Friday, July 10, 2015
Real Estate Update: Pending Home Sales reach highest level in 9 years!
It’s no secret the housing market is making a strong comeback. Inventory is incredibly scarce. Buyers are confident enough in the economy to be actively searching for real estate to purchase. This is leading to a shortage of ready-to-move-in homes. When there is a housing shortage, buyers need to act quickly and sellers are now stepping in. This has been the driving force behind skyrocketing pending home sale statistics. Probably the most positive statistic (there are many this month) is “45% of homes sold within 30 days of being listed”. That is a staggering number compared to what we were seeing since the recession began.
Another major factor leading to the housing market surge is because of the historically low mortgage rates. If you could afford a $300,000 home last year, you can get approved for a $330,000 mortgage today. This is due to rates hovering right at 4% and buyers have more purchasing power after sitting out last year.
We have not seen this much buyer activity in a long time here in Tampa Bay. There has also been a spike in the rental market as well. Rental prices have been rising in the last 12 months nationally, as well as here locally in Tampa. This has been a direct cause of buyer activity since renters are looking hard at all of their options. What they are finding out now is that it’s an excellent time to own versus rent, especially with the 30 year rates staying so low! The shortage of rentals is leading to shortage in for sale properties… and the whole housing market has been activated.