Some Highlights:
SOURCE KCM #ForSellers #HomeStaging #SimardRealtyGroup #ExpRealty
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The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up. Here are the thoughts of a few industry experts on the subject: National Association of Realtors “Total housing inventory at the end of November dropped 7.2 percent to 1.67 million existing homes available for sale, and is now 9.7 percent lower than a year ago (1.85 million) and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply at the current sales pace, which is down from 4.0 months a year ago.” Joseph Kirchner, Senior Economist for Realtor.com “The increases in single-family permits and starts show that builders are planning and starting new construction projects, that’s a good thing because it will help to relievethe shortage of homes on the market.” Sam Khater, Deputy Chief Economist at CoreLogic “Inventory is tighter than it appears. It’s much lower for entry-level buyers.” Bottom Line If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price. SOURCE KCM #Sellers #Buyers #HousingMarketUpdate #SimardRealtyGroup #JoinExpRealty According to Ellie Mae’s latest Origination Report, the average FICO® Score on all closed loans dropped to 722 which is its lowest mark since April. The average includes all approved refinance and purchase loans.
FHA and VA loans showed the most opportunity for millennials looking to enter the market with low down payments and even lower FICO® Score requirements. Ellie Mae’s Millennial Tracker revealed that those who purchased homes in December with an FHA Loan were able to do so with an average down payment of 4% and a FICO® Score of only 684. Joe Tyrell, EVP of Corporate Strategy at Ellie Mae commented on the opportunity this brings to buyers, “With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market.” Bottom Line More and more potential buyers are able to qualify for a mortgage loan now! If you are debating a home purchase, meet with a local professional who can evaluate your ability to buy today! SOURCE KCM #Buyers #HomeLoan #SimardRealtyGroup #JoinExpRealty CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today. The report also revealed:
The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.) Significant Equity Is on The Rise Frank Nothaft, Chief Economist at CoreLogic, believes this is great news for the “housing market.” He went on to say: “Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in more than three years. This increase is primarily a reflection of rising home prices, which drives up home values, leading to an increase in home equity positions and supporting consumer spending.” Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have significant equity (defined as more than 20%). This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now. The map below shows the percentage of homes by state with a mortgage and significant equity. Bottom Line
If you are one of the many homeowners who are unsure of how much equity you have in your home and are curious about your ability to move, meet with a local real estate professional who can help evaluate your situation. SOURCE KCM #Equity #Sellers #Buyers #SimardRealtyGroup #JoinExpReatly Some Highlights:
SOURCE KCM' #ForBuyers #Infographics #SimardRealtyGroup #JoinExpRealty Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this.
Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors:
Bottom Line Homeownership means something more to people and their families than just the financial considerations. SOURCE KCM #HomeBuyers #HomeOwnership #SimardRealtyGroup #JoinExpRealty Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey. So, what does this mean for homeowners and their equity position? As an example, let’s assume a young couple purchases and closes on a $250,000 home this month (January). If we only look at the projected increase in the price of that home, how much equity will they earn over the next 5 years Since the experts predict that home prices will increase by 4.2% in 2018, the young homeowners will have gained $10,500 in equity in just one year.
Over a five-year period, their equity will increase by nearly $45,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth. Bottom Line Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today! SOURCE KCM #Buyers #Sellers #SimardRealtyGroup #JoinExpRealty |
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