Can you believe we’re already in September?
Goodbye summer…oh well, I’ve got a great way to kick off the new month!
Check out all the newest real estate market information I’ve scoured the internet for.
This Blog’s Topics:
• Existing Home Sales Plunge in July
• Tips to Make Your House Stand Out to Buyers
• Mortgage Closing Costs Jumped 40% in Illinois
• Check out my next FREE Seminar on Wednesday September 15th to learn more click Here
Existing Home Sales Plunge in July
We’ve hit another record low, not a good one In July. Sales of existing homes have plummeted to the lowest levels in 15 years, despite ultra low mortgage rates and bargain home prices. In July, sales fell by over than 27%, marking the largest monthly drop since 1968. Fears surrounding the housing market have magnified fears about the broader economy.
With the double-dip, things may only get worse…the housing market is undermining the faltering economic recovery. The hardest hit range was lower to mid-priced homes. In the Midwest, home prices between $100,000-$250,000 fell by 47%. This record comes off a strong spring, when the government-sponsored tax credits provided a much-needed boost.
Slower sales means more houses added to the inventory levels, resulting in a 12.5 month supply of homes at the current sales pace. Also adding to the plunge is increasing foreclosures, high unemployment rates, and a standoff between buyers and sellers on price. Sellers are reluctant to lower prices even further and buyers are reluctant to purchase, fearing prices will continue to decline.
Tips to Make Your House Stand Out to Buyers
If you’re trying to sell a house on the retail market, you’re probably up against a lot of competition. So, what’s it going to take to get buyer’s attention? Make your house stand out from any other on the market… The statistics show what we’re facing – sluggish sales of new homes, and plunging sales of existing homes. But, that doesn’t mean you should give up. There are things you can do to make your house as attractive to buyers as possible, such as:
1. Price competitively – research similar homes in your area that are for sale and set your asking price as competitively as possible. Buyers won’t want to haggle if they can get a comparable house down the street for less money.
2. “We’re Not in Foreclosure!” – making it known that you’re a traditional seller means your home is probably in better condition than ones in foreclosure – things are being maintained and the lawn is being mowed. You can also offer perks like credit towards closing costs.
3. First Impression – curb appeal matters. Showcase the property as best you can inside and out. Consider staging it professionally.
4. Professional photography – consider hiring a professional photographer to spotlight the best features of the home, in photos and video.
5. Consider renting – renting or leasing can be a great alternative in a tough market.
Mortgage Closing Costs Jumped 40% in Illinois
Mortgage rates are the lowest they’ve been in a long time. People who are in a position to capitalize on the market conditions and buy a home are facing another challenge: rising mortgage closing fees. In Illinois alone last year, mortgage closing costs rose 40%. The national average is 37%. Why the big jump?
It has to do with new regulations on the mortgage industry that went into effect in January. Lenders are now required to provide much more accurate estimates of closing costs. If their estimates aren’t within 10% of the actuals, they get fined. That means more time and labor going into preparing a loan, and banks being more honest. It also means fewer surprises for consumers in the end, but much steeper fees. Either way, the result isn’t good.
Want to learn more? I’d like to help you get started or do a lot more real estate investing!
Hope your month is filled with real estate investing success.
Until next time…
Dario
