There are 240 condos for resale on Singer Island; 6 condos are currently pending. Only one condo sold within the past 7 days at 81% of list price after 135 days on the market.
The average rate for the 30-yr. fixed mortgage fell to a historic low. The rate decreased to 3.92 percent this week from 4.01%. Last year at this time, the 30-year fixed-rate mortgage averaged 4.27 percent.
The average 15-year fixed mortgage rate also fell to a new low at 3.26%. That’s the lowest on records dating to 1991 and likely the lowest ever, according to economists.
“Interest rates are obviously not an impediment to housing. It’s uncertainty about the economy, about jobs, about incomes,” said Mark Vitner, senior economist at Wells Fargo. “It’s not a question of affordability. It’s simply a lack of wherewithal to buy a home or a lack of confidence to commit to buying one.”
Many people are reluctant to take the risk in this market. High unemployment, scant pay raises and heavy debt loads are deterring many would-be buyers.
Others can’t qualify for the historically low rates. Banks are insisting on higher credit scores. And many want first-time buyers to put down 20 percent. Few people have that much cash or home equity to satisfy the requirement.
“Considering how far mortgage rates have fallen, we’d expect to see more people refinancing and buying,” said Celia Chen, director of housing economics at Moody’s Analytics. “It’s still the lack of jobs and the difficult credit environment that’s pushing most people away.”
The majority (54%) of mortgage industry experts polled by Bankrate.com expect rates to increase over the next 30 to 45 days; 15 percent predicting rates will decrease, and the remaining 31 percent saying rates will remain relatively unchanged.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].