US stock market daily report (January 17, 2014, Friday)
January 19, 2014, Sunday, 15:40 GMT | 10:40 EST | 21:10 IST | 23:40 SGT
The real estate market is very resilient, turning the tide after the housing crisis nearly 7 years ago. During 2013 home prices rose by 10% for many areas. Reports indicate that 2014 is expected to fair very well for the housing market. Major cities across the United States saw the biggest jump in prices, per National Association of Realtors. Supply of houses for sale has dropped which creates a sense of urgency for potential buyers in the market thus, rising prices tag along. Fewer foreclosures and short sales on the market add to rising selling prices. In November, there were approximately 2.1 million existing homes for sale, equating to a near 5 month supply, per NAR.
Looking back in history, mortgage interest rates hit 3.7% in 2011. During 2012, mortgage rates were nearly 3.3% for a 30-year fixed-rate mortgage. At the end of 2013 mortgage rates were nearly 3.5% for a 30 year fixed rate mortgage. On a negative note, most income levels have not increased, weighing in on the rise of mortgage rates increasing monthly mortgage payments on a new home.
With the economy showing signs of improvement, the Federal Reserve indicated it will start to reduce its monthly spending of $85 billion in mortgage-backed securities and Treasury securities. The Fed maintained this stance to retain historically low interest rates through 2015. Gross Domestic Product during Q3 of 2013 were revised upward to 4.1% - an improvement pace not seen by the USA in years.
Some keys to successful home selling begin with eliminating any potential objections a possible buyer, could have. If you are looking to move your home quickly, sellers need to exceed expectations of potential home buyers. If your home is competitively priced, condition exceeds a buyer's expectations based on other homes in the neighborhood, buyers can expect to get an offer of some type.
Staging a home is a must. Sellers should visualize how an outsider or potential buyer, will view their house and its condition. Its wise to contact several realtors to visit your home prior to signing a contract with any one realtor. Discussing marketing plans with several realtors provides ideas a seller can use, for any broker they decide to go with.
Sellers should do research on how long houses in their area have been on the market. Realistic pricing is a necessity. An overpriced house will sit, reasonably priced houses move. If you seriously want to sell your home, seriously consider every serious offer. If a seller is so greedy that a buyer walks away, the seller let the deal get the best of them. There are not, unlimited buyers for a house and if a seller loses one, it could be quite some time before another serious buyer comes along.
Sellers should thoroughly read listing contract and offer to purchase, before they sign.