Tag

Time

Browsing


Total outstanding US consumer debt stood at $5.08 trillion for the first quarter of 2024, increasing at an annualized rate of 2.46% (seasonally adjusted), according to the Federal Reserve’s G.19 Consumer Credit Report. From the second quarter of 2023 to the second quarter of 2024, the total increased by 1.84%. This year-over-year (YoY) growth rate is the lowest observed since the first quarter of 2021.

Nonrevolving and Revolving Debt

Of the total outstanding US debt in the first quarter of 2024, the nonrevolving share is 74%, with revolving at 26%. Nonrevolving debt (primarily student and auto loans) stands at $3.73 trillion (SA) for the second quarter of 2024. Revolving debt (mainly credit card debt) stands at $1.34 trillion.

The pace of growth has slowed for both nonrevolving and revolving debt as households’ pandemic-era savings have dwindled. In terms of YoY growth, both nonrevolving and revolving debt peaked in the fourth quarter of 2022 at 15.10% and 5.34% respectively. In the second quarter of 2024, the YoY growth rate for nonrevolving debt decreased to 6.12%, from 7.99% in the first quarter, while the growth rate for revolving debt increased from 0.14% to 0.39%. This was the sixth consecutive quarterly decline in YoY growth for nonrevolving debt while revolving debt saw its first uptick in the YoY rate in five quarters.

Student and Auto Loans

Breaking down the components of nonrevolving debt, student loans account for 47%, and auto loans make up 42% (the G.19 report excludes real estate loans). Collectively, the other loans make up the remaining 11% of nonrevolving debt.

Student loans in the second quarter of 2024 totaled $1.74 trillion (non-seasonally adjusted), marking the fourth consecutive decrease in the YoY rate at -0.96%, following an annual decrease of -1.22% in the previous quarter. The third quarter of 2023 marked the first YoY decrease for student loan debt since the data was first reported.

Auto loan debt for the second quarter of 2024 was $1.57 trillion (NSA). Auto loan YoY growth has steadily decelerated over the past six quarters. The fourth quarter of 2021 saw a high of 13.74% YoY growth compared to the second quarter of 2024 YoY growth rate of 1.95%. This slowdown partially reflects the relatively high interest rate on auto loans, which have increased from 4.52% in Q1 2022 to 8.20% in Q2 2024 (60-month new car loans). However, this car loan rate experienced its first (albeit slight) decline in over two years, falling from 8.22% in the previous quarter.

Credit Cards

The interest rate on credit cards saw its first decrease since the fourth quarter of 2021.  The interest rate for the second quarter of 2024 was 21.51%, falling from 21.59% in the previous quarter. Before this quarter, the rate experienced nine consecutive quarterly increases, with a dramatic increase of 2.8 percentage points from Q3 2022 to Q4 2022. This aligns closely with the Federal Funds Effective Rate increasing 1.47 percentage points during the same period, the highest increase since the 1980s.

Discover more from Eye On Housing

Subscribe to get the latest posts sent to your email.



This article was originally published by a eyeonhousing.org . Read the Original article here. .


If you’re a homeowner waiting on the sidelines for the perfect time to sell your home, this week could be your time to shine.

Despite mortgage rates inching closer to 7%, a recent research from Realtor.com indicated the week of April 14-20 might be the ideal week for potential sellers to list, as spring historically brings with it higher buyer demand and a market with low inventory, setting the stage for bigger bids.

Some homeowners have been on the sidelines for two years, waiting for mortgage rates to fall, additional survey data from the site showed.

However, while 50% say they’re willing to hold out longer in hopes of rate drops, nearly 30% say they need to sell soon for “personal reasons,” including profits, need for more space, or plans to rent, to name a few.

SELLING YOUR HOUSE? HERE’S THE BEST TIME TO DO IT

The best time to sell your home might be the week of April 14-20, according to Realtor.com data. (REUTERS/Jeff Haynes  / Reuters Photos)

Survey data also showed that sellers are adjusting their expectations to meet the current market, with 8 in 10 settling in on the expectation that the mortgage for a newer home will be higher than their current home. 

“With the market cooling in many areas, 12% expect a bidding war to take place (vs 27% in 2023), and only 15% expect to get more than their asking price (vs 31% last year),” the report continued.

The separate analysis from last month pointed to the April 14-20 listing timeframe by taking into account the number of buyers, listing prices and seasonal trends, to determine the period for the most favorable for home selling conditions.

TIME TO SELL YOUR HOME? HERE ARE 3 QUESTIONS TO ASK YOURSELF

50% of sellers still on the sidelines say they will wait out rates while 29% say they need to sell soon. (FOX Business / Getty Images)

“We’ve got the most favorable balance of all of these factors for sellers. It suggests they will be able to sell quickly at a good price and be happy with the outcome,” said Realtor.com chief economist Danielle Hale.

The report indicated that this week offers a higher-than-average number of buyers along with a lower-than-average time on the market and higher-than-average prices, coming in at 1.1% higher than the average for other weeks throughout the year.

REALTOR DESCRIBES THE SHIFT THAT’S DRIVING REAL ESTATE ‘ACROSS THE BOARD’ IN TOP MARKETS

Realtor.com analysis indicates that homes historically reached higher prices during the week of April 14. (Photo by STEFANI REYNOLDS/AFP via Getty Images / Getty Images)

FOX Business’ Gerri Willis, speaking on “Varney & Co.,” on Monday said “sellers are getting more realistic,” noting that they have to “embrace” current rates.

Rates for 30-year mortgages averaged 6.88% last week, according to Freddie Mac’s latest survey. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE



This article was originally published by a www.foxbusiness.com . Read the Original article here. .


Key takeaways

Broadly speaking, spring is generally the best time of year to sell your home.

Many families need to be in their new home by the start of the school year, and house-hunting is easier when days are warmer and longer.

Fall and winter typically see the lowest amount of homebuying activity.

During the height of the pandemic, normal seasonal patterns all but disappeared from the housing market. There was so much demand for homes that any time was a good time to sell. But now that the market has settled back into a more normal cadence, timing is once again becoming an important consideration for home sellers.

Some patterns and trends usually do hold true throughout the year, and one is that late spring and early summer are the best times to sell. Sellers can net thousands of dollars more if they sell during the peak months of May, June and April compared to the three slowest months of the year, October, November and December, according to a 2023 report by ATTOM Data Solutions.

Best month to sell a house

Spring — specifically, the month of May — is the best time to sell a house. Homes sold in May net a 12.8 percent seller premium (the amount above the home’s market value), based on ATTOM’s analysis of single-family home and condo sales over the past 10 years.

Best and worst times to sell a house, by month

To determine the premium or discount sellers realized on a given day, ATTOM compared the median sale price for homes with a purchase closing on that day with the median automated valuation model (AVM) for those same properties at the time of sale. Here’s how each month of the year ranked for the best time to sell a house.

May
$220,000
$195,000
12.8%

June
$228,000
$206,000
10.7%

April
$215,000
$195,000
10.3%

March
$210,000
$191,357
9.7%

July
$227,500
$207,537
9.6%

February
$200,000
$184,000
8.7%

August
$225,000
$208,000
8.2%

September
$223,504
$207,000
8.0%

January
$200,000
$186,000
7.5%

October
$220,000
$206,000
6.8%

December
$220,000
$206,000
6.8%

November
$220,000
$207,000
6.3%

The highest-earning months are, in ranking order, May, June, April and March. Just over 18 million purchase transactions took place during this period, according to ATTOM.

June edges out April for second place, with a 10.7 percent seller premium compared to May’s 12.8 percent. March and April usher in prime homebuying season with premiums of 9.7 percent and 10.3 percent, respectively. By October, seller premiums have tapered off, falling to 6.8 percent.

These stats underscore the conventional wisdom about selling a home: Spring and summer attract the most buyer attention. Conversely, that can be a challenging time to buy, owing to high prices and more demand.

Seasonality is important

While all regions experience seasonality, it is more or less pronounced depending on where you are in the country.

For example, in the South and West — where temperatures are largely more moderate — there’s less discrepancy between the peak and slow seasons, according to the National Association of Realtors. However, there’s more disparity between summer and winter in the Midwest and Northeast.

These seasonal patterns can help give sellers an indication of what to expect throughout the year.

Spring and summer are the best seasons to sell

Typically, sellers list their homes in the spring and summer because the weather is good, especially for people in colder climates. In addition, families want to buy their next home before school starts, says Realtor Liede DeValdivielso, one half of the DeValdivielso Team with the Keyes Company in Coral Gables, Florida.

Daylight savings time might also play a part in why the warmer months stimulate buying activity. “One of the reasons buyers are more eager to view properties during spring and summer may be due to the longer days,” says Marilyn Blume, a real estate agent with Sotheby’s International Realty in New York City. “By getting more exposure for your listing through more traffic, you increase the chances to receive more offers.”

Homebuyers on a deadline — for example, those who want to acquire a house before the school year begins — should make sure they’re in top financial shape before spring. That means checking your credit score and debt-to-income ratio to ensure you’re in a strong position to get a mortgage preapproval. Otherwise, your efforts might be delayed.

“April is plenty of time to get a house before school starts, as long as your financing is in order,” DeValdivielso says. “The best thing to do is shop around for a loan before you start looking for a house. This will give you a good idea of what you can qualify for.”

Fall and winter are the worst seasons to sell

The decline in seller premiums typically begins in September, when the average premium drops to 8 percent — significantly less than the peak in May. By then, many buyers with school-aged kids have likely found a home, so the sharp drop is no surprise.

Combine the new school year with the start of the busy holiday season, and homebuying goes on the back burner during the latter part of the year. Just like in the warmer months, the weather plays a factor in the winter months, too. As the days get dark earlier and temperatures drop, people tend to stay closer to home. This means less foot traffic for sellers.

November is the worst month to sell

The worst month of the year to sell a house is November, with a 6.3 percent seller premium, according to ATTOM. And those premiums stay pretty low in ensuing months. Homebuying activity typically comes to a near-standstill in December, when people tend to travel and are busy with holiday celebrations.

Of course, if you’re a buyer, the opposite holds true: The cooler months can actually be a hot time to house-hunt. There’s less competition from other buyers, and antsy sellers might be more willing to negotiate on price or offer other concessions.

The best day of the week to list your home

Want to get even more specific? If you really want to maximize your profits and sell quickly, list your home on a Thursday. Data from Zillow suggests that Thursday is the sweet spot for new listings to appear on the market, as both house-hunters and real estate agents tend to plan their weekend showings toward the end of the week. Friday is a good bet as well, per Redfin data. Avoid listing at the beginning of the week, as that raises the likelihood that the listing will sit for a few days before most buyers are ready to look — newly added listings look fresher to buyers.

What if there’s a recession?

As happened during the pandemic, the possibility of a recession might see established housing-market trends fly out the window. Recessions can be a dicey time to sell — or buy — a home. When the economy contracts, unemployment rises and potential buyers may experience a decline in income, making it more difficult for them to be approved for a mortgage.

In addition, selling a home requires paying real estate commissions and closing costs that will likely total tens of thousands of dollars. So it’s only worth doing if you really need to. If you’re worried about a recession and can afford to hold off until the economy stabilizes a bit, that could be the smarter financial option.

More tips for sellers

Here are a few more suggestions for homeowners hoping to maximize their selling success:

Real estate is very localized, so speak with an experienced real estate agent in your market who understands local sales trends. Agents can give you neighborhood-specific information to help you make the most strategic decision about when to list your home.
Keep prep time in mind. Sellers should consider making key repairs and updates to their homes to maximize their return, but this can be a lengthy process. Even simple decluttering can be time-consuming, so plan accordingly and finish these projects before putting your home on the market.
Make sure you get expert, professional-quality listing photos taken. All homebuyers search for homes online these days — a full 100 percent, according to National Association of Realtors data — so it’s important to put your home’s best foot forward right from the beginning.



This article was originally published by a www.bankrate.com . Read the Original article here. .

Pin It