Wednesday, May 22, 2019 / by Michelle Ramos
Majority of home buyers remain undeterred of news and rumors about a possible recession creeping in. Although a lot can be said about the fact that inconsistencies abound in almost all facets of news, we are more inclined to talk about the good things we have observed from the buyers market recently.
“Nearly 70 percent of home shoppers this spring think the U.S. will enter a recession in the next three years, but that hasn’t stopped them from trying to close on a home…
Despite the fact that they foresee an economic downturn, they generally expressed confidence that a future recession will be better than 2008 for the housing market.”
The report provides more insights from the survey: Nearly 30% of the active home shoppers* surveyed expect the next recession to begin sometime in 2020.
56% of shoppers believe home prices have hit their peak. 41% believe housing will fare better than 2008.
45% of home shoppers feel at least slightly more opti ...
Wednesday, May 15, 2019 / by Michelle Ramos
Believe it or not, the longtime rivalry between owning a house and renting are showing signs of handicap of one against the other. If this trend continues, it could tip the scale to hugely favor homeownership.
In a recent Insights Blog, CoreLogic reported that rent prices have skyrocketed since 2005. Meanwhile, the typical mortgage payment has actually decreased.
“CoreLogic’s national rent index was up 36% in December 2018 compared with December 2005, while the typical mortgage payment was down 4% over that period.”
Why the difference between the costs of renting versus owning? It makes sense that rents have risen. However, how did mortgage payments decrease? CoreLogic explained:
“It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018. The national median sale price in December 2005 – $190,000 – was lower than the $ ...
Tuesday, May 14, 2019 / by Michelle Ramos
There are countless triggers why homeowners would decide to sell their house. We found out that the top reasons can be divided by age brackets. Here's a comprehensive look at two of the top drivers.
The younger the respondents, the more likely their top response centered around needing a larger home (ages 29 to 53). Relocating for a job was the top reason for those ages 54 to 63 and the second most popular response for those under 53. The chart below shows the breakdown for these two reasons.
For homeowners over the age of 64, wanting to be closer to friends and family served as the top motivator to move. Downsizing to a smaller home or moving due to retirement came in as a close second and third.
Have you outgrown your current house? Are you a homeowner who can relate to wanting to be closer to family and friends? Is your house becoming a burden to clean now that the kids have moved out?
Contact a local real estate professional who can help set you on the path t ...
Thursday, May 9, 2019 / by Michelle Ramos
To many first time homebuyers, the down payment is the biggest obstacle to tackle. For those who plan ahead and would like to save for their down payment, you might find this break down handy.
Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.
By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own. According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:
What if you only needed to save 3%? ...
Wednesday, May 8, 2019 / by Michelle Ramos
There are a lot of things that could go wrong when selling a house. Things that would often leave sellers with unsold houses along with wasted time, money and effort.
Real estate agents are trained and experienced in negotiation while, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.
Here is a list of just some of the people with whom the seller must be prepared to negotiate if they decide to For Sale by Owner (FSBO):
The buyer, who wants the best deal possible
The buyer's agent, who solely represents the best interests of the buyer
The buyer's attorney (in some parts of the country)
The home inspection companies, which work for the buyer and will almost always find some problems with the house
The termite company, if there are challenges
The buyer's lender, if the structure of the mortgage requires the sellers' participation
The appraiser, if ...