Cash Sales Are A Sign Of A Competitive Market

Most people don’t buy their house with cash. In fact, historically cash sales account for just 10 percent of all home sales. But, according to Freddie Mac’s most recent monthly outlook, the fact that the number of homes for sale remains lower than normal has caused a higher than normal number of cash sales.

“Usually, not many people like to invest a lot of cash into real estate, which is illiquid and has high transaction costs,” Freddie Mac’s chief economist, Sean Becketti, says. “However, in the current, highly competitive housing market, a cash offer is an effective way to gain an advantage over other bidders.” Still, cash sales are well below their peak of 35 percent, with a share closer to 18 percent according to the most recent data.

Overall, Freddie Mac expects mortgage rates to remain low through the end of the year and home sales to surpass last year’s numbers. However, low inventory remains an issue. The outlook says home sales would have been much higher if not for the fact that many markets have fewer homes for sale than is typical. Locally here in Fremont, we are still experiencing a lower than average number of homes for sale. If you are considering a change, it’s still a great time to sell!

 

This advertisement was provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding your real estate needs.

INTEREST RATE MATTERS

With the recent rise in mortgage rates, many Americans who were thinking of  buying a home this year may be feeling concerned about how much house they’ll be able to afford. If that describes you, there are a couple of things to remember. First off, even though rates have moved higher over the past several weeks, they still remain low by historical standards. In other words, you’re still getting a better rate than you would have 10 or 15 years ago and locking it in now with a fixed-rate mortgage means you’ll be protected should they move closer toward their historical norm in the future. There are also things you can do to ensure that, when you apply for a loan, you are getting the best rate possible.

Number one on that list is doing whatever you can to raise your credit score. Your credit history plays a large role in determining the rate you will end up paying. So it is always a good idea to check your score before beginning the buying process. If possible, fix any errors, pay down any debts, and – as always – make sure to pay your bills on time each month. Though you don’t have to have perfect credit to be qualified for a loan, the higher your score, the better.

 

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This content is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St.  Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.