at the end of the newsletter.
+++++++++++ October 1, 2011 +++++++++++++++++++
CONTENTS:
Introduction: Resale and New Home Activity Up from August, 2010
Mortgage Rate Update: Another Large Decline in Rates
This Month's Tip: Establishing Your Timeline
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Introduction: Resale and New Home Activity Up from August, 2010
Welcome to the October edition of the Home Buyer's Newsletter.
The up-and-down trend of home sales activity continued in the month of August with
both existing-home and new home sales showing increases from the levels seen in August,
2010.
Existing-home sales increased in August, even with ongoing tight credit and appraisal
problems, along with regional disruptions created by Hurricane Irene, according to the
National Association of Realtors®. Monthly gains were seen in all regions.
Total existing-home sales, which are completed transactions that include single-family,
townhomes, condominiums and co-ops, rose 7.7 percent to a seasonally adjusted annual rate
of 5.03 million in August from an upwardly revised 4.67 million in July, and are 18.6
percent higher than the 4.24 million unit level in August 2010.
Lawrence Yun, NAR chief economist, said there are some positive market fundamentals.
"Some of the improvement in August may result from sales that were delayed in preceding
months, but favorable affordability conditions and rising rents are underlying motivations,"
he said. "Investors were more active in absorbing foreclosed properties. In addition to
bargain hunting, some investors are in the market to hedge against higher inflation."
Sales of new single-family houses in August 2011 were at a seasonally adjusted annual
rate of 295,000, according to estimates released jointly on September 24 by the U.S.
Census Bureau and the Department of Housing and Urban Development. This is 2.3 percent
(±13.9%) below the revised July rate of 302,000, but is 6.1 percent (±18.8%) above the
August 2010 estimate of 278,000.
The median sales price of new houses sold in August 2011 was $209,100; the average sales
price was $246,000. The seasonally adjusted estimate of new houses for sale at the end of
August was 162,000. This represents a supply of 6.6 months at the current sales rate.
+++++++++++++++++++++++++++++++++++++++++++++
Mortgage Rate Update: Another Large Decline in Rates
September showed another large decline in long-term mortgage rates with 30-year
fixed-rate averages falling nearly 25 basis points (a quarter point in rates).
According to mortgage company Freddie Mac, 30-year fixed-rate mortgages averaged
4.01% in the period that ended September 29th after beginning the month at an
average rate of 4.22%. 15-year fixed-rate mortgage loans averages also fell,
declining from 3.44% at the beginning of September to 3.28% at the end of the
month.
For current average mortgage rates, see:
<A HREF="http://www.ourfamilyplace.com/homebuyer/rates.html">Mortgage Rates</A>
For an extensive discussion of all aspects of mortgages, see the section on the
site devoted to this subject. <A HREF="http://www.ourfamilyplace.com/homebuyer/mortgage.html">Mortgages</A>
++++++++++++++++++++++++++++++++++++++++++++++
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++++++++++++++++++++++++++++++++++++++++++++++
This Month's Tip: Establishing Your Timeline
Buying a home takes time. This is true no matter what the current
market conditions are, how much inventory is available or the type of
financing you choose. Since it mose likely will be the biggest purchase
of your life, this longer time frame works to your advantage since it
usually does not allow you to rush into a purchase.
In general, it is usually a good idea to budget anywhere from 90 to
120 days for the purchase of a home, measured from start until finish.
This includes time for personal budget preparations, housing research
as well as the actual purchase (contract), inspection and financing
processes. Having a timeline--and a gameplan to go with it--mapped out
before you begin to search for a home can save a great deal of time--
and aggravation--down the road.
Your first step, which you will want to begin at that 90 to 120 day
from your estimated move point, is to analyze your personal situation.
This will include some self-questioning of your mindset and priorities.
Some questions you will be wanting to ask yourself include:
+ Do we REALLY want to buy a home?
+ Can we comfortably afford to buy a home?
+ Do we want to buy in the immediate area or would we consider other
areas (including other areas of the country)
+ What are some of the absolute necessities in the home? What would
we LIKE to have? What things are not necessary? What do we definitely
NOT want in a home
You will want to begin this self analysis sooner if you are in an active
real estate market with a limited number of properties available since
finding the right home may take more time. If there are plenty of homes
to choose that will fit your needs, you will have more leeway in your
timeline. IN most areas of North America, inventory is currently at
fairly high levels, meaning that chances are fairly good that you will
have a fairly extensive range of choices.
After you have determined the basics (DO we want a home and what type
of home do we want) it is important to begin the financial considerations
since this will have a big bearing on your purchase. This analysis should
occur before you even consider looking at homes, a mistake many buyers
make. By understanding just how much home your budget can afford you
can direct your home search in the right direction. You can find
information on financial considerations on the site here:
<A HREF="http://www.ourfamilyplace.com/homebuyer/financial.html">Financial Considerations</A>
and here:
<A HREF="http://www.ourfamilyplace.com/homebuyer/moneytips.html">Budget Tips</A>
It is only after you have a clear picture of these financial and
budget considerations that you begin the process of shopping for a
mortgage. This can come as late as 60 days prior to your preferred
moving date, but the earlier you have things in line the better
prepared you will be.
We have a complete overview of a timeline for purchasing a home
on the Home Buyer's Information Center website, which can be
accessed here:
<A HREF="http://www.ourfamilyplace.com/homebuyer/timeline.html">Home Buying Timeline</A>
Next Month's Tip: Moving Preparations
++++++++++++++++++++++++++++++++++++++++++++++
The Home Buying Checklist
Many of our visitors have said that one of the most valuable
aspects of the Home Buyer's Information Center is the
Buying Checklist, where they can make sure that all
the bases have been touched. You can find the checklist
here: <A HREF="http://www.ourfamilyplace.com/homebuyer/checklist.html">Home Buyer's Checklist</A>
A special thanks to all those who have written to let us know
that they have found the Home Buyer's Information Center a
helpful resource in their buying process.
Have a great month and good luck in all your endeavors!
The Team at the Home Buyer's Information Center
_____________________________
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