Home Builders Still Hesitant on Condo and Starter Home Market

New Construction of High End Homes in Dallas SuburbFocus Mainly on Building Higher End Homes

Even with new construction picking up new home builders haven’t returned to constructing homes at a balanced variety of purchase points. They’re focusing on the higher end of the market with larger custom homes, since many entry level home buyers still face economic and credit challenges.

But according to real estate economists, builders may not be making the smartest bet. The new condo market in particular is being under-served, and the demand for entry level housing is increasing.

Read the full real estate market article here.

New Home Sales Finally Rebound! – The Final Piece to the Recovery

New Construction Sales Up 20 Pecent in May over Last Year! - The Economic Indicator We Have Been Waiting ForNew Construction Sales Up 20% Over May 2014

Even with the real estate market picking up steam in the last year, the very low volume of new home sales was cited as a concern by many economic experts. Federal Reserve Chairman Alan Greenspan said the U.S. economy has historically only recovered with the return of solid new construction numbers. And now we have them.

New home sales were up 2.2% in May over April, and up a whopping 19.5% over May 2014, as stated in a report issued today by the U.S. Dept of Commerce.

Read the full article here or see the U.S. Commerce Department’s report here.

Mortgage Rates Hit a 9 Month High

The Fence - Real Estate Buyers and Sellers Waiting - Is it Time Now

Buyers and Sellers Getting off the Fence Still Depends on the Local Market

Z57, our Z57 real estate agents and Brokers, and pretty much the whole real estate world knew it was coming: Mortgage rates are going up.

Now whether it’s best to stay on the fence or not depends on the competition and price movement in your local market. There’s no simple yes or no answer that works for all of U.S. real estate of course, but local market experts (specifically real estate agents, REALTORS® and Brokers) have their finger on the pulse. That’s who you want to ask about the timing of your specific buying or selling move, as their experience helps them have a good feel for changes as they’re just starting to happen.

Read the full mortgage rate article here.

The Real Value of a Buyers Agent – What You’re Paying For

Why to Use a Real Estate Agent - Article on Chicago Blog

What Real Estate Agents are Good For

In a modern world where you can list, sell, shop for and buy a home all from the comfort of your couch: What do real estate agents actually do for their commission?

This real estate article provides a good breakdown of the roles an agent plays and what you’re paying for. Most of the value comes from the agent making the whole transaction more smooth and secure, from their expertise, training and experience handling the purchase or sale.

Consider that a home transaction is something we only do a few times in our lives but that real estate agents live in daily. That provides many buyers and sellers a huge stress relief similar to being covered by insurance, and though the service may not be worth what it used to be, it’s certainly smart money spent.

Mortgage Apps Jump by 8% as Home Buyers Get Off the Fence

Weekly Mortgage Applications Rise - New Home Mortgages Jump in First Week of June 2015

Rising Interest Concerns Move Buyers into Action

This past week saw an 8% jump in mortgage applications overall, and a 10% jump in purchase applications, as reported by the Mortgage Bankers Association. And the week’s applications were 15% higher than the same week last year. This is not a seasonally-expected increase; it’s buyers deciding they shouldn’t wait any longer to get into the market.

Mortgage interest rates have risen and most experts believe they’ll continue to rise, at least in the short term. So many prospective home buyers are jumping off the fence of indecision they’ve been sitting on.

Read the full mortgage rate analysis for the first week of June here.

New Report: More Homeowners are Paying Their Mortgages on Time Again!

Happy Homeowner Family Who is Successfully Paying Their Mortgage

Lowest Mortgage Delinquency Since 2007!

TransUnion released a report showing that U.S. mortgage delinquency rates have dipped below 3% for the first time since before the recession. This is great news for both the economy and the real estate market. High rates of mortgage delinquency are of course a sign of an ailing economy, but maybe more importantly and as we’ve all recently seen, they can lead to tighter financing restrictions and hurt the housing market in the medium and long term.

The benchmark of now having a lower rate of mortgage delinquency than since pre-recession is a great sign for the current economy, and is a key factor in maintaining a healthy real estate market.

See the full real estate and mortgage article here.

A Low Buyers Agent Commission Can Equal Less Listing Exposure

House for Sale Sign - Commission Impacts Listing Exposure

But Maybe You Get What You Pay For

This debate has resurfaced lately, which is not surprising considering the sellers market we’re in, bidding wars occurring in many cities, and the return of the “1% brokerage”. It’s true that real estate agents are bound to serve the best interests of their clients, but no one should expect agents to work for free.
Some homes with very low buyers agent commission splits may get fewer showings, but most believe this is something that will naturally self-correct as the market and commissions fluctuate.

Read the full Washington Post real estate article here.

N.A.R. Says 2015 Will Be Best Home Sale Year Since 2006

NAR Report on 2015 Home Sales Estimate - Highest Since 2006

“There is sizeable pent-up demand.” – N.A.R.’s Chief Economist Yun

It seems the U.S. real estate market can finally breathe a sigh of relief about the economy in relation to existing home sale volumes. The National Association of REALTORS® released their mid year forecast this week, and it shows 2015 on pace to have the highest sales volume of existing homes since 2006. Indicators mentioned by N.A.R.’s Chief Economist Lawrence Yun include actual sales volumes so far this year, foot traffic at listings, and strong job growth.

New construction still lags behind at 50% of normal volume, but 2015 will be the first year in the recovery that single family home starts outpace multifamily/apartment unit construction.

Read the full real estate article here.