EXISTING-HOME SALES CONTINUE CLIMB
Existing-home sales rose again during the month of May while sellers benefited with a lift in home prices, according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops rose 4.9 percent in May to a seasonally adjusted 4.89 million units for the year.
NAR chief economist Lawrence Yun believes the increased inventory benefits our current market. "Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year," he said. "Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates."
Nationally, total housing inventory increased 2.2 percent during May to 2.28 million units. The median time for homes to sell was 47 days in May, roughly the same duration reported in April. Fourty-one percent of May home sales were on the market for less than a month.
ARE BI-WEEKLY PAYMENTS RIGHT FOR YOU?
Many people ask about bi-weekly payment plans designed to reduce the interest paid out over the course of your loan. These programs help the borrower budget an extra payment a year, and over time this can knock years off the repayment schedule. Many people are surprised to learn that they can do this themselves without any special programs, simply by submitting an extra principle payment as they are able. By submitting an extra payment, you get the advantages of an early payout, without the extra contractual obligation. Want more information on other mortgage options? Contact us today for our list of preferred local mortgage experts.
INVESTING IN REAL ESTATE
Today's low interest rates and stabilized home prices have created some great investment opportunities! Investing in real estate has unique advantages over other types of investments:
- Interest in mortgage loans are tax-deductible. Investors can lower their tax liability while increasing their equity.
- Renters pay down your mortgage loan. Investors reap the benefits of rental income, which offsets your mortgage cost and build equity.
- Real Estate values increase over the long term. Real Estate is limited and will always be in demand.
- 1031 exchanges are available to defer taxable income when you are ready to sell.
Many investors are taking advantage of these great market conditions. Have questions? Give us a call. Get a free market value analysis of your home. We are happy to help!
Market Trends Real Estate Newsletter July 2014 - Aguilera Real Estate Team
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