se ct and southern ri monthly real estate newsletter
TRANSCRIPT
October 9, 2015
Existing-Home Sales Stall in August, Prices ModerateWASHINGTON (September 21, 2015) — Following three straight months of gains, existing–home sales dipped in August despite slowing price growth and a positive turnaround in the share of sales to first–time buyers, according to the National Association of Realtors®. None of the four major regions experienced sales increases in August.
Northeast RegionAugust existing–home sales in the Northeast were at an annual rate of 700,000, unchanged from July and 6.1 percent above a year ago. The median price in the Northeast was $271,600, which is 2.4 percent above August 2014.
From the National Association of Realtors Lawrence Yun, NAR chief
economist, says home sales in August lost some momentum to close out the summer. "Sales activity was down in many parts of the country last month — especially in the South and West — as the persistent summer theme of tight inventory levels likely deterred some buyers," he said. "The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year."
"With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for those looking to buy this fall even with the overall pool of buyers shrinking because of seasonal factors," adds Yun.
Closing Process Changes: What To Expect
New mortgage disclosure rules will take effect Oct. 3, and lenders and real estate brokerages are quickly preparing for what has been predicted to be big changes to home closings.Mortgage lenders will be required to begin using new consumer disclosure forms on Oct. 3. The changes will merge the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure.Consumers will have more time to review the total costs of their mortgage prior to closing. The Loan Estimate form is due to consumers three days after they apply for a loan, while the Closing Disclosure form is due three days prior to closing. The Loan Estimate form shows the loan amount and interest rate, what the borrower’s monthly payment will be, estimated taxes and insurance, and how much cash is required to close.
Realtors prepare for New InitiativeAs such, some real estate professionals say
they’re planning to write contracts with 45-day closings instead of 30. About 56 percent of REALTORS® say they plan to change their purchase agreements to allow for a longer timeline for the closing process due to the upcoming changes from new mortgage disclosures rules, according to a new survey by the National Association of REALTORS®. Thirty-one percent of real estate professionals surveyed said they would also add contingencies to the contract.
“Know before you owe”The Consumer Financial Protection Bureau
has published a new guide for real estate agents detailing all the changes with the upcoming "Know Before You Owe" mortgage initiative. CFPB's toolkit for agents includes sections on how to have on-time closings, an overview of what has changed and the new loan documents, and the ability to share resources with your clients about the new rules.Source: "Tour the Loan Estimate Form for Mortgages," Bankrate.com (September 2015); "New Disclosure Rules for Mortgage," The New York Times (Sept. 25, 2015); and "Agents Plan to Extend Sales Contract for TRID," REALTOR® Magazine Daily News (Sept. 3, 2015)
Connecticut - Norwich-New London Region Real Estate Market Update
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Premier listingsNorth Stonington Groton
Premier listingsStonington Borough Masons Island, Mystic
39 Water Street Asking $550,000
10 Lema RoadAsking
$385,000CTMLS
E10059499
