Caution, House-Hunters!

Watch out, house hunters, or you might soon miss out on getting a great house and a sweetly affordable mortgage, due to lack of buying opportunities. Palm State Mortgage Company does not  extend this warning to frighten you, but rather to celebrate the fact that American real-estate is in a state of recovery.

All over America, people are beginning to understand that there is only so much land available. Additionally, with the slower economy, construction has been paused to such an extent that the supply of houses is dwindling.

Take A Peek At Statistics!

Let’s look at some of the statistics that are proving there is light at the end of the (economic) tunnel:

1. Are you aware that Land values rose almost 13% in 2012? Believe it or not, that is the first annual gain since 2005, as reported by Zelman & Associates, a housing consultancy, just this March. Here’s how it works:

Builders are building again, and they require finished lots. This means that they want roads, sewage lines, electrical power hookups, the entire infrastructure!

According to the Wall Street Journal, the quarterly supply of buildable lots hit a 6 and a half year low as 2012 came to a close. Their “metro report,” stated that we had 1.25 million lots for sale in 2006, and at the end of 2012, we had only .84 million such lots, ready to sell, with infrastructure.

2. What does this mean to you, as you search for your dream house and mortgage? Put simply, it means that your land, upon which that dream house will stand is more expensive and that dream house will be more expensive also.

Did you know that, according to the NAHB, land cost makes up 21.7% of the final sale price of a new home? How do we know? The National Association of Home Builders has issued major reports. They also have explained that “As land prices rise, builders tend to pass 100% of those costs on to consumers.”

This confirms our statements above, concerning the improving complexion of the real estate business.

Expert Reports! 

This month, NAHB Chairman Rick Judson, a home builder stated, “The stability in the Improving Markets List this month, is encouraging, with three quarters of all metros tracked by our index considered on the upswing, as the housing recovery spreads to parts of every state.”
He added, “In some markets, the main thing that’s holding back a recovery is a relatively thin inventory of homes for sale, which could be resolved if builders had easier access to credit for building homes and putting people back to work.”

3. What’s the bottom line? We checked with Buck Horne, a housing analyst with Raymond James & Associates. His prediction is that new-home prices are going up between 10% and 15% in 2013. He agrees that this is “chiefly because of rising demand and because of the scarcity of land.”

Our Promise!

At this rate of growth in the industry, we advise house hunters that this Spring is the perfect time to shop for their dream home and perfect mortgage situation. As our economy continues to recover, do you know what those buyers who hesitate will be called? Renters.  If you will give us a call, we will be very happy to provide you with more information about our recovering economy and your mortgage situation. Here at Palm State Mortgage, we transform your  mortgage stress into mortgage success.