NAR Associate Counsel Jessica Edgerton shares risk management tips for buyers purchasing a home featuring devices connected to the internet, such as the heating system or security cameras. Pete Veres with RE/MAX as also seen more of these devices. recently we had a client buy a self-programming smart home and it drove the new buyers crazy. They ended up taking the system out and putting in timer controlled digital thermostats.
July RE/MAX National Housing Report on MLS Data from 53 Metro Areas
DENVER – Halfway through 2017, the U.S. housing market is on pace for another record year as four of the last six months have topped same month sales from 2016, according to the July 2017 RE/MAX National Housing Report. June home sales were 1.4% higher than June 2016, which was previously the month with the most home sales in the nine-year history of the report. To access the housing report infographic, visit rem.ax/2cYFT50.
The combination of increased sales and a record low inventory that slipped further to 2.8 months resulted in higher sales prices. June’s median sales price of $245,000, up 7.5% over last June, also set a RE/MAX National Housing report record. In fact, prices increased in 50 of the report’s 53 markets.
The average number of Days on Market dropped to a report-record low of 47, while inventory dropped year-over-year in 87% of the markets.
Other notable numbers:
Thirty of the 53 metro areas experienced an increase in transactions.
The June 2017 Median Sales Price of $245,000 was the highest in the history of the report.
Decreasing 15.2% from June 2016, inventory continued to decline year-over-year. This is the 104th consecutive month of year-over-year declines dating back to October 2008.
The June 2017 average Days on Market was 47, the lowest Days on Market in the history of the report.
“Sellers continue to benefit from limited inventory, getting top-dollar for their homes, and as a result, overall sales are at a record high,” said Adam Contos, RE/MAX Co-CEO. “But buyers shouldn’t be discouraged. Mortgage rates are still relatively low and the market may be taking a positive turn, albeit subtle, as recent Labor Department data showed a decline in open construction jobs which could mean more workers focused on new home builds.”
Closed Transactions
Of the 53 metro areas surveyed in June 2017, the overall average number of home sales increased 7.5% compared to May 2017 and 1.4% compared to June 2016. Thirty of the 53 metro areas experienced an increase in sales year-over-year including, Trenton, NJ +14.9%, Fargo, ND +14.6%, Wilmington/Dover, DE +12.9%, Albuquerque, NM +10.4% and Billings, MT +10.4%.
Median Sales Price – Median of 53 metro median prices
In June 2017, the median of all 53 metro Median Sales Prices was $245,000, up 5.6% from May 2017 and up 7.5% from June 2016. Only three metro areas saw a decrease in Median Sales Price (Trenton, NJ, -12.1%, Anchorage, AK, -2.5%, and Wilmington/Dover, DE, -1.3%). Ten metro areas increased by double-digit percentages, with the largest increases seen in Las Vegas, NV +13.7%, Nashville, TN +13.7%, Seattle, WA 12.3%, Manchester, NH +12.2%, and San Diego, CA +11.6%.
Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in June 2017 was 47, down four days from the average in May 2017, and down seven days from the June 2016 average. The four metro areas with the lowest Days on Market were Omaha, NE at 20, Seattle, WA at 20, Denver, CO at 21 and San Francisco, CA at 22. The highest Days on Market averages were in Augusta, ME at 119 and Miami, FL at 85. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in June 2017 was up 1.2% from May 2017, and down 15.2% from June 2016. Based on the rate of home sales in June, the Months Supply of Inventory was 2.8, compared to May 2017 at 2.6 and June 2016 at 3.2. This is the fourth consecutive month that months supply has been below 3.0. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In June 2017, 52 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.4, Miami, FL continued to be the only metro area that saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory continued to be in the west, with San Francisco, CA at 1.0, Seattle, WA at 1.1, and Denver, CO at 1.2.
DENVER – Halfway through 2017, the U.S. housing market is on pace for another record year as four of the last six months have topped same month sales from 2016, according to the July 2017 RE/MAX National Housing Report. June home sales were 1.4% higher than June 2016, which was previously the month with the most home sales in the nine-year history of the report.
The combination of increased sales and a record low inventory that slipped further to 2.8 months resulted in higher sales prices. June’s median sales price of $245,000, up 7.5% over last June, also set a RE/MAX National Housing report record. In fact, prices increased in 50 of the report’s 53 markets.
The average number of Days on Market dropped to a report-record low of 47, while inventory dropped year-over-year in 87% of the markets. Other notable numbers:
Thirty of the 53 metro areas experienced an increase in transactions.
The June 2017 Median Sales Price of $245,000 was the highest in the history of the report.
Decreasing 15.2% from June 2016, inventory continued to decline year-over-year. This is the 104th consecutive month of year-over-year declines dating back to October 2008.
The June 2017 average Days on Market was 47, the lowest Days on Market in the history of the report.
“Sellers continue to benefit from limited inventory, getting top-dollar for their homes, and as a result, overall sales are at a record high,” said Adam Contos, RE/MAX Co-CEO. “But buyers shouldn’t be discouraged. Mortgage rates are still relatively low and the market may be taking a positive turn, albeit subtle, as recent Labor Department data showed a decline in open construction jobs which could mean more workers focused on new home builds.”
Closed Transactions Of the 53 metro areas surveyed in June 2017, the overall average number of home sales increased 7.5% compared to May 2017 and 1.4% compared to June 2016. Thirty of the 53 metro areas experienced an increase in sales year-over-year including, Trenton, NJ +14.9%, Fargo, ND +14.6%, Wilmington/Dover, DE +12.9%, Albuquerque, NM +10.4% and Billings, MT +10.4%.
Median Sales Price – Median of 53 metro median prices In June 2017, the median of all 53 metro Median Sales Prices was $245,000, up 5.6% from May 2017 and up 7.5% from June 2016. Only three metro areas saw a decrease in Median Sales Price (Trenton, NJ, -12.1%, Anchorage, AK, -2.5%, and Wilmington/Dover, DE, -1.3%). Ten metro areas increased by double-digit percentages, with the largest increases seen in Las Vegas, NV +13.7%, Nashville, TN +13.7%, Seattle, WA 12.3%, Manchester, NH +12.2%, and San Diego, CA +11.6%.
Days on Market – Average of 53 metro areas The average Days on Market for homes sold in June 2017 was 47, down four days from the average in May 2017, and down seven days from the June 2016 average. The four metro areas with the lowest Days on Market were Omaha, NE at 20, Seattle, WA at 20, Denver, CO at 21 and San Francisco, CA at 22. The highest Days on Market averages were in Augusta, ME at 119 and Miami, FL at 85. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro areas The number of homes for sale in June 2017 was up 1.2% from May 2017, and down 15.2% from June 2016. Based on the rate of home sales in June, the Months Supply of Inventory was 2.8, compared to May 2017 at 2.6 and June 2016 at 3.2. This is the fourth consecutive month that months supply has been below 3.0. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In June 2017, 52 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.4, Miami, FL continued to be the only metro area that saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory continued to be in the west, with San Francisco, CA at 1.0, Seattle, WA at 1.1, and Denver, CO at 1.2.
Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood.
And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!
The National Association of Realtors conducted a survey called the 2017 National Housing Pulse Survey. According to the survey, most Americans (around 84%) believe that buying a home is a good financial decision.
Here are the major reasons:
Various Tax Deductions
This could be for state, federal and local income taxes.
Mortgage Paid Upon Retirement
By the time you retire, by owning your home, your mortgage could be fully paid.
Building Equity
Instead of paying the rent, you’re building equity by paying your mortgage.
Increase Net Worth
It increases long term wealth and your net worth.
Stable Monthly Payments
Unlike rent which can increase a huge amount over time, monthly mortgage payments are stable and predictable.
Bottom Line
Homeownership has always been and still is a crucial part of the American Dream. As our local Albuquerque Market is turning around now is the time to buy. Contact Pete Veres so he can help you get started.
Owning a home has a lot of benefits. Some people might not know it, but it is actually better than renting and has a lot of advantages.
Here are some benefits from a report done by Freddie Mac.
Home Improvements
If you own your home then you have the freedom to improve the home however you like. From the colors to structural improvements, you can change anything on it to fit your lifestyle. Improving the home might also increase the value.
Payment Stability
Monthly payments are more stable when owning a home rather than renting. Rent continues to rise while fixed mortgage rates allow the stability of a constant monthly amount of payment.
Tax Benefits
You get tax deductions from owning your own home like imputed rent, mortgage interest deduction, property tax deduction, profits from home sale, and more. This is based on the Tax Policy Center’s Briefing Book.
Build Equity
Reports indicate that a homeowners net worth is 36 times greater than that of a renter. This is based on a survey done by the Federal Reserve.
According to the National Association of Realtors it is 45 times greater.
These are just some benefits of owning a home. If you think about it, it is really better than renting. The community also gets better by being a part of the neighborhood and interacting with your neighbors.
Now, the question is, where do you start?
You can start by meeting with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you find your dream home. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.
Pete provides his potential clients a face to face buyers consolation meeting, will explain the home buying process and also help connect you with a local lender to provide you with a free loan pre approval.
You can contact him by calling 505-362-2005 or by emailing him at [email protected].
Some people who are planning to sell their home might be thinking of selling it themselves, this is known in the industry as For Sale By Owner. They might think that they would benefit from it by selling it themselves, but the truth is there’s more to it than they think. Here are some reason why it could actually make it more difficult for them.
Marketing
How do homebuyers look for homes these days? Most of them search through the internet. I’m sure there are a lot of FSBO’s who are utilizing the internet to try and sell their homes, but they lack the experience and the correct strategy that a Realtor can provide. Technology has advanced throughout the years that it has affected every industry. Majority of the people find their dream homes through the internet. Finding homes through a Realtor is also popular among home buyers. Only 1% of all homebuyers have found their homes through a newspaper, where most FSBO’s post their ads.
Paperwork
Selling a home yourself isn’t as easy as you think. There are a lot of paper work needed and has increased over the years like the mandatory disclosures and regulations. This is one of the reasons why the number of people who FSBO has dropped over 2 decades. The contracts are very involved and can also have liability issues. Leave the paperwork to the professionals. You wouldn’t want to be in a bad situation just because you made simple mistakes on very important documents.
Dealing with people
When selling a home on your own you have to deal and negotiate with different kinds of people. You have to negotiate with buyers, the buyer’s agent who will do whatever he or she can to protect the buyers interests, the appraiser, the home inspector who also works for the buyer and will definitely find something wrong with your home, and the buyer’s attorney. This can be very stressful and time consuming.
FSBO = Less Money
People may think that selling their home on their own can net them more money since they save on commission, but the truth is, they don’t. Based on a study, it says that people who FSBO tend to sell their homes for much less than those who opt for a realtor. Most FSBO homes are from markets with lower price points.
If you think about it, selling a home on your own can really be difficult and time consuming. The stress may not be worth it. Sit down with a local realtor and find out how he or she can help you sell your home for top dollar. They have the experience and knowledge needed to get the job done right. This is a very important time in your life and there’s no room for error.
Are you planning on buying a home? Are you ready? It would definitely depend on your current situation and your finances. It is a very big decision so here are some reasons why now is a good time to buy.
1. Rising interest rates
Interest rates have been rising since late last year when the Federal Reserve increased its benchmark interest rate by a quarter point in December and in March. There are about three more upward adjustments within 2017 according to experts.
It is expected that the trend of increasing interest rates is expected to continue. Securing a fixed rate loan for current homeowners with an adjustable rate mortgage is advisable before rates increase further.
2. Buying may be cheaper than renting
Buying now may be able to save you more money in the long term than renting if you’re living in one of the larger metropolitan areas. It is generally cheaper to own than rent in these areas.
You have to put into consideration al the expenses like mortgage interest expense, repairs, closing costs, taxes, among others. To have an accurate cost comparison, divide the cost of expenses over total number of months you plan on staying in a home.
3. Increase in home prices
Home prices have increased over the years since 2007 when the housing crash occurred. It has outpaced renting costs in the past months. Now is the time to buy if this trend continues as it may be more expensive to buy than rent later on.
Home prices are projected to rise over the course of 2017 according to Fannie Mae, Freddie Mac, the National Association of REALTORS®, Kiplinger, and the Mortgage Bankers Association.
The increase averages to 4.9 percent based on the experts’ predictions.
4. Shrinking inventory
There are a lot of people right now who were hesitant to jump in during the housing bust and are now in the market for homes and this means the inventory is getting low. It is expected to decline further in 2017 especially for median- and low-priced homes.
Parts of the market with the smallest inventory are moderately priced homes which are homes that millennials are interested in. These buyers, who were born after 1980, are the majority of the buyers now ready to jump into the market.
5. Supply and Demand
Since median-priced homes are scarce, buyers compete over them and this makes the prices go up. This is basic supply and demand. Being in a seller’s market makes it difficult for buyers to negotiate a good price as well.
With the increase in prices and rates, some buyers may stop their search for a home and this would give an advantage to those who remain in the market since they would have more leverage to negotiate with sellers.
If you are thinking of buying please get with Pete Veres, CRS – Certified Residential Specialist and set up your free buyers consultation and he can also help provided you with a free loan free approval. Pete is at 505-362-2005, email: [email protected]
Also check out his free home search app Pete Veres- REMAX on apple or android.
