As we know, mortgage rates and home values are rising. According to recent data, 5.09 million homes were sold in the United States. The pace of U.S. home sales has outperformed 2012 numbers for every month until December 2013, increasing a total of 9.2%.
Mortgage rates averaged 4% in 2013, 30 basis points above 2012. They now have begun to increase and are likely to slowly rise toward more historically normal rates in the near future.
Also, the median home price for 2013 was 11.5% above where it was in 2012, Making it the second-highest year of price gains since NAR began collecting data. However, it is still below the long-term trend, while the inventory has been persistently tight this year. There are signs of a high housing demand, which has not yet met with an equal response in supply. In fact, 2013 was the best year for new home construction since 2008.
In the other hand, due to a combination of slowly rising interest rates and the rapid growth of home prices in 2013, the percentage of a typical family’s income required to own a home increased 1.5% from 12.7% in 2012 to 14.2% in 2013. This is still much lower than historical 21.6%.
According to the National Association of Realtors, in 2013 buyers trusted Real Estate Agents as their source 89% vs. 87% in the previous year, while internet shifted from 90% in 2012 to 89% the year after.
Your clients need to understand that this moment in time is great for Real Estate opportunities, and Real Estate Agents can provide a professional in-depth analysis that would help them regain their peace of mind at such an important event as buying or selling their home. The market is shifting, and we must be ahead of the market!
For more information contact The Bellido Home Team at (407) 490-2975 or visit my website www.mymovetoflorida.com.
Sources: Vision – Keller Williams and NAR
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