Tag Archive for: home buying

What New Canaan Buyers Purchased Last Year

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Buyers headed towards the closing table with a little more gusto this past year in terms of number of homes sold.  This is a value driven real estate market so the number of homes sold is up by 4.2%, but average sales prices were down by approximately 13%.

The strongest segment continues to be a 4-5 bedroom colonial home priced between $850,000. and $2 million. The $3.75 – $4.25 million price range picked up a bit, but the high end market remains slow due in part to a large inventory of competitively priced  homes. Two homes sold over $5 million compared to 6 the previous year. New construction continues to be appealing to buyers with 13 homes sold and 4 more under contract.

* In 2012 the average listing price was $1,759,369.00 (slightly lower than last year) with an average selling price of $1,652,445.00. The sold price to original list price ratio was 92.96% with an average of 185 days on the market.

Pricing is key. Buyers are looking for value. The top three factors driving home buyers are the characteristics of the neighborhood, updated kitchens and/or baths and overall affordability.

 

 

Follow the Bouncing Mortgage Ball

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We all the learned to follow the bouncing ball which normally flowed in a gentle arc as we sang through the song. Following the mortgage tune might have a sharper rise in pitch than we have grown accustomed to.

Mortgage rates were up sharply this week, bouncing back from record lows following the release of a better-than-expected jobs report, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.

While forecasters expect rates on 30-year fixed-rate mortgages will stay well below 5 percent through 2012, strong economic growth could trigger a faster rise in long-term interest rates, including mortgages. Freddie Mac said rates on 30-year fixed-rate mortgages averaged 4.12 percent with an average 0.8 point for the week ending Oct. 13, up from 3.94 percent last week, an all-time low in records dating to 1971. At this time last year, the 30-year FRM averaged 4.19 percent before climbing to a 2011 high of 5.05 percent in February.

If 2012 is another year of slow economic growth, the MBA predicts purchase loan volume will again remain below 2010 levels, rising only slightly to $412 billion. Not until 2013, when the economy is expected to pick up steam and home sales and prices are expected to increase, will purchase loan demand show solid growth, increasing to $770 billion for the year, the MBA said.

If an economic recovery remains subdued, the MBA expects rates on 30-year fixed-rate loans will average just 4.4 percent during 2012 before climbing to 4.9 percent by 2013.

While mortgage rates continue to remain affordable, a crystal ball would be more helpful.

Source: Inman News

Tag Archive for: home buying