Listing Courtesy of OCEAN ATLANTIC SOTHEBY'S INTL REALTY
Suppose you are a Sussex County homeowner who intends to move to a different home eventually, but for the moment, you aren’t under any particular deadline pressure that would dictate when you have to put your home on the market. In that case, you’re likely to keep tabs on overall market conditions, awaiting what looks like circumstances favor those with homes for sale.
Twice a year, the National Association of Realtors® issues their economists’ midyear forecast—it appeared last week. For those with homes for sale in Sussex County (or anyone thinking about adding theirs to the homes already for sale), the outlook was heartening.
The forecast was for the greater U.S. economy to improve, bouncing back from the weather-blasted winter stall which made the first quarter a disappointment. Subsequently, consumer spending opened up, causing expectation that the GDP would rise in the remainder of the year. Overall, the forecast for 2015 was positive, though lukewarm. As a whole, the year promises to be “not bad but not great.”
On the other hand, focusing narrowly on the outlook for U.S. housing market activity—homes for sale—the upside momentum was already decidedly more in evidence. The prospects for any single one of the Sussex County homes for sale depend upon a combination of factors, but if national activity is any reflection, the latest numbers packed what you could call a “6-7-8-9 punch”:
· Existing home sales in May notched a high water mark not seen in 6 years (and the 2009 level had been artificially inflated because of an $8,000 homebuyer tax credit).
· New home sales hit the highest level in 7 years.
· Housing permits to build new homes registered an 8 year high.
· Pending contracts to buy existing homes for sale reached a 9 year high.
Examining the demographics behind the figures, it was clear that, for the first time in quite a while, first-time buyers are back. Last year during the same period, only 27% of buyers were first-timers. They now make up a more normal 32%. As prices brought by homes for sale continued to rebound, institutional investors were disappearing from the scene, creating a more typical mix of buyers.
A major part of the reason why homes for sale were fetching “stronger than normal home price growth” had to do with a shortage of inventory—ascribed to the volume of new homes being built (or not being built). The rule of thumb is generally for about 1.5 million new homes to be constructed per year, a mark that’s failed to be realized for a number of years. In 2009, only 550,000 home were built—and the total had barely reached a million through last year. But now, with optimism among homebuilders at newly robust levels, it’s expected that normal output will have fully resumed by 2017.
The other major factor boosting sale prices was the specter of mortgage rate increases. Rising mortgage rates “initially rush buyers to decide”—just the kind of sign that could tip the scales for a homeowner who’s been waiting to add their property to the homes for sale in Sussex County. Should you decide that this summer is shaping up to have just the conditions you’ve been waiting for, I hope you’ll give me a call for a no-obligation consultation! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
My organization—the National Association of Realtors®—offers a wide range of guidance for Delaware families who have decided it’s time to land their first house. With more than a century’s worth of experience, you’d expect nothing less.
Last week I happened across an article the NAR had distilled that looked like a must-read for anyone who is just starting out on the path to buying their first Delaware house. Its title was “8 Critical Things to Do Before Buying a Home”—but it could just as well have been “8 Critical Things to Do Before Buying Your First Delaware House.” Each of the eight was apt—and important to mull over—but it’s the kind of list that’s awfully easy to read without giving much thought to the individual items.
The challenge was to come up with an interesting way to share the ideas with you. The article put the “8 critical things” in order—so I decided to make a game out of them: a quiz.
See if you can guess what was the order—from first to last—that the NAR presented them in. I don’t know that the order I’d choose would match theirs exactly …but see how well yours does:
-A. Amass a down payment
-B. Go mortgage shopping
-C. Ponder the future (*I love this one: wait till you see where the NAR put it!)
-D. Crunch your numbers
-E. Know your credit score
-F. Get educated
-G. Ballpark your closing costs
-H. Interview at least three real estate agents
The NAR’s answers are at the bottom, but I have a minor addition for Delaware first house buyers: if you’re just getting started, you can get a head start right now by giving me a call. There’s never an obligation, but I’m always happy to discuss where you are and the options you might already have. In any case, later—when it comes to action H.—you’ll definitely have a head start! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.