John Jeffrey Blog

Real Estate News for May 9TH

Posted: May 09, 2016 by Jeffrey Realty Team

The weekend before last, Mr. Buffett spoke at his company's annual meeting and the "Oracle of Omaha" asserted that the housing market is on stable footing. He said the likelihood of another crisis brought on by falling home prices is "very low." "I don't see a nationwide bubble in real estate right now at all. In Omaha and other parts of the country, people are not paying bubble prices for real estate." A leading real estate information firm agrees. They reported home prices were up 6.7% year-over-year in March and the firm forecasts that prices will come in 5.3% ahead, year-over-year, in March 2017.

In other words, home price appreciation has been steady over the last year and the trend isn't likely to change any time soon. It doesn't hurt that mortgage rates have remained attractive. Freddie Mac's chief economist said that last week "...the 30-year mortgage rate drifted down to...just three basis points above the low for the year." He added: "Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates." One listing site reports homes are indeed selling faster, with 66.6% on the market after 30 days, a 1.2% drop from a year ago.

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