Market Pulse for June 2017
As soon as people find out that I am a Licensed Realtor they always ask “What is the market like in our area?” Thanks to Amber Hale, Realtor at Keller Williams Realty Farmington; I have those numbers monthly at my fingertips.
Average Days on the Market for San Juan County as of June 2017:
Overall: 80 (down from 91 June 2016); Aztec: 64!!! (down from 115 in June 2016); Bloomfield: 122 (up 91 in June 2016); Farmington: 76 (down from 81 in June of 2016); Kirtland: 87 (down from 112 in from 112 June 2016).
What does that mean? Average days on the market gives us a good idea of how long homes in certain areas of San Juan County are currently taking to sell.
For sellers: your local, educated Realtor can give you a closer snapshot of the average days for your neighborhood in our free consultation.
For Buyers: this number can give us an understanding of how the home is priced in comparison to the current market, and how motivated the sellers are.
Median Home Prices:
Median list price for San Juan County is $186,900 (up 1.30% from June 2016); Median sold price is $175,000.00 (up 2.94% from June 2017) and Average Sales price is $187,253.00 down 1.91% from June 2017.
What does this mean?
When selling or buying a home, the most useful information associated with Median Listing Price is the trend displayed in the numbers. If the figures show a downward trend, it means that sellers are dropping their prices in response to a softening market. A "soft" market is also referred to as a "buyers" market. If Median Listing Price is trending down, it may take longer to sell a home and buyers may have more bargaining power. If Median Listing Price is trending up, the market may be "hot" and homes will likely be selling more quickly. Sellers will have the advantage when prices are going up.
The nitty gritty: How do the numbers compare to 2016?
As of June 2017, 373 listings were sold in San Juan County year to date up from 223 as of the end of May 2016.
Two reasons you might consider buying a home today, instead of waiting are:
1. Home Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.1% over the last 12 months nationally. The same report predicts that prices will continue to increase at a rate of 4.9% over the next year. The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
Remember, whether renting or buying you are paying a mortgage either way. There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. Put your housing cost to work for you!
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
Look at the actual reason you are buying and decide if it is worth waiting. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.