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November 10, 2005
Buying or Selling Your Home During the Holidays
Fall is in the air—the leaves are falling from the trees, the rain has returned, and the holidays are right around the corner. So how can this be a good time to buy or sell your home?
Statistically the spring months produce the highest amount of home sales, but when you compare the percentage of sales to the total number of new properties that come onto the market, November and December have the best exposure ratio of any other months of the year.
For sellers, the key to this analysis is understanding the real estate definition for “new on the market.” New on the market refers only to the first thirty days that a home is on the market. It is commonly known that this period of time is the most critical for any home. The reason for this is that new properties receive the most exposure during the first thirty days, so there is a greater chance of making a sale.
The real estate industry measures home sales throughout the year and one of the ways they do this is by using an indicator that measures the percentage of sales to the total number of new properties on the market. November and December have an indicator that is 75% higher than the rest of the year.
For buyers, historically low interest rates coupled with a growing economy offer a great opportunity for first-time, move-up, and high-end buyers. In addition, the holiday months offer less competition and pressure because fewer people are shopping for a home.
It’s true that the months following New Years are traditionally the most productive for the real estate market and many agents will encourage you to buy or sell your home during that time. However, it is a myth that the holiday months are an unproductive time to buy or sell. If you would like to determine what’s best for you and your homeownership needs, please feel free to contact me.
Contact Beau Betts in order to sell a home or condo property for the best possible price.
Posted by beaubetts at 1:06 PM | Comments (0) | TrackBack
November 4, 2005
Mortgage Market Update
Bonds are down and the market is re-pricing. Lock in those loans. Here are today's average interest rates on a purchase transaction:
CONVENTIONAL - conforming
30 year fixed rate: 6.125%
15 year fixed rate: 5.875%
30 year Interest only: 6.375%
7/1 ARM: 6% (not worth it)
5/1 ARM: 5.875%
3/1 ARM: 5.75%
100% 30 year fixed rate: 6.5%
As you can see the ARM's are no longer a very attractive alternative to the fixed rates. That's because every time the FED's increase the rates like they did this week, it increases the cost of short term money which is what ARM's are priced with.
CONVENTIONAL- non-conforming
30 year fixed rate: 6.375%
the other options available
FHA/VA
30 year fixed rate: 6.125%
5/1 ARM: 6.0%
3/1 ARM: 5.5%
Contact Beau in order to sell a home or condo property for the best possible price.
