The market is still positive. The National Association of Realtors projects home sales to increase 10-11 % for all of 2013, totaling about 5.1 million sales. The last three-month average for pending sales is higher than any time since 2006.
That said, for the second consecutive month, homes sales are down. This is due to higher mortgage interest rates that are giving pause to consumers according to Lawrence Yun, NAR chief economist.
Yun points out that there is an uneven pattern around the country. “The higher mortgage rates and rising home prices are impacting monthly contract activity in the high-cost regions of the West and Northeast. More homes need to be built in the West to relieve price pressure or the region could face pronounced affordability problems.”
The good news is that as the market slows and we head into fall and winter, buyers may not have to compete with multiple offers. If buying is your next move, let’s keep our eyes on good properties coming onto the market.
Q: Is home “flipping” back?
A: Home flipping is buying a house or property with the sole intent to sell it for a profit. Sounds interesting? In a down market, the risks were high. But now people are back in the game.
Real estate investors netted on average nearly $20,000 on single-family home flips in the first half of 2013. According to Realty Trac, home flips are up 19% from a year ago, and 74% from the first half of 2011. Florida ranked as the #1 area for flippers.
Considering managing a house flip yourself? There are many things to consider before jumping in:
- If you purchase a house in an up-and-coming neighborhood, you’re banking on the neighborhood increasing in value.
- If you decide to buy in a new development, you’ll want to attract higher-end home buyers who want the luxury features and space offered in the suburbs.
- If you buy a fixer, it could be a money pit or could be a big win.
- How much time and money do you have to invest in this property?
Sound interesting? Let’s talk. I’ll run the numbers and help you find the best opportunities. If all goes well, you could make a nice profit.