Real news on real estate
By Jay McCall, GRI, SFR, SGSB
The median price in February of homes sold was $258,500, an increase of 3% from February 2016. Months of inventory ended at 4.2 down from 5.4 in February 2016. Oro Valley had 83 properties under contract in February, down 1% compared to February of 2016. There was an increase of 19% of sold homes in February compared to 2016. The majority of current Oro Valley price points continue as a seller’s market.
With continued consumer confidence and the strong start of this year’s real estate market, now appears be the time to list if considering to sell a home. Interest has been sparked in buying a home (1) from the action and stated intention of the Federal Reserve for increased interest rates and (2) declining inventory of homes being reported in most all markets in the country.
A home equity conversion mortgage, better known as a reverse mortgage, offers a financial strategy based on circumstances of individual homeowners. The strategy is commonly used to pay off a mortgage to free income stress. This may include credit card debt, medical bills, home improvement with an effect of offering increased lifestyle. Little known, but increasing being used is the purchase of a home with a reverse mortgage. Basic age requirement is 62.
The National Association of Realtors recent report placed the 2016 median existing home price at 7.1%. A CoreLogic report shows the annual increase at 6.9%. Both reports offer a dramatic increase. Different categories of homes moved independently. Less than 75% of median priced homes moved the highest at 10%; Low to middle at 8.3%; middle to moderate prices homes at 7.3%; high priced homes moved at 5.5%.
With not enough existing homes for buyers looking to purchase, home builders are gaining confidence to ramp-up new home construction. Economists are anticipating an increase of 10% which predicts a year of new home growth increasing the choices for buyers. Two other factors come to play: employment gains and a rise of household formations. As inventory of existing homes remains tight, more buyers will turn to new home construction.
Where are Americans Moving? United Van Lines recent survey shows the northeast with the highest outbound population. Holding the top spot for inbound for the first time was South Dakota followed by Vermont, Oregon, Idaho ,South Carolina. Holding 10th place was Arizona. Outbound was lead by New Jersey, Illinois, New York, Connecticut and Kansas. Impacting the movement outbound is retiring Boomers relocating to warmer climates.
In a recent study by Pulsenomics, over 100 economists, investment strategists, housing market analysts were asked at what level would the 30-year mortgage interest rate significantly slow home equity appreciation First impact would be at 5% interest rate, then at 5.5% and the most significant impact would be a mortgage rate of 6%.
The first real estate investment is a home. Consider it the springboard to future real estate purchases to build a cash flow and equity growth portfolio. Visit the monthly Tucson Real Estate Investment Forum, at Viscount Hotel, 4855 N. Broadway, 6-7:30 pm on the first Tuesday. $5.00 a visit or $35.00 annual fee. Contact: 520-909-9375 or firstname.lastname@example.org.