4 Real Estate Trends for Summer 2013

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Low mortgage rates

The 30-year fixed mortgage rate is  currently hovering near historic lows, at 3.78 percent. And while rates have  crept up this past week, they’re not going to skyrocket suddenly.  Even if the Federal Reserve starts to scale  back its stimulus program, the Fed will still help keep rates low for the  remainder of the year in order to accelerate the housing market recovery. As the  Fed withdraws support and the economy recovers, we expect rates will rise  gradually over the next 18 months.

Slim pickings

As of February, slightly less than 2 million homes were for sale nationwide.  This represents a supply of less than five months (six months’ supply is  considered “normal”). During the same period last year, the supply was 6.4  months. In a dozen markets, there is less than a three-month supply of homes on  the market! Granted, rising home prices should lead to more inventory (and  ultimately more sales because it encourages new construction and encourages  homeowners to sell), but one key question is whether prices will rise enough so  that for-sale inventory will hit bottom and start expanding again.

Home stalking

As demand from home buyers grows faster than the supply of homes for sale,  many buyers are taking less conventional routes to find their dream home:  They’re knocking on the doors of homes they like, writing handwritten notes, and  tracking down the owners in hopes they may be willing to sell even though their  home is not technically on the market.

Bidding wars

As many of the nation’s markets heat up, bidding wars are quickly becoming  the norm — especially in places such as California (San Francisco, Sacramento  and cities in Southern California), Boston, Washington, Seattle and New York.  This poses a challenge, in particular, for first-time buyers seeking entry-level  properties in Las Vegas, Tampa and other markets where investor demand is  particularly strong. Who do you think wins the bidding competition — investors  with all-cash offers or buyers who need to obtain financing and have the home  appraised at their offered price?

Read more:  http://www.foxnews.com/leisure/2013/06/06/4-real-estate-trends-for-summer-2013/#ixzz2YYZkZLMW

Search all Virginia Beach VA homes for sale.

April Partida is a Professional, Experienced and Results Oriented, Top Virginia Beach VA Realtor committed to meeting your needs.

April has distinguished herself as a leader in the Virginia Beach Virginia real estate market. April assists buyers looking for Virginia Beach VA real estate for sale and aggressively markets Virginia Beach homes for sale. April is also a Short Sales and Foreclosures Resource Specialist (SFR). Avid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure.

You can reach April at 757-227-1777 or by email, april@remaxvb.com.

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