Upscale Homebuyers Have Advantage in Today’s Market

Source: Sacramento Bee
sacramento luxury home
For home buyers in the Sacramento region, it’s better at the top.

Anyone shopping for a home today under $500,000 is likely to find frustratingly few choices. Although inventory has doubled from historic lows last year, the region’s most popular price range – roughly $200,000 to $450,000 – remains a strong seller’s market with scant supply compared to demand.

Buyers who can afford a home priced at more than $500,000 are apt to encounter better selection, time to shop and room to negotiate. That’s because supply in the higher price ranges is much greater relative to the number of purchasers.

“At $500,000 and below, you’re going to have consistent competition in the marketplace and you’re going to have to plan to put money into that home to get it where you want it,” said Pat Shea, president of Lyon Real Estate. “In the $500,000 to $1 million range, you’re going to have choices, and you’re likely going to be able to have a turn-key property.”

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30 Year Mortgage Rates Decline

Source: Inman News
mortgage rates decline
Weaker housing and economic news is offsetting the impacts of Fed tapering, keeping a lid on mortgage rates even as the government gradually scales back its massive purchases of Treasurys and mortgage-backed securities that helped keep borrowing affordable during the downturn.

A weekly survey by Freddie Mac shows rates on 30-year fixed-rate mortgages this week posted their first annual decline in more than a year, in the wake of Commerce Department estimates that the economy grew at the slowest pace in five years during the first quarter.

Rates on 30-year fixed-rate mortgages averaged 4.14 percent with an average point of 0.5 for the week ending June 26, down from 4.17 percent last week and 4.46 percent a year ago. Rates on 15-year fixed-rate mortgages, five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans and one-year Treasury-indexed ARMs also all fell.

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How To Win a Bidding War On a Home

Source: CNN/Money
win a bidding war on a home
In many hot housing markets, bidding wars have been breaking out on a regular basis – and some house hunters are getting beaten out time and again. But it’s not always about who has the most money. Sellers will accept lower offers if it means less hassle.

“What sellers really don’t want to do is waste time,” said John Walsh, president of Connecticut-based lender, Total Mortgage. That means getting pre-approved for a mortgage and having all your paperwork — your pre-approval, proof of income, work history and bank statements — in hand. It also helps to have your lender at the ready so you can act fast.

But first you have to beat out all of those other bidders.

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