Home Values in Newark DE 19702 June 2015
Real Estate Market Data for Newark Delaware-19702 provided by Sean Casey Patterson-Schwartz Real Estate
National Real Estate Market
Nationally the market is showing strong signs of recovery. Both Existing home sales and Pending sales are strong showing year over year increases(source: Keeping Current Matters). The Median price for U.S. homes was up 5.64% and the average national home price was up 3.74%.(source:NAR and Mortgage News Daily)
The National Association of Realtors (NAR) recently released their Pending Home Sales Index Report and revealed that it is at its highest level since April 2006.The Pending Home Sales Index is “a forward-looking indicator based on contract signings”. The higher the Pending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales.Every region of the country has experienced year-over-year gains in pending sales as seen below:NAR’s Chief Economist, Lawrence Yun cites job creation as a major reason that the housing market has boomed this spring, going on to say,”It’s very encouraging to now see a broad based recovery with all four major regions showing solid gains from a year ago and new home sales also coming alive.”Yun went on to caution that,”Housing affordability remains a pressing issue with home-price growth increasing around four times the pace of wages. Without meaningful gains in new and existing supply, there’s no question the goalpost will move further away for many renters wanting to become homeowners.”
So What Does This Mean To Buyers?There is a lot of competition out there right now for your dream home. Prices are going to continue to climb, act now before you are priced out of your future home.
What Does This Mean to Sellers?If you are on the fence about listing your home for sale right now and debating whether now is the time to move on with your plans of relocating… now is the time!There are more buyers that are ready, willing and able to buy their first, second, third, vacation, or investment property now than there has been in years! The supply of homes for sale is not keeping up with the demand of these buyers.Listing your home for sale now will give you the most exposure to buyers and the best sales price.Bottom LineWhether you are planning on buying or selling a house this year, waiting to act no longer makes sense.
National Housing Market
The Housing MarketExisting-home sales in May hit the highest mark since 2009, when there had been a homebuyer tax credit … remember, buy a home and get $8,000 from Uncle Sam. This tax credit is no longer available but the improving economy is providing the necessary incentive and financial capacity to buy. Meanwhile new home sales hit a seven-year high and housing permits to build new homes hit an eight-year high. Pending contracts to buy existing homes hit a nine-year high.Buyers are coming back in force. One factor for the recent surge could have been due to the rising mortgage rates. As nearly always happens, the initial phase of rising rates nudges people to make decision now rather than wait later when the rates could be higher still.The first-time buyers are scooping up properties with 32 percent of all buyers being as such compared to only 27 percent one year ago. A lower fee on FHA mortgages is helping.Investors are slowly stepping out. The high home prices are making the rate of return numbers less attractive.Buyers are back. What about sellers? Inventory remains low by historical standards in most markets. In places like Denver and Seattle, where a very strong job growth is the norm, the inventory condition is unreal – less than one month supply.The principal reason for the inventory shortage is the cumulative impact of homebuilders not being in the market for well over five years. Homebuilders typically put up 1.5 million new homes annually. Here’s what they did from 2009 to 2014:2009: 550,0002010: 590,0002011: 610,0002012: 780,0002013: 930,0002014: 1.0 millionWhere is 1.5 million? Maybe by 2017.Building activity for apartments has largely come back to normal. The cumulative shortage is on the ownership side.Builders will construct more homes. By 1.1 million in 2015 and 1.4 million in 2016. New home sales will follow this trend. This rising trend will steadily relieve housing shortage.There is no massive shadow inventory that can disrupt the market. The number of distressed home sales has been steadily falling – now accounting for only 10 percent of all transactions. It will fall further in the upcoming months. There is simply far fewer mortgages in the serious delinquent stage (of not being current for 3 or more months). In fact, if one specializes in foreclosure or short sales, it is time to change the business model.In the meantime, there is still a housing shortage. The consequence is a stronger than normal home price growth. Home price gains are beating wage-income growths by at least three or four times in most markets. Few things in the world could be more frustrating and demoralizing than for renters to start a savings program but only to witness home prices and down payment requirements blowing by past them.Housing affordability is falling. Home prices rising too fast are one reason. The other reason is due to rising mortgage rates. Cash-buys have been coming down so rates will count for more in the future.The Federal Reserve will be raising short-term rates soon. September is a maybe, but it’s more likely to be in October. The Fed will also signal the continual raising of rates over the next two years. This sentiment has already pushed up mortgage rates. They are bound to rise further, particularly if inflation surprises on the upside.Inflation is likely to surprise on the upside. The influence of low gasoline prices has been bringing down the overall consumer price inflation to essentially zero in recent months will be short-lasting. By November, the influence of low gasoline prices will no longer be there because it was in November of last year when the oil prices began their plunge. That is, by November, the year-over-year change in gasoline price will be neutral (and no longer a big negative). Other items will then make their mark on inflation. Watch the rents. It’s already rising at near 8-year high with a 3.5 percent growth rate. The overall CPI inflation could cross the red line of above 3 percent by early next year. The bond market will not like it and the yields on all long-term borrowing will rise.Mortgage rates at 4.3% to 4.5% by the year end and easily surpassing 5% by the year end of 2016.The rising mortgage rates initially rush buyers to decide but a sustained rise will choke off as to who can qualify for a mortgage. Fortunately, there are few compensating factors to rising rates.Credit scores are not properly aligned with expected default rate. New scoring methodology is being tested and will be implemented. In short, credit scores will get boosted for many individuals after the new change.FHA mortgage premium has come down a notch thereby saving money for consumers. By the end of the year, FHA program will show healthier finances. That means, there could be additional reduction to premiums in 2016. Not certain, but plausible.Fannie and Freddie are owned by the taxpayers. And they are raking-in huge profits as mortgages have n
Mortgage rates are projected to rise significantly in the next year from the National average of 3.66% today to between 4.4% and 5.4% depending on which projection you believe. This is important because mortgage rates have an impact on existing sales. The lower rates are, the more house you can buy. First time buyers fuel home sales and as they are gradually priced out of homes by increasing mortgage rates, it can cause a drag on home sales.
Mortgage rates rose fairly quickly today, ending the best 4-day winning streak since early March. On a positive note, this only takes us back in line with Monday’s rate offerings, which were the lowest in 3 weeks at the time. In other words, the past 2 days have been erased. For most lenders that means moving back to conventional 30yr fixed rates of 4.125% for top tier scenarios, but several remain at 4.0%. It continues to be the case that rate quotes are more diverse across the lender landscape due to the varying strategies used to address recent market volatility.That brings us to the next consideration. Volatility is indeed a fixture in 2015 and today’s move higher in rates serves as a reminder of how quickly things can (and will) change. In fact, yesterday was the first day where we could have begun to consider that the overall trend toward higher rates in 2015 was shifting. And here we are today looking at the obliteration of the last 2 days of gains. It’s for this reason that we’ve maintained our stance that risk outweighs reward in terms of floating rates. We’d need to see a bigger, more committed move toward lower rates before changing that stance. Yesterday would have been a better starting point for that conversation had the improvements not been driven by uncommon, potentially ephemeral overseas economic risks.In other words, if rates had been moving steadily lower without needing surprising events like a Chinese stock market crash or Greek Eurozone exit to justify the movement, it would be easier to get excited. For now, the burden of proof remains on rates’ desire to push lower. Evidence is insufficient for now.
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Delaware Labor Market
Newark Delaware unemployment rate is currently 4.1%. The unemployment rate is tied to the housing market. When there is economic fear of job loss or jobs are gone, housing tends to decline. As you can see on the chart, the unemployment rate was highest in 2010 which corresponds with the lowest number of homes sold (4329) in Delaware. The good news is that unemployment has now declined which spells better home prices and sales.
Newark Delaware 19702 Home Values in 2014
In 2014 Newark Delaware 19702, there were 462 homes that closed within the year. This was a decrease of 17 units, as there were 479 homes that closed in 2013.
The median price of homes in 2013 was $176,000.
The median price of homes in 2014 19702 was $186,750.
The average market time for the homes that closed in 2013 was 74 days.
The average market time for the homes that closed in 2014 was 67 days.
The average percentage of original list price to sales price was 94.6% for the year.
Sold Homes in Newark DE 19702 in 2014
Glasgow Pines took the top spot for sales last year with 21, followed by Country Creek and Frenchtown Woods. Bay Pointe had the highest average sales price $430,000 and the highest price home sold at $482,500. The Reserve at Ironside had the fastest selling homes out of those with multiple sales with only 10 days on the market.
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Newark Real Estate 19702 Home Values Report Summary
In June 2015 Newark Delaware 19702, there were 60 homes that closed within the year. This was a decrease of 16 units, as there were 44 homes that closed in June 2013. There were 46 Pending sales, an increase of 4 units from June 2014 when 42 homes sold.
The median price of homes in March 2014 was$190,950.
The median price of homes in June 2015 19702 was$238,950.
The average market time for the homes that closed in June 2014 was 64 days.
The average market time for the homes that closed in June 2015 was 55 days.
The Average percentage of Original List Price to sold price was 96.8%,slightly above March of 2014 at 95.6%.
Newark Delaware Market Direction
As of June, there were 275 Active single family listings and 46 homes pended. That represents a 6.0 month supply of homes. That means this is a Neutral MARKET. This is for all price ranges in Newark Delaware 19702. Your homes market may be different, call 302-733-7020 if you would like to know if your home is in a sellers or buyers market.
Please visit my webpage to find homes for sale in Newark DE or to be notified when Newark Delaware homes come on the market.
BROWSE HOMES FOR SALE IN NEWARK 19702
NEWARK REALTOR® EXPERT OPINION=NEUTRAL MARKET
Disclaimer: All information in this report was current as of June 30, 2015.