How Current Interest Rates Can Have a High Impact on Your Purchasing Power |
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history!
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
Act now to get the most house for your hard-earned money. Andres, Lic #1343492, with Bonaventure Realtors. Direct 949-306-9260. #realestate#home#house#housing#homeprices#values#homevalues#homeequity#homeowners#homeownership#homeowner#irvine#tustin#santaana#cypress#costamesa#fullerton#orangecounty#california#florida#tampa#washington#utah#tacoma#lakewood#housingmarket#homesales#rates#millenials
Don’t Wait to Sell Your House! Buyers Are Out Now |
Recently released data from the National Association of Realtors (NAR) suggests that a now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.
Let’s see how this applies to the current residential real estate market.
It is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.
Supply is currently very low!
A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.” Demand is currently very high!
Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, let’s get together to discuss the conditions in our market.
Andres, Lic #1343492, with Bonaventure Realtors. Direct 949-306-9260. #realestate#home#house#housing#homeprices#values#homevalues#homeequity#homeowners#homeownership#homeowner#irvine#tustin#santaana#cypress#costamesa#fullerton#orangecounty#california#florida#tampa#washington#utah#tacoma#lakewood#housingmarket#homesales#rates#millenials
🏡🏡 Move-In Ready Home For Sale 🏡🏡 ➡️3144 Hidden Valley Dr 79938
➡️Ventanas Subdivision ✔4 Spacious Bedrooms ✔2 1/2 Baths
✔Master Suite downstairs ✔Granite Countertops ✔Stainless Steel Appliances
✔6,682 SqFt Lot
For info please contact:
Alberto Serrano, REALTOR
Licensed in TX & NM
We all know the Las Vegas real estate market is on fire!! What exactly is causing this real estate boom? Is the entire city experiencing this? All price ranges?
The reason this is happening is because we have a shortage of available inventory and a massive demand for resale homes... This is why the builders are doing so well. Just check out their stock prices! Builders create their own inventory but in the resale market we have to wait for sellers to list their homes for sale... Yes the entire city is experiencing this boom BUT NOT all price ranges... Mostly everyrhing between $100k & $350k if it's in even decent condition will have multiple offers in 24-48 hours. If it's turn key and $250k than you will have your pick of a stack of offers to choose from no matter where it's at... But once you get up to that $350k and over we start to see a bottleneck! The higher you go the less qualified buyers there is available... Now if you have an amazing home in Summerlin or Green Valley that is $500 or $600k you could still see multiple offers. This really depends on the particular neighborhood and how many homes are available at the time... Now as inventory begins to rise and buyers have more homes to choose from you will see these smoking hot home prices cool down! I'm not saying values will go down but you will stop seeing the massive bidding wars we are seeing on a daily basis!! And as we near the kids getting out of school we are already seeing inventory start to rise!! Don't wait to long or you will look like the kid in this picture!! Call me and let's come up with a game plan 702-218-4585
Moving Up to Your Dream Home? Don’t Wait! |
Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true.
Where are home values today compared to the beginning of the year?
While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic:
January: Prices were up 0.5% over the month before.
February: Prices were up 1% over the month before.
March: Prices were up 1.4% over the month before.
Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months.
How can prices rise while mortgage rates increase?
Freddie Mac explained in a recent Insight Report: “In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.” Bottom Line
If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy. Andres, Lic #1343492, with Bonaventure Realtors. Direct 949-306-9260. #realestate#home#house#housing#homeprices#values#homevalues#homeequity#homeowners#homeownership#homeowner#irvine#tustin#santaana#cypress#costamesa#fullerton#orangecounty#california#florida#tampa#washington#utah#tacoma#lakewood#housingmarket#homesales#rates#millenials
Renters Under 50 Want to Buy a Home! |
Every year, the New York Federal Reserve publishes the results of their Survey of Consumer Expectations (SCE). Each survey covers a wide range of topics including inflation, labor market, household finance, credit access and housing.
One of the many questions asked in the housing section of the survey was:
Assuming you had the financial resources to do so, would you like to OWN instead of RENT your primary residence?
Over three-quarters of respondents under the age of 50 said that they would prefer to own their home, rather than rent. While only 52.6% of those over 50 would prefer to own. The full breakdown can be found in the chart below.
When renters were asked what the average probability of owning a primary residence at some point in their future was, 66.4% of those under 50 believed that they would eventually own their home, while only 23% of those over 50 did.
Many had wondered if young Americans had lost their desire to own a home, but for those renting now, that dream is still alive. Andres, Lic #1343492, with Bonaventure Realtors. Direct 949-306-9260. #realestate#home#house#housing#homeprices#values#homevalues#homeequity#homeowners#homeownership#homeowner#irvine#tustin#santaana#cypress#costamesa#fullerton#orangecounty#california#florida#tampa#washington#utah#tacoma#lakewood#housingmarket#homesales#rates#millenials
Access: An Important Factor in Getting Your House SOLD! |
So, you’ve decided to sell your house. You’ve hired a real estate professional to help you through the entire process, and they have asked you what level of access you want to provide to your potential buyers.
There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access that you can provide to your agent so that he or she can show your home.
Here are five levels of access that you can give to buyers, along with a brief description:
Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
Open Access with a Phone Call – the seller allows showings with just a phone call’s notice.
By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
Limited Access (example: the home is only available on Mondays or Tuesdays at 2pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.
With May proving to be the best month to sell your home, access can make or break your ability to get the price you are looking for, or even sell your house at all. Andres, Lic #1343492, with Bonaventure Realtors. Direct 949-306-9260. #realestate#home#house#housing#homeprices#values#homevalues#homeequity#homeowners#homeownership#homeowner#irvine#tustin#santaana#cypress#costamesa#fullerton#orangecounty#california#florida#tampa#washington#utah#tacoma#lakewood#housingmarket#homesales#rates#millenials
Homeownership: "A Man Is Not a Complete Man, Unless He Owns a House" |
The famous quote by Walt Whitman, “A man is not a whole and complete man, unless he owns a house and the ground it stands on,” can be used to describe homeownership in America today. The Census revealed that the percentage of homeowners in America has been steadily climbing back up since hitting a 50-year low in 2016. The homeownership rate in the first quarter of 2018 was 64.2%, higher than last year’s 63.6%. Homeownership: "A Man Is Not a Complete Man, Unless He Owns a House" | MyKCM
Chief Economist, Dr. Ralph McLaughlin, in his VUE Blog gave these new homeownership numbers some context: “The trend is clear: the homeownership rate has been ticking up for five consecutive quarters, and the number of new renter households has fallen for four consecutive quarters. Owner-occupied households grew by 1.345 million from a year ago, while the number of renters actually fell by 286,000 households.
The fact that we now have four consecutive quarters where owner households increased while renter households fell is a strong sign households are making a switch from renting to buying. This is a trend that multifamily builders, investors, and landlords should take note of.” In a separate article comparing the rental population in America to the homeowner population, Realtor.com also concluded that the gap is now shrinking: “The U.S. added 1.3 million owner households over the last year and lost 286,000 renter households, the fourth consecutive quarter in which the number of renter households declined from the same quarter a year earlier. That could pose challenges for apartment landlords, who are bracing this year for one of the largest infusions of new rental supply in three decades.” America’s belief in homeownership was also evidenced in a survey conducted by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”
43% said homeownership was essential to the American Dream
48% said homeownership was important to the American Dream
Only 9% said it was not important
Homeownership a crucial part of the American dream Lic #1343492
Chief Economist for #FreddieMac Sam Khater says “new inventory is getting snapped up as soon as it’s available along with existing homes that are being listed.” This is great news for homeowners looking to sell. Only question is, for how long? If rates continue to rise, which they will, how much longer will this boom last? Let’s talk shop about your property value. Simply call 312-444-0030 •