homeowners: 93% Believe Homeownership Is Important in Attaining the American Dream
- 01/11/18 07:30 AM
Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:
“Owning a home remains a core element of the American Dream.”
When asked “How important a part of the American dream is owning a home?”
18% of those surveyed said it was the most important part 53% of those surveyed said it was very important 22% of those surveyed said it was somewhat important HOMEOWNERSHIP AND FINANCIAL STABILITYThe survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron Terrazas who, in a recent press … (0 comments)
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homeowners: Time on the Market Drops to New Low in 2017
- 01/04/18 09:33 AM
According to recently released data from the National Association of Realtors (NAR), the median amount of time a home spent on the market hit an all-time low of only three weeks in 2017.
Strong buyer demand, a good economy, and a low inventory of new and existing homes for sale created the perfect storm to accelerate the time between listing and signing a contract. The time needed to sell a home has dropped substantially since its highest mark of 11 weeks in 2012.
The chart below shows the median weeks on the market from 1987 to today.
Bottom LineIf you are a homeowner who is debating whether or not … (0 comments)
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homeowners: Buying or Selling in 2018? 5 Reasons to Resolve to Hire a Pro
- 12/29/17 07:15 AM
Some Highlights:
As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team! There are many benefits to using a local professional! Pick a professional who knows your local market and can help you achieve your dreams! Contact your local expert’s at The Liz Freeman Team for all your Real Estate needs! 252.439.4000 or liz@lizfreeman.com.
By: KCM Crew
… (1 comments)
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homeowners: Housing and the Senate Tax Plan: What Now?
- 12/07/17 09:53 AM
Members of the real estate industry are responding to the passage of the Senate tax plan, which chiefly includes a 20 percent corporate tax rate—down from 35 percent—and reduced rates for families and individuals over the next seven years. The development follows the House passage of its own plan in November.
Both bills challenge homeownership, industry members say. The bills extend the capital gains exclusion eligibility requirement that home sellers reside in the home from two of the last five years to five of the last eight. (The House plan, however, includes an income phaseout provision.) Both also raise the standard deduction, which has the … (0 comments)
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homeowners: The Real Reason Home Prices are Increasing
- 11/30/17 10:20 AM
There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.
However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.
It is that simple. … (0 comments)
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homeowners: Your Friends Are Crazy Wrong If They’re Telling You Not to Buy
- 11/16/17 08:38 AM
The current narrative is that home prices have risen so much so that it is no longer a smart idea to purchase a home. Your family and friends might suggest that buying a home right now (whether a first-time home or a move-up home) makes absolutely no sense from an affordability standpoint. They are wrong!
Homes are more affordable right now than at almost any time in our country’s history except for the foreclosure years (2009-2015) when homes sold at major discounts. As an example, below is a graph from the latest Black Knight Mortgage Monitor showing the percentage of median income needed to buy a … (1 comments)
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homeowners: Why Sell Now Instead of Later? The Buyers are Out Now
- 11/02/17 06:55 AM
Each year, most homeowners wait until the spring to sell their houses because they believe that they can get a better deal during the normal spring buyer’s market. However, recently released data suggests that a seller’s best deal may be available right now. The concept of ‘supply & demand’ reveals that the best price for an item will be realized when the supply of that item is low and the demand for that item is high. Let’s see how this applies to the current residential real estate market.
SUPPLYIt is no secret that the supply of homes for sale has been far below the number … (0 comments)
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homeowners: Hiring an Agent to Sell Your House May Cost You NOTHING!
- 10/19/17 11:23 AM
There is no doubt that it is easier to sell your house when using the services of a local real estate professional. The agent will provide:
Greater exposure to more buyers The skills of a professional negotiator A layer of protection from possible legal liabilities Professional guidance in navigating any pitfalls that may arise A level of safety while showing the home There is no doubt that these services are valuable to any family that decides to sell. The only question is – how valuable? One of the main reasons For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe … (2 comments)
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homeowners: Net Worth of Homeowners 44X Greater than Renters
- 10/12/17 07:47 AM
Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago.
The study revealed that the 2016 median net worth of homeowners was $231,400 - a 15% increasesince 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family wealthAs we’ve said before, simply put, homeownership is a form of ‘forced … (0 comments)
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homeowners: Thinking of Selling your Home? Competition is Coming
- 09/28/17 06:52 AM
The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.7% over last year.
How will this impact buyers?More inventory means more options. Danielle Hale, Realtor.com’s Chief Economist, explained this is good news for the housing market - especially for those looking to buy:
"It's not spectacular construction growth, but it's slow and steady in the right direction. Eventually, the pickup in single-family home construction will mean [buyers] will have … (0 comments)
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homeowners: Why Are So Few Homes for Sale?
- 09/21/17 09:06 AM
There is no doubt that the largest challenge in today’s housing market is a lack of housing inventory for sale. This challenge has been defined as an “overwhelming lack of supply,” and even a “straight up inventory crisis.”
First American just released the results of a survey which sheds light on the reasons for the current lack of supply.
The survey asked title agents and real estate professionals to identify what they believe are the top reasons for this lack of inventory in their markets. Here are the results of the survey:
47% – existing homeowners are worried that they will not be able to find a home to buy 5% … (2 comments)
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homeowners: 58% of Homeowners See a Drop in Home Values Coming
- 08/17/17 08:49 AM
According to the recently released Modern Homebuyer Survey from ValueInsured, 58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.
After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.
The two major causes of the housing crash were: A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a … (1 comments)
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homeowners: Hey, Millennial Homeowners!! It May Be Time to Sell
- 08/10/17 10:00 AM
Contrary to what many believe, Millennials are not the ‘renter’ generation. Millennials purchased a larger percentage (34%) of homes in the U.S. than any other age group in 2017 and the most recent Census Bureau report shows that the homeownership rate among Millennials is finally on the rise.
Many Millennials took advantage of post housing crash prices and the First-Time Homebuyers’ Tax Creditand jumped into homeownership in 2010. If you are one of these buyers, now may be the time to sell for many reasons. Here are a few:
1. Equity Build-UpHome prices have been on the rise since the beginning of 2012 and your house may … (0 comments)
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homeowners: A ‘Buyer’ in Hand is Worth Two in the Bush
- 07/27/17 08:35 AM
In today’s highly competitive seller’s market where there are more buyers than there are homes for them to buy, some sellers may feel like the ball is in their court.
And they would be right when it comes to choosing which offer to accept, the closing date, or even which improvements they are willing to make to their house prior to selling.
One thing to remember though, is that there is always a line that shouldn’t be crossed.
Interest rates can change, financing might not go through, the appraisal might not come back at the price that you have agreed to. These are all opportunities … (0 comments)
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homeowners: The 5 Greatest Benefits of Homeownership
- 07/13/17 07:36 AM
Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”
Homeownership can help you build equity over time. Your monthly payments will remain stable. You may have some tax benefits. You can take pride in ownership. Homeownership improves your community. Let’s expand on each of Freddie Mac’s points:
Homeownership can help you build equity over time.Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times … (4 comments)
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homeowners: 75% OF HOMEOWNERS THINK NOW IS A GOOD TIME TO SELL!
- 06/29/17 10:53 AM
The National Association of Realtors (NAR) recently released the findings of their Q2 Homeownership Opportunities and Market Experience (HOME) Survey. The report covers core topics like, “if now is a good time to buy or sell a home, the perception of home price changes, perceived ability to qualify for a mortgage, and [an] outlook on the U.S. economy.”
The survey revealed that 75% of homeowners think now is a good time to sell,compared to 70% last quarter. This is a considerable increase from more than a year ago when 66% agreed.
Even though homeowners believe that now is a good time to sell, many have not taken the … (0 comments)
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homeowners: THE IMPORTANCE OF HOME EQUITY IN RETIREMENT PLANNING
- 06/22/17 08:57 AM
We often discuss the difference in family wealth between homeowner households and renter households. Much of that difference is the result of the equity buildup that homeowners experience over the time that they own their home. In a report recently released by the nonpartisan Employee Benefit Research Institute (EBRI), they reveal how valuable equity can be in retirement planning.
Craig Copeland, Senior Research Associate at EBRI, recently authored a report, Importance of Individual Account Retirement Plans and Home Equity in Family Total Wealth, in which he reveals:
“Individual account retirement plan assets, plus home equity, represent almost all of what families have to use for retirement expenses outside of Social Security and traditional pensions. Those … (0 comments)
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homeowners: Are Home Prices Approaching Bubble Territory?
- 06/15/17 09:41 AM
As home values continue to rise, some are questioning whether we are approaching another housing bubble. Zillow just reported that:
“National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade.”
Though that statement is correct, we must realize that just catching prices of a decade ago does not mean we are at bubble numbers. Here is a graph of median prices as reported by the National Association of Realtors (NAR).
We can see that prices rose during the early 2000s, fell during the crash and have risen since 2013.
However, let’s assume there was no housing bubble and … (1 comments)
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homeowners: #1 REASON TO LIST YOUR HOUSE FOR SALE, NOW!
- 06/01/17 07:55 AM
If you are debating listing your house for sale this year, here is the #1 reason not to wait!
Buyer Demand Continues to Outpace the Supply of Homes for Sale The National Association of REALTORS’ (NAR) Chief Economist Lawrence Yun recently commented on the inventory:
“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market.
Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase”.
… (0 comments)
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homeowners: 3 REASONS THE HOUSING MARKET IS NOT IN A BUBBLE
- 05/11/17 07:27 AM
With housing prices appreciating at levels that far exceed historical norms, some are fearful that the market is heading for another bubble. To alleviate that fear, we just need to look back at the reasons that caused the bubble ten years ago.
Last decade, demand for housing was artificially propped up because mortgage lending standards were way too lenient. People that were not qualified to purchase were able to attain a mortgage anyway. Prices began to skyrocket. This increase in demand caused homebuilders in many markets to overbuild.
Eventually, the excess in new construction and the flooding of the market with distressed properties … (2 comments)
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Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:
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