A chink of light has appeared at the end of the tunnel of American property sales.
For the first time in five months home sales are up, rising 1.3% in July compared with June and signaling a potential turning point.
Using annualized figures, America is on track to buy and sell 3.95 million homes over the next 12 months, says the National Association of Realtors (NAR).
Its chief economist says in a NAR statement that buyers are “definitely seeing more choices, and affordability is improving due to lower interest rates”.
There's optimism for a spring in the step of the America market due to rates adjusting downwards in recent weeks. The standard 7% interest rate for a 30-year loan began dipping in July and buyers can now expect deals in the 6.5% range.
NAR said that “all-cash” offers were up 27% for July compared with an historic benchmark of 26%.
Another positive is the increase in homes on the market.
NAR has registered 1.33 million houses for sale in its latest data – a 19.8% leap on the previous 12 months.
The first-time buyer segment is also resilient. It made 29% of all property transactions in July. Admittedly, the historic norm is 40%, but given the affordability crisis right now, we're still likely to see a million homes being bought by young buyers over the next year.
Prices are still hot despite these promising market buyer signals.
NAR reported a 4.2% annual increase in the median price of an existing home, making the average deal in July worth $442,600.
Here are some tips for buyers trying to navigate today's market:
- Get Pre-Approval: In a competitive market, sellers want buyers who can transact quickly. If you're a serious player, you should have a mortgage pre-approval in your pocket.
- Be Flexible: Be prepared to make some compromises as you search for a new home. Make a list of “must-have” and “nice-to-have” features so you don't unnecessarily rule out properties.
- Be Decisive: You snooze, you lose! When the market heat is on, don't procrastinate. If you return to a home three weeks later, it's likely it will have been sold.
- Be Bold: Don't underbid if you like a property. (Why bid if you don't like a property? People do, though). Here's the thing: if you find a suitable home, put in a strong offer. Ensure it's within market expectation, and leave yourself a little extra for the negotiation.
- Your Partner: Find a great agent who will not only help you locate a home but negotiate a good deal. (I'll be happy to help you).
Finally, patience and persistence are key when buying a home in a tight market.
By working closely with your agent, you'll increase your chances of finding your next dream home.
In today’s competitive and evolving real estate market, having a knowledgeable and dedicated agent is more important than ever. Whether you’re a first-time buyer or looking for your next dream home, Key Connections Real Estate is here to help you navigate these changes and make confident decisions. Contact us today to take advantage of the improving market conditions and secure the best deal for your future!
