Here is some helpful data to use when farming or educating your clients on why now is a good time to buy or sell.
The Federal Housing Financial Agency (FHFA) just put out there housing price index that shows how the market is doing compared to the past. See attached chart. It is true that values are not skyrocketing at a 20% or 30% pace, but it is certainly not depreciating like some have said.
- Home prices are 8.8% higher then this time last year and up 1% higher then last month.
- Appreciation is currently 12.6% year over year.
- Inventory is down from 5.2 months to only 5 months.
What this means is that it is a great time to buy OR sell. Values are still going up! And this time at a healthy rate.
- Great to buy, because values are still going up.
- Great to sell, because the values are already up from the last few years and we are stabilized. No one is going to get rich from holding on to their house for another year.
I hope this is helpful when talking to your clients.
Other supporting data:
- Purchase applications are up 7% more for the week of Sept 20, then the week before.
- Data-Quick latest medium home price (as of 9/6/2013) was up 24.3% versus one year ago
- Home prices increased in 75 out of 83 zip codes
- The average medium sales price is now $555,000, only 14% below our June 2007 peak of $645,000
- Home-buying was up 4.1% (as of 9/6/2013), new home sales were up 83.6%
- Current inventory levels (as of 9/12/2013) is only 2.48 months
- Inventory was at 6,123 versus 5,869 versus one month ago
- Short sales rose slightly at 4.3% from the previous two weeks (as of 9/12/2013)
- Foreclosures were up 20% versus last month, 150 versus 125, but down 53% from July 2012
- Mortgage defaults were down 4.8% from Junes 510 defaults
- Interest Rates averaged 4.5% down from last week’s 4.57% but up from 3.49% a year ago
- Rental costs are up 2.6% versus one year ago and it was the 34th consecutive month of year over year increases
Let’s get together and talk about how we can work together to build your real estate business.
Your friend in the lending business,