With the “Hope Brings You Home” version of Home is Possible coming to an end, we are proud to report that we helped 14 very fortunate home buyers take advantage of the once in a lifetime down payment assistance program, over ¼ of a million dollars awarded to them! We reserved funds for 8 of our clients on the last day of reservations (July 20th) and were lucky enough to help one more client in overtime when a limited amount of funds were released (August 2nd).
Statistics for your clients to consider when choosing a lender
• The average purchase transaction nationwide according to Ellie Mae takes 44 days. The discount lenders can take even longer. Our Group averages clear to close in under 21 days.
• On average, the industry averages 1 out of 5 buyers that are issued an approval letter end up getting loan declined at some stage during the loan process, and most often after day 21. Our group averages less than 1 out of 100 buyers that get loan declined and on average is underwritten on day 13.
Conclusion: You get what you pay for and a mortgage can’t be commoditized. If a client selects a lender with .25% higher rate on a $250,000 it would translate into a higher payment of $38 per month. The average lifespan of a home loan is 5 years. This translates into a sacrifice of $2200.
The bond market, and stock markets for that matter have leveled off and stabilized, and we have enjoyed “calm waters” for the better part of the past 3 months. The Fannie Mae 4.0 coupon hasn’t pushed over 102.5 or dropped below 101.5, which is within 100 basis points from peak to trough. Translated to the home buyer, mortgage rates haven’t moved more than 1/4 % in either direction in over 3 months.
Southern Nevada Real Estate Related Data
July sales for Southern Nevada, while still showing year over year appreciation rate of more than double the national average, are at least indicating that the rate of appreciation is slowing. The median priced home went for roughly $290,000. The median priced home is now 11.5% higher than July 2017, but much more tame than the year over year appreciation rates of 18 and 12 percent for May and June. Inventory is up over 10% from July of this year which is also a healthy change. The number of transactions for resale homes reached nearly 3,900 sales, but sales so far this year are down from last year by nearly 6%. If your business is flat or better than last year, consider yourself winning!
While the resale market is stabilizing, the new home market has been on a tear this year, with median priced new homes hitting nearly $390,000 year to date. The number of closings are up almost 20% from the same time last year, averaging roughly 850 sales per month and on pace to close almost 11,000 homes this year.
Have a great week!