Americans are on a buying spree for homes on the back escalating mortgage rates and low inventory levels. Buyers see value creation in their investments as housing costs go upwards.
January 27, 2014 (Newswire.com) - Americans are prescient in 'home' matters this spring; foreseeing an imminent hike in property prices this year due to the prevalent 'twitches of disequilibrium' in its supply and demand economics.
The American property market is currently troubled by low inventory levels to adequately match the resilient demand for homes. Demand is fueled by consumer confidence; unscathed by high mortgage rates and tight banking credit.
Mirroring the outlook, Americans are in a buying mood for homes. Consumers see value creation in their investments in the next 11 months and beyond. Studies show that most Americans believe 2014 is the opportune time to buy homes.
According to Fannie Mae's December 2013 National Housing Survey, "49 percent of consumers surveyed believe home prices will go up over the next 12 months, compared to 43 percent in December 2012.
Consumers' average 12-month home prices expectations moved to 3.2 percent, up from 2.6 percent last year. Those who say it's a good time to sell a home rose significantly to 33 percent from 21 percent in December 2012.
And, despite a higher mortgage interest rate environment, consumers are more optimistic about their access to mortgage credit than they were a year ago, with those who say that it would be easy to get a home mortgage today rising to 50 percent, compared to 45 percent last year."
America is a renter nation when it comes to home and living; some 11.3 million Americans spend half of their wages on rent, a big 28 percent leap from that in 2007. This motivates the buying of homes rather than renting.
Housing costs in urban cities can be astronomical. A recent report provided by Zillow.com revealed that the current median rent for an apartment in San Francisco is $3,414 per month in 2013, a 15 percent increase from $2,968 in 2010.
"Conditions are coming together to encourage people to want to buy homes," said Doug Duncan, vice president and chief economist of Fannie Mae. "Americans' rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice." - Fannie Mae's December 2013 National Housing Survey.
Home buyers' ecstatic stance in the current market scenario is a boon to property realtors, such as Hilton Head Island Real Estate Brokers (HHIRE). The company buys and sell properties in the Hilton Head Island and Bluffton, Southern California.
HHIRE is a specialized property realtor; embedded in the locality, providing buying and selling clients with a bird's eye view of things, which include but not limited to comprehensive local market knowledge as well as genuine consultation and advice.
The company boasts its range of luxury properties in gated communities on Hilton Head Island. There are 11 gated communities with amenities of a beach front, water view and a world class golf course. It also offers a more affordable range in open communities.
Among notable 'plantations' on Hilton Head Island include Hilton Head, Sea Pines Resort, Indigo Run, Long Cove Club, Palmetto Dunes, Palmetto Hall, Port Royal, Shipyard, Spanish Wells, Windmill Harbour and Wexford.
Prices range between $150,000 and $7.8 million.
Inland, Bluffton has a variety of middle to upper range of properties on offer. Among new developments in Bluffton, include Belfair, Berkley Hall, Colleton River, Hampton Hall and Hampton Lake, The Crescent, Eagle's Point and Palmetto Bluff.
Prices range between $75,000 and $2.75 million.
HHIRE provides a directory of all properties for sale on its website at http://www.hhireb.com.