Bulls & Blogs

Will we see a surge of homebuying this fall?

Real Estate Market Comments Off

Oct 242014

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

With the froth off the housing market, this fall could be a good time for home shopping. At least one real estate firm, Redfin, expects activity to pick up this fall. It reports that price growth in all markets has slowed significantly, and it reported that this summer saw the biggest drop of the year in the number of homes that sold above list price.

Zillow confirms this trend. Home appreciation based on its home value index has dropped in every month since peaking in Apr. It forecasts that the rate of appreciation will continue to slow to 3% next year.

According to Redfin, flattening home prices coupled with still low mortgage rates could result in a surge of sales through the remainder of the year. If you’ve been sitting on the homebuying sidelines, it might be a good time to see what’s available before the before this combination disappears.

Fewer bargain homes but still opportunity for home buyers

Real Estate Market Comments Off

Aug 222014

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

Corelogic, a real estate analytics company, reported this week that distressed home sales, short sales and foreclosed homes, fell again last month to 11.4% of all sales, their lowest level since 12/07. The diminishing share and the competition for those homes have contributed to home price increases, as distressed sales typically sell at a discount.

The improvement in this measure of home industry health is susbtantial. At the height of the housing bust, distressed sales accounted for almost 1/3 of the total. However, a more sobering view is to compare it to the share before the bust. At that time only 2% of the market was distressed sales.

But let’s take the glass half full view. Other data also points to an improving market. Existing home sales rose for the 4th straight month in Jul, the inventory of homes for sales is increasing, and home prices are moderating. With still very low mortgage rates, this fall could be great opportunity for homebuyers.