Record Low Interest Rates and Buyer Tax Credits Lead to More Buyers than Sellers on the Market for the First Time in Years, New HouseHunt Survey Shows
Boosted by record low interest rates and homebuyer tax credits, the number of buyers in the market has pulled slightly ahead of the number of sellers in the United States’ housing market.
Forty-four percent of real estate agents polled by HouseHunt.com reported that there were more buyers than sellers in their local market, the largest figure recorded in nearly three years and up 10 percent from the second quarter of 2010.
The number of agents reporting more sellers than buyers in their local market saw a decline of 10 percent to 43 percent, nearly identical to the three year low reported earlier in 2010. Thirteen percent reported that there are an equal amount of buyers and sellers, the same as reported in the second quarter of 2010.
Many agents reported that some buyers are still having a difficult time obtaining mortgages, but well-qualified buyers with good credit, stable employment, and minimal debt are able to purchase.
“These results from our survey point towards a market that is beginning to stabilize,” said Michael Bearden, President and CEO of HouseHunt, Inc. “With the lowest mortgage rates in history, in addition to the lowering of prices, this had created one of the single best times for buyers to purchase in years. The same holds true for investment buyers as well. As we head into the fourth quarter it will be interesting to see how the shadow inventory and the most recent foreclosure moratorium will affect the market in the next few months.”
Other notable findings from HouseHunt.com member-agents in the third quarter of 2010:
- 84% reported that listings are remaining on the market for over 60 days (the largest percentage in nearly two years and up from 77% in 2Q 2010)
- 35% reported an overall annual price appreciation with 20% reporting a 0-5% price appreciation, 9% reporting a 5 – 10% increase, and 6% reporting a 10%+ appreciation
- 55% reported a negative annual appreciation of home prices, an increase from 48% in the previous quarter
- 57% reported to receiving below 95% of the asking price. Five percent of responders reported receiving 100% or higher
- 58% reported that Repeat and Investment buyers are driving buyer activity
- 59% reported that they were receiving multiple offers on properties
Regional Snapshots
Billings, MT - Michelle O’Rourke and Kevin Thompson, Green Realty, LLC
“The Billings market [has] always been a stable market,” O’Rourke said. “No huge double digit appreciation years. About the highest appreciations we have seen in the past decade were in the eight-to-nine percent range. When the rest of the country was taking a nose dive - we flattened out. We have had very little predatory lending and as a result have few foreclosures. However, five years ago a short sale was unheard of, today we are seeing some… I bought my first house at the age of nineteen in 1984 with an FHA interest rate of fifteen percent! Young people need to realize that we are experiencing historically low interest rates. As our economy makes its way out of the hole we have dug ourselves into, those rates are going to go up. So are property values. Now is the time to act.”
Port Aransas, Texas – Marcus Cox, Avalar Texas Real Estate
“There is tremendous growth on the Texas coast with new developments of all shapes and sizes,” Cox said. “Texas is home to the least expensive coastal real estate in the United States. The Port Aransas real estate market looks to be strong this year. Many people are investing in real estate to protect from inflation. We have seen a lot of people get rid of their stock investments and park their money in a beach house. They are hoping to hedge against inflation, ride the appreciation, and enjoy their investment.”
Captiva & Sanibel, FL – Alan Westerlund and Virginia Stafford, Sand Castle Realty Group, Inc.
“This is a perfect storm for buyers right now,” Westerlund said. “One, it’s a return to the prices of yesteryear. Prices are rolling back to where they were nearly ten years ago. Two, in most markets, there’s a large selection at all prices. It’s out there now! We’ve seen a dramatic increase in foreign buyers, especially European buyers, and a lot of Canadian buyers. They have come in droves because of a great selection and value. There’s been a dramatic increase in first-time buyers who may have felt that they missed an opportunity to purchase can now buy.”
Holmdel, NJ – Brenda Schofield, Heritage House Sotheby's International Realty
“I can tell you this,” Schofield said, “My clientele is primarily move up buyers looking for high end homes around $900,000. Lower prices with good selection and competitive interest rates creates a perfect time to buy in Holmdel…. Every house that is getting priced below the market value is getting sold. For every month a home remains on the market, the price is being deducted by a half percent of the sales price. We’re still lowering prices and will continue to do so until we bottom out in probably late next spring.” Schofield reported that the average home price in Holmdel is $750,000 and homes are remaining on the market for 90 – 120 days.
Plaza and Brookside, MO - Diedre Williams & Jill Davis, Realty Executives of Kansas City
“The uniqueness of Brookside and the Plaza consistently attracts buyers,” Williams and Davis said. “A good selection of homes and historically low mortgage rates supplement the demand for these coveted neighborhoods.” Williams and Davis reported that the average home price in their area is $225,000 and that there is an equal amount of buyers and sellers currently.
Davidson, NC - Tracey Howell Stehle, Unique Properties Group
“Prices have decreased slightly during the past ninety days in Davidson and there are fewer homes on the market,” Stehle said. “For sellers, this is still a decent market if you price your home correctly and make sure it is in tip-top showing condition. For buyers, it’s a great market. Prices have decreased and interest rates are at an all-time low.” Stehle also reported that the average home price in Davidson is $450,000 and that homes are remaining on the market for over 120 days.
La Verne, CA – SoCal Realty Group, Keller Williams Realty
“Well qualified buyers are still able to obtain a mortgage,” said Eric Samaniego of SoCal Realty Group. “Properties not priced well are staying on the market longer. A home that is priced well goes fast. Buyers can still get a deal right now.” The SoCal Realty Group reported that there are more buyers in their market with a majority of repeat buyers driving the activity. The average home price in La Verne is reported at $475,000.
The results of the HouseHunt.com 3Q 2010 Market Conditions Survey, along with the testimony of our agents suggest that buyers have an excellent purchasing opportunity in front of them, perhaps the best market for buyers in decades. Mortgage rates continue to see record lows week after week while lenders are returning to lending standards of the past by only granting mortgages to qualified buyers.
HouseHunt’s Quarterly Comparison Chart For the U.S. | Updated 3Q results indicated in Red
About HouseHunt, Inc.
HouseHunt, Inc. is a consumer-oriented Internet firm that provides free information and services to homeowners, home buyers and home sellers across the United States through its member-agents and through its primary web site, HouseHunt.com.
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