Pending Home Sales See February 2017 Jump In Anticipation Of Rising Interest Rate
Numbers for February 2017 are in, and pending home sales have seen the highest month-over-month increase noted since April 2010; buyers seemed spurred on by a variety of economic factors.
Fairfax, United States – April 1, 2017 /MarketersMedia/ —
Economists originally predicted an increase in pending sales for single-home residences and condo units, but they fell short of the reality. Experts forecast an increase of approximately 2.5 percent in February 2017. Home buyers flooded the markets in excess of forecasts due in part to rising stock market performance and strong hiring trends across multiple industries. Experienced brokers might also note the impact of warmer-than-normal weather in late winter and early spring, which is encouraging potential buyers across the nation to browse properties more often.
The spring season is always a busy one for brokers, as buyers are seeking to move during pleasant weather or use the summer months to relocate an entire family. This year, buyers are also being motivated by the potential savings associated with closing sooner rather than later. With the Fed signaling several interest-rate hikes throughout 2017, savvy buyers realize that the total cost of home ownership is only likely to increase as time goes by. Getting into a new home in the spring months could save buyers substantially on long-term interest payments.
The sudden influx of motivated buyers does pose a challenge for brokers. The recovering home market is still short on supply. Inventory at the beginning of the year was low when compared to the beginning of 2016. With supply outpacing demand, home prices across the nation have been creeping upward. Brokers can still help aggressive buyers find the right deal, but more passive buyers might be tempted to roll the dice on rising prices and interest rates if there isn’t a home in local inventory that meets their needs or preferences.
Perhaps hardest hit by the supply problem are buyers looking for first-time or entry-level homes. Supply is more plentiful at mid- and top-range pricing, making entry-level home shopping more competitive. Lower supply and a rush to close deals before interest rate impacts kick in mean homes are selling fast. Professionals looking to broker deals and lock in long-term real estate clients must be poised to move fast.
Current market factors also mean sellers are usually fielding more than one offer. It’s a good position to be in as a broker representing the seller, but professionals on the other side of the deal might have to think creatively to place customers in the running for a home purchase.
Contact Info:
Name: Scot Small
Organization: Commission Express
Address: 8306 Professional Hill Drive, Fairfax, VA 22031
Phone: 888-560-5501
For more information, please visit https://www.commissionexpress.com
Source: MarketersMedia
Release ID: 182380
Copyright © 1999-2013 SproutNews.com
