The sun is shining, daffodils blooming, buds forming on many plants, birds chirping; what is happening in the real estate market? Where do we start…
Well, appreciation of the housing market continues at a steady pace nationally and in many markets. Current home owners have nearly doubled their equity in the last five years, since the recession. The Federal Reserve estimates that Americans’ now have home equity holdings exceeding $11 trillion.
This trend has led to a 36% increase in the last year of home equity lines of credit, according to Consumer Bankers Association. Owner and lender confidence is back in the real estate market. Also with unemployment continuing to decrease, the trade deficit decreasing and many other factors, mortgage rate continue to inch up. Job growth is still at a slow pace and the appreciation of mortgage rates (30 and 15 year) is slowly increasing. The five-year and one year ARM average has held steadily to the same numbers (two weeks for five-year and four weeks for one year). Mortgage applications have also increased with 60 percent of all applications coming from refinances. With interest rates still at low levels 7.1 million borrowers could reap benefits of refinancing, according to Black Knight Financial Services.
Many general statistics have not changed much. Frist time home buyers make 38% of the market with the average age being 31. The average home purchased is 1,900 square feet, three bedrooms, and two bathrooms and was built in 1992. Buyers have financed 90% of their home price on average.
Last year prices appreciated 4.8% in Washington DC with the median home value of $476,600. This year price appreciation has slowed with about 1.5% in January and a projected 2% average for the year. In Maryland the price appreciated 4.4% last year with a median home value of $257,000. The prices appreciated about 4% in January with a predicted price appreciation average for this year to be 2.7%. In Virginia the prices appreciated at 3.1% last year with a median home value of $232,600. The prices are predicted to rise by 1.2% within the next year. Nationally home values have appreciated by 4.9% in the last year with the median home price being $178,700. This year prices nationally are predicted to rise by 2.6%. Please remember that these are state and national averages and there are local Counties, Town, and Neighborhoods that can have much different rates of appreciation/depreciation.
Please contact me to find out specific information about statistics in markets you are looking to sell or purchase. There are many factors such as days on market, inventory, home starts, appreciation, etc. that can help influence when is a good time to buy or sell and where one decides to purchase properties as a residence and investment. Please add the conversation with any experiences, questions, concerns, and ideas.