Tuesday, December 11, 2018 / by June Quilantang
One of the best things about Americans is that we learn quickly. The last real estate market crash in 2008 was a huge event that left the nation traumatized. A lot have been speculating about the future of real estate since then, paying close attention to all trends and changes, making them seem a bit paranoid. Good news is, everyone has is now more aware because of that, people are now more responsible and all signs point to a better more stable 2019 for the real estate industry.
What happened then...
When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as "cash-out" refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.
This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity si ...
Friday, December 7, 2018 / by June Quilantang
Let's talk about what 2019 has in store for us and eliminate the fears and worries that it would be a repeat of 2018 once and for all. Forecasts and trend reports reveal light at the end of the tunnel; we are truly headed for a more normal average next year.
However, some are seeing these adjustments as red flags and are suggesting that we are headed back to the same challenges we experienced in 2008. Today, let's look at one set of statistics that prove the current market is nothing like the one that preceded the housing crash last decade.
The previous bubble was partially caused by unhealthy levels of mortgage debt. New purchasers were putting down the minimum down payment, resulting in them having little if any equity in their homes.
Existing homeowners were using their homes as ATMs by refinancing and swapping their equity for cash. When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the ...
Thursday, December 6, 2018 / by June Quilantang
Everyone hates hidden charges, although closing cost is a requirement that majority of buyers are aware of, the actual amount is not fixed and often than not can come as a negative surprise to buyers who are on a budget.
By law, a homebuyer will receive a loan estimate from their lender 3 days after submitting their loan application and they should receive a closing disclosure 3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing costs.
But what are closing costs anyway?
According to Trulia:
"Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)"
Keep in mind that if you are in the market for a home above this price ran ...
Wednesday, December 5, 2018 / by June Quilantang
Being the first always have more benefits than consequences. If season after season, people put up their house on sale during spring because the demand increases during that time, wouldn't it be great if you can get ahead of the pack by putting your house on the list as early as today so buyers can see yours before they have visibility on your competition?
The #1 Reason to List Your Home in the Winter Months is Less Competition!
Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months' supply of listings from the National Association of Realtors.
As you can see, the 'sweet spot' to list your home for the most exposure naturally occurs in the late fall and winter months (November - February).
Temperatures aren't the only thing that heats up in the spring - so do listings!
In 2017, listings increased by nearly half a million houses from December to June. Don't wait for these lis ...
Tuesday, December 4, 2018 / by June Quilantang
Historically, people prefer to buy their dream houses in spring. Nevertheless, based on reports from our reliable sources, there is a new trend in our seasonal market that many sellers could take advantage of.
According to Bank of America's annual Home Buyer Insights Report, 41% of renters surveyed agree that spring is the best time to buy a home. The surprising result, however, is that when ranking the seasons, winter comes in second at 24%.
In many areas of the country, the spring and summer are the most competitive seasons for buyers. Families with children often want to move over the summer to make sure that their kids are ready for school in the fall.
This often leads those families who haven't found homes to buy to push pause on their search in the fall and winter months. This creates a great environment for buyers to find a home with less competition.
According to moving.com, scheduling a move during the winter months also comes with the best price. "If you de ...