The latest report of the Case Schiller Home Price Index published in May, 2017, indicates that sooner is better when it comes to buying a house. Why? Twenty major metro areas have seen home prices increase 5.7% over last year. If this increase holds true, a house that costs $200,000. this year will cost $211,400. next year.
Obviously, there are multiple factors that influence home prices such as location, inventory supplies, demand, influx or not of new residents. Just take a look at the different appreciation rates in these cities..
Seattle – +13%
Boston – +6.1%
Miami – +5.7%
Chicago – +3.6%
Overall projections regarding mortgage rates in 2018 come down to 4.3% though Fannie Mae and Freddie Mac are expected to be 3.8% and Mortgage Banker’s Association is anticipated to be 4.8%
It’s definitely worthwhile for your buyers to shop around for best available rates. It’s also worthwhile for your buyers to research various loan packages that offer different down payment options as well.
Remind your buyers that in this market most everywhere around the country that low inventories drive up home prices. As of May, 2017, there were just 1.9M homes for sale, a decrease of 8% from last year. Also as of May, 2017, year over year prices have risen 63 months in a row. Lawrence Yun, chief economist with the National Association of Realtors, said, “Home prices keep chugging along at a pace that is not sustainable in the long run.”
Despite sales increasing 1.1% from April, 2017 to April, 2017, the number of homes sold and the number of homes available for sale are nowhere near where they need to be in order to satisfy the demand for both new and existing home sales. As a consequence, the number of days a home remains on the market has plummeted to record lows
Words to wise agents and buyers…homes continue to be more affordable today than they were in the mid 2000’s, 33% more affordable; buy now, don’t wait; be pre-approved and be ready to act fast on a house that suits your fancy as well as your needs. There is no such thing as perfect, even in houses.