NBC News just released some very interesting news about the US Housing market. NBC News reports, “The U.S. homeownership rate fell to 63.4 percent in the second quarter of 2015, according to the U.S. Census. That is down from 63.7 percent in the first quarter and from 64.7 percent in the same quarter of 2014. It marks the lowest homeownership rate since 1967.”
So the homeowner rate is the lowest in almost 50 years. How does that affect you the home buyer or seller?
First we have to see why the rate of ownership is so low. It is partly because lending practices are so stringent. This tends to affect the first time home buyer more than anyone else. So if you are thinking about buying make sure that your credit history is worthy enough for a mortgage. If not, fix it!
It is important to keep in mind whenever you hear about national real estate news is that all real estate is local. What might be happening in the major markets may not be happening in your local area. It also may be a delay. National trends tends to slowly trickle down to the local level. What you are hearing today on NBC or reading in the Wall Street Journal may not affect you for a couple of years (if at all)!
For the seller you have to make sure your home is ready to sell at a fair market price. The best thing to do is to determine the absorption rate of homes just like your own, then price competitively. The absorption rate is the rate of homes go off market as sold compared to the rate of new homes like yours coming on market for sale. If, for example the absorption rate is $300 every 9 months then pricing your home at $275 should bring a sale in a much shorter time period.
Absorption rates are usually done for entire markets. But it can be an effective tool when down with only comparable homes to yours.
Long story short, do not let national news worry you if you are a buyer and seller. Contact Margaret Hitchcock about getting the absorption rate done for you and getting your home sold fast! Margaret Hitchcock of Hitchcock Realty is an experienced Realtor representing buyers and sellers in Morehead City, Atlantic Beach, Beaufort, Emerald Isle, Pine Knoll Shores, Newport and all of Down East.