Posts tagged ‘home prices’

August 27, 2013

INFOGRAPHIC – Confidence in the Market Jumps Sharply

Confidence in the real estate market is on the rise, and millennials still believe in the American Dream. However, there is a knowledge gap that calls for advice and guidance from real estate professionals. Consumers have their eyes on interest rates.

Prudential Real Estate Q2 2013 Consumer Outlook Survey Infographic

Prudential Real Estate, an HSF Affiliates LLC company, and Prudential Homesale Services Group released results of their second quarter Consumer Outlook Survey indicating that millennials are increasingly optimistic about residential real estate. A full 80% of respondents ages 25-34 said their perception of the housing market is “favorable” or “somewhat favorable,” representing a 9 percentage point increase from the Q1 study.

Among all respondents, the national survey also found that confidence in real estate and home values jumped sharply, reaching 83% vs. 77% in Q1 study and 73% at year-end. Confidence is highest in both South and West regions at 84%.

“Young Americans, like the majority of survey participants, are feeling much better about homeownership,” said Earl Lee, chief executive officer of HSF Affiliates LLC and president of Prudential Real Estate. “People are looking optimistically at housing for all right reasons – a place to feel secure, build a future and raise a family.”

Among all respondents, 70% said that finding the right home and community is crucial to family happiness. Millennials were even more emphatic about the emotional side of homeownership: 93% favor a home for “more space for my family,” while only 75% view it as “financial security to borrow against.”

“Consumers are mindful of the challenges faced during the real estate downturn,” added Earl Lee, CEO of HSF Affiliates LLC and president of Prudential Real Estate. “Though homeownership makes a solid, long-term investment, a home should never be considered a siding-clad ATM.”

-more-

Mortgage and Rate Watch
On securing a mortgage loan, consumer sentiment continues reflecting the challenges people face through strict underwriting guidelines and credit-score requirements:
•    57% of respondents said securing a mortgage is more difficult than it ever was prior to the market crisis.
•    Nearly 40% said lenders are “overly cautious” when it comes to mortgage financing.
•    Anxiety and fear of losing a real estate opportunity are respondents’ main emotional challenges in seeking home financing.
•    With rates rising recently, 71% said they are encouraged to buy a home now rather than later. It is worth noting that 78% of respondents indicated that homeownership is valuable regardless of shifting rates.

While 65% of respondents said they watch rates closely, there is confusion about recent rate trends. Among those who claim to watch rates closely, 43% believe that rates are holding steady or falling, though rates have risen so far this summer.

The knowledge gap calls for advice and guidance from real estate professionals to help people make the best choices. Of survey respondents, 63% indicated that a good agent can help them make the right choices about the type of home and community they want. And having a trusted source of information and guidance is important to 64%.

“Our survey shows that Americans who are looking to find and purchase a home remain positive about their prospects, and they’re looking to the guidance of quality real estate agents to navigate the entire process,” said Stephen Phillips, chief operating officer for HSF Affiliates LLC. “Home buyers are more informed than ever with their Internet searches and ongoing research; however, there’s a critical need to transform that information into analysis and advice that helps consumers make the best home-buying and selling decisions.”

The full survey details are available upon request. An infographic illustrating survey findings can be seen above.

Prudential Real Estate Outlook Survey Methodology
Interviews with 2,600 Americans who are “in the market” to buy or sell a home were conducted online by Edelman Berland in June-July 2013, Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home. The margin of error is ± 2.0% for all respondents.

May 13, 2013

Is it Your Time to Sell??

righttimetosellYes, it looks like it might finally be the right time to put the For Sale sign in your front yard! Rising home prices and lower inventories are creating new opportunities for home sellers; sometimes even bringing multiple offers to purchase on the same home, as buyers become more confident and try to take advantage of lower interest rates.

Read on to discover more reasons why you should list your home NOW instead of waiting…

  • PricesHomes prices are slowly making a comeback. However, it is still your best bet, to price your home reasonably from the beginning. A newly listed home will have its largest viewing audience the first few days on the market and a properly priced home could see 8+ showings that first week!
  • Inventory – The supply of homes is at its lowest point since 2005! Typically, the home inventory increases in the spring season. A stronger demand from buyers and a currently low inventory of homes could help you get your desirable sale price!
  • New Construction – The home building industry took a hard hit the past few years, but it is showing signs of making a recovery. Builders are becoming more confident and more active, creating competition for sellers of existing homes.
  • Household changes – Family formations are changing and growing, creating a need for “move up” homes. Rental occupancy is also nearing all-time highs. And those that may have fallen on hard times are getting their credit repaired; creating buyers who are more than ready to purchase!
  • Interest Rates rising? – It has been projected that interest rates may start to inch up during 2013. This possibility is enough reason to push some homebuyers off the fence and onto the path of becoming homeowners.
  • Selling faster – Statistics also show that homes are selling faster. The average days a home was on the real estate market in January was 71, compared to 99 days on the market one year ago!

Once you’ve made the decision to sell your home, here are some other items to consider:

 Find the right agent – Interview several, until you feel confident that you have found the right match!
 Clean it up – Clean and prep your home right away: do a little painting, some carpet cleaning, and make minor updates. You want your home to make a great first impression!
 Consider offers carefully – especially competing offers. Consider ALL terms of the offer, not just the sale price. Things to think about……closing date, inspections, cash down, appraisals, etc.
 Plan for the appraisal – Provide the appraiser with comparable sales in your area and be sure to point out special features of your home they might miss!

Happy Selling!!!

Homes for Sale in Maryland and Pennsylvania Real Estate from Prudential Homesale. Looking to sell your home? Contact a Prudential Homesale Real Estate Agent today.

May 2, 2013

Market Changes for 2013

marketchangeWith it looking like the real estate market is in recovery-mode, a lot of individuals are making the leap into buying or selling a home. The housing market is very different than it used to be; even as recently as six months ago. Read on to discover some of the ways it has changed since 2012 and what the changes may mean for you, as a buyer or seller.

  • Fewer Distressed-homes for Sale – With the mortgage crisis fading, so are the cheap deals for buyers. Some of this is due to a back-log in the processing of foreclosed homes. Other reasons include banks giving homeowners more opportunities to keep their homes, some are being auctioned as rentals, and finally a large number of homes are being sold off in portfolios to investors rather than being listed for sale to individual buyers. This is all good news for sellers who should see an increase in their neighborhood property values.
  • More New Construction – Due to lower interest rates and an upswing in hiring, the market is seeing more activity by builders. Many buyers are welcoming the chance to buy new and have it designed their way. However, the prices for new homes are also increasing. A greater supply of new homes in the future could help slow the pace of the increases.
  • Lack of Inventory – Rates are good, but the home selection is not. The supply is the lowest it has been since the fall of 2005. Many homeowners still cannot get a sale price high enough to cover their debt and provide enough money to put down on a move-up home. This should change during the year. A high demand, low interest rates, and slowly increasing home prices should prompt more sellers to list their homes. Word to the wise, if you find a desirable home, move quickly or someone else will!
  • Higher Home Prices – A slight improvement in the economy and lower interest rates are boosting buyer demand, decreasing the supply, and helping to raise prices. The past few months have shown a steady incline in the price of homes. The increases should be a bit more restrained this year, which is good news for buyers.
  • Luxury Home Sales Stumble – Due to the capital gains tax increase in January, a lot of luxury homeowners rushed to sell their homes before the hike. Due to this mass sell-off and home buyers taking advantage of it, a slowdown is expected on luxury home sales this year. High-end buyers will have less to choose from, but will also have less competition.
  • New Mortgage Rule – A new rule to protect buyers has been announced by the Consumer Financial Protection Bureau. Not effective until 2014, many lenders will be putting it into place this year. It will require buyers’ financial information to be supplied and verified, along with their debt-to-income ratio. Buyers will no longer be allowed to purchase homes they cannot afford. Lenders can no longer offer a “teaser” rate on mortgages to mask the true rate of the loan and Lenders must also ensure that the loan has no excessive points, fees, or “hidden” features where the principal amount increases.
  • Home-Equity Loans Make a Come-back – These rates have fallen as well, allowing homeowners to do some long over-due remodeling. Gradually, lenders are becoming more willing to do these types of loans with the increase in home value; giving current homeowners more financing options.
  • Rates Could Rise – After reaching record lows, rates are expected to increase slightly in 2013. Costs associated with certain types of loans may also see an increase. These small changes are not expected to deter buyers.

After years of bad news, the future of real estate is finally starting to look a little brighter!!

April 15, 2013

Q1 Consumer Outlook Survey (Infographic)

Consumer confidence in real estate and home prices reaches a year-long high. Buyers and sellers are motivated entering the spring buying season.

q1-info-graphic2013

Want more information on today’s real estate market? Contact a Prudential Homesale Real Estate Agent today.

January 25, 2012

Where Will Housing Prices be in the Spring?

Sellers are often under the assumption that they should wait until spring before putting their home on the market.  They believe that they will attract more buyers and sell their home at a higher price.  Typically, this makes sense.  However, the foreclosure properties that are being released by the banks will affect the market.  It is believed that this increase in the supply of homes will prevail over buyer demand, and cause home prices to decrease

“U.S. foreclosure activity has been mired down since October of 2010, when the robo-signing controversy sparked a flurry of investigations into lender foreclosure procedures and paper work. While foreclosure activity has registered well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up.” –RealtyTrac 

With today’s market, you may get a better price for your home by selling now, instead of waiting until spring!

Visit www.PrudentialHomesale.com to find an agent.

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