Friday, September 30, 2016

Lack of Existing Home Sales Inventory Impacting Sales [INFOGRAPHIC]





































Some Highlights:

  • Existing home inventory is down 10.1% from last year.
  • A lack of inventory explains the modest increase in home sales (0.8% year-over-year) despite strong buyer demand.
  • Existing home prices increased 5.1% year-over-year, which is directly related to the lack of inventory.
For more information on the housing market and personalized help buying/selling your home, visit teamwickham.com!

Thursday, September 29, 2016

Home Sales Expected to Increase Nicely in 2017

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The National Association of RealtorsThe Mortgage Bankers’ AssociationFreddie Macand Fannie Mae are all projecting that home sales will increase in 2017. Here is a chart showing what each entity is projecting in sales for this year and the next.
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As we can see, each is projecting sizable increases in home sales next year. If you have considered selling your house recently, now may be the time to put it on the market.

For more information on the housing market and personalized help buying/selling your home, visit teamwickham.com!

Wednesday, September 28, 2016

US Housing Market Moving Further into ‘Buy Territory’



According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment.
The BH&J Index is a quarterly report that attempts to answer the question:

In today’s housing market, is it better to rent or buy a home?

The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.” 
Ken Johnson, Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors explains that:
“Housing prices, in general, continue to slow and when considered in light of the recent trends in the Buy vs. Rent Index signal that ownership remains an excellent investment for the majority of Americans.”
While 15 of the 23 metropolitan markets examined moved further into buy territory since last quarter, Dallas, Denver, and Houston are three of the major cities that are currently deep into rent territory. In these three markets, it is estimated that renting will top homeownership 7 out of 10 times.
Eli Beracha, Ph.D., Assistant Professor in the T&S Hollo School of Real Estate at FIU,believes that, in these three markets, the strong odds in favor of renting to create more wealth should begin to have an impact on the demand for home ownership and from that, impact property prices in these areas.”
Simply put, home prices in these areas will begin to return to more normal levels once residents realize that renting may be a better choice, therefore bringing home affordability back as well.

Bottom Line

The majority of the country is strongly in buy territory. Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now.

For more information on the housing market and personalized help buying/selling your home, visit teamwickham.com!