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By LINDA COMINS
Staff Writer
WHEELING -- With U.S. mortgage rates dropping again in early January, area real estate agents say now is a good time to buy or sell a house in the Ohio Valley.
Lee Paull III, broker of Paull Associates, said, "The rates are still very, very low, and within two months when it really starts to rev up -- the early spring season -- I think we're going to see rates that are very attractive for people to dive in."
Paull Associates operates offices in Wheeling, St. Clairsville, Marshall County and Brooke County.
The Associated Press reported that long-term U.S. mortgage rates fell in the first week on January, making it slightly more affordable to borrow for a home.
Mortgage buyer Freddie Mac said the average rate on 30-year fixed-rate mortgages slipped to 3.95 percent on Jan. 4 from 3.99 percent the previous week. The average has tumbled from 4.20 percent a year ago.
Relatively low mortgage rates have helped would-be homebuyers who are coping with rising housing costs. The National Association of Realtors said the median home sales price increased 5.8 percent from a year ago to $248,000 in November. Part of the reason why prices have risen so much is that the number of homes on the market has declined by nearly 10 percent since November 2016.
The average rate on 15-year fixed-rate mortgages fell to 3.38 percent from 3.44 percent in the prior week. This same rate averaged 3.44 percent last year.
The interest charged on U.S. Treasury notes dropped, causing mortgage rates to slip in response.
The average on five-year adjustable-rate mortgages slipped to 3.45 percent from 3.47 percent.
Paull said the shift in mortgage rates has been interesting for the real estate market. With 30-year fixed-rate mortgages expected to be in the high 3-percent range locally, he said, "I think it's going to be an excellent season for real estate."
In 2017, he said, "People were buying. It was a good year."
For the local market, Paull said, "Anything we see under $350,000 … they're selling very well."
In fact, he said, the mortgage rates are good for potential buyers who are looking for houses priced in the range of $50,000 to $250,000.
"It's a good time to sell," Paull said, with business increasing "each and every week as it gets closer to spring."
He said, "The peak time for us is from March 1 to the end of November. That is really our season."
But even in non-peak months, he said, "We've been busy because there are some people who need to sell their homes. It's very aggressive, with good pricing. There are some pretty attractive price ranges."
Karen Derosa, an agent with Harvey Goodman Realtor in St. Clairsville, said current interest rates haven't had a negative impact on buyers or sellers. In fact, she said, just the opposite is true.
Regarding local mortgage interest rates, she said, "The rates are still good, lower than last year in fact. And home sellers are still cooperating with closing costs to help the buyers, if need be. It's a great time to buy a home."
Area homebuyers seeking to finance a purchase have a choice of banks and mortgage companies. Derosa said, "We have a selection for buyers. Local lending is really good here with rates anywhere from around 3.5 percent for a 15-year term to 4 percent or so for a 30-year loan."
A number of factors determine whether prospective buyers approach a bank or a mortgage company. Some buyers prefer to deal with their own bank if they are accustomed to being in the bank doing their daily business. For others, a mortgage company might be a good fit based on the customer's credit history and ability to buy.
"Mortgage companies and banks are both competitive with each other," Derosa said. "If it's a first-time buyer or they have credit issues, I can help them find a suitable bank or mortgage company locally that will work with them. I try to stay local with all (clients)."
Ohio's rural development program and the West Virginia Housing Development Fund can help first-time buyers with closing costs and down payments.
Some first-time buyers find it is cheaper to buy a house than to rent a house or apartment. In this area, Derosa said, "Monthly rental rates are up; the availability is low. Many times I can work with that renter and get them into a lower payment than renting, then they're off and running."
In Belmont County, she said, "We've all been very busy. We've seen increases everywhere. Rentals are up; our sales are up … We're just always busy keeping up with everything."
Derosa said, "Regardless of it being 0 degrees outside, we're still busy helping buyers and sellers. However, our busiest season is always in the summer."
Despite winter weather conditions in the Ohio Valley, she said, "We are still having a steady stream of listings. Not as many as we'd like -- our buyers are out there waiting for sellers to get their houses listed. If the weather tends to cooperate during the next couple of months, home owners will think more about getting their home listed and on the market. Then that will impact the buyers coming out more. We have the buyers out there, waiting. We just need more listings," Derosa added.
With housing being in demand locally, she said, "Realistically, the prices of homes locally seem to be in line, because they are selling quickly. Frequently, we're getting multiple offers on our listings. I think having a high rate of employment, a good and stable job, are more important to the housing market than a small uptick in mortgage rates. When employment is high, home sales are strong. Employment is good, and mortgage interest rates are great.
"What I and other agents really need is more houses, we need more listings to sell," Derosa said. "Local housing, if priced right, will sell quickly. Interest rates are lower than this time last year, and I hope the same great rates will be available for some time."