selling with sylvia and the albers team: If You Are Thinking of Selling, Now Is The Time
- 04/17/16 10:09 PM
If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. Jonathan Smoke, the Chief Economist of realtor.com, in a recent article revealed that: “Would-be buyers face a dilemma: There will be more homes on the market over each week of the next three … (1 comments)
selling with sylvia and the albers team: The Top Reasons Why Americans Buy Homes
- 04/13/16 11:26 PM
Last week, the inaugural “Homebuyer Insights Report” was released by the Bank of America. The report revealed the reasons why consumers purchase homes and what their feelings are regarding homeownership. Consumer Lending Executive, D. Steve Boland, explained: “Homebuyers today are motivated by both emotional and practical reasons. Nearly all want more space, but a majority of homebuyers, especially those purchasing their first home, are also looking for a place to call their own, put down roots and make memories. They value the emotional benefits of owning a home as much as the financial ones.” Boland went on to say: “The path to homeownership is a … (1 comments)
selling with sylvia and the albers team: You Can Save for a Down Payment Faster Than You Think
- 04/13/16 11:14 PM
In a study conducted by Builder.com, researchers determined that nationwide, it would take “nearly eight years” for a first-time buyer to save enough for a down payment on their dream home. Depending on where you live, median rents, incomes and home prices all vary. By determining the percentage of income a renter spends on housing in each state, and the amount needed for a 10% down payment, they were able to establish how long (in years) it would take for an average resident to save. According to the study, residents in South Dakota are able to save for a down payment the quickest in … (1 comments)
selling with sylvia and the albers team: Over Half of Americans Planning on Buying in the Next 5 Years
- 04/13/16 11:00 PM
According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations. Those Looking to Buy 74% of those looking to buy a new home will consult with a real estate agent 59% said they will visit online real estate websites 37% will seek recommendations from friends and family 78% plan to get pre-approved before seriously … (1 comments)
selling with sylvia and the albers team: Building Wealth: First Rung on the Ladder is Housing
- 04/07/16 01:57 AM
How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is “an online resource for the most rigorous research and practical information on how a quality, stable, affordable home in a vibrant community contributes to individual and community success”. A recent story they published, The First Rung on the Ladder to Economic Opportunity Is Housing, discussed the importance of having affordable housing available to as many families as possible because: “The ladder to economic success can stretch only so high without the asset-building power of homeownership. Home equity provides Americans with the ability to send their children to college with … (1 comments)
selling with sylvia and the albers team: Real Estate: 2016 Will Be the Best Year in a Decade
- 04/05/16 10:54 PM
A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.” Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained: “Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a … (2 comments)
selling with sylvia and the albers team: Rent or Buy: Either Way You’re Paying A Mortgage
- 04/05/16 10:28 PM
There are some renters that have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s. As The Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s … (1 comments)
Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows. Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. Here is a chart detailing this point: According to Freddie Mac, the current 30-year fixed rate is currently around … (1 comments)
selling with sylvia and the albers team: Don't Be Fooled... Homeownership Is A Great Investment! [INFOGRAPHIC]
- 03/31/16 10:35 PM
Some Highlights: Harvard University's Joint Center of Housing Studies recently released the top financial & emotional reasons to own a home. Owning is a good way to build up wealth that can be passed along to your family as it is usually a form of "forced savings." You're paying for a house whether you own or rent, but owning gives you control over your living space. … (2 comments)
selling with sylvia and the albers team: 2016 Home Sales Doing Just Fine!!
- 03/30/16 10:19 PM
Some of the housing headlines are causing concern for some consumers who are in the process of either buying or selling a home. Pundits are concerned over the lack of new construction or the month-over-month sales numbers. Let’s set the record straight; 2015 was a good year for residential real estate in the United States and 2016 is starting out stronger. Here is a graph of total homes sold (new construction and existing homes) in the first two months in 2016 compared to last year: Will this momentum continue?If we look at foot traffic (the number of purchasers currently out looking at homes), … (1 comments)
selling with sylvia and the albers team: Past, Present & Future Home Values
- 03/29/16 10:09 PM
In CoreLogic’s latest Home Price Index, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month, and projected appreciation over the next twelve months. Here are state maps for each category: The Past – home appreciation over the last 12 months The Present – home appreciation over the last month The Future – home appreciation projected over the next 12 months Bottom Line Homes across the country are appreciating at different rates. As we have mentionedbefore, the rate of home price appreciation across the country is due to a stronghousing market reacting to supply and demand, and not a new housing … (1 comments)
selling with sylvia and the albers team: Sales Contracts Hit Highest Level in Months
- 03/28/16 10:17 PM
The National Association of Realtors (NAR) just announced that the February Pending Home Sales Index reached it’s highest reading since July 2015. What is the Pending Home Sales Index (PHSI)?NAR’s PHSI is “a forward-looking indicator based on contract signings”. The higher thePending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales. February’s Index rose 3.5% month-over-month to 109.1. What does this mean for the market?Lawrence Yun, NAR’s Chief Economist explained: "After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year … (1 comments)
selling with sylvia and the albers team: Home Sales Up Year-Over-Year
- 03/24/16 10:06 PM
Some Highlights This is the 48th consecutive month with year-over-year price gains. Lawrence Yun, NAR's Chief Economist says that, "The main issue continues to be a supply & affordability problem. Finding the right property at an affordable price is burdening many potential buyers." Inventory is still below historic normals at a 4.4 month supply. … (0 comments)
selling with sylvia and the albers team: Further Proof This Isn’t a Housing Bubble
- 03/23/16 10:31 PM
Two weeks ago, we posted a blog which explained that current increases in home prices were the result of the well-known concept of supply & demand and should not lead to conversations of a new housing bubble. Today, we want to look at home prices as compared to current incomes. Here is a graph showing the monthly mortgage payment on a median priced home in the U.S. over the last 25 years: Mortgage payments are currently well below the historic average over that time period. Purchasers are not overextending themselves to buy a home like they did on the run-up to the housing crash. Lawrence Yun, … (2 comments)
selling with sylvia and the albers team: 91.5% of Homes in the US have Positive Equity
- 03/22/16 10:24 PM
CoreLogic’s latest Equity Report revealed that one million borrowers regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties would regain equity if home prices rose another 5% this year. The study also revealed: 95% of homes valued over $200,000 now have a positive equity position 87% of homes valued under $200,000 have entered a positive position The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit gains Below is a map showing the percentage of homes with a mortgage, in each state, that have positive equity. (The states in gray … (1 comments)
selling with sylvia and the albers team: 3 Charts That Scream ‘List Your Home Today’
- 03/21/16 10:15 PM
In school we all learned the Theory of Supply and Demand. When the demand for an item is greater than the supply of that item, the price will surely rise. SUPPLYThe National Association of Realtors (NAR) recently reported that the inventory of homes for sale stands at a 4.4-month supply. This is considerably lower than the 6-month inventory necessary for a normal market. Many buyers are being confronted with a very competitive market in which they must compete with other buyers for their dream home (if they even are able to find a home they wish to purchase). Listing your house for sale now will allow you to capitalize … (1 comments)
selling with sylvia and the albers team: The Mortgage Process: What You Need To Know [INFOGRAPHIC]
- 03/17/16 10:08 PM
Some Highlights: Many buyers are purchasing a home with a down payment as little as 3%. You may already qualify for a loan, even if you don't have perfect credit. Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford. … (1 comments)
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