10% Jump in September Existing Home Sales

Existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, rose 10 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 million-unit pace in September 2009 when first-time buyers were ramping up in advance of the initial deadline for the tax credit last November.

Lawrence Yun, NAR chief economist, said the housing market is in the early stages of recovery. “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.35 percent in September from 4.43 percent in August; the rate was 5.06 percent in September 2009.

The national median existing-home price for all housing types was $171,700 in September, which is 2.4 percent below a year ago. Distressed homes accounted for 35 percent of sales in September compared with 34 percent in August; they were 29 percent in September 2009.

NAR President Vicki Cox Golder said opportunities abound in the current market. “A decade ago, mortgage rates were almost double what they are today, and they’re about one-and-a-half percentage points lower than the peak of the housing boom in 2005,” she said. “In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record.”

To illustrate the jump in housing affordability, the median monthly mortgage payment for a recently purchased home is several hundred dollars less than it was five years ago. “In fact, the median monthly mortgage payment in many areas is less than people are paying for rent,” Golder said.

Housing affordability conditions today are 60 percentage points higher than during the housing boom, so it has become a very strong buyers’ market, especially for families with long-term plans. “The savings today’s buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home – this is truly an example of how home ownership builds wealth over the long term,” Golder added.

Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.

“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers. A normal seasonal decline in inventory is expected through the upcoming months.”

A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in September, almost unchanged from 31 percent in August. Investors were at an 18 percent market share in September, down from 21 percent in August; the balance of purchases were by repeat buyers. All-cash sales were at 29 percent in September compared with 28 percent in August.

Single-family home sales increased 10 percent to a seasonally adjusted annual rate of 3.97 million in September from a pace of 3.61 million in August, but are 19.5 percent below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in September, down 1.9 percent from a year ago.

Existing condominium and co-op sales rose 9.8 percent to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago. The median existing condo price was $165,400 in September, down 6.2 percent from September 2009.

Existing-home sales by region:

Northeast – increased 10.1 percent to an annual pace of 760,000 in September but are 20.8 percent below September 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.

Midwest – jumped 14.5 percent in September to a level of 950,000 but are 26.4 percent below a year ago. The median price in the Midwest was $139,700, down 5.2 percent from September 2009.

South – sales rose 10.6 percent to an annual pace of 1.77 million in September but are 14.9 percent lower than September 2009. The median price in the South was $149,500, down 2.6 percent from a year ago.

West – increased 5.0 percent to an annual level of 1.05 million in September but are 16.7 percent below a year ago. The median price in the West was $213,600, which is 4.9 percent lower than September 2009.

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He can discuss the Real Estate Market in Colorado Springs with you and the benefits of Purchasing a Home for Sale in Colorado Springs!

Source: NAR

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Top 10 Smart Things to Do When Buying a Home

1. Get to Know Financing Extremely Well—Financing a home can be a very difficult and confusing process. Go to an experienced, successful Lender! Let them educate you on the advantages and disadvantages of each type of mortgage. Ask questions so you fully understand what loan would best meet your financial objectives.

2. Find an Agent Who is Aggressive— It is important to have a ‘Buyer’s Agent’ who works for you. You want someone who is experienced. You want a straight shooter who will tell you that a home is a bad deal when it is. They are your advocate through this process.

3. Don’t Sign a Contract Immediately—You must have a good feeling about your Realtor. If you feel pressured to sign a Buyer’s Agency Agreement upon your first meeting, this is not the person for you. You should have the opportunity to work with that Realtor one or two days prior to signing an agreement. This needs to be a mutually beneficial relationship in which you are confident you are working with someone who is compatible and has your best interest in mind.

4. Know the Home Prior to Buying It— There is so much information available on every home for sale. Before making an offer, make sure you know: How long has the house been on the market? What have comparable homes in the area recently sold for? Has there been a price reduction? What did the Sellers pay for the home? How long have the Sellers owned it? Has there been work done to the home without proper permits pulled? Your Realtor should provide you with this information.

5. Drive the Work Routes in Rush Hour BEFORE You Look at the Houses in a Particular Neighborhood— Know the neighborhood ahead of time. Some homes are worth an extra 10 minute commute.

6. Look Slightly Above and Below Your Price Range— It is always a good idea to see as much as possible. The PERFECT home may be $2000 below or above your identified price range. This $2000 may be negotiated in the sales price.

7. Look Ahead of the Curve—Always try to buy in an area that is ‘hot’ or about to be ’hot’. That’s where the best appreciation is. Location is the single most important factor in resale. Remember that you don’t make your money when you sell your home. You make it when you buy a great investment that will appreciate.

8. Buy Newer if Possible— Newer homes have modern designs and features that older homes don’t have. They appreciate faster and cost less to maintain. Older homes have their charm, of course, but be prepared to pay the price of higher maintenance and utility bills. However, New Builds may not be the answer. There is tremendous cost with new homes: landscape, fencing, sprinkler systems, and window coverings are just the beginning!

9. Drive By Everything—Ask your agent to print out everything in your price range in the areas that interest you. Then drive by everything. This allows you to see everything on the list and narrow down the list. You can’t buy a home from the outside, but you can say no to it. Drive-bys allow you to get an idea about the neighborhood.

10. Get a Good Home Inspector—You want a home inspector who is excellent at identifying major problems yet does not write up nonsense items that just scare the buyer and irritate the seller. Ask your Realtor for recommendations.

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Shopping for a Home for Sale in Winter

If you've been thinking about buying a home for sale in Colorado Springs, winter is the time to start getting serious. Here are a few reasons to brave the cold and go on a house hunt:
The winter season has fewer homes for sale in Colorado Springs on the market, and sellers tend to need to move from their property. You can use that to your advantage to get a favorable deal.
Winter has fewer buyers in the market at Homes for Sale in Colorado Springs. Looking for a home in the winter can be inconvenient, and people are less likely to move. Families also tend to be on a September to June cycle because they are unwilling to move their children to a new town in the middle of the school year. Fewer buyers means less competition.

Lenders also usually have fewer loans to process and less paperwork to deal with (though this can change quickly if rates fluctuate). With lenders less hassled, you can expect a smoother process to get approved for a mortgage. But, there are exceptions to this rule, most notably in warmer parts of the country (especially Florida), ski towns, and in parts of the country where demand is so strong that it will not slacken during the winter months.
Finally, as all savvy shoppers know, after the holiday season comes the season of bargain opportunities. This includes houses, as well.

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