New Homes Get Costlier to Build – Is this good news for sellers?

According to a new report by the National Association of Home Builders, construction costs for single family homes are at the highest levels since 1998. Lumber prices jumped 40 percent between April 2011 and April 2013.

What does that mean for you, the seller?

That’s actually good news. Typically, resale home prices trail new construction prices. So if new homes cost more, your home price will also go up.

Is this a good time to sell your home? Here are some facts:

1.      Interest rates are rising – today’s rate is 4.375% (from Wells Fargo) as opposed to 3.77% in January 2013. Which means that for a given monthly mortgage payment, buyers will have to settle for slightly smaller homes or with less features.

2.      There are fewer homes on the market as compared to previous years.

3.      We are seeing more and more boomerang buyers. These are people who went into foreclosures or bankruptcy 3 – 5 years ago and are back in the market to buy homes.

In the last 3 years, homeowners have tried to sell their homes but could not get the price they wanted. This spring may get you a better price.

Do you need a new market analysis? Call me at 803-348-9922 or email me at vsashikant@gmail.com for a FREE market analysis.

 

For... All Real Estate Matters!

 

 

Happy New Year!

We are now officially in 2014! Last year whizzed by just like years before that. What does 2014 hold for the real estate market?

1. Mortgage interest rates are edging higher, but 4-5% is still a far cry from 8%.

2. Home prices are also edging up, but not very much in Columbia.

3. Fewer homes for sale making it a sellers' market.

4. Not as many investors as home prices go up.

5. Plenty of boomerang buyers looking for homes.

So... if you are planning on selling your home, now's the time! Call now for a free evaluation of your home.

 

Call me on 803-348-9922 or email me at vsashikant@gmail.com.

 

For... All Real Estate Matters!

Boomerang Buyers: The Newest Group of Home Buyers to Hit the Market

According to reports, “boomerang buyers” are the latest new buyer group to emerge. These are former homeowners who had gone through a short sale, foreclosure or bankruptcy in the past few years and are now ready to buy a home.

So, how soon can they buy a home?

Past homeowners who had FHA loans may need to wait only three years provided they can prove that a hardship, such as job loss or death of a wage earner, led to their foreclosure or short sale.

Freddie Mac’s wait time is usually four years following a short sale or deed-in-lieu, and seven years after a foreclosure. Fannie Mae may require a seven-year wait for a foreclosure, but only a two-year wait following a short sale as long as the borrower can provide a 20 percent down payment.

Most lenders required buyers to wait 5 – 7 years to qualify for another loan, but mortgage giants have begun to change their rules to allow homeowners who underwent a foreclosure or short sale to qualify sooner. For those who underwent a short sale, it may be sooner.

Question is why would homeowners with such past histories want to buy again?

General conception is that renting a home is akin to throwing money away, and with a more stable economy, pride of homeownership has raised its head again.

But the 3 most important reasons cited are:

• Rents are on the rise
• Interest rates are on the rise
• Home prices are on the rise

Boomerang buyers are coming. Most have saved up for a down payment and qualified to purchase a home again. The hardest hit areas of 2008 – 2010 will see the most. That includes South Carolina.

Which is good news indeed!

Source: Realtor Magazine, July 2013