By Sara Huebener
I would like to share some general housing stats that point towards housing recovery. With that, I have some a couple tidbits existing homeowners should keep in their back pockets for when and if they need to sell.
Inventory in the Twin Cities is first and foremost. In July of 2007, when our market was at one of its lowest dips, housing inventory sat at 36,000 homes. Today, inventory is down to 26,000 homes. That 28% drop is GOOD NEWS! Tie that in with an 18% increase in pending sales in the past four months and we see signs of recovery on the horizon. 2009 promises to be a year to "watch". Even if growth is minuscule, any growth at this time is good news for our market.
Now for more..... Interest rates on a 30-year fixed mortgage are just 4-7/8%. WOW. Rates have not been that low in years. A 15-year fixed mortgage hovers around 4.5% - also very good. If you are a homeowner, not moving, and paying 6% or higher on your mortgage, refinance NOW.
If you are selling now, keep this in mind. You can buy down a buyer's interest rate from the existing 4-7/8 to a 4% (or lower rate). This is a great selling tool to offer a potential buyer and incent a purchase.
For homeowners who are currently financed FHA, keep in mind that a buyer can assume your mortgage if they qualify. What this means for you as an FHA-financed homeowner now is this: Down the road, if you choose to sell, and interest rates go up to 7% or 8% for example, a qualifying buyer could assume your lower interest rate mortgage. This is a little nugget that FHA-financed homeowners need to keep in their back pockets.
Finally, I can't say it enough. The federal $7,500 tax credit for first-time buyers is incredible.
Low interest rates. Tax credits. Increases in pending sales. Drops in inventory. There is a lot of GOOD to be found in this market. The signs of housing recovery are everywhere. Keep watching and we'll keep sharing them with you.
Comments