Revealed: the best month to buy a home (and it’s coming soon!)
RealtyTrac has analyzed data on 32 million home sales since 2000 and has revealed the best month to buy a new home. The analysis, which considered condos and single-family home sales across the US, found that on average October ranks highest in terms of getting the lowest-priced deal. February, July, December and January complete the top five but there are regional variations. The worst month to complete a real estate purchase is April according to the stats while Monday came out top as the best day to close a deal with an average 2.3 per cent discount on the asking price achieved. Thursday will only get you a 1.0 per cent discount, making it the worst day to buy!
Homebuyers are wary of the future says Zillow
Confidence in the housing market is waning according to the latest Zillow Housing Confidence Index. Although there is optimism in the market currently, the survey found that the future is a concern to homeowners and renters.
The percentage of renters who say they plan to buy a home in the next year fell from 12.1 per cent to 11.4 percent in the first six months of this year, and a smaller percentage of those surveyed said it was a good time to buy. The percentage of those surveyed who believe people who have recently bought a home will be better off in 10 years fell from 61 per cent to 59 per cent.
Svenja Gudell, Zillow’s chief economist commented that prices are a large factor of the concern but there is hope: “Seeing still stronger than normal home value appreciation in markets like San Francisco and Seattle might remind them of the last housing bubble. But the good news is things are leveling off with no crash in sight. If incomes rise to keep up with home values – and that's a big if – people can count on homeownership in their future, even in hot markets."
Mortgages for new homes declined in August
Fewer Americans took out mortgages for a purchase of a new home in August compared to July. The decline of 6 per cent revealed in the latest Builder Application Survey from the Mortgage Bankers’ Association makes no adjustment for seasonal patterns and despite the decline from the previous month they were 19 per cent higher than August 2014.
By product type, conventional loans composed 68.5 per cent of loan applications, FHA
loans composed 19.0 per cent, RHS/USDA loans composed 0.9 per cent and VA
loans composed 11.6 per cent. The average loan size of new homes increased from $316,995 in July to $317,035 in August.