Friday, December 18, 2015

Home Equity Increasing as Home Prices Rise



Home Equity Increasing as Home Prices Rise 


 The Real Estate Market continues to be strong and we are continuing to see homes gain positive equity. Only 8.1% of homes are "upside down" which is a significant increase from recent years. Home prices are predicted to rise at least 5% over the next (on average nation wide). California home values are predicted to increase by about 11% in the coming year. while interest rates are only projected to rise about 1% over the same period. These factor paired together will continue to boost the California Housing Market. All in all it's a healthy outlook for for buyers and sellers. The American Dream is Alive and Well! whether you are a first time buyer or are looking to Sell your current home and find your next dream home, I'm here to help.
  • 91.9% of homes in the US have positive equity
  • 256,000 homes regained equity in the third quarter of 2015
  • 37.5 million homes have significant equity (defined as more than 20%)

Friday, November 20, 2015

Should You Pay a Mortgage Interest Rate over 4%?









 Should You Pay a Mortgage Interest Rate over 4%?

 Should I Pay a Mortgage Interest Rate over 4%? | Keeping Current Matters

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows.
Here is a chart showing the average mortgage interest rate over the last several decades.
Historic Mortgage Rates By Decade | Keeping Current Matters

Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago; a lower rate than your parents did twenty years ago and a better rate than your grandparents did forty years ago.

Friday, October 23, 2015

Here Come the Millennials!!

 Here Come the Millennials!!  

The Real Estate Market has been eagerly anticipating the entry of Millennials as first time home buyers. It's finally looking like the job market is aligning to support Millennial's ability to take the first steps to home ownership and financial security. This is great news for the continuing strong Seller's Market. 
 

Here Come The Millennials!! | Keeping Current Matters
Many have been wondering when the much anticipated move by Millennials’ into homeownership would actually take place. We know the belief in owning a home is there.

According to a recent Merrill Lynch study, eighty one percent of Millennials believe “homeownership is an important part of the American Dream”. This compares favorably to previous generations.
American Dream By Generation | Keeping Current Matters
The obstacle seemed to be employment. It appears that is about to change.
The most recent jobs report disappointed many economists. However, the silver lining in that cloud of doubt was Millennials. Jonathan Smoke, realtor.com Chief Economist, reported:
“About 33% of civilian jobs created over the last 12 months have been for the young adults who are most likely to buy their first home. This should help support continued growth in the share of homes purchased by first time buyers, as economic success has been influencing older Millennials to jump into the housing market this year.”
Selma Hepp, chief economist at Trulia, concurred:
“The faster rate of job growth among Millennials will continue to bolster both the rental and for-sale housing markets for an extended period of time.”
It appears that Millennials will be entering the housing market in great numbers in the very near future.



Friday, October 16, 2015

Where Will Home Prices Be In A Year?



Where Will Home Prices Be In A Year?

Some interesting facts:

  • 25 states are forecasted to achieve higher levels of appreciation in the next 12 months than already achieved in the last year.
  • 25 state and the District of Columbia are forecasted to experience a slow in appreciation.
  • All 50 states & D.C. are forecasted to achieve some level of positive price appreciation.

Even though each state is appreciating at different levels, you need to know the Cost of Waiting until next year to buy your dream home!

 Ready to buy? Call me today, I would love to help you realize your Dream!!

Friday, October 9, 2015

New Home Sales Surge By 5.7%!


New Home Sales Surge By 5.7%!

Some Highlights:

  • The median price of a newly constructed home is currently $292,700.
  • Sales are up 5.7% month-over-month and 21.6% year-over-year.
  • Many buyers are looking to new homes as an option due to the lack of inventory of existing homes for sale.

It's great news that New Home sales are up, but when you see that it is because of the lack of inventory in existing homes, you'll realize that the opportunity for Seller's is still high. Because the demand it there which will continue to drive prices and values up. If you're thinking about selling it's still a great time to call me!

Friday, September 18, 2015

Credit Score Requirements LOWER As Interest Rates CREEP UP!


Credit Score Requirements LOWER 
As Interest Rates CREEP UP!


Some Highlights:

  • The average 30-year rate for all loans closed in August eclipsed 4.3% for the first time since October 2014.
  • The average FICO score for all closed loans in August reached a new yearly low at 724 (the lowest since February 2014!)
  • The average down payment of FHA loans closed was just 4%!

Friday, September 11, 2015

How Do Home Sales Impact A Local Economy?

How Do Home Sales Impact A Local Economy? 

  • Every time a home is sold, the surrounding economy feels a boost.
  • Different industries and businesses benefit at each stage of the process of moving into a home!
  • Hawaii leads the way with a $177,000 boost to the local economy.
It stands to reason that the sale of a home would have an impact on it's surrounding economy, but what exactly is that impact? Well, In California, each home sold puts more than $111,000 into the local economy. 

Where does this money come from, or go to? Of course there is the potential income to the Home Seller in the form of profit over what they owe vs. the selling price, and that profit either goes into a Seller's reserves, or is used to purchase a replacement property, generating more income for the area. Additionally the commissions paid to Real Estate Agents creates incomes for these agents, their support staff and brokerages as well as their vendors. 

Another avenue of economic impact are all those services and products related to moving or taking possession of a new property, such as handymen, contractors, painters and building supply stores. 

It's easy to look at a rising Real Estate Market, like we have now, and see only the individual homeowner as benefiting from an increased home value, but in reality the benefit starts there and flows all the way down to the clerks manning local businesses. Even in an economy as large as California's this translates to an estimated $46.1Billion impact to our economy. (Based on $111,000 multiplied by the an actual number of escrows closed in 2014: 415,000). This number will predictably be higher as we close out 2015, because not only have home prices risen, but the number of escrows closed is up about 15% in 2015 when compared to the same time last year. This translates into an estimated $53Billion boost to California's economy.


Friday, September 4, 2015

A+ Reasons to Hire A Real Estate Professional



The Best Reasons To Hire A Real Estate Professional:

  • Hiring a Real Estate Professional to buy your dream home, or sell your current house is one of the most 'educated' decisions you can make!
  • A Real Estate Professional has the experience needed to help you through the entire process.
  • Make sure that you hire someone who knows current market conditions & can simply & effectively explain them to you & your family!


These are all important reasons why it's important to hire a Real Estate Professional when Selling or even Buying a Home. Especially given that regulations have changed so dramatically since the Mortgage Crisis in 2007/2008. Prior to these increased regulations a Seller may have been able to, with some determination and perseverance, wade through the paperwork required to sell their home. However the ever restrictive regulations enacted after the Mortgage Crisis have made For sale By Owner more and more difficult. 

As a Professional Real Estate Agent I work within these requirements on a daily basis, that coupled with on-going education and training gives me the experience needed to navigate all of these requirements. My goal is always to make every Real Estate Transaction appear to be smooth and seamless so that the entire process can feel simple and straight froward to my clients. Like a Duck swimming in a pond; on the surface the water is smooth, but underneath the water the ducks legs are moving and working, keeping him resting on the water. In that same way my Team and I work behind the scenes to successfully close each transaction. 

When you're ready to list your home I will provide you with a Complete Market Analysis of your Property and walk you through the process every step of the way. Thank you for allowing me to be "Your Trusted Advisor!"

Friday, August 21, 2015

Home prices Are Up in 93% of Markets



Home Prices Are Up in 93 % of Markets

  • The national median home price for Q2 is up 8.2% to $229,400
  • The income needed to afford the median home in each region is directly impacted by the amount of the down payment. The larger the down payment the lower the income needed to pay the monthly mortgage payment.
  • The West led the way with the highest median home price at $325,200.

 
This is great news as we continue to see a Seller's market, with Buyers continuing to be lured into the market by historically low interest rates! Buying or Selling it's a great time to enter the market! 

Friday, August 14, 2015

Foreclosure Inventory is at a Historical 7 Year Low!

Foreclosure Inventory is at a Historical 7 Year Low!

Some Highlights:

  • The number of homes in the US in some stage of foreclosure is down 28.9% to 472,000.
  • Only 3.5% of homes in the US are currently in serious delinquency.
  • Foreclosure Inventory levels hit the lowest level since January 2008 at 1.2% of all homes with a mortgage.




Friday, August 7, 2015

What You Need To Know About the Mortgage Process



What You Need To Know About the Mortgage Process


Some Highlights:

  • According to Freddie Mac, 40% of buyers are putting less than 10% down, with many putting down as little as 3%.
  • Have a budget and stick to it!
  • Know your credit score and history!
  • Reach out to a professional who can help you with the process!

Still have some questions? I partner with a wonderful lender who is very knowledgeable in his industry. He will take the time to answer your questions and will give you a realistic view of how much house you can reasonable afford and how much of a loan you could qualify for. Finding a solid lender before you start the search for your home takes the guess work out of the process.

Friday, July 31, 2015

Spring Buying Season Extends Into Summer


Spring Buying Season Extends Into Summer


Some Highlights:
  • Existing Home Sales are up 9.6% over last year.
  • Homes Sold on Average in just 34 days!
  • Inventory now stands at a 5.0-month supply.
  • Distressed Sales made up only 8% of all sales.



Friday, July 24, 2015

Mortgage Rates Over The Decades


Mortgage Rates Over The Decades

 You may think the cost of home ownership has gone up as housing prices have increased through the decades. But as this report for Keeping Current Matters shows, due to our historical low interest rates the average monthly mortgage payment is considerably lower than even 20 years ago. 


Some Highlights:
  • With interest rates still around 4% now is a great time to look back at where rates have been over the last 40 years.
  • Rates are projected to go up a full percentage point by this time next year according to Freddie Mac.
  • The impact your interest rate makes on your monthly mortgage cost is significant!
  • Lock in a low rate now while you can!

Friday, July 10, 2015

Boomerang Buyers Are Continuing To Come Back Into The Market, By The Thousands!


Boomerang Buyers Are Continuing To Come Back Into The Market, By The Thousands!


Some Highlights:
  • What is a Boomerang Buyer? A former homeowner who has gone thru a “short sale”, “foreclosure” or “bankruptcy” in the past few years and has been saving for a down payment in preparation of the expiration of the waiting period, in order to qualify once again for a mortgage.
  • According to NAR: Up to 1 Million consumers have already restored their credit and qualify to buy now.
  • 2.2 million consumers will return to credit worthy status within the next 5 years.

This continues to be a seller's market as inventory is still not meeting buyer's demand. The influx of Boomerang Buyers will only help to boost sales, while the continuing low interest rates will spur all types of buyers into making new purchases. As such the outlook for the Real Estate Market continues to be favorable. If you are thinking of entering the market I would love to give you a free market analysis of your home. Or if you are a first time or a boomerang buyer it would be my pleasure to schedule a meeting with my preferred lender to determine what price range you are most comfortable in and to show you what's available in that range.

Friday, July 3, 2015

Home Ownership is STILL the American Dream!

 Home Ownership Is STILL The American Dream!

Despite a slight rise in interest rates, all indicators of the housing market are still trending upwards. These are all great signs! across the country Home Sales are Up, Prices are Up and Sales in All Price Categories are Up! AND Pending Home Sales are at their Highest Mark in over 9 Years!

Some Highlights:

  • Existing Home Sales are 9.2% higher than just one year ago.
  • Home Prices are 7.9% higher than last year this time.
  • The $250-500K price range leads the way with the largest improvement from last year at 17.4%.

Friday, June 26, 2015

Current Home Equity Report


Real Estate Equity Report

The good news is that Home Owner's Equity is rising and the number of homes that are under water is decreasing.

Some Highlights:
  • 85% of homes valued under $200,000 have equity
  • 94% of homes valued over $200,000 have equity
  • 10.2% of homes with a mortgage are currently underwater (Down 0.6% from 4Q 2014)
  • 19.4% of Homes with a mortgage have less that 20% equity. (Down 0.6% from 4Q 2014)

Friday, June 19, 2015

Friday, June 12, 2015


These are just a few reasons that "For Sale By Owner" may not be the best choice in selling your home:



Friday, June 5, 2015

Friday, May 29, 2015

The Time is Now! Really!






 The Time is Now! Really!

I feel like a broken record… and Yet, Month after Month the statistics are saying the same thing….

Inventory is DOWN and Demand is UP!

Here are some important facts from the National Association of Realtors:


  • Homes are selling in just 39 Days! This is faster than any month since June 2013!
  • Current Inventory is at a 5.3 Months’ Supply; this is down from 5.7 Months’ Supply in April 2014. 6.0 Months is the level necessary for a normal market!
  • Median Price of Homes sold is up 8.9% from April 2014. This is the 38th Consecutive month of year-over-year gains! This is the largest increase since January 2014.
  • Distressed sales are down 5%, from 15% in April 2014 to 10% in April 2015.

The continuing lack of inventory did cause a slight slowdown in sales, when you compare April 2015 to March 2015, however, as you can see, current sales are still comfortably above the same time last year.

What does this mean? It means that Buyers are in the market, willing to buy and are having trouble finding their dream home, either because it has not yet been listed, or because the demand is so high that the seller has many buyers to choose from. This is a great position to be in when selling your home, as we’ve discussed in previous blogs.

Additionally home prices are predicted to continue to rise steadily over the next 5 years.  This is even better news if you’re looking to sell your current home and upgrade to a new one. Knowing that the market outlook is high can give you confidence that the investment you are making in a new property will see returns in the near future as well as over the life of your ownership.

The bottom line is that selling now is a good idea and so is stepping up the property ladder to purchase a new home. Call me today for a Complimentary Market Analysis of your home.  

Friday, May 15, 2015

Housing Update: Demand Up, Supply Down, Prices Increasing


Housing Update: Demand Up, Supply Down, Prices Increasing


Re posted from Keeping Current Matters:  http://www.keepingcurrentmatters.com/2015/05/14/housing-update-demand-up-supply-down-prices-increasing/



Earlier this week, the National Association of Realtors (NAR) released their latest quarterly report. The report covered three important aspects of the housing market:
  1. Buyer Demand
  2. Supply of Housing Inventory
  3. Single Family Residential Prices
Today, we want to break down the highlights of the report along with several quotes from Lawrence Yun, the Chief Economist at NAR.

Buyer Demand

Total existing-home sales (which include single family and condo) were at an annual rate of 4.97 million in the first quarter of 2015. This represents a number which is 6.2 percent higher than the pace during the first quarter of 2014.
Yun: "Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market."

Supply of Housing Inventory

There were 2 million existing homes available for sale at the end of the first quarter of 2015 which represents a 4.6 months’ supply of inventory which is down from 4.9 months a year ago. A healthy balance of supply between buyers and sellers is 6 to 7 months.
Yun: "With supply remaining tight—especially at the entry-level price range—buyers will need the expertise and local market insight of a Realtor® to help them through each intricate step of the buying process."

Single Family Residential Prices

Home prices accelerated in 148 out of 174 metro areas (85%) during the first quarter of 2015 and the number of areas experiencing double-digit price appreciation doubled compared to last quarter. Compared to last quarter, the number of regions experiencing double-digit price appreciation doubled.
The national median existing single-family home price in the first quarter was $205,200, compared to $191,100 in first quarter of 2014. This represents a 7.4% increase year-over-year.
Yun: “…stronger demand without increasing supply led to faster price growth in many markets…Homeowners throughout the country have enjoyed accumulating household wealth through the steady rise in home values in the past few years."

Bottom Line

Whether you are thinking about buying your first home or selling your current residence to buy the home of your dreams, meet with a professional in your market to discuss how the numbers above have affected your neighborhood's prices.

Friday, May 8, 2015

Should You Rent or Should You Buy Now…





Should You Rent or Should You Buy Now…

With Home prices on the rise due to low interest rates and not enough inventory to meet demand, does it make sense to continue renting and wait out the Seller’s Market? Or is now really the best time to buy?

Sometimes, with real estate, it feels like by the time you hear the rumblings that “NOW” is the time to buy, you’ve missed the window of opportunity. I mean, isn’t everyone already running in and snatching up the hot deals and driving prices up on the remaining homes? And if prices are being driven up wouldn’t it make sense to stay in your rental until things slow down again? Assuming they will slow down? How can you tell if the time to buy really is NOW?

Well, first let’s look at the numbers. According to Pulsenomics, as published by Keeping Current Matters, historically you needed to spend 25% of your income to afford the Median rent. However, in the current market Median rent is now 30.1% of your income while the percent of your income to afford to purchase the Median home has dropped from 22% to 15.3%. As you can see both historically and in today’s market the cost to own a home is lower than that to rent.

Here are some of the financial reasons why:


  1. Mortgage Rates are Low. Historically rates are at the lowest they’ve been in some time and are only predicted to increase by about 1% by this time next year. This stability in lending rates will help keep the real estate market strong.
  2.  Equity. When you own your home a percent of what you pay towards your mortgage actually goes into your pocket in the form of equity. When you rent, that money goes into your landlord's pockets. And if the market continues to improve causing your home’s value to increase you’ll build equity at an even faster rate. The general rule is that if you stay in your home for 5-7 years the costs of purchasing your home are more likely to be offset by accrued equity and increased housing value.
  3.  Tax Deductions. All that interest you are paying, guess what, its deductible! This lowers your taxable income and puts more money into your pocket. Oh and property taxes, too. Yep, all deductible!

And here are some non-financial reasons to buy a home:


  1. Creative Control: Want more say in the aesthetics of your home? Tired of having to answer to someone else when it comes to how many pictures you hang, or new window treatments? As a homeowner you won’t have to answer to anyone else when you want to make small or large changes to your home.
  2.  Maintenance Choices: Do it yourself, or hire a contractor of your own choosing. There’s an autonomy to home ownership that you don’t have as a tenant.
  3. Your Life, Your way. Speaking of autonomy…. Have you always wanted a dog? Or two? How about a summer vegetable garden? Or kitchen remodel? The choices are yours alone.
  4. And lastly, Credit. Yes your credit should already be decent when you begin the home buying process, but as lenders report to credit agencies (and landlords usually don’t) another benefit of home ownership is your credit worthiness continues to increase. And this will be important when you’re ready to cash in that equity and buy your next dream home.


So yes, the market is hot and home values are increasing and houses are selling quickly, but you have not missed the boat. There are still many great opportunities in the market and I’d love to help you find the perfect one for you.

Friday, May 1, 2015

The Impact of Home Staging




The Impact of Home Staging

Are you ready to sell your home? As a final step prior to listing, take a look at the impact that staging your home could have on how much your home may sell for. This might be a step worth considering if you want to sell your home quickly and for the highest price. And who wouldn't want that, right?

Staging can be as simple as de-cluttering or as involved as bringing in new furnishings. As a part of my free market analysis of your home I will make recommendations for staging that would maximize your home's assets. Call me today to schedule an appointment, I would love to help you!