-to-sell/

Reviewed and Edited by:

Seth Worthey