Pending Columbia SC home sales for January rose, as did all areas of the country. According to the National Association of Realtors’ Pending Home Sales Index, pending sales increased 4.5 percent to 105.9 from December figures. The numbers are also 9.5 percent above January 2012. With home prices on the rise, The Federal Savings Bank sees this as a good time where potential first-time homebuyers, especially veterans, should take advantage. The increase suggests sales of previously occupied homes will continue rising in the coming months.
Home prices are rising at such a positive rate that the NAR report revealed the highest index since April 2010 when many potential buyers were taking advantage of a home buyer tax credit. Before April, the last highest reading was in February 2007 when numbers reached 107.9. There is generally a one- to two-month lag between a signed contract and a completed sale.
The Columbia SC housing market is gaining momentum and first-time homebuyers are in a golden position to purchase a property right now. This positive trend in housing is not region specific, we’re seeing prices are rising everywhere but rates are not going to remain low across all states forever. Buyers should prepare themselves by pre-qualifying for a mortgage so as to be ready when they find their desired property.
Steady hiring and near record low mortgage rates have encouraged more Americans to buy homes.
For more on Columbia SC home sales and news, click over to our Columbia SC Real Estate News Category under our Columbia SC Real Estate Categories to your right.
Columbia SC home sales 
are being stymied somewhat by low appraisal valuations, and this is the case just about everywhere in the country, not just in the Columbia SC area.
According to the results of a survey just released by the National Association of REALTORS® (NAR), “A sizable share of real estate appraisals are holding back home sales.” NAR says “most appraisers are competent” but that the process is the issue, that appraisals generally lag market conditions and changes in the appraisal process including using out of town appraisers, are the culprit.
NAR surveyed it’s members on the topic and reports that 65 percent of them reported having no contract problems as a result of appraisal issues over the past 3 months, 11 percent said a low appraisal killed a deal, 9 percent said a low appraisal delayed a deal and 15 percent said a low appraisal caused a contract to be renegotiated to a lower price. NAR says Major problems reported by Realtors® include:
- Some appraisers are using foreclosures, short sales and run-down properties as comparable homes, and are not making adjustments for market conditions or the condition of the property.
- Appraised values that do not reflect market conditions such as rising prices, the presence of multi-bidding and low inventory.
- Appraised values are very inconsistent and fluctuate widely.
- Out-of-town appraisers, who are not familiar with Columbia SC home sales or local market conditions, are being used.
- Turn-around time by both appraisers and banks is slow, which delays closings.
NAR went on to say they have been advocates for an independent appraisal process as well as increased education requirements to allow appraisers to produce the most accurate reports possible. However, NAR reports that appraisers have faced undue pressure — whether from a lender or an AMC — to complete appraisals using distressed sales as comps, to complete an appraisal in an unacceptably short time frame, and to complete a scope of work that is not justified by the fee being offered.
If you happen to be one of the rare buyers trying to get a “green home” appraised… good luck. Most appraisers are not trained in green homes, and many lenders are kicking them back as well.
Columbia SC home sales continue to show that real estate is coming back. Let’s just hope low appraisal valuations don’t put the brakes on an already sensitive market.
Columbia SC home sales are typically strong during the spring and summer, mainly because a lot families are trying to relocate between school years. But fall is a great time to buy a Columbia SC home as vacations have wound down, and most potential home buyers want to be in their new home in time for the holidays.
Why Buyers Want a Columbia SC Home in the Fall
40 percent of survey respondents like fall for homebuying because of the “back to school” and starting fresh mentality that hits when September and October come around. Twenty percent cite wanting to be in their new home in time for the holidays. And 10 percent want to take advantage of the tax benefit of buying and owning a home before the end of the year.
For the same reason sellers want to sell and close on their home sale before the end of the year, buyers can often times find better deals during the fall due to those sellers being more anxious to sell by year-end.
How the findings will affect what happens this fall remains to be seen.
The National Association of Realtors reports pending home sales in August 2012 declined after reaching a two-year peak. But the August figures are higher than August 2011.
Lawrence Yun , NAR chief economist, said some volatility can be expected in the monthly readings. “The performance in month-to-month contract signings has been uneven with ongoing shortages of lower priced inventory in much of the country, and across most price ranges in the West, but activity has remained at notably higher levels this year,” Yun said.
If you’d like to take advantage of the great fall home market in the Columbia SC area, give us a call or contact us through our site. We’d be happy to help you find a new Columbia SC home in time for the holidays.
Tight lending standards are stunting Columbia SC home sales and holding back job creation. This conclusion was reached by The National Association of Realtors in a survey they conducted with real estate agents.
According to NAR chief economist Lawrence Yun, “Sensible lending standards would permit 500,000 to 700,000 additional home sales in the coming year.” He also said, “The economic activity created through these additional home sales would add 250,000 to 350,000 jobs in related trades and services almost immediately, and without a cost impact.”
The findings? Lenders take too long with applications, requiring excessive information and preferring only interested homebuyers with high credit scores.
Survey respondents reported that 53 percent of loans went to borrowers with credit scores above 740 in August, a sharp contrast when compared with the fact that 41 percent of homeowners with the same credit held these mortgages from 2001 to 2004.
According to NAR, about three-fourths of loans bought by Fannie Mae and Freddie Mac went to borrowers with credit scores of 740 or above.
The trade group observed that loan applications backed by the Federal Housing Administration showed an average FICO score of 669 in May, significantly higher than 656 for loans originated in 2001.
While looser lending standards can threaten default rates, NAR brought attention to improving loan performance has been improving in recent years.
Yun pointed out that since 2009, the 12-month default rates have been abnormally low, with Fannie Mae default rates averaging 0.2 percent and Freddie Mac rates averaging 0.1 percent. NAR stated this is notable considering higher unemployment in the timeframe.
In 2007, the twelve-month default rates peaked to 3.0 percent for Fannie Mae loans and 2.5 percent for Freddie Mac loans, according to NAR.
Home sales this year are projected to rise 8 to 10 percent. Although welcoming, this still represents a sub-par performance of about 4.6 million sales.
Columbia SC home s
ales are being squeezed by tight credit standards. No factor, including negative equity, lack of consumer confidence, and a shaky economy, have been as devastating to the housing industry as the inability of buyers to get financing.
Even though mortgage rates continue hovering at record lows and home prices seem to have bottomed out in markets across the nation, only 46 percent of consumers applying for a mortgage to buy a home are successful. On the bright side, that’s an improvement over the 39 percent of mortgage applicants in March who were able to obtain a mortgage.
Today’s tighter standards are making it tough on move up buyers, who are also sellers, who get behind on their mortgages as well as first-time buyers. Currently, some 3.6 million homeowners today are 30 days or more delinquent on their loans.
Risk of default is declining as the pool of mortgages written after tighter standards were imposed in 2007 grows. In the past two years, delinquent payments by homeowners have declined markedly.
The ten to twenty million homeowners who have allowed themselves to become delinquent may find it impossible to qualify for a new mortgage should they choose to take advantage of today’s affordable prices and rates.
Add the 10 million plus homeowners who have been recently delinquent to the number of homeowners who have fallen underwater on their mortgages — owing more than their homes are worth – now at 11.1 million. Large numbers of these 21 or more million homeowners are potential sellers who could ease the demand for middle and lower tier inventory and could increase demand for move up homes. Together these two groups account for 40 percent of the nation’s 53 million homeowners with a mortgage and 27 percent of all homes.
When you consider all these factors, it’s no wonder why Columbia SC home sales are being strangled.