NEW YORK – March 15, 2016 – Homebuyers are expected to outnumber home sellers this spring, which will likely drive up asking prices, says Lawrence Yun, chief economist for the National Association of Realtors®(NAR).
"Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large downpayment or a jumbo mortgage," Yun told The Wall Street Journal.
Nationwide, the median price for an existing single-family home in January was $213,800 – up 8.2 percent from a year ago, according to NAR's housing data. Home prices are moving at the highest rate since April 2015.
"There's a decade of pent-up demand," says Bob Walters, chief economist of Quicken Loans.
One piece of good news for homebuyers this spring: Mortgage rates are expected to stay low, with the 30-year fixed-rate mortgage not likely to rise above 4 percent before May, says Keith Gumbinger, vice president of HSH.com, though the long-term outlook for mortgage rates is less certain.
As such, lenders predict that the spring season will be a busy one.
To avoid closing delays, buyers need to get into the market sooner rather than later, says Paul Anastos, president of Mortgage Master in Walpole, Mass., a division of loanDepot. Like a traffic jam, "every minute later you leave costs you 10 minutes," he notes. "Every day, the audience looking for houses increases exponentially."
Anastos also urges homebuyers to get preapproved for a loan prior to home shopping – a step above pre-qualification. He says that alone could save home shoppers up to 10 days in the closing period. And "If you find a home this weekend, you look highly competitive."
Source: "This Spring, Expect Higher Home Prices," The Wall Street Journal (March 10, 2016)
About Keller Williams Realty Gold-The VeniceTami Team
Keller Williams Realty Gold-The VeniceTami Team. Tami Pocevic has been a Real Estate agent in Venice for over 11 years, with over $17MM in production over the past 12 months. I am in the top 2% of agents in both the Englewood Board of Realtors, and the Venice Board of Realtors consistently, year after year. Our team of Administrative Assistant, Marketing and Tech Administrator and 3 Buyer’s Specialists ensure a smooth transaction for you.Tami Pocevic Broker-Associate Realtor -
This weekend there will be 166 Open Houses across Sarasota County, if
"I have found Tami Pocevic not only to be extremely knowledgeable but to be responsive and caring about our questions and concerns. I would high recommend her to anyone who wants a top professional to sell their home. "