The stifling heat of July did not penetrate U.S. housing markets according to the S&P Case-Shiller 10-and 20 City Home Price Index reports.
San Francisco’s sizzling home prices dropped in July and posted its lowest price gains since 2012. According to the Case-Shiller 10 and 20-City Home Price Index reports, month-to-month home price appreciation fell to identical readings of an 0.60 percent increase as compared to a 1.00 percent increase reported in June.
Case-Shiller also reported that home prices grew by 0.50 percent throughout the nation. This was the seventh consecutive monthly increase for national home prices.
Year-over-year, seasonally adjusted home price growth was lower in July. Both the 10 and 20 city index reports showed a gain of 6.70 percent over July 2013 as compared to June’s year-over-year reading of an 8.10 percent gain in June. 19 of 10 cities tracked in the Case-Shiller 20 City Home Price Index reports posted lower average home prices in July.
New York posted a 1.10 percent gain in July, while home prices dropped by 0.40 percent in San Francisco. San Francisco showed a marked loss of momentum with July’s year-over-year reading of home price growth decreasing to 10.30 percent from June’s reading of 12.20 percent
On average, July’s home prices were approximately 16 percent below a 2006 peak.
Slowing Demand Puts Brakes on Home Prices
Analysts report that reduced demand for homes is contributing to lower price growth. Rising home prices have put homes out of reach of first-time and moderate income buyers and stringent mortgage credit standards that became effective in January have taken the edge off of high demand and low inventories of homes seen earlier in 2014.
Home prices continue to grow at two to three times the inflation rate according to David M. Blitzer, chair of the S&P Dow Jones Indices Committee. Stagnant wage growth has also quieted housing markets.
New Home Sales Buck Slowing Home Price Trends
The Department of Commerce reported that August sales of new homes grew by 18 percent in August to the highest reading since 2008. August sales of new homes topped out at 504,000 new homes sold on a seasonally adjusted annual basis. Analysts predicted new 426,000 new home sales and July’s reading was 427,000 new home sales.
Demand for new homes grew in direct opposition to Case-Shiller’s July data for existing home sales in 20 major metropolitan areas. While good news for home builders and those employed by them, new home sales account for only about a tenth of the housing market.
Analysts also note that new home sales readings are somewhat volatile and often subject to revision. Increases in new home sales are seen as a positive sign for the general economy as builders are expected to increase hiring and will buy more materials as home construction increases.
Can you believe that autumn is already here? Autumn is not only a great time to enjoy some cooler weather, but it is also a perfect time to sell a home. If you want to sell your house this autumn, these home staging tips will have buyers pounding down your door.
Improve Your Curb Appeal
Curb appeal is easily the most important factor when it comes to selling a home, and it is even more important in the autumn. Maintaining great curb appeal can be difficult in autumn because of all the falling leaves.
Raking the leaves and planting some autumn flowers will make your home inviting to buyers. You can even add some pumpkins around the porch, if you desire.
Brighten Up The House
The shorter days of autumn make lighting more important when staging a home, because nobody wants to walk into a dark and depressing house. The best way to brighten up any house is by opening the blinds and turning on every light.
While it may not be great for the electric bill, the extra lighting will help the home sell quicker. You can even place some spotlights on the floor behind furniture to brighten up the darker rooms.
Make It Feel Comfortable
There is something about the cooling weather of autumn that makes people want to stay inside. Showing off how comfortable your home is will definitely pique buyers’ interest. A great way to make your home more cozy during a showing is by playing seasonal music and handing out some fresh baked cookies – it adds a personal touch and a subtle sense of coziness.
Accent The Home With Autumn Colors
While it is impossible to change the color scheme of your home to fit the season, you can add some accent colors throughout the house. If you have a neutral colored couch, then you can easily throw some red or orange pillows on it to make it really stand out. Adding some autumn decorations to each room is also a great way to accent your home with autumn colors.
Autumn is an extremely popular time to buy or sell a house, and for good reason. Taking advantage of autumn’s vibrant colors when you stage your home will give your house an irresistible appeal. For more information about how to sell your home in the autumn, or if you’d like to list your home for sale, contact an experienced real estate professional today.
Last week’s economic news included several housing-related reports that provided mixed results with lower than expected sales of previously owned homes and higher than expected sales of new homes. The FHFA also released its House Price report for July, which noted that year-over-year home prices were lower than year-over-year prices reported in June. Here’s a look at the details:
Existing Home Sales Lower, New Home Sales Higher
The National Association of REALTORS® reported August sales of existing home sales fell to 5.05 million previously owned homes sold. This was lower than the expected reading of 5.20 million existing homes sold and July’s revised reading of 5.14 million previously owned homes sold on a seasonally adjusted annual basis. The consensus figure was based on the original reading of 5.15 million homes sold in July. While the sales pace of existing homes has slowed in recent months, August’s reading marked the first time in five months that sales fell below the previous month’s reading.
Analysts cited consumer concerns over sluggish labor markets as a deterrent to home sales, and also said that tighter mortgage credit standards are making it tough for first-time home buyers to purchase homes.
New home sales were higher in August according to the Department of Commerce. 504,000 new homes were sold and surpassed expected sales of 426,000 new homes and July’s reading of 427,000 new homes sold. This surge propelled new home sales to their highest level since May 2008, and surpassed expectations of 426,000 new homes sold. The original reading for July was 412,000 new homes sold on a seasonally adjusted annual basis, but the Department of Commerce later adjusted July’s reading to 427,000 new homes sold during July. Month-to-month readings for new home sales are notoriously volatile, and many analysts prefer to consider a rolling average of several months’ new home sales data.
FHFA: Home Prices Rise in August, Regional Home Prices Higher Year-Over-Year
FHFA (Federal Housing Finance Agency), which oversees Fannie Mae and Freddie Mac, reported that prices of homes connected with Fannie Mae and Freddie Mac mortgages grew by 0.10 percent in July; this was lower than the 0.30 percent growth in home prices reported in June. FHFA also said that prices of homes were up by 4.04 percent year over year; this again represented a slower pace in home price growth. This was the eighth consecutive monthly gain for FHFA home prices, but U.S. home prices remain approximately 6.40 percent below their peak in 2007.
Year-over-year home prices rose in all nine census divisions according to FHFA. While regional home prices ranged from -0.50 to +0.40 percent from June to July, FHFA reported that year-over-year home prices grew in all nine regions and varied between +1.60 percent in the Mid-Atlantic region to 7.20 percent in the Pacific region.
Mortgage Rates Mixed
Freddie Mac reported mixed readings for average mortgage rates last week. The average rate for a 30-year fixed rate mortgage dropped three basis points to 4.20 percent. 15 year mortgage rates averaged 3.36 percent, one basis point lower than the prior week’s reading. The average rate for a 5/1 adjustable rate mortgage was two basis points higher at 3.08. Discount points remained steady at 0.50 percent for fixed rate mortgages, but dropped to 0.40 percent for 5/1 adjustable rate mortgages.
The Bureau of Labor Statistics reported that new jobless claims rose to 293,000 from the prior week’s reading of 281,000 new jobless claims filed. The latest jobless claims reading was lower than expectations of 300,000 new jobless claims filed. Last week’s economic reports were rounded out by the Consumer Sentiment Index, which held steady in September with a reading of 84.6. This reading was identical to July’s reading and higher than the expected reading of 84.3.
Next week’s economic news wil include the Case-Shiller Home Price Indices for July and Construction Spending for August.
When you buy a home, you will be given a title to your new property. A title is a legal document that proves you own the property, and in most cases the title excludes other parties from making an ownership claim.
However, not all titles give you free and clear ownership of the property. Title insurance protects you and your lender from title disputes and other ownership issues that may arise. Here are just a few ways that title insurance can impact your mortgage.
How Title Insurance Protects A Lender
There are certain situations in which someone might put a lien on your property. New owners might see liens if the previous owner failed to pay the mortgage, if a contractor did work without the new owner’s consent or if the previous owner owes unpaid property taxes.
If these liens were not disclosed prior to the sale, a buyer could face a situation where a third party is making a claim to the property. Should the title by voided in court, the insurance policy would repay the lender the outstanding balance on the mortgage. The policy is valid until the mortgage loan is paid off.
When a homeowner refinances, it may be necessary to purchase a new title loan policy, as the new loan will technically pay off the old loan.
How Title Insurance Protects A Buyer
Title loan policies do not just protect the lender. In many cases, the lender will require the buyer’s title insurance to include an owner policy. This policy confirms that the buyer owns the title and that the title is free from defects.
The policy is in effect for as long as the buyer or his or her descendants own the house. Should a homeowner have his or her title challenged, the policy will cover all losses up to the amount of the original purchase price of the home.
How Much Does Title Insurance Cost?
The cost of title insurance can vary between locations. Sometimes, the purchase contract will stipulate that the seller is responsible for buying title insurance.
If this is the case, the buyer may pay nothing. However, it is common to pay on a sliding scale. Title insurance is usually a few hundred dollars for houses selling for under $500,000.
Title insurance is a great way to protect your investment in your home. It insures you against ownership disputes and liens, which means your house is truly yours.
Millennials are finally starting to enter the real estate market after delaying home purchases for several years. With a completely new client base looking for homes, it is time to start making your home more appealing to these young buyers.
Millennials are used to using high-tech gadgets every day, so they are going to desire these things in their new home. While there are several high-tech upgrades you can make on your home, these three will appeal the most to young homebuyers.
Keyless Entry: Security for the New Millennium
Keyless entry doors are becoming a popular way of keeping a home secure while adding that great “wow” factor. These keyless entry systems mean there’ll be no more fumbling for keys when all you want to do is get in the door. It may seem like something out of a sci-fi film, but several companies have mastered the art of keyless entry doors that you can use in your home today.
The door automatically locks when it is shut, and you will need the correct fingerprint to unlock the door. If you could show off a keyless entry system at your open house, you would immediately pique the interest of every young buyer interested in technology.
A Home Security System is a Great Practical Addition
A high-tech home security system will certainly make your home more appealing to young buyers, who may even be thinking about having children in the near future. No matter how safe your neighborhood is, everyone is always looking to feel more secure at home. Placing a few security cameras around the exterior of your home will allow you to know what is happening outside at all times, and buyers will love having that peace of mind.
Home Energy Monitor: For the Eco-Conscious Generation
Young people are extremely conscious of the environment, so they would love seeing a home energy monitor when shopping for a new home. A home energy monitor is able to track the energy use of every aspect of your home.
If you think your air conditioner is not running efficiently, a home energy monitor can tell you whether or not you’re right. Since young people know about the dangers of improper energy use, they will want to make the home as efficient as possible.
Millennials are slowly entering the real estate market, and although they are starting to look at homes, you’ll face a lot of competition from other homeowners looking to pass properties onto this new generation. These three upgrades will increase your home’s value and make it more appealing to Millennial buyers. For more information about selling your home, contact a trusted real estate professional today.