Spring brings out the buyers many of whom want to be ready when school goes back into session in the fall. Giving them the opportunity to get moved in and the kids settled in a new school. New homes are certainly on a lot of buyers minds with the Wall Street Journal reporting that the sales of new homes is going gangbusters.
The sales of re-sale homes is not picking up quite so fast. There are several reasons for that including the lack of re-sale homes on the market, and the desire to have that brand new home. It also takes 30 to 45 days to complete a sale on a re-sale home and the number of sales in this area is not tracked until the home closes escrow and is recorded. New home sales are tracked differently so sales are reported earlier.
It is always best to look at the number of homes pending on the re-sale side as that is the best indicator of how the market is doing most recently. Pending sales are up and are 8.4 percent higher than last year at this time. This marks the fifth time for year over year gains.
The National Association of Realtors says current activity in the re-sale homes "is convincingly up compared to a year ago despite the lower levels of homes available".
"The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth." states Lawrence Yun chief economist for NAR.
A March CoreLogic report also showed that January home prices rose nearly 6 percent from a year ago. In 2013, investors were blamed for pushing prices upward, but it has been suggested that prices are rising again due simply to a lack of inventory in markets large and small across the nation. This news could result in a very competitive housing season for homebuyers.
Freddie Mac is also expecting 2015 to be the best year for home sales and new construction since 2007, according to its March 2015 U.S. Economic and Housing Market Outlook. Freddie Mac cited an improving job market, rising rents and expanded credit availability as some reasons for its positive outlook.
Bottom Line for Homebuyers:
This is an exciting time for home buyers, with more newer homes available, and continued lower interest rates. Even when buying a new home it can be a big help for the home buyer to have their own Real Estate agent to work on their behalf through the process. (This is without cost to the buyer) Please call us or text us if you have anyquestions and be sure to check out our Web-sites at www.sborchelt.golyon.com or www.skrohn.golyon.com. Phone: Sandy 916-544-2066 or Steve 916 425-1100.