According to a report published in March by The National Association of REALTORS®, the country saw a 3.9 percent month-over-month increase in sales of previously owned, existing
homes. The Northeast led all regions with a 14.2% rise in sales in February, while existing home sales increased 1.6% in the South and 3.9% in the Midwest. Sales of existing homes remained unchanged in the West. The national median home price dropped to $212,800, which is a 1.3% decline from a year earlier.
Sales of new homes fell for the second consecutive month according to a March report by The Commerce Department. Sales of single-family homes fell 3.9 percent in February to a seasonally adjusted annual rate of 848,000 homes, which is the slowest rate in almost seven years. The decline follows another decline in January. Prices also fell in February to a median new-home price of $250,000, down 0.3 percent from a year ago. The inventory of unsold homes reached 546,000 units.
Economists say the difference between new-home sales and existing-home sales could be explained by a number of factors. New home sales are calculated from contracts actually signed in February when the weather was cold, while existing home sales reflect purchase agreements signed in December and early January, when the weather was unseasonably warmer in most parts of the country.
Finance 101
Are you in the market for a home? This season it really pays to do your homework! Because of the recent trouble in the subprime mortgage market, a number of lenders are tightening their standards, and some might find loans a little harder to come by. Here are three tips for getting the most from your next purchase:
1. Review Your Credit History – Credit reports are freely available from the credit reporting agencies, and now is a good time to review yours. Address any blemishes you see and try to improve your score where possible.
2. Shop Around – Don’t always take the first quote that comes your way. Take time to shop around, ask your
real estate agent for a trusted lender, and do what you can to get the best rate possible.
3. Negotiate Price – Get the most from your next purchase by negotiating on the purchase price. Review recent sales with your agent and make sure you aren’t overpaying.
By talking with your real estate agent and following these basic steps, you will become a market expert in no time! A little research can go a long way!
A Tip for Buyers and Sellers!
New Homes come with warranties to protect the buyer in case of the unexpected? But what about existing homes? Fortunately, there are a number of companies today who offer warranties on existing homes. Sellers can now offer their buyers a level of assurance that was previously reserved for new construction, and buyers can buy with confidence!
If you are in the market to buy or sell, ask us about the advantages of a home warranty. You might be surprised at how much protection is offered for a very reasonable fee.