Fun Facts and Inspiration for July 31, 2012


Fun Facts and Inspiration for July 31, 2012.

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June 2012 New Home Sales Drop – But Read Behind the Numbers!


June 2012 New Home Sales Drop – But Read Behind the Numbers!

New statistics released today show a decline in the new home sales over May 2012 for the nation.  However, an examination of the numbers does not paint a true picture of the overall trend of both new and existing homes.

The numbers for June 2012 fell to 350,000 homes.  However, the figures for the two prior months were both revised upward and sales of new homes still remain strong at 15.1% stronger than in June of last year.

Below is a chart showing the overall increase in new home sales over the last year.

 

In addition, much of the decline in the sale of new homes was the result of a decline in inventory of the new homes and was not that people were not buying.  The strong increase in home sales during the last few months has put a strain on builders to quickly complete homes and get them ready for closing.  The inventory of new homes on the market is down 15.9% from last year because of the increase in sales.

New home sales will remain brisk as long as affordability remains strong and inventories of existing homes are low or not adequate for new home buyer tastes.  However, new home sales are limited by the relatively low amount of completed inventory.  Permitting has increased, but there is a lag in the supply chain that will take time to catch up.  Still, demand is there, a good sign for the market.

As I have mentioned in previous writings, bad news sells – good news doesn’t.  The real estate market has clearly turned around and is rebounding in virtually every area of the county – admittedly, some better than others, but clearly a rebound.

Couple that with the historically low mortgage interest rates, and you can see why the market is poised for a dramatic turnaround.

If now is the time for you to consider buying or selling, talk to a REALTOR® who can give you the professional experience you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Thanks,

Roland

3 Top Home Buyer Deal Killers


3 Top Home Buyer Deal Killers

Recent surveys have shown that more Americans have a thirst for buying real estate, with home affordability at record highs and mortgage rates at record lows. In fact, reports show a 59 percent increase in buyer inquiries this year compared to last year, according to a recent survey conducted by the Real Estate Buyer’s Agent Council.

REBAC surveyed its buyer agent members to determine the top issues preventing home buyers in their local markets from completing a home purchase. The top three obstacles identified in its 2012 survey are:

  1. Economic insecurity
  2. Difficulties in obtaining financing
  3. Problems selling current home

The number of home buyers citing difficulties obtaining financing has fallen markedly in the last few years. In 2011, 65 percent of home buyers cited this as a big hurdle to purchasing, and 61 percent cited it in 2010. This year that number has dropped to 49 percent, as economic insecurity overtakes it in having the biggest effect on stalling home sales, according to the survey.

In 2011, the top three issues cited by buyers were difficulties obtaining financing, problems selling a current home, and holding out for lower prices, according to the survey.

I always encourage buyers that are trying to sell their home in order to purchase a new home, that although they may take a hit on the price of the home they are trying to sell, they will most likely make up for that amount by getting a good deal on the home they are purchasing.

If you are thinking of buying or selling talk to a REALTOR® who can give you the answers you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland