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Rates Rise, But Housing Continues To
Shine
In late May mortgage rates
averaged 6.32 percent, plus .6 points, according
to Freddie Mac.
"Although new
home sales fell in April, existing home sales
rose to the second highest level on record as
homebuyers rushed to close in the face of low,
but surely rising, mortgage rates," said Frank
Nothaft, Freddie Mac vice president and chief
economist.
"Housing will, however, continue to be a pillar
of strength for the economy in the coming years.
In
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fact, we expect
demand for housing will require production of
about 2 million new housing units per year over
the next decade, thus fueling growth in the
various industries that support housing."
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Home Inspections
In Hot
Markets
 Don't let the stiff competition in
hot seller's markets this spring persuade you to
forego a home inspection on a home you want to
buy. As with any spring crop of seller's markets,
this year's comes with perennial "as-is" listings
and others that prompt the buyer to make an offer
without the contingency of a home inspection.
Don't do it. How do
you know what the 'as-is' is if you don't have the
home inspected?
With
the buyer tagging along, a licensed home inspector
gives a property the once over, inspecting
systems, structures and components -- to identify
material defects, conditions that may
significantly affect the value, desirability,
habitability or safety of the home. |
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"Value-Added"
Home
Features
 The National Center for Real Estate
Research has calculated the "value-added"
contributions of dozens of home features and
facilities on nearly 29,000 home sale
transactions. Would you believe:
 An extra half-bath adds 15% to the
selling price of a home, but an extra full
bathroom adds 24%.
Adding a sitting area to the master bedroom
increases the sales value of the house by 8%.
Garages more than pay for
themselves - adding 12.9% to the selling price of
the home.
A basement-located laundry room actually cuts the
selling value of a home, whereas a laundry room
located on the first or second floor raises the
market value by 15%. | |
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Housing
Consumers' Summer Spending To Sizzle
Consumer spending keeps the bearings of
the nation's economic machinery oiled and, this summer,
the housing market will keep consumer's palms greased.
Rising interest rates and
higher energy prices won't keep consumers out of the
malls and big box stores this summer because rising home
values are offsetting those expenses and allowing
consumers to shop, well, until home values drop -- which
isn't likely anytime soon, according to Deloitte
Research's Leading Index of Consumer Spending.
Appreciation has lined the pockets of homeowners willing
to spend it.
Much of
consumers' spending will be aimed at finding, filling,
fixing and fine tuning homes as they purchase furniture,
consumer electronics, appliances and home improvements,
according to Deloitte.
"Many consumers postponed buying new homes until
interest rates reached the bottom. With interest rates
on the rise, they have decided to get off the dime to
avoid higher rates," says Carl Steidtmann, Deloitte
Research's chief economist and author of the monthly
index.
"Baby boomers are
purchasing their second homes in retirement and vacation
spots, while children of baby boomers are purchasing
their first homes at the low-end, creating a chain
reaction.
Essentially,
consumers are trading their current residences for a
better home," he added. |
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