Resale Homes Snapped Up Quick as Mortgages Trend Higher


Pressure is building up for buyers to find homes quicker, as the market seems headed towards a regime of higher mortgage rates. For the first week of June 2015, the mortgage-finance company Freddie Mac reported an average rate of 4.04% for a 30-year fixed mortgage, a seven-month high and up from the previous week’s 3.87%. The average rate for a 15-year fixed mortgage during the same comparative period rose to 3.25% from 3.08%, the McLean, Virginia-based firm said.

The relatively low sub-4% mortgage rate level now appears fading with the yields on 10-year Treasury bills, a benchmark for mortgages, approaching 2.5% in early June of 2015. This level, the highest since October 2014, was reached amid economists’ expectations that the Federal Reserve is set to end its seven years of loan assistance to banks at near-zero interest rates. Recent reports on the job front showed U.S. job hiring at a five-month peak, an indication that the economy has strengthened enough for the Fed to boost the costs of borrowing.

Fewer days on market

Resale Homes Snapped Up Quick as Mortgages Trend Higher

Signs of a faster turnover of resale homes in recent months do indicate that buyers are indeed stepping up their activity, making it necessary for those engaging the market to partner with a competent realtor in grabbing the best available opportunities. On average, pre-owned homes across the U.S. were sold in 39 days, down from 52 days in March and 62 days in February, figures from the National Association of Realtors show.

Statistics on Sarasota homes for sale as drawn from Florida Realtors’ report for April 2015 reflected the same downswing. Median days on market (DOM) of single family homes sold in the county for the month slipped to 36 days from 43 in March and from 49 in February. Year over year, the drop was estimated at nearly 38% from the 58 DOM registered in April 2014 and represented the sixth consecutive decline since last November.

Sweet spot on turnovers

Among various price points, Sarasota homes for sale priced from $50,000 up to the high $100s experienced the fastest turnover with most of these residences grabbed by buyers not more than a month after their listing. Prospective sellers of Sarasota homes valued at between $150,000 and $199,999 appear encouraged by this development with new listings of residences within this price range rising by 36.8% to 171 in April 2015.

The Southgate neighborhood is one great destination in searching for new listings within this attractive price range. The newly available Sarasota homes for sale her have floor plans of about 1,240 square feet up to nearly 1,800 square feet, featuring from two to four bedrooms.

Venice market samplings

The Venice Gardens is another community with fresh listings of resale homes under the $200s. These new choices among Sarasota homes for sale include residences with floor areas ranging from 1,200 square feet to 1,635 square feet, designed with two to three bedrooms.

In North Venice, a newly added sales listing at the Venetian Golf & River Club is one property which can be quickly grabbed in the market. Enjoying the perks of a premier golf community, this residence was built in 2003 with two bedrooms and two baths within its floor area of 1,206 square feet.