Lack of Supply of Homes is Leading to Quicker Sales for Homeowners

Lack of supply and low interest rates have led to 51% of homes selling in less than a month and prices rising for the 66th consecutive month nationwide.

Ponte Vedra Beach, United States - October 25, 2017 /PressCable/ —

Ponte Vedra Beach, Florida — The latest nationwide reports show that homes are getting scarce as 51% of homes in the market are sold quickly in less than a month. This lack of housing supply is leading to increases in prices. Smart home buyers are deciding to buy now since the limited housing supply has caused prices to steadily build up for the 66th consecutive month nationwide.

CBS News reported that the quantity of existing homes sold is diminishing. Lawrence Yun, National Association of Realtors’ Chief Economist said, “There are only 1.9 million homes in the market today, but there should be 3 million”. In the past newly constructed homes have been a big factor in keeping the housing supply at normal levels. However, the recent natural disasters have changed the housing forecast per Yun, “I would have predicted 1.35 million newly constructed homes before the hurricane, but now I’ll have to gauge it down. “

NAR, in their August 2017 Realtors® Confidence Index, specified that “amid job creation and sustained low mortgage rates”, they reported that “buyer demand is higher compared to one year ago”. Homeowners are rejoicing as America is facing the “Perfect Storm” for homeowners looking to sell their homes: lack of supply, new jobs and low interest rates.

3 Reasons To Buy Now

Buying A Home Leads to Greater Net Worth

It is recently shown in a study that home owners have 44x greater net worth than renters. It showed that the 2016 median home owner’s net worth increased by 15% since 2013, while renters’ median net worth decreased by 5% compared in 2013.

As Rates Go Up So Will Home Buyer’s Payments

Example, a home worth $250,000 is estimated at $262,500 next year. With interest rates are also expected to go from 3.83% to 4.4%. This will cause a $145.33 higher per month payment. That’s an extra $52,319 for 30 years. The Phyllis Frankel Realty Group highly recommends purchasing a house as early as possible to keep home buyer costs down.

A Great Way To Build Family Wealth

Owning a home is “forced savings”. A home owner increases their equity every time the mortgage is paid. In addition, Americans continue to see home ownership as the American Dream and a great investment. These beliefs will continue the demand for real estate into the future. As Gallup reported, “34% of Americans pick real estate as a long-term investment this year”. “Stocks followed at 26%.”

It is wise to purchase a home now due to likelihood price increase and as a way to build family wealth. More real estate information can be found at www.frankelrealtygroup.com for home shoppers looking in the Jacksonville FL, Ponte Vedra Beach FL or Nocatee FL area.

Contact Info:
Name: Carey Frankel
Email: Send Email
Organization: Phyllis Frankel Realty Group
Address: 830-13 A1A North #143, Ponte Vedra Beach, FL 32082, United States

For more information, please visit https://www.frankelrealtygroup.com

Source: PressCable

Release ID: 253925