Monday, November 17, 2014

Nine Reasons To Buy A House Right Now

                                          Nine Reasons To Buy A House Right Now
                                              Written by Jaymi Naciri on Sunday, 16 November 2014 10:11 am 
                                                                              An Article in Realty Times      

Buying a house is like having a baby: there's no absolute perfect time to do either.
The down payment-interest rate-economic factors-qualification quadrangle can be so confusing. Rising rates, loosening requirements, down payment options, buyer's markets, seller's markets - what does it all mean to you if you want to buy a home? The truth is that while the banks might have a magical formula to determine your mortgage-worthiness, determining if the time is right really comes down to three main questions:

Do you want to buy a home?
Are you financially prepared?
Is your credit where it needs to be?
If yes, then go for it. Here are nine reasons to do it now.
1. Prices are good. According to the latest S&P/Case-Shiller report, home prices are still gaining, but have slowed. "The 10-City Composite gained 5.5% year-over-year and the 20-City 5.6%, both down from the 6.7% reported for July," they said. "The National Index gained 5.1% annually in August compared to 5.6% in July." This is good news if you were afraid that big price gains would put homeownership out of reach and also bodes well for your long-term equity once you purchase.
2. Rates are low. "Imagine paying over 18% interest on a 30-year fixed mortgage. It's almost unthinkable. But that was the reality for home buyers in October 1981 -- a year when the average rate was almost 17%," said Yahoo Finance. "The average rate has been 5.18% since the start of this country's history," making today's rates, which hover around historic lows at 4%, sound even better.
3. Loan requirements are softening. They're not approaching the look-the-other-way-and-stamp-it-approved levels that led to the market crash, but the overly tough restrictions that followed have loosened. "Major lenders are making adjustments," said The Street. "Wells Fargo has lowered the minimum FICO score for borrowers applying for loans insured by the Federal Housing Administration to 600 from 640." They also count JPMorgan Chase's lowered loan-to-value "standards in certain markets for both jumbos and conforming mortgages." For buyers that can mean an easier road to loan approval, even without a ton of money upfront and perfect credit.
4. FHA loans make it even easier for first-time buyers. If your credit is less than stellar and you don't have a large down payment, an FHA loan can get you in the door. Credit scores can be as low as 620 to qualify and only 3.5% down is required. Whether you've never bought before or have been out of the market for a few years, an FHA loan can be your answer.
5. Fewer buyers around the holidays means less competition for you and more negotiating power. "Sellers who are actively looking to sell their homes during the holiday months -- namely, October through December -- are serious about shedding the weight of their residences," said US News. "This often works in favor of savvy buyers looking to get a deal on discounted homes. Having less competition on the buyer's side can mean lower prices on homes, in addition to fewer counter-offers to compete against."
6. Rates are predicted to rise. "The Mortgage Bankers Association expects the average rate on a 30-year, fixed rate mortgage to rise slowly to 5.1 percent by the end of 2015," said the Washington Post. If you want to take advantage of low rates, now is the time.
7. Pent-up demand could zap affordability. "The housing market is about to get even more competitive," said Yahoo. "The pent-up demand of younger professionals, who moved back in with their parents during the recession, is about to explode. This eager subset of buyers will create some steep competition for homes, especially if they have been saving up to make larger down payments or high ticket offers. If the current homes on the market have more potential buyers, bidding wars develop, and the purchase prices are driven up.
8. "Buying is cheaper than renting in most markets," said Housingwire. With a little knowledge of loan options and low down payment programs, you can easily flip the switch from renter to homeowner.
9. Because you want to buy a home. There really is no more compelling reason than that. You want it. So make it happen.

Visit www.realtytimes.com for more real estate related articles.

Sunday, November 9, 2014

Real Estate Market Summary for Grand Lake, Oklahoma


Market Summary for Residential Real estate

in NE Oklahoma. November, 2014 Report.
 

The big news is the absorption rate for Grand Lake area real estate has dropped to the lowest level in twelve months and is 80% of the level in May of this year.  There is now only 12 months of inventory available.  This level is due to the lesser amount of homes going on the market and the slight increase in sales in 2014 over 2013.  Days on the market for the average residential home has increased to 196 days In October of 2014.  This is the 2nd highest level for the year and should remail high thru the less active winter months.

The average list to sales price for all residential properties is around 87%.  The median list price of all homes on the market was $154,900 (1/2 of the homes are priced higher and ½ of the homes are priced lower).  The average list price was higher at $251,759 and the average sold price of homes sold in October was significantly lower at $139,895.  44 homes sold below $139,900 in October 2014 and only 31 homes sold higher.  This trend of lower priced homes is continuing with 37 pending sales below $139,900 and only 27 sales above that price range.

 

There are 911 listing on the market at the end of October compared to 1061 a year ago (a 14.15 drop).  YTD there have been 5.4% less listings added to the pool of available homes for sale.  Only 75 homes closed in October, 2014 compared to 89 a year ago.  YTD there have been 767 homes sales.  This is still an increase of 7.7% over a year ago.
 
 

For information on a specific property call Wayne “SHORTY” Short at                        Cell: 918-218-6011 or office: at 918-786-9888.

Wayne Short