Outside your wedding vows and the birth of your children, nothing is more joyous than the day you walk through the doors of that first home. That euphoric feeling is still prevalent, but with restraints, after the tumultuous downturn of the last five years. Many buyers purchased a home in the last few years knowing it was the right time, but uncertain if housing prices had actually hit bottom. Home sales are up in Davis, California by approximately ten percent this year compared to the same time last year.
This spurt of buyer confidence could have increased even more, if not for the difficulty of getting loan approval for many consumers. Lenders are much more selective with buyer applications. The process can be arduous for many prospective homebuyers. After many weeks of record-setting mortgage rate drops, the last four weeks saw rate increases. This is certainly a sign that the Fed feels comfortable that housing can stand on its own, at least for the time being. With so much skepticism within the housing industry and purchasers of real estate, the drop in mortgage rates helped prop the market through the first half of this year.According to Fannie Mae’s June 2012 National Housing Survey, both home prices and mortgage rates are the factors producing this positive sentiment towards housing with 73% of those surveyed saying it is a good time to purchase a home. This percentage matches the highest level recorded since this survey began two years ago.
Fewer defaults and foreclosures would stimulate consumer confidence. As long as we have the multitude of foreclosed homes and lingering for sale signs in neighborhoods across the country, people are faced with constant reminders that the housing market is still struggling. More homes sales would create an increase in buyer fortitude. It’s human nature to take that leap when everyone around you are buying a property.
Many prospects have delayed buying a home in hopes of purchasing at the bottom. When you have volatility from month-to-month with home prices within a community, this does not solidify a buyers confirmation they need to make a move. New home construction sales is another confidence boost for potential home buyers. The elimination of new subdivisions taking an eternity to sell would assist in the rebuilding of the housing market. As we slowly grind our way out of the housing downturn, all of these factors will have a play in how quickly we completely recover. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home and easy access to view local area homes for sale in Davis, California and the surrounding communities.