The National Real Estate Market

It has been said that there is no such thing as a “national real estate market”. There certainly is some truth to that if we compare sales in Forks, Washington to Manhattan, Los Angeles, Green Bay, Detroit, Portland, or Washington D.C. Of course Forks has vampires which skews the value of homes. I know there are those who would say that there are vampires in Washington D. C. too, but let’s not go there. America is a great country, through it all, we are indeed.

Even though there is no such thing as a national real estate market there are still interesting statistics out there. According to Paul Bishop, Vice President of Research for the National Association of Realtors, 47% of home buyers this past year were first time buyers. That statistic surpasses the previous high reached in 1991. He said, “These buyers are critical to housing and general recovery economic recovery (because) they absorb inventory, free existing owners to make a trade and stimulate related goods and services…”

In September the Wall Street Journal reported that “more than half of U.S. residential mortgages are being made by just three large banks…Wells Fargo, Bank of America, and J. P. Morgan Chase…Treasury-backed entities are guaranteeing about 85% of new mortgages, while the Fed buys 80%of the securities into which these taxpayer-backed mortgages are packaged.”

The article goes on to say that, “While big banks are originating lots of mortgages, they are selling nearly all of them to Fannie Mae and Freddie Mac…Banks have no desire to keep the most common mortgage on their books.”

The Fed has a $1.25 trillion program being used to buy Fannie Mae and Freddie Mac securities. Most of that money has been spent. When it is spent there is likely to be a jump in interest rates.

Rates are currently at an incredible low point; it’s a tremendous time to be a buyer! While it is still a buyer’s market, it is also a good time to be a seller. It really is. Correct pricing and a thorough, proactive, marketing plan will make all difference for today’s seller.