Home sales hit fastest rise in more than a year

Home sales hit fastest rise in more than a year

buying-a-home11Sales of existing-homes rose by 1.5% in October according to the National Association of Realtors (NAR). Last October previously-owned homes reached its highest annual pace of the year as buyers continue to be encouraged by interest rates at lows not seen for a long time.

This numbers also represents the first yearly gain since October 2013. The median existing-home prices posted as well an increase compared to October 2013. From the previous year, October’s median price of $208,300 was up 5.5%, marking the 32nd straight month of yearly improvement.

The National Association of Realtors tracks completed transactions of single family homes, townhomes, condominiums and co-ops each month, dubbing this group “existing-home sales.” As the housing market crashed back in 2008, NAR also began tracking the share of home sales that were distressed (foreclosures and short sales).

In October distressed home sales declined to 9% of the total, hitting the single digits for the third month in 2014. One year ago, distressed sales accounted for 14% of the market. Foreclosures account for 7%, and short sales 2% total average. The share of homes purchased for all-cash buyers in October accounted for 27%, compared to a 31% in October 2013.

First-time buyers remain a smaller slice of the market than the historic norm, at 29% in October for the fourth straight month. First-time buyers have represented less than 30% of the buyer pool in 18 of the past 19 months.

Inventory levels declined by 2.6% in October to a supply of 2.22 million existing-homes available for sale the lowest level since March, but 5.2% higher than a year ago, when there were only 2.11 million existing-homes for sale.

We still need an increment on housing inventory. However, Government-sponsored enterprise Freddie Mac has projected a 20% gain for inventory between 2014 and 2015, which will help supply. Let’s make it happen.

Advertisements
What’s  better buy?  A New or Used Home.

What’s better buy? A New or Used Home.

There are several factors beyond economics that drive this decision, and there is not a specific answer for it. Buying a new home or resale home is more of a life style. It is to decide best what fits your needs, comfort and personality.

So how do you decide?

For once keep in mind that for every qualifier, there is a disqualifier.

You will find good arguments for buying a new home; however you will find also great arguments to buy a resale home.

The truth is that every house has its own unique attributes that will match your personality and needs. On the other hand, builders can never fully re-create the nation’s quaint old neighborhoods, where every house was built architecturally distinct from the neighbor’s. And home buyers will never be able to fully assemble their dream homes the way they want unless they customize the home starting from scratch. So the choice between the two is always a relative call.

First of all, the well-known phrase in real estate: Location, Location, Location should continue at the top of our list. Older homes usually are located in the town’s center of well stablished neighborhoods, which can be good or bad depending on the vitality of your urban area.

Existing homes are usually less expensive per square foot. In new homes although Prices can be more  negotiable than an existing homes, there may be also additional cost under these new subdivisions and homeowner’s association, with mandatory fees and other assessments for architectural controls.

A new development usually offers an opportunity for you to help create your own neighborhood lifestyle. In older communities, people have moved in and out over the years and tend to get more diversity in the neighborhood.

Older homes mean more houses for your money; they may have additional space you can eventually add to the current building structure. On the other hand, new-construction homes often employ more efficient, innovative uses of square footage and property, and may have limited space for future additions.

While new homes are built expressing a modern style, older homes on the other hand can maintain more of classic look, such as Victorian Style Homes for example.

New homes builders have to follow very strict regulations, and are usually more fire-safe structured, and are built with building materials that promote energy efficiency benefits, such as thicker insulation, Energy Star windows, and more efficient energy-saving appliances as well. Older homes, unless they have already undergone an energy retrofit, it will add additional cost to upgrade it. The cost of maintenance goes hand to hand with older homes, especially if the previous owner did not keep up with proper maintenance of the home. Building materials may be harder to replace or match in an expansion or remodeling.

Newer homes tend to impose higher taxes on you because these are new subdivisions, because the community will still need fire and police coverage, sidewalks, sewers and probably a new school, where a more established home in a built-out area has a little more predictable tax structure.

With new and old construction homes, is always recommended to perform a professional home inspection. This is the only way you may be able to find the actual condition of the property; regardless if is a brand new home. It is known that buyers that have purchased brand new homes have discovered defects after purchasing these homes.   Inspect the property before you settle!