Press release from Beverly-Hanks & Associates:
January study results from personal finance website NerdWallet demonstrate that February is traditionally the best month for home buyers to purchase a new home. Couple that with the latest regional market information from the Beverly-Hanks & Associates 2016 End-of-Year Market Report, and Asheville-area home buyers can see that buying sooner rather than later could lead to substantial savings.
NerdWallet recently analyzed two years of Realtor.com data for the 50 most populous U.S. metro areas. Their results show that home sales prices were 8.45% lower on average in January and February than during summer months. On a $250,000 home, that equates to more than $21,000 in savings!
2016’s strong fourth quarter, especially in Western North Carolina, did not bring home prices down as much this January as in years past, but Beverly-Hanks does predict that regional home prices will only continue to climb through the remainder of 2017. “We expect price appreciation this year to continue at a similar rate to 2016 of 7%, but we also expect more affordable homes closer to Asheville to appreciate more quickly than the rest of the region,” said Neal Hanks, Jr., President of Beverly-Hanks.
In addition, 2016’s robust market is leading to significant mortgage rate increases. Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently at 4.19%, a rate 47 basis points higher than this time last year. Fannie Mae, Freddie Mac, the Mortgage Bankers Association, and the National Association of REALTORSⓇ are in unison, projecting that rates will continue to increase throughout 2017.
Buyers who understand these trends should take advantage of the market while competition is slow. According to NerdWallet’s report, there were almost twice as many people buying in June 2016 as there were in January of last year. Home inventory, meanwhile, only varies half as much from season to season. February remains the best month of the year to place an offer on a home without as much push from competing offers.
In short, the bottom in existing-home sales prices has come and gone. Asheville-area home values are expected to continue appreciating for years. And the winter is the best time to place an offer while competition remains low—leading to larger savings between listing prices and sale prices. If buyers are looking for an affordable investment, the time to invest is now.
If you would like more information about successfully buying or selling a home this month or throughout 2017, our experts at Beverly-Hanks are here to help you Live the Life You Choose. Read more about why winter is the best time to find your dream home at beverly-hanks.com/blog/4-reasons-buy-winter. Or contact us today to speak with a Beverly-Hanks real estate agent: (866) 858-2257.
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