Len and Leslie Marma | Marshfield Real Estate, Scituate Real Estate, Pembroke Real Estate


The annual rate of home price appreciation falls to a 7-year low https://www.housingwire.com/articles/49250-the-annual-rate-of-home-price-appreciation-falls-to-a-7-year-low#.XPav1B3g9k4.twitter




M Crew, May 16th, 2019

4 Tips for Making a Competitive Offer | MyKCM

So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:

1. Determine Your Price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.

Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.

Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality!




Shortage of homes crimps market, says NAR’s Yun

houses neighborhood

Existing home sales slid 4.9% in March after jumping the most in almost four years in February, according to the National Association of Realtors.

Sales of existing single-family homes, condominiums and co-ops fell to 5.21 million at a seasonally adjusted annualized pace, the Realtors group said. The median home price rose 3.8% from a year ago to $259,400.

 

A dearth of supply is keeping home sales in check, said NAR Chief Economist Lawrence Yun. Measured as the number of months it would take to sell off the existing stock, there was a 3.9-month inventory of homes for sale in March. Economists consider a six-month supply to be a balanced market.

“Further increases in inventory are highly desirable to keep home prices in check,” Yun said in the report.

Properties stayed on the market an average of 36 days in March, down from 44 days in February. About 47% of homes stayed on the market for less than a month, according to the report.

First-time buyers comprised 33% of sales in March, up from 32% in February and 30% in March 2018.

Broken out by region, sales fell 2.9% in the Northeast and dropped 7.9% in the Midwest. In the South, sales decreased 3.4% and in the West sales fell 6%, according to the NAR report.

“The numbers that came out today make sense in terms of overall fundamentals in the housing market – it was the previous three months of numbers that were crazy,” said Joshua Shapiro, chief economist at consulting firm Maria Fiorini Ramirez in New York. “We had two months of overly weak numbers followed by February’s overly strong numbers.”

Some of the prior gyrations could have been caused by unexpected factors such as the government shutdown, Shapiro said. That might have caused January numbers to be weaker as some government-backed mortgages couldn’t get approved, followed by a “make up” in February, he said.

“By definition, when you have seasonally adjusted numbers, you are only adjusted for things that occur regularly,” Shapiro said.

Fannie Mae, the largest mortgage-finance company, forecasts U.S. home sales in 2019 will match last year’s 5.34 million, even with lower mortgage rates. For all of 2019, the rate for a 30-year fixed mortgage probably will average 4.2%, down from last year’s 4.5%, Fannie Mae said in its April forecast. Home prices probably will increase 4.6% this year, a slower pace than last year’s 5.7% gain, Fannie Mae said.

The average rate for a 30-year fixed mortgage was 4.17% last week, about a third of a percentage point below the 4.47 percent a year earlier, according to Freddie Mac. The rate probably will average 4.2% for the current quarter, rising to 4.4% by the end of the year, according to a Mortgage Bankers Association forecast.


Those who sold in Q1 pocketed an average of $57,500

for sale

Home prices are appreciating, and home sellers are realizing a sizable return on their investment as a result.

Those who sold their homes in the first quarter of 2019 made a 31.5% return, pocketing an average gain of $57,500, according to the latest from ATTOM Data Solutions.

 

While home seller gains are down from Q4 2018’s $60,000, they are still up year over year, when price gains averaged $56,733, ATTOM noted.

According to the report, these were the areas with the highest home seller returns:

San Jose, California: 84.1%
San Francisco, California: 70.9%
Seattle, Washington: 63.1%
Modesto, California: 59.7%
Salt Lake City, Utah: 56.5%

attomAlso, 59% of the 129 metros analyzed in the report saw median home prices rise above pre-recession peaks, with the top five highest prices reported in Colorado and Texas (click to enlarge the chart to the left).

ATTOM’s data revealed that all-cash home sales comprised 28% of all single-family and condo sales in Q1, up slightly from 27.7% in the previous quarter but down from the 28.9% observed one year ago.

Meanwhile, the share of sales made by institutional investors was down across the country, falling to 1.8% in Q1 from the previous quarter’s 3.7%.

The areas with the highest share of institutional investor sales in Q1 were Columbia, South Carolina; Atlanta, Georgia; Charlotte, North Carolina; Memphis, Tennessee; and Las Vegas, Nevada.

“We are starting to see homes sales prices and profit margins softening for the nation,” said Todd Teta, ATTOM’s chief product officer. “However, home prices are still above pre-recession peaks in 59 percent of local markets, and as the buying season starts to kick into gear, the next few months may provide even more answers to the question of whether a lasso is indeed around the market or if the recent trend is a temporary bump in the ride.”

 


Instead, the slowing economy will trample homebuyer confidence and home-price growth will fall

aerial neighborhood houses

Mortgage rates have dropped significantly as of late, with the 30-year fixed coming in at an average of 4.08% this week.

The development has spurred activity in purchase mortgage applications as homebuyers act now to take advantage of the low rates while they’re here.

 

But analysts at Capital Economics warn against getting too excited about the possibility that low rates will heat up the housing market.  

“Mortgage interest rates have dropped sharply since the end of last year, and the 30-year fixed rate is set to fall to 4.2% by the end of 2019,” analysts wrote. “But that won’t spur a significant rise in housing market activity.”

Why?

Blame the slowing economy.

“That will hit homebuyer confidence, and with inventory levels still low that implies existing home sales will do no more than tread water over the next year or so,” the analysts wrote.

Tempered housing demand will cause home prices to continue to slow, the group said.

Price growth slowed to 5% in 2018, and Capital Economics predicts it will land around 2% by year’s end and close out 2020 at 0%.

But things will look up from there.

“An improving economy, coupled with low interest rates, will lead to a resumption in growth 2021, and we expect a rise of around 3%.”

The group also predicts that mortgage rates will end up around 4.2% by late 2019.

But as the economy’s slowdown begins to right itself in 2020, mortgage rates will again creep upward, the analysists predicted, with the 30-year fixed landing around 4.7% at the end of 2021.

But while the housing market won’t exactly see the flurry of activity some had hoped for, Capital Economics said that new home sales will find some support this year in the shift toward building cheaper starter homes, which are currently in short supply.

“Lower lumber prices will support a shift to cheaper homes and, alongside upbeat homebuilder sentiment and the relatively bright outlook for new home sales,” the group wrote, “that should enable a decent rise in single-family housing starts over the next couple of years.”




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