“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” Warren Buffet
It’s the start of the week which means we are talking about our favorite Monday update… the market! To kick-off this week, we wanted to share 3 relevant pieces of news to help buyers, sellers and investors consider their real estate goals and related actions.
First, have you heard that homeowner equity is rising faster than home prices? That’s right, CoreLogic reported last week that homeowners have accumulated an aggregate of $486 billion-dollars year-over-year from Q1 of 2018 to Q1 of 2019. This national average equity growth of 5.6% showcases a greater gain than home prices – meaning the investment in real estate is STILL a great one!
Second, the latest Fannie Mae Home Purchase Sentiment Index (HPSI) released this month revealed increased consumer confidence that ‘home prices would increase while mortgage rates would move lower’ according to Mortgage News Daily. 41% or respondents also expect home prices to increase over the next year, while seller opionions on now being a good time to sell remained the same compared to this time last year.
Last but not least… the California Association of Realtors® reports that May sales figures were up to their highest level in 18 months, attributed largely to the fact that interest rates are their lowest in a year and a half, making “mortgage payments have become more manageable to home buyers in general” according to C.A.R. President Jared Martin.
What does all of this mean for you? Buyers: Be sure to have those numbers run if you have not been pre-qualified based on today’s rates! The amount you qualified for at the beginning of your home search this spring may have been impacted by the current rate environment; plus, note that you can start building equity sooner… the sooner you buy! Home prices are still projected to rise so don’t wait for the ball to drop if you can juggle a home purchase now! Sellers: buyers are feeling more confident about making a purchase and more excited about the cost of lending; the current rates might also positively impact what you can afford so look at all angles and variables as you decide when to pull the trigger too! Investors: there are many ways the market can work in your favor if you are deciding what properties to buy, sell or hold. Micro-market trends are going to be particularly important to you so be sure to chat with a very local, very active agent before making any moves.
Please let me know if I can assist you in any way!
All my best,