Happy Holidays for Home Sales

Happy Holidays for Home Sales

US existing home sales jump to 11-year high

Reuters reports that U.S. home sales increased more than expected to 5.6 percent in November.  Existing home sales hit their highest level in nearly 11 years - since December of 2006.  This is the latest indication that housing has bounced back after almost stalling this year. 

Despite the recent gains, existing home sales remain constrained by a chronic shortage of houses at the lower end of the market, which is keeping prices elevated and sidelining some first-time buyers, who accounted for 29 percent of transactions last month.  Economists and Realtors say a 40 percent share of first-time buyers is needed for a robust housing market.

You can read all the details HERE.  Our experience on the Easterbrook Team mirrors this article with our current amount of purchases closing now and in the New Year for Sacramento, El Dorado, and Placer Counties. We have created HomeLoanWorkshop.org to keep up with demand and provide an educational outlet for potential homebuyers.  For reservations, call (916) 850-6050 or visit the website HERE

Who's Buying?

Housing is Back!  Who’s Buying?

 

Realtor.com has an article that claims the US is right on track and has by and large recovered from the housing crisis.  On the sales front, there were more sales of both existing and new homes in 2015. Judging from the data reported through November, new-home sales were up 13% and existing-home sales were up 7%. That higher volume of sales was supported by strong household formation (1.4 million households formed in the past four quarters ending in September) and another year of solid job creation (an average of 210,000 jobs per month through November). Normal, non-distressed sales increased among first-time and repeat buyers, and buyers who were relocating and/or changing jobs. CLICK HERE for ARTICLE

 

Here’s the kicker though: Most of the new households forming are renting households, and that’s where the demand-supply imbalance is most acute. Apartment vacancies are at multiyear lows, and correspondingly, rents are now rising faster than home prices. While it may sound like a real estate agent’s dream to say that it’s cheaper to buy than rent in more than 75% of the country, that sound bite doesn’t bode well for the future.  When renting households are so burdened by making rent payments, they’re less able to save up to own.

            To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635