Report: Homes Selling Faster Than Any Time In Recorded History
The experts have noted that home selling faster has become more and more rampant now more than ever. On the month of May, an average house was sold in only 27 days, which undercut the previous record set in April with 29 days.
The numbers of sales have suffered because of low inventory. Around 5.62 million existing houses were sold on an annualized and seasonally adjusted basis the previous month. The sales saw an increase of 1.1 percent from the previous month, but they are nowhere near sufficient levels for satisfying the demands.
If potential home buyers get to find a house they can buy, they will surely not think twice of making a purchase. However, houses today are being snatched up, usually for cash in matter of months, weeks, or even days.
Home selling faster way before buyers can even set a viewing. As of now, any buyer requires a full pre-approval. Sellers will never consider taking on a half-baked offer, something that doesn’t provide strong evidence that the buyer is properly qualified for a mortgage.
Home Inventory in Shocking Low Numbers
The May 2017 Existing Home Sales report showed that around 5.62 million homes are being sold on an annualized and seasonally adjusted basis. Existing homes are pre-owned houses which are being sold again and do not include homes that are newly constructed.
The reading for May continues the strength seen by far this year 2017. There is a high chance that this year will be the best for home sales to eclipse 2016 of being the top 12-month period ever since the downturn in housing.
One big factor which holds sales back right now is the ultra low inventor. The Existing Home Supply has reached 4.2 months all over the nation last May to match the mark in April, yet it remains to be extremely low for comfort.
Increasing Prices But Affordable Homes
A new report also revealed that because of surprising affordability, home selling faster than ever before. It was revealed that houses are 33 percent cheaper than they used to be at the height of the housing market during the late 2000s. In fact, it is not even necessary to search for a time when the prices were sky high to argue for the affordability enjoyed today.
Studies revealed that homes were around 10.3 percent more expensive back in the year 2000.
First Time Home Buyers Can Choose from Different Low Downpayment Programs
Mortgage rates alone are never enough to extend the buyers’ opportunity. The more important aspect of is actually the available mortgage programs.
The market of today presents flexibility in downpaymnt for first time home buyers, the likes of which has never been seen for the past 9 years.
Even the mainstays in the field of affordable housing have made it so much easier to make a purchase. Just last year, mortgage insurance premiums also saw remarkable reductions, with more lenders offering such loans at FHA suggested minimum score or 580.