Every buyer wants to purchase at a great price and a low mortgage rate as that determines the monthly cost. Here’s how today’s buyers are being impacted: Price – Based on a home price expectation survey released by Pulsenomics on Aug. 8, more than 100 forecasters predict a 6.7% annual gain in home values for 2013. This rate is expected to slow to approx. 4.4% in 2014 and about 3.5% for the following 3 years. In other words, if you were waiting for the bottom of the market to buy, you’ve missed it. Prices are going up. Mortgage Rates – The Bankrate Mortgage Trend Index released Aug. 15 shows that 67% of the experts and Bankrate analysts believe rates will rise over the next week or so. Most experts believe the interest rate will level off between 4.5 and 5%. The Feds have artificially kept rates low in order to stimulate the economy. According to Frank Nothaft, Freddie Mac’s VP and chief economist, “as the economy continues to improve, we expect to see continued upward movement in long-term interest rates.” In other words, mortgage rates are going up. Increases in prices and rates impact you; your housing expense will be more a year from now if a mortgage is necessary to purchase your home. My advice is to buy now - it could lead to substantial savings. Contact me to work with the 2013 REALTOR® of the Year! Donna Forest 603-526-4116, donna@donnaforest.com, www.donnaforest.com
Why should you buy a home now? The cost of a home is determined by price and current mortgage rates. And both are going up. We’ve passed the bottom of the market and, according to NH Association of REALTORS® President, Bill Weidacher, the market is consistently heading in a positive direction. Here’s why waiting no longer makes sense.
Home Prices are Rising – According the Case-Shiller Home Pricing Index, nation-wide, home values have increased 10% in the last year. Many experts are calling for the prices to continue to rise. In NH, the median price is up 5% from last May and YTD sales are 11% ahead of last year. A 22.3% appreciation in home values over the next 5 yrs. is projected by the Home Price Expectation Survey.
Interest Rates are Rising – Freddie Mac reports that interest rates for the 30-yr. fixed rate mortgage has risen about 1/2 percentage point. The National Association of REALTORS®, the Mortgage Bankers Association, and Fannie Mae are anticipating the interest rates to further increase by ½ percent by this time next year.
If you are considering the purchase of a home and like the idea of saving money, then buying sooner rather than later should be on your to do list! Give me a call to work with a REALTOR® in the know and the 2013 Sunapee Region Board of REALTORS® REALTOR® of the Year. 603-526-4116, www.donnaforest.com
Why should you buy a home now? The cost of a home is determined by price and current mortgage rates. And both are going up. We’ve passed the bottom of the market and, according to NHAR Pres. Bill Weidacher, the market is consistently heading in a positive direction. Here’s why waiting no longer makes sense.
Home Prices are Rising – According the Case-Shiller Home Pricing Index, nation-wide, home values have increased 10% in the last year. Many experts are calling for the prices to continue to rise. In NH, the median price is up 5% from last May and YTD sales are 11% ahead of last year. A 22.3% appreciation in home values over the next 5 yrs. is projected by the Home Price Expectation Survey.
Interest Rates are Rising – Freddie Mac reports that interest rates for the 30-yr. fixed rate mortgage has risen about 1/2 percentage point. The National Association of REALTORS®, the Mortgage Bankers Association, and Fannie Mae are anticipating the interest rates to further increase by ½ percent by this time next year.
If you are considering the purchase of a home and like the idea of saving money, then buying sooner rather than later should be on your to do list! Give me a call to work with a REALTOR® in the know and the 2013 Sunapee Region Board of REALTORS® REALTOR® of the Year. 603-526-4116, www.donnaforest.com.
- Don’t try to second-guess interest rates or the market by waiting for the “right time”. If you find a home you like, buy it.
- Accept the fact that no house is perfect. Concentrate on the items important to you and let the minor flaws go.
- Get approved for a mortgage first before even looking at properties. This will set your price range and also enhance your offer.
- Don’t look at every house on the market just because they are there. You’ll get confused. Be picky and look at the most appealing. Then add to the list if nothing fits.
- Don’t worry if you feel buyer’s remorse after making an offer. It is common and will pass. Buying a home is a big decision but the benefits far outweigh the negatives.
- Work with an experienced local agent. Buying can be emotional so pick someone you’re comfortable with and respect.
If you are looking for an accredited buyer’s agent with over 18 years of experience to make your buying experience simple, give me a call! 603-526-4116; donnaforest@donnaforest.com.
Donna Forest, Associate Broker, ABR
How do you know what to offer? As much as you have heard that it’s a buyer’s market, this doesn’t mean it is always bargain pricing. In fact, low-balling tends to negatively affect the sale. Sellers generally will not even counter back; feeling that the buyers are not serious. To make an effective offer, work with your agent to get information on comparable houses sold within the past year and get the pricing of the competition. Chances are you have been out looking at the similar homes for sale, so you will have a good feel as to where this property is positioned in the current market. Another factor to consider is how long it has been on the market. If the listing has been on for much longer than the average, you may be able to offer a lower price. Find out the list to sell ratio for that town. In this area, selling prices in 2012 on average ran 94% of asking. The key to making a successful offer is to have good information. Working closely with a knowledgeable REALTOR® will make this process easier, so give me a call if you want to work with an Accredited Buyer’s Representative! 603-526-4116. donna@donnaforest.com
Donna Forest, Associate Broker, ABR
Here's your opportunity in Sunapee, NH. A two-story, low maintenance commercial building that was built in 2007. The lower level consists of office space with a porch overlooking the Sugar River and a garage/shop. The second floor is an upscale, 2 bedroom, 2 bath apartment with a deck overlooking the river. Offered at $320,000.
Jane Snow, Listing Agent
603-526-4116
This new listing in New London, NH fits the bill! Private, yet minutes to town, this home offers 7 bedroom and 4.5 baths. Great floor plan with 4 levels of living space means plenty of room for family and friends. Beautiful gardens and flowering shrubs. Terrific, level side yard perfect for soccer and croquet. For additional photos and information, visit www.159BirchAcres.com. Offered at $640,000. Abutting 2 acre lot behind the house is also for sale - house and additional lot offered at $750,000.
Comfortable, four bedroom cape is close to schools, shopping and the hospital, and right next door to the Outing Club Park. You can go play ball, tennis or horseshoes any time you want! Large, level yard, private rear deck and two car garage with spacious overhead storage. Offered at $243,000. Visit www.NewLondonCape.com for more photos and details.
Joan Wallen, Listing Agent
It may be on a busy road, but you'd never know it from the private, fenced backyard with extensive gardens offering a quaint outside living space. The inside is warm and cozy with wood floors and walls, exposed beams and skylights. Updated kitchen and bath. Access to two beaches on Lake Sunapee, just 4 miles to Mt. Sunapee for skiing and summer fun, and Sunapee Harbor is a short distance offering shopping and restaurants. A great buy at $115,000.
If you are even thinking about buying, then all I can say is - do it sooner rather than later. Here is why you should be buying:
- We are at historic affordability. Prices nationwide are down an average of 36% from the peak and rents are rising. It’s never been cheaper to buy a home. Mortgage rates hit an all time low of 3.87% in February.
- 2012 is projected to remain flat and then pricing is expected to appreciate 1.75% in 2013, 2.71% in 2014, 3.23% in 2015, and 3.32% in 2016.
- The Case Shiller Pricing Index for the US shows you can buy a house for the same price as in 2003. However, with the lower interest rate, the house will cost you less.
- The cover of Barron’s Magazine for March 19, 2012 – “Home Prices Ready to Rebound”
- John R. Talbott, (Bloomberg News calls him the” Prophet of Real Estate”), said in Dec. 2011, “it is now time to buy a home”.
Based on personal experience as well as hearing what other local Realtors are saying, activity levels have increased and we are actually seeing multiple offers on properties as well as quick sales for those homes that are properly priced for the market. In the words of John R. Talbott, a finance expert who predicted the housing bubble –“ run, do not walk to your neighborhood banker and finance a new home”. Whether buying or selling, if you want to work with a REALTOR® in the know, then give me a call! 603-526-4116
Donna Forest, Broker Associate
It's not perfect, but it's a great price for New London! $178,000 for this 4 bedroom, 2 bath ranch in a great location with easy access to the medical center/hospital and shopping center. Wood floors, some renovations started. A great opportunity if you're looking for a project with "home" work! Call 603-526-4116 to schedule your showing.
Donna Forest, Listing Broker