There is plenty of opportunity in today’s housing market in the form of unbelievable affordability, tremendous values and historic mortgage rates. These opportunities are available for those who conduct proper due diligence and close their ears to the naysayers.
For example, there was plenty of naysaying after news that July’s existing homes sales were down 3.5% nationally to a $4.67 million annual rate. Yet year-to-date existing home sales are up 21% over last year. Housing starts are up 9.8% over a year ago, at $604,000 annually, although dipping 1.5% in July.
Park City’s real estate market is beating national statistics. Single family home sales for July were up 15.5% over last year and year-to-date home sales were up 23.2%. We are starting to see new construction in every neighborhood for the first time in two years.
This morning, on bankrate.com, the average 30-year mortgage rate was 4.19%; 15-year mortgage rate was 3.43%, and a 5/1-ARM was 2.92%. Remember, a 1% savings in interest is equivalent to a 10% reduction in sale price. Today’s real estate market is the “Perfect Storm;” simultaneous low prices and low interest rates.
“I was seldom able to see an opportunity until it had ceased to be one.” –Mark Twain