Spring-Summer Outlook Says Buy A Home Now
Posted on May 7, 2019 in Home Buying Tips, Market Trends
Over the last two years, homeowners accrued about $21,300 in home equity, $8,700 of which occurred over the past 12 months, according to the National Association of REALTORS (NAR). That’s an average of $10,650 per year, enough to pay back their closing costs and put them almost halfway to eliminating private mortgage insurance they may have.
Equity is only one reason people buy homes, partially explaining why home sales continue to be brisk. NAR Chief Economist Lawrence Yun said that a combination of lower mortgage rates, more inventory, rising income and higher consumer confidence are driving sales.
Meanwhile, prices are rising. In February 2019, the median existing (pre-owned) home price was $249,500, up nearly 4% year-over-year.
However, rising prices aren’t discouraging homebuyers. According to a recent quarterly NAR survey, more Americans believe that now is a good time to purchase a home, citing the improved economy as an incentive. Yun explained that other factors are spurring buyer optimism, including more available homes for sale and stabilizing home price trends. Data gleaned from electronic lockboxes report increased foot traffic at open houses.
Yun also notes that mortgage affordability in 2019’s first quarter was favorable to homebuyers, because the Federal Reserve isn’t going to raise overnight borrowing rates to banks, which contributed to mortgage rate declines and making homeownership slightly more affordable for homebuyers. Mortgage rates remain at historically low levels.
Whatever your reasons for wanting to buy a home, the outlook appears promising, especially if more sellers decide to put their homes on the market.
From Chuck Barry’s May 2019 Issue of the Berkshire Hathaway HomeServices Monthly Newsletter.
© 2019 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Information not verified or guaranteed. If your property is currently listed with a Broker, this is not intended as a solicitation. Equal Housing Opportunity.
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Chuck Barry has continuously been a top producing realtor in the Denver Metro area since 1993. His clients view him as a trusted advisor who understands their needs and will effectively guide them in navigating the current real estate market.
You can find Chuck all over the South Denver Metro area in Douglas and Arapahoe Counties but his main focus is within the Castle Pines and Castle Rock region.
Chuck currently resides in Castle Rock with his family and two dogs.
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