By Michael Ardolino, Broker-Owner, Realty Connect USA
Early Fall, 2014
Here’s where we stand:
Mortgage rates remain at historic lows. The Federal reserve recently reiterated that it intends to keep rates low for a considerable time.Recent reports from both Case-Shiller and CoreLogic found that nationwide, prices are still increasing, but at a slower pace. Both trends bode well. Here are some additional factors:
- Nationally and locally, there is still pent-up demand. As noted by Altos Research, “Demand remains high, transactions happen very quickly….the American consumer is anxious to again buy real estate.” Sellers, this is a great time to list. Don’t miss the boat: Price your home correctly, from the outset.
- Locally, we have 7.9 months worth of inventory. Six months worth represents a balanced market; double digits indicate a declining market. A few years ago we had a 15-month supply. (See Exhibit 1.)
- Whether you are a first-time buyer or a seller moving up, take note: The average annual price increase over each of the next 5 years, nationally speaking, is projected to be 2% -3%, possibly more. This represents the steady growth of a healthier market.
- Mortgage rates are projected to surpass 5% by the middle of 2015, meaning decreased buying power. Savvy buyers will move forward now.
- As Newsday recently reported, LI job growth accelerated in August. This key component to recovery will allow more millennials to buy homes and more current owners to move up. A homeowner’s net worth is 30 times greater than that of a renter.
- FICO’s new method of calculating credit scores could broaden access to home loans for millions of Americans.
Today’s market offers great opportunity for both sellers and buyers. The fundamentals are positive and continued steady improvement is expected. If you need help planning your strategy to sell or buy, feel free to contact me at 631-941-6262 or Michael@Ardolino.com.
I’m always happy to share helpful real estate information, by publishing educational newsletters, speaking at real estate forums, and arming people with all the data they need to make confident, informed real estate decisions.