Most strategic times to buy a home
A recent study by RealtyTrac reveals the best times to buy a home and close a sale transaction.
The study found the best month to close on the purchase of a home is October. "Out of 2.7 million single-family home and condo sales over the past 15 years that closed in October, buyers realized an average discount of 2.6 percent below full estimated market value at the time of sale," according to the study report.
"Following October as best months to buy were February, July, December and January -- all fall or winter months except for July, which was a surprise given that conventional wisdom would suggest that is a good time to sell but not necessarily to buy at a bargain price."
The report pointed out that the worst month of the year to close on the purchase of a home is April, "when buyers over the past 15 years have purchased at an average premium of 1.2 percent above estimated market value at the time of sale."
The best weekday to close on the purchase of a home is Monday, the report noted.
"Out of 5.5 million single-family home and condo sales over the past 15 years that closed on a Monday, buyers realized an average discount of 2.3 percent below full estimated market value at the time of sale. Friday is the second-best weekday to close on a home purchase. Buyers who closed on Friday realized an average discount of 2.0 percent.
"Thursday is the worst day of the week to buy a home, with a 1.0 percent average discount, followed by Wednesday with a 1.4 percent average discount, and Tuesday, with a 1.9 percent average discount," it was noted in a RealtyTrac release.
Q. Are sales of newly constructed homes increasing?
A. Yes, sales of new homes are rising. Sales of newly built single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 552,000 units in August from an upwardly revised July reading, according to newly released data from HUD and the U.S. Census Bureau.
"Builders are gradually adding inventory to meet future demand as they handle shortages of lots and labor," said Tom Woods, chairman of the National Association of Home Builders
"Today's report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low," said NAHB Chief Economist David Crowe. "The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015."
Q. Who owns the property photos used in online listings?
A. A recent report from the National Association of Realtors addresses that subject:
"Improper use of listing photographs can create legal problems for agents, brokerages and MLS's. Authorship and ownership of photographs within the real estate industry is 'fractured.'
"Who authored the photograph and who can use what photograph and in what way varies across the industry. Listing photographs may be taken by homeowners, real estate agents, MLS or brokerage employees, or professional photographers. Photographs may be owned or licensed to different parties in a variety of ways."
Q. Is there a way to determine the cost of a house that will be purchased by students majoring in certain college courses?
A. Apparently so. College graduates who majored in certain areas may have a lot to do with how much home they can afford later on, according to a new analysis by realtor.com.
For example, for engineering majors, they'll likely be successful in the housing market. "Out of 300 majors evaluated, petroleum engineers had the highest salaries that translated into being able to afford more house.
"Petroleum engineers had a midcareer salary of $168,000, and grads of that major could afford to buy up to $744,000 -- more than three times the national average list price."
Q. What is the effect of mortgage rates that keep dropping?
A. A report from Freddie Mac states: "Mortgage rates have remained below 4 percent for nine consecutive weeks and have remained range-bound between 3.8 and 4.1 percent since May. These low mortgage rates have supported strong home sales, and 2015 is on pace to have the highest home-sales total since 2007."
To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. Jim Woodard's email: storyjim@aol.com.
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