Interest rates continue to drop, mortgage rates are going down however inventory is low, and prices continue to rise.
According to Gay Coraraton, Senior Economist & Director of Housing and Commercial Research at the National Association of Realtors, pending home sales (contract signings) in January increased over 5% compared to December. Contributing factors to this include good job growth and lower mortgage interest rates.
December and January have seen the lowest levels of inventory in the market . Housing Starts (new housing units starting construction) are hovering around 1.5 -1.6 million which is an indication of supply beginning to increase compared to last year.
So how does this affect you as a homeowner?
It is a strong start to the year and if it continues we should see easing of prices.
If you are considering selling this may be an ideal time before prices begin to drop.. The inventory is tight and it is somewhat easier for qualified consumers to get a mortgage now. Sellers may have an advantage.
Perhaps you are considering downsizing or moving to a condo. The flip side is that by selling your home now you become one of the Buyer’s shopping for a new place in a competitive market.
You may want to consider selling your house with a Leaseback. That way you can take advantage of the strong Sellers market now and wait to make your next purchase once the prices loosen up. In the meantime you can enjoy the flexibility that comes with being a renter, living in the same home.
By: Arlyne Cassuto