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Happy New Year!
Recently we have been hearing about various levels of the Housing recovery in the news locally and nationally. While it is 100% happening now, the degree and the pace are still really unknown. As I monitor house values in all areas locally, I find real data to support these national reports. So, maybe good news for us all. Below are the articles you might find interesting.
Do you know anyone who may need my help with real estate – personal home or investment property?
New-home sales rose in November, recording their strongest pace in more than 2 years, another sign of improvement in the housing market.
The Census Bureau reported Thursday that sales of new homes rose to an annual rate of 377,000 in the month, up 4.4% from October, and up 15% from year-earlier levels. It was the highest rate of new-home sales since April 2010, when sales were inflated by a temporary $8,000 tax credit for home buyers.
The housing market is now showing numerous signs of improvement, including better existing home sales and home construction.
A combination of near record low mortgage rates, lower unemployment and a drop in foreclosures means there are more buyers interested in purchasing, and fewer available homes. That in turn has lifted home prices.
Related: Five signs to look for in housing
Those supply-and-demand dynamics are especially true in the new-home market.
There was only a 4.7 month supply of new homes on the market in November, the same tight inventory as has been the case in four of the previous six months. The last time there was a tighter supply of new homes available was in October 2005, near the height of the housing bubble.
The tight supply has lifted the median price of a new home sold in November to $246,200, up 14.9% from the comparable price a year earlier.
Anika Khan, senior economist with Wells Fargo Securities, said the report was stronger than expected, especially for what is traditionally a slow month for home sales. She said new-home sales and construction are becoming a more important driver of overall economic growth, which is even more important with the economy facing other headwinds such as a cutback on business investment and consumer worries about the fiscal cliff.
"New-home sales is a good story and it will continue to be a good story," she said.
New-home sales can be more important to the economy than sales of previously owned homes since they require purchase of other goods, such as appliances, and because of the construction jobs needed to build the homes.
The Perfect Real Estate Market for First-Time Home Buyers
If you are a first-time home buyer who has been looking for the perfect opportunity to buy a new home, then the time is now. The current real estate market is perfect for everything from buying a new home to investing in the real estate market, which is why first-time home buyers and investors have been going head to head and competing for the best real estate on the market.
Why, exactly, is now a great time for first time home buyers to purchase a new home? From incredible deals on foreclosure and short sales to low interest rates and a projection for rising home prices in the future, now is the perfect real estate market for first-time home buyers.
Short Sales and Bank-Owned Homes
If you are a first-time home buyer looking to buy a new home in the current real estate market then you are more than likely looking for the best deals possible. Fortunately, with the number of foreclosures and short sales on the market, you can find discounted properties that are well below market value, which essentially allows for a lower monthly mortgage payment.
In fact, with the tax break on short sales that allows struggling homeowners to avoid paying federal taxes on their unpaid mortgages set to expire December 31, there are a ton of short sale properties currently on the market. Therefore, if you are in the market to buy your first home then start looking today, especially if you are interested in short sales and other distressed properties.
Plus, with mortgage rates still remaining incredibly low, there is nothing better than for a first-time home buyer to be able to purchase a home below market value and secure an incredibly low mortgage rate. This is the perfect recipe for a low monthly mortgage payment.
Rising Home Prices
Some people may be wondering “Why now?” The simple answer to that question essentially revolves around one thing: home prices. Home prices have already started to rise as the real estate market makes progress toward recovery; however, predictions for 2013 include home prices continuing to increase as the real estate market strengthens. Therefore, if you are looking to buy a new home for a discounted price, then do so now before home prices rise.
In conclusion, with the high number of distressed properties (including short sales and foreclosures) still on the market and low home prices (coupled with low mortgage rates), now is the perfect time for first-time home buyers to obtain a new home for well below market value and secure a lower mortgage payment. So, if you are a first time home buyer, start your search for your dream home today!
