Renting vs. Buying: What Does it Really Cost?

Does anyone disagree that owning real estate rather than renting makes the most sense? Or... even if you do agree, did you realize that right now the cost to rent a Median Home is DOUBLE the cost of owning?

Per Pulsenomics research:

• The percentage of income needed to afford a median priced home is almost half the percentage of income needed to afford median rent.
• Buying costs are significantly less than renting costs.
• The percentage of income needed to afford a median priced home is less than the historic norm.

 

Historically low interest rates, as well as some available down payment assistance programs are continuing to make home ownership attainable. I'd love to sit down with you and my lender partner to talk about the type of funding you qualify for and to look at the price range that makes the most sense for your finances.

It's Not A Bubble!

 Warren Buffett: There is No Housing Bubble

by The KCM Crew on May 5, 2016 in First Time Homebuyers, For Buyers, Housing Market Update, Move-Up Buyers, Pricing

 

With home prices expected to appreciate by over 5% this year, some are beginning to worry about a new housing bubble forming. Warren Buffet addressed this issue last week in an article by Fortune Magazine. He simply explained:

“I don’t see a nationwide bubble in real estate right now at all.”

Later, when questioned whether real estate and/or mortgaging could present the same challenges for the economy as they did in 2008, Buffet said:

“I don’t think we will have a repeat of that.”

 What factors are driving home prices up?
It is easily explained by the theory of supply and demand. There is a lack of housing inventory for sale while demand for that inventory is very strong. According to a recent survey of agents by the National Association of Realtors (NAR), buyer traffic was seen as either “strong” or “very strong” in 44 of the 50 states (the exceptions being: Alaska, Wyoming, North Dakota, West Virginia, Connecticut and Delaware).

Also, in NAR’s latest Pending Home Sales Report, it was revealed that the index was the highest it has been in a year.

What does the future bring?

As prices rise, more families will have increased equity in their homes which will enable them to put their home on the market. As more listings come to market, price increases should slow to more normal levels.
Anand Nallathambi, President & CEO of CoreLogic, recently addressed the issue:

“Home price gains have clearly been a driving force in building positive equity for homeowners. Longer term, we anticipate a better balance of supply and demand in many markets which will help sustain healthy & affordable home values into the future.”

Additionally Americans See home Ownership as The Best Long Term Investment:

• Real estate outranks stocks/mutual funds, gold, savings accounts/CDs, and bonds as the best long-term investment among Americans.
• Real estate is ranked as the best long-term investment among all age groups.
• Millennials rank both real estate and savings/CDs at 26% when it comes to the best long-term investment.

With continuing low interest rates and limited supply driving up prices now is a great time to buy or sell. I look forward to the opportunity to help you with either!

Green Options that Buyers Want

Green Options That Buyers Want

• 11% of new home buyers stated "energy efficient features" as the reason for their purchase.
• The most popular remodeling projects done for energy efficiency were insulation upgrades, HVAC replacements, and vinyl & wood window installations.
• Research shows that word preference does make a difference when it comes to attracting "green buyers."

Green Upgrades can help to make your home more desirable, but which ones make the most sense and will give the best return on your investment? That can be a complicated question but I'm here to help you navigate this market and I would love the opportunity to meet with you to talk about potential upgrades and how they will, or won't, affect the potential sales price for your home. Call me today to schedule an appointment.

 

Home Sales Up year Over year!

Home Sales Up Year Over Year!

• 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 norms at a 4.4 month supply.

 

It's a Great time to Sell because although prices re continue to increase the  low interest rates are driving buyers into the market.  Call me today for a Comparative Market Analysis of your home.

The Mortgage Process, Explained.

Ready to take advantage of the LOW Interest rates and take the plunge into Home Ownership? Well here's what you need to know about the Mortgage Process:

• 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.

 

Still have questions?  I'd love to sit down with you and my preferred lenders to talk about what type of financing makes sense for your budget. Call today to schedule an appointment.

As this info graphic shows the Real Estate market is set to change, as Boomers (Currently 32% of the US Population) retire the choices they make will impact Buyers and Sellers. This is something that I will definitely be keeping my eye on. How about you?

Home Prices Continue to Rise!

• The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report.
• In the report, home prices are compared both regionally and by state.
• Based on the latest numbers, waiting to move may end up costing you more!
• Home Prices in California Remain Strong with an Increase of 7.1%!

The Bottom Line: It's A Great Time to Sell, and it may not pay off to wait to buy. I'd be happy to provide you with a Competitive Market Analysis of your home and discuss with you Your Real Estate Goals so that I can help you to achieve Your Dreams!