We’ve got to spread the good news! Mortgage rates have nose-dived and are at near historic low levels. The opportunity is now to get interest rates that may not be seen again. Residential property inventory in some of the prime locations along the Crystal Coast are at supply levels not seen in 10 years that make sales conducive for both the seller and buyer.
In terms of buying a home and getting a 30 year fixed mortgage, now is almost a once in a lifetime opportunity. According to Bankrate.com the 52 week average rate has been at 3.93 percent. This week saw almost a half point drop off of that average putting mortgage rates a hair away from a historic low, down to 3.52 percent.
Marcie Geffner with Bankrate.com reports, “Mortgage rates fell to just above the all-time low this week, extending an opportunity for homeowners to refinance. At 3.52%, the average rate on the 30-year, fixed-rate mortgage was a dash higher than the all-time low rate of 3.5% on Dec. 5, 2012. That’s the only time that the benchmark rate on the 30-year fixed has been lower than this week’s rate since Bankrate began its weekly mortgage rate survey in 1985. This is the 4th time it’s been 3.52%”.
According to Bankrate.com the rate for a 30 year fixed loan one year ago was at 4.14 percent. Four weeks ago it was up at 3.74 percent.
According to the latest report from the Federal Housing Finance Agency (FHFA), the year over year home sold prices are up 5.9 percent. This was determined by calculating, “home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac”. H/T FHFA.
The percent increase or decrease in home sold prices when comparing year-over-year sales varies greatly in Carteret County and along the Crystal Coast of North Carolina. Wide differences within this real estate market place should be expected due to its diversity.
A few examples of residential home sales include Atlantic Beach with June sold prices at $490K which is 10 percent higher than a year ago. Emerald Isle averaged sold price at $556K which is up 13 percent, Morehead City sold prices averaged at $253K which is a 7 percent year-over-year increase. Newport had an average sold price of $225K, which is down 14 percent compared to last year.
All of the above places mentioned; Atlantic Beach, Emerald Isle, Morehead City and Newport-All of these places have something in common. They all have a 6-7 month supply of inventory. This is exactly where you want to be and hasn’t been seen since before the great real estate boon from a decade ago.
Supply of inventory, sometimes called the absorption rate is a measurement of how fast a particular market place can sell its existing inventory. The rate demonstrates this. If no new inventory came on the market for sale, how long would it take to sell all of the existing inventory? The ideal time is 6-7 months. The Crystal Coast has just survived a glut of inventory that has lasted a decade. For years this area had 20, 25, 30 plus months of inventory to sell. Some places still do! Beaufort is a prime example.
Beaufort for the month of June had an average sold price of $240K which is 23 percent lower than June 2015. But the supply of inventory has ballooned to 30 months!
There is some very good news in the foreclosure real estate market. The number of homes that have been foreclosed on continues to decrease. Nationally we are approaching 5 years of steady decline. 99 percent of the mortgages are secure in the US. 99.4 percent are safe in North Carolina.
There were 38,000 foreclosures nationally for the month of May. This is a 5.5 percent increase over the prior month. But here is the good news.
“Approximately 390,000 homes in the United States were in some stage of foreclosure as of May 2016, compared to 517,000 in May 2015, a decrease of 24.5 percent. This was the 55th consecutive month with a year-over-year decline. As of May 2016, the foreclosure inventory represented 1.0 percent of all homes with a mortgage compared to 1.3 percent in May 2015”. Source: CoreLogic
Bringing it down from the national level to the state level, only 0.6 percent of the mortgages in North Carolina were foreclosed on in May 2016. This is a drop of 16.4 percent over May of 2015. Currently 2.5 percent of the mortgages in North Carolina are in serious trouble.
To wrap all of this up, mortgage rates are incredibly low, lower than can be expected to ever happen again for a long time. Inventory along the Crystal Coast is at the desired supply and demand level. Foreclosures are becoming a thing of the past. Pricing in most areas is consistent with demand, helping to move the real estate market with new inventory coming on market for sell.
For complete information about real estate, home, condo and waterfront properties along the Crystal Coast then contact Margaret Hitchcock with Hitchcock Realty. She is a licensed NC broker and Realtor with many years of successful experience. Contact Margaret at (252) 269-2893