Traditionally April, May, June and July are the best selling months for real estate. Buyers and sellers want to get settled in their new home before school starts, learn about their neighborhood and meet a few people on the block. Certainly, we live in non-traditional times now and the real estate market has seen tremendous changes during the last four years. What factors are in play for us this spring?
Weather Cooler months and a sense of renewal are still high on buyers’ list. We’ve been fortunate that our spring has been a long one, despite our worries about what summer will be like.
Housing activity has been up this year, starting 2012 on a more positive note. Buying activity usually goes down during extremely hot and cold temperatures and our mild winter was a plus. More sellers see the opportunity for a sale and buyers are encouraged by affordable living.
Location We’re looking at micro markets now, especially in the Midwest. We’re in a good place. Pending home sales in the Midwest are up according to the National Association of REALTORS, and we are one of two regions that saw positive competed sales. We also have affordable housing prices, many entertainment, cultural and sports opportunities, plus excellent academic options, all attractive to people moving in to our area. We need to keep these advantages in mind when we look at our market.
Financing Interest rates are still low, an average of 4.25 percent for a 30-year-fixed rate and 3.42 percent for a 15-year fixed rate, but lending is still a tight situation. The best case scenario for a buyer is 20 percent down and a high credit score in this market. But, loans are available–rather than go with a mega bank that may well still be dealing with bad loans during the past few years, look locally. We have some exemplary regional banks, credit unions and independent mortgage companies that didn’t buy into the sub-prime disaster.
Now comes the big question–you’re pre-approved and have begun your home search. Should you lock in a rate now, or wait some more for the rates go lower? We think a lock is the best way to go. The federal government, which has helped to keep mortgage rates down, can’t do that forever. Sooner or later, rates will begin to climb again. And, 4.25 percent really is a good rate!
