NAR: Limited Supply Causes Unexpected Drop in July Home Sales

The National Association of Realtors (NAR) reported a 0.8% drop in its pending home sales index for July, due to a persistently low level of supply in the US.

The unexpected decline further reflects the worsening situation of fewer homes listed for sale nationwide. The recent decrease also took place for the fourth time since April 2017.

Index Issues

The drop in pending home sales as shown by the NAR index indicated a slower pace of home-buying activities. Aside from this, a lower inventory also causes home prices to increase, while salary growth gets left behind. This excludes more buyers from the market due to unaffordable property values.

In July, the residential market recorded only 1.92 million existing properties for sale. This represented a 9% drop over the past 12 months. Given the numbers, the NAR revised its sales estimate for 2017 to 5.49 million from 5.56 million in June. Lawrence Yun, NAR’s chief economist, said that the current trend might lead to an estimated 5% increase in the national median existing-home price. This is similar to the 5.1% increase in 2016.

Short Supplies

For investors, buying homes may not be the best option right now due to the difficulty of selecting bankable properties. Instead, rental schemes could be a good alternative. These include Section 8 real estate investing offered by experts such as Americas Housing Alliance, LLC. Leasing rates have generally increased for multifamily properties compared with single-family homes.

On the other hand, a property sale serves as another option to liquidate your investment. However, you’ll need to consult with a real estate investment company first. They will determine the best strategy for selling.

Home sales serve as an economic growth indicator. As such, a shortage of homes on the market causes problems beyond high prices and affordability.

Are You Ready to Buy a Property? Answer These Questions First

Rear vies of young couple looking at their new housePeople have different tastes and preferences like owning a suburban house, a condominium unit, or an apartment. Looking for a property requires a lot of consideration which makes it an exhaustive and effort-consuming affair. However, as they say, you will always know the best house when you find one.

Whether it is your intention to invest in a real estate in Stratford, or you are simply looking for a property to lease for a long term, First National Real Estate Mills and Gibbon suggests it is wise to answer some questions first before you go house-hunting.

What is your dream house like?

As a family, it is important to purchase that dream house everyone is looking forward to live in. You can get the help of your family members to list down the features you want to have in the property. Getting each family member’s opinion can also be a fantastic way to bond. After all, it is going to be the place where all of you will spend a great deal of time in so every opinion should count.

How big do you want your house to be?

It really depends on the number of the family members. Would you rather have an extra room for a home office? A den perhaps where you can spend some alone time? Does your wife want to have her craft room? You and your family should comfortably fit in your dream house. The number of rooms and the living spaces should be ideal, not just for you and your family, but your future guests as well. Who knows who might drop by for a two-day visit.

How much are you willing to pay?

Upon deciding on how you want your dream house to look like and the number of rooms have been established, it is time to talk about budget. Buying a home comes with different costs like local taxes, monthly utility costs, and bills. Before buying the house consider the additional cost to ensure you do not stretch your budget.

Does your dream house need renovation?

So, you found your dreamhouse, but it seems to need some essential renovations. Remember that an old house may require repair occasionally. No matter how sporadic the repair is going to be, it is important to know if you need to shell out a lot of money on renovations. If you will, you might think about getting a brand-new house instead.

Is your dreamhouse easily accessible?

One of the more important considerations when purchasing a property is accessibility to amenities such as schools, hospitals, super market, and your place of work as well. We suggest that you think twice if either you or your family members must travel far to get to school or buy groceries. Not practical at all. The time you spent commuting daily might be well invested in quality hours with family members.

Experts will tell you that finding a good real estate property can be a bit tricky. However, with the help of your family (or friends) and good real estate agencies, we are very sure you can find that dreamhouse soon.

Real Estate Tips: Leveraging Your Money

Real Estate TipsRetirement is something that you should prepare for early. Putting aside money in your 401k is no longer enough. Actively investing your money is the best way to secure your future.

Real Estate Investments

Real estate is one of the best vehicles for investment. You do not have to buy, fix, and sell houses. This costs a lot of time and effort dealing with professional designers and builders, as well as handling tax payments. Another way to handle real estate is buying and holding. This way, you hold on to the property while using the rent to pay the mortgage and other related expenses.

Leveraging

Banks are willing to give loans to those investing in real estate. All you need to do is come up with a 10-20% down payment then you can borrow the remainder. However, if and when the property appreciates in value, 100% of the appreciation is yours.

The Importance of Location

It cannot be said enough: pay attention to the location first. Study the nuances of each location you plan to invest in. In Ogden, Utah, for example, residents are known for supporting local businesses and a fairly tight-knit community. Both residential and commercial investments should work well. Make sure you shop for a good mortgage so you can maximize your earnings. In fact, you can get a mortgage approval first before you shop for a property.

Refinancing

Check that the monthly rent covers all property-related expenses. From there, you may choose to put extra income into paying the mortgage in Ogden. Several years down the line and you’ll have a lot of equity in the property. By that stage, you have two options. The first is to continue the mortgage payments until the property is yours, debt-free. Rental income then becomes pure profit for you. The second is to refinance the income you receive from this property to invest in another piece of real estate.

Taking Stock

Consult with professionals regarding your plans or find mentors in the field you wish to study. Each person can show you different means of tackling the same investment type and it can be easier to find the right route for you.

Secrets Unlocked: Home Purchase Made Easy

House for salePurchasing your own home will be an emotional roller coaster. You will feel excited going through each of the beautiful homes, but then you will be dismayed every time the real estate agent reveals the expensive prices.

There will even come a time when you want to postpone the purchase until you find the right home at the right price offered by First National Mills & Gibbon. You don’t have to settle there. Know the secrets to getting the most of your potential home.

Purchasing Secret #1: The Undisclosed Science of Bidding

When it comes to bidding, your opening must be grounded on a couple of things: how much you can pay and what you think is the real value of the property. Start your opening bid with a fair and reasonable rate, so the seller does not get offended. Most people believe you should begin by going for a lower price. Still, it will be subject to the current state of the market, which you can check at Interest.

Do some research and find out the asking rates for other homes in that location. Get the average price per square foot. Ask around the neighbourhood if some of them are planning to set up a tennis or basketball court that will lower the value of the property in the future.

Purchasing Secret #2: Plan for a Physical Examination

Would you get a vehicle without even checking its features? The concept is practically the same when you want to get a new home. It might sound like an additional expense, but hiring a home inspector will save you from unnecessary expenses in the long run. They identify if something is wrong and if it is worthy enough for the asking price.

Get all the cards right and you will be on your way to having a new home at a good price.