Sales of existing homes rose slightly more than expected in May, according to an article posted on money.cnn.com. This is what I keep talking about; sellers are desperate to get out of the mess their mortgage companies got them into with those shady deals. While that is horrible news for them, it is good news for buyers with good credit. Real estate agents and real estate appraisers can help get you the best deal, but lenders are making more difficult to qualify for the loans, so you must have your financial house in order, so to speak.
The National Association of Realtors (NAR) said Thursday that the number of existing homes sold during May rose 2% to a seasonally adjusted annual rate of 4.99 million units in May from a level of 4.89 million in April. But sales remain 16% below the 5.93 million-unit pace in May 2007, the report showed. And Thursday’s report marks only the second time in 10 months that sales have increased. So, while things are looking better, we still have a way to go. But, take heart because any real estate agent will tell you the housing market goes in cycles. It is either a sellers market or a buyers market, and we are now entering a buyers market.
But, you have to play it smart. That means make sure you are getting into the housing market at the right time, and get yourself a reputable real estate appraiser who can research your appraisal thoroughly and appraise the home you are looking to purchase for the fair market value.
The report also showed that the national median existing-home price for all housing types fell 6.3% to $208,600 from $222,700 a year earlier. Again, this is good news because homes, especially here in LA, were so overly-inflated that it’s no wonder people had to accept loans from lenders that put them in the financial mess they are in today. Let’s face it, the housing market in LA had gotten so bad that you couldn’t even buy a major fixer-upper for under $500,000. But now a good real estate agent can help you negotiate a purchase that is much more in line with reality, and an experienced real estate appraiser will ensure the price of the house is in line with the rest of the housing market in your area.
Stabilization in home prices can only occur with buyers returning to the market, so getting the word out there to potential home buyers is extremely important. It is also important to make sure buyers understand how valuable an appraisal is to the process of purchasing any property. In fact, appraisals are so vital that many lenders and real estate agents require you get one before you qualify for a loan.
The housing market remains mixed around the country. But the report showed that highly overbuilt markets – including Sacramento, the San Fernando Valley and Monterey County in California, Sarasota, Fla. and Battle Creek, Mich. – all experienced sales increases versus last year. So at the very least, it is ok to start looking.
If you are thinking about buying a home, refinancing a home or selling a home, please contact us at www.iappraiseforyou.com to set up your real estate appraisal today.