Just because it made us smile...

U.S. Census Bureau has good news for the U.S. housing market

The Daily Mortgage Advisor this week had good news to share about the overall picture of the close of the U.S. housing market in 2012. In fact, it was so good, we decided to re-blog the news. Check out the article in full below...

The U.S. housing market appears headed for a strong close to 2012

According to the U.S. Census Bureau, the number of new homes sold jumped to 389,000 units in September 2012 on a seasonally-adjusted, annualized basis. Not since the expiration of the $8,000 federal home buyer tax credit in April 2010 have new homes sold at such volumes.

September’s tally marks a 5.7 percent increase from the month prior, and a 27 percent increase from September 2011. There are now just 145,000 new homes for sale nationwide and, according to the National Association of Homebuilders, buyer demand continues to grow.

At today’s pace of home sales, the entire U.S. inventory of new homes for sale would sell out in 4.5 months. By way of comparison, in January 2009, new home supply was 12.1 months.

When home supplies dip below 6.0 months, analysts say, it signifies a “seller’s market”; one in which sellers tend to benefit from negotiation leverage over buyers. The national New Home Supply has been below 6.0 months since October 2011.

Perhaps that’s one reason why the average new home sale price has climbed 14.5 percent over the past 12 months to $292,400; and why median new home sales prices have made a similar jump.

With builders reporting prospective buyer foot traffic at its highest level since 2006, home supplies are shrinking at a time when buyer demand is rising. Low mortgage rates and affordable housing choices contribute, too. 30-year fixed rate mortgage rates have been under 4 percent for all of 2012, and are now under 3.50% nationwide. Low rates make for low monthly payments but, like home prices, conditions can’t remain buyer-friendly forever.

For today’s home buyers of new construction, the outlook for finding “great deals” in 2013 may be grim. New home prices are expected to rise and supplies will continue to get scarce. The best homes in the new construction market, therefore, may be the ones you buy today.

By early-next year, low home prices may be gone, and low mortgage rates may be, too.

Thanks so much to the Sigman Team for sharing this fantastic news for sellers and excellent advice for buyers! 

Construction on I-35 aims to reduce congestion

If you're driving the I-35 corridor between San Antonio's Forum Shopping Center and the City of Schertz this week, you'll notice that a field of barriers and construction zone warning signs has sprouted and put down roots. Construction official began on a $24 Million Texas Department of Transportation project on Monday, Oct. 15.

The project aims to relieve congestion on the six-mile stretch of I-35 between Loop 1604 and FM 3009 without adding actual traffic lanes to the roadway. The segment was identified earlier this year by the Texas Transportation Institute as the most congested stretch of highway in the San Antonio metro area and the 31st most congested segment in the state. The long-term goal of the project will be the creation of a 14-lane facility through Schertz Parkway, but that effort isn't expected to start until 2017.

This project will create a short-term solutions by adding long acceleration and deceleration lanes, realigning exit and entrance ramps, and building turnaround bridges on both sides of FM 3009 and other cross streets.

The work is expected to take approximately 18 months to complete. Lane closures over the course of the project should be limited to off-peak traffic hours not permitted to begin before 3 a.m. on Friday nights. Regular updates, including lane closures, will be posted online at www.txdot.gov. To find them, search for key word "I-35 Selma."

While this project will not completely alleviate the I-35 traffic congestion problem, as real estate experts in the Schertz area, we can appreciate the importance of working proactively to address the issue. And TxDOT spokesman Josh Donat agrees.

"We're dedicated to the future of this vital corridor," said Donat. "However, the long-term fix for the area won't be ready to build for a few more years. We need to get something done now to maintain the safety of drivers out there while addressing congestion."