Home Sales Up, Inventory Down
Existing Homes Sales Up, Inventory Down
Demand for existing homes is on the rise, according to a December report published by The National Association of REALTORS (NAR). Existing-home sales rose 5.6 percent in November to a seasonally adjusted rate of 4.68 million units. These transactions, which include single-family, townhomes, condominiums and co-ops, have risen steadily since bottoming in July of 2010.
Lawrence Yun, NAR chief economist, is optimistic about the direction of today's market. "Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable," he said.
Total housing inventory fell 4 percent in November to 3.71 million existing homes available for sale, representing a 9.5 month supply at today's current sales pace. NAR President Ron Phipps explains that even with reduced inventory, winter buyers can find good opportunities. "Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months," he said.
First-time home buyers accounted for 32 percent of existing homes purchased in November, down significantly from the 51 percent share in November 2009 when first-time buyers were anxious to take advantage of the expiring tax credit. Investors were responsible for 19 percent of November transactions, while repeat home buyers accounted for the remaining balance.
Mortgage Rates Inch Upward
As the real estate market continues its recovery, Freddie Mac reported that mortgage interest rates have inched upward from the record low of 4.23 percent in October. The national average commitment rate for a 30-year, fixed-rate, conventional mortgage rose to 4.3 percent in November; the rate was 4.88 percent in November 2009. NAR chief economist Lawrence Yun expects affordable financing will continue in 2011. "In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009," Yun said. "Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit."
When selling your home in the winter, the art of staging the inside becomes more important. Here are five simple tips that can help you sell your home shine even when the outside landscaping has faded:
- Keep your house warm. In the winter people tend to turn the thermostat down to save money, however a warmer house is more welcoming to a potential buyer.
- Clear your walkways and driveways of any snow or ice. Make it easy for buyers to get to your home.
- Clean the windows and blinds. Letting in the natural light can brighten up a room and cheer up the home. This also brings attention to the windows and blinds so make sure they are clean even during winter. Dirty windows will make the home seem as those it's not well maintained.
- Background music played softly can completely change the atmosphere making the home seem cozy and keep potential buyers around longer. Stick with classical music which can appeal to anyone.
- Leave the light on. Before showing a home, make sure it's well lit. A well lit home is more inviting. If you're not home, consider setting up timers.
