Monday Market Update: Purchase Applications Hit 9-Year High

home prices

If you thought it was going to be a boring year for real estate – I am sorry to disappoint you! Just last week, National Mortgage News reported that purchase applications surged – and not just a little. Borrowers applications for home loans increased 13.5% from the previous week, likely in response to unexpected and favorable rates as of late. That caused the seasonally adjusted purchase index to reach its highest level since April of 2010! That’s right… buyers are back to levels we have not seen in over 8 years.

This is great news for sellers who were worried that they missed their window of opportunity last spring. While slower price gains and rising rates had many sellers taking a pause, the vast majority of long-term homeowners have earned substantial equity and now have buyers literally chomping at the bit (before rates change again).

While the Calculated Risk Blog has reported statewide inventory increases of over 30% year-over-year, the most desirable areas in Silicon Valley are still in demand. Plus, there is much an experienced agent can do to make your home truly stand out from the competition (just ask me how!).

In short – market opportunity knocks for both buyers and sellers. Equity might be gaining at a moderated pace, but values are still delivering a great ROI for many sellers. Plus, borrowers are now hoping to maximize their purchasing power given the current rate environment.  Please don’t hesitate to reach out to chat about the timing, strategy and action plan that is best for you and your goals.

Resources Used:

California Existing Homes [Inventory Up 31%]

Purchase Mortgage Applications Rise To Nine-Year High

All my best,

Bobbi

Bobbi Decker, SRES®, CIPS®

Broker Associate, Today Sotheby’s International Realty

Bobbi Decker & Associates

BRE 00607999

bobbi@bobbidecker.com

650.346.5352

www.bobbidecker.com

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/

EHO

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