The current trend in real estate is for sustainable growth. The issue is pent-up demand with buyer traffic nationwide at 29 % above a year ago. The most recent stats release on June 30th from the National Association of Realtors reports that existing home sales continue to rise by double-digit rates from a year earlier.
Lawrence Yun, NAR chief economist, says that the recovery is strengthening. Expect limited housing supplies for the balance of this year. There has been a very slight rise in inventory (3.3 %) but strong buyer activity is leveling that.
Existing home sales are at the highest level since November 2009. That is when the market jumped to 5.44 million sales as buyers took advantage of tax stimulus.
According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed rate mortgage rose to 3.5 % a month ago. Yun expects interest rates to continue to creep up. As that happens, refinancing will slow. Then banks may offer more flexibility in purchase applications. Access to mortgages for purchasing a home will improve.
Is this a good time to buy? Yes – If we can find the right property at the right price. But it may also be a good time to sell. See below for my thoughts on that.
Q: Is this a good time to sell?
A: It may be an opportune time to sell your house. Here are some reasons why:
- Supply is beginning to increase – Many expect inventory to continue to rise as more sellers escape negative equity. I have seen a number of sellers who waited until they could recoup the money they spent when they bought five plus years ago.
- Demand is high – Monthly sales continue to increase. Buyers are serious about purchasing and will bid up the price for well-priced homes. In San Rafael, CA, last month, one home had 24 offers.
- Interest rates are rising – According to Freddie Mac’s Primary Mortgage Market Survey, interest rates have jumped more than ½ point since the beginning of the year. The senior analyst for Bankrate.com says that “Rates are unlikely to keep going up but should remain below 5 %.”
- New Construction is Coming Back – As the market improves, more and more builders are jumping back in. New homes will be strong competition as they attract many buyers.
- Decide – it is worth the wait? Let’s sit down and analyze if your needs are being met. Living in the right location, the right size home, and the right financial comfort – those are all reasons to move forward.
What is really important is that you are living the life you desire. I am here to help serve your needs.
A trend in our town and across the nations is underway. Citrix, founder of GoToMeeting and GoToMyPc, reports that one third of all knowledge workers no longer work in a traditional office environment. Many global businesses now use a mobile work-style strategy, in fact, 83 % of these companies will move from office to mobile by 2014.
What does that mean for you? If you are finding your work trending towards mobile, know that studies show that stress is half what it is for employees who don’t have flexible work options. In fact, employees with mobile options are now called Flex employees. With the options provided, 90 % of Flex workers are happier with their lives.
Companies are attracting and retaining more talent with mobile strategies. Employees save on average $4,500 per year and gain 2 ½ weeks in time. 80 % of the organizations with mobile work strategies have already seen cost-related benefits.
Mobile is opening all sorts of possibilities. What do you think?