If you're debating on moving to your dream home, you might be in luck. In some areas in the U.S. home equities rise which could give way to spending less for the long-awaited dream home for the lucky 25% of homeowners with a mortgage.
Home equity is defined as the difference between the home's fair market value and the outstanding balance of all liens (loans) on the property. While homeowners pay down their mortgages, the amount of equity they have in their homes climbs each time the value of their homes go up!
According to the latest Equity Report from ATTOM Data Solutions, "13.9 million U.S. properties in Q2 2018 were equity rich -- where the combined estimated balance of loans secured by the property was 50 percent or less of the property's estimated market value -- representing 24.9% of all U.S. properties with a mortgage."
This means that nearly a quarter of Americans who have a mortgage would be able to sell their homes and have a significant down payment toward their next home. Many who sell could also use their new-found equity to pay off high-interest credit cards or help children with tuition costs.
The map below shows the percentage of properties with a mortgage in each state that were equity rich in Q2 2018.
If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, contact an agent in your area to discuss your options!
Any process can prove tricky to someone new. Let alone, the complicated procedure of selling homes, to agents helping out the ordeal could be less difficult. Good thing we have this tips to make your life easier.
Memorize the Market
When a market turns and sudden transition occurs, study your potential market response with the sudden changes. As a listing agent and local market expert, mastery of the signs of a shift and having the means to communicate the new reality to your sellers is a must. Our job is to help our potential sellers understand the turns. We should sent out extensive communiques to our existing sellers and also tweaked our listing presentation to encompass the new reality.
Understand the Motivation
Seller motivation is primary. The genuine willingness to do whatever is necessary to sell is very essential. On the other hand, if they are not highly motivated and is after for "testing the market", refer them your competitor across town. Once the listing expires, circle back around.
Know the Numbers
Statistics in average days on the market, sold price, price-per-square-foot, and percentage of current active properties with recent price reduction are vital in helping sellers understand the current market and effectively position their home to sell. In addition to these numbers, using Clarus Market Metrics is highly recommended for these charts and graphs help sellers see the current metrics at a glance.
Effective home selling is all about three P's - preparation, pricing and promotion. These 3 P's are interconnected and must complete the process of listing. Different pricing techniques are essential in different approach:
1) maximum price for an increasing market
2) for downward market - seller's better understanding that prepared homes are the ones that sell while the rest remain active is implied.
Nail the Pricing
Pricing is the most important among the three P's. Such as in a declining market, buyers preferred the best prepared property at the lowest possible price. Effective pricing strategies are very essential as Wisdom states, "price ahead of the market" - if a market has turned downward, educate your sellers to price their listings below the last sales.
Promote the Home
Promotion is the key. Effective promotion includes anything that will keep prospective buyers engaged with the listing on their phone. Thoughtful preparation, use of social media thru targeted ads on Facebook/Instagram/Twitter and innovated technologies such as virtual reality (VR), drone footage, 3D tours and video, professional pictures and beautiful staging. Persuaded through follow up email campaigns and other means to cover all the promotional bases.
Respond to the Leads Quickly
Ensure to have a systematic response systems in place to capture leads and let your sellers know that their property must be available for showing when a prospective buyer wants to come through. All inquiries and concerns should be addressed accordingly by the respective person in charge who is well equipped with knowledge and skills. For further enhancement, a comprehensive disclosure system and report package is available and is user friendly.
Know your Options
Innovation is progress. Trying new measures or practices to excel and help the sellers when the market was down could possible boost them to gain more including credits toward closing costs, bonuses to buyer agents, interest rate buy-downs, termite report clearance and the like.
Master the Scripts
Continuous coaching, training and scripts practices will definitely improve and develop the professional skills and mastery of the agents in their field of work.
Take Listings You Can Sell
Compete effectively in our market by knowing not just the market numbers but yours as well. Significant and efficient advertising budget must be applied for each listing. Mastery of the fundamentals with effective cash flow and client management are substantial and very useful to succeed when the market turns or declines.
Within the property market, there is much written about when the best time to buy and sell is. Just like trading other investments you can try to play the market to your advantage and this certainly applies with investment buyers, but when it comes to selling a home, it is often more about the right time for you rather than trying to judge the wider market.
Lawrence Yun, Chief Economist at the National Association of Realtors, recently commented:
"Contract signings inched backward once again last month, as declines in the South and West weighed down on overall activity."
Yun goes on to say:
"The reason sales are falling off last year's pace is that multiple years of inadequate supply in markets with strong job growth have finally driven up home prices to a point where an increasing number of prospective buyers are unable to afford it."
In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction, including the inspection, appraisal and financing contingencies.
As a potential seller, you are in the driver's seat right now. It might be time to hit the gas.
There are no complex forces at work here, just a normal case on Supply and Demand imbalance. Figures shown below are from the best and most reliable source explaining the future of the market. Let's find out more.
The Foot Traffic Report
by the National Association of Realtors
Methodology: Every month SentriLock, LLC provides NAR Research with data on the number of properties shown by a REALTOR. Lockboxes made by SentriLock, LLC are used in roughly a third of home showings across the nation. Foot traffic has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.
Latest Report: "Foot Traffic climbed 3.2 points to 55.8 mid-summer in July. Additionally, the diffusion index is higher than last year by 13.5 points. Despite a healthy economy and labor market, supply and new construction remains unable to keep up with buyer demand."
Synopsis: Buyer demand remains strong.
The Showing Index
Methodology: The ShowingTime Showing Index tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.
Latest Report: "Showing activity throughout the country increased by 0.3 percent year over year in July, the third consecutive month that the U.S. ShowingTime Showing Index recorded buyer interest deceleration compared to the previous year. The June 2018 figures revealed a 0.0 percent change in showing traffic from 2017, while May showed a 1.2 percent year-over-year increase. The 12-month average year-over-year increase was 4.6 percent."
Synopsis: Buyer demand is softening
Realtors Confidence Index
by the National Association of Realtors
Methodology: The REALTORS Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions.
Latest Report: "REALTORS reported slower home buying activity in July 2018...The REALTORS Buyer Traffic Index registered at 62, down from the same month one year ago (69). This is the fifth straight month (since March 2018) that Realtors reported a decline in buyer activity compared to conditions one year ago."
Synopsis: Buyer demand is softening
The Real Estate Broker Survey
in the 'Z' Report by Zelman and Associates (subscription needed)
Methodology: Proprietary survey results of real estate executives.
Latest Report: "While we continue to expect a resumption of growth in resale transactions on the back of easing inventory in 2019 and 2020, our real-time view into the market through our Real Estate Broker Survey does suggest that buyers have grown more discerning of late and a level of "pause" has taken hold in many large housing markets. Indicative of this, our broker contacts rated buyer demand at 69 on a 0-100 scale, still above average but down from 74 last year and representing the largest year-over-year decline in the two-year history of our survey."
Synopsis: Buyer demand is softening
Again, three of the four most reliable measures of buyer activity are reporting that demand is softening. We had a strong buyers' market directly after the housing crash which was immediately followed by a strong sellers' market over the last six years.
If demand continues to soften and supply begins to grow (as is projected to happen), we will return to a more neutral market which will favor neither buyers nor sellers. This "more normal" market will be better for real estate in the long term.
If you're ready to sell your home but just waiting for the right time, then you're in luck my friend. There's a saying that goes, "strike while the iron is hot" and right now, the iron is ablaze. You should put your property up in the market while it's filled with able, willing and eager buyers.
Between 1987 and 1999, which is often referred to as the 'Pre-Bubble Period,' home prices grew at an average of 3.6% according to the Home Price Expectation Survey.
The chart below shows the forecasted year-over-year prices for 2018 (predictions made in 2017). According to their predictions, the average appreciation over the course of 2018 should be 4.8%, which is still greater than the 'normal' appreciation of 3.6%.
If we layer in the actual price appreciation that has occurred this year, we can see that over the course of 2018, home prices have appreciated by an average of 6.9% and have outpaced projections all year!
What does this mean?
The tale of today's real estate market is one of low inventory, high demand, and rising prices. The forces at work can be simply explained with the theory of supply and demand. That being said, if a large supply of inventory were to come to the market, prices may start to appreciate closer to the forecasted rate which would STILL be greater than the historic norm!
If you are a homeowner whose house no longer meets your needs, now may be a great time to list your home and capitalize on the equity you have gained over the last year to make a significant down payment on your next home!
If you're debating on buying a new home for your family in the future, the best time to buy is now. Here are four good reasons why you should buy a home this fall.
1. Prices Will Continue to Rise
CoreLogic's latest Home Price Insights report reveals that home prices have appreciated by 6.2% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.1% over the next year.
Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac's Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have already increased by half of a percentage point, to around 4.5% in 2018. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by half a percentage point to around 5.1% by this time next year.
An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way, You Are Paying a Mortgage
There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord's.
As an owner, your mortgage payment is a form of 'forced savings' that allows you to build equity in your home which you can then tap into later in life. As a renter, you guarantee your landlord is the person building that equity.
Are you ready to put your housing cost to work for you?
4. It's Time to Move on with Your Life
The 'cost' of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren't? Would you wait?
Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.
Research shows that a great number of prospective home buyers came from a family who owned a home as compared to those who grew up in a family who rents. This is great news as most millennials are raised by baby boomers which we all know to be a generation of homeowners.
According to an analysis of millennial homeowners, the homeownership rate of those whose parents rent their homes is 14.4%, while the rate amongst millennials whose parents are homeowners is 31.7%!
"A young adult's odds of homeownership are highly correlated with their parent's homeownership.
Without controlling for such factors as age, income, education, marital status, and race or ethnicity, there is a 17 percentage-point gap between the homeownership rate for young adults whose parents are renters and young adults whose parents are homeowners."
The study also revealed that as a parent's net worth increases, so does the likelihood that their child will own a home. These two findings are not surprising as we know from the Survey of Consumer Finances that a homeowner's net worth is 44x greater than that of a renter.
Below is a breakdown of the relationship between a parent's wealth and a millennia's likelihood to own a home.
Even though millennials took longer than many of the generations before them to start home searches of their own, the data shows that they will not be waiting much longer!
Timing is everything, selling homes included. In case your thinking of selling your home in the future. This fall is the best time for you, here are five great reasons why you should sell this season.
1. Demand Is StrongThe latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase...and are in the market right now! In fact, more often than not, multiple buyers end up competing with each other to buy the same homes.
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon!
Historically, a homeowner stayed in his or her home for an average of six years, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.
The choices buyers have will continue to increase. Don't wait until this other inventory comes to market before you decide to sell.
3. The Process Will Be QuickerToday's competitive environment has forced buyers to do all that they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae's latest Origination Insights Report, the average time it took to close a loan was 44 days.
4. There Will Never Be a Better Time to Move UpIf your next move will be into a premium or luxury home, now is the time to move up! The abundance of inventory available in these higher price ranges has created a buyer's market for anybody looking to purchase these homes. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you'll be able to find a premium home to call your own!
According to CoreLogic, prices are projected to appreciate by 5.1% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
5. It's Time to Move on With Your Life Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you feel you should?
Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.
Let me tell you a story.
There is a man who lives in a town where all residents had a job, a house, and a car or two in their driveway. Every day he went to work and came home and sometimes he would go out on the weekends for a drink. He seemed happy, yet he always complained about little things. Deep down his soul, he knows he's not happy. He regrets the fact that he did not go after the one thing in life that he ever wanted. He sold out for the security of a 9-5 job and the little luxuries that came with it. Therefore, to compensate, he made up stories to tell himself so he could feel better and continued to waste his time with fake reality.
Here is what I think.
Never sell your life short and look down on other people's success and pass it off as luck. Create the life you wanted. A life you could be proud of. I'm guessing that if you find yourself reading this you also want to create a life for yourself. Well, let me tell you that it is possible to create a life following your passion. It is possible for you to break outside the role society has thrown you into, to have more than a mediocre lifestyle. All it takes is a choice.
You owe it to yourself to have better things, a better paycheck, better life. Hussle, be unrealistic, go after your dreams, and create the life you want, but absolutely never settle with mediocrity!
I built a company that gives me the opportunity to earn big and at the same time freedom to concentrate on my passion. NYREEX will never stop pushing people to work their very best and achieve their full potential.
If you're one of the many someones I mentioned above and want to kick off a change to better your life, then I recommend you start as an agent with New York Real Estate Experts. Go to our website www.realestatecareerexpert.com to learn about the many things NYREEX and eXp Realty has in store for you.
I am sharing this post from Inmanville Facebook Group. It's the "10-year Anniversary of the Global Economic Meltdown." Here is the summary of everyone's advice.
1. Ignore the noise
Kendyl Young No matter what the market is doing, there are people who need my help. Focus on them, ignore the rest. In order to sell homes, you have to talk to people. When the market is difficult you have to talk to more people, more skilfully. Show up.
2. Cash is king
Jean Moussavian Keane Save your money.
Katie Francis Minkus That winter is coming and those in commission sales should be saving their cash, instead of buying a new car.
3. Wary of the experts
David Fleming Ignore the advice and opinions of anyone who doesn't work on behalf of your clients -- lenders, title closers and clients' families -- these non-fiduciary "financial advisors." Their interests are supposed to be aligned with our client's. Wrong.
4. Don't drink the Kool Aid
Michael Daly When something is too good to be true, it usually is.
5. Seize opportunity
Jennifer Johnsen Cameron Live below your means and diversify your investments. Then wait for opportunity because if you have cash when things bottom out, there is much of it.
6. Reduce debt
Randy Sumbles Live debt free
7. Grab market share
Chavi M. Hohm The main reason we catapulted to the top 10 in our company is because of the recession. Resilience, take advantage of the market in front of you and invest heavily in marketing when others are retreating.
8. Pay attention to warning signs
Nicole Caballero Economic knowledge and tracking market indicators is key to staying successful in real estate sales and investing.
9. It is about value you create
Paul Kaplan Work your brand to show your value proposition and staying power regardless of market conditions.
10. There's a pony in there
Tony Vitale There's a silver lining to everything, if you look close enough.
The internet is filled with myths and fake news coming from all platforms, social media sites, blogs and vlogs are amongst the commonly utilized channels. It has conquered politics, entertainment, and product and services alike. Unfortunately, they have infiltrated the real estate market as well.
Here are the top myths on Real Estate today.
Myth #1: We Are Headed for Another Housing Bubble
Home prices have appreciated year-over-year for the last 76 straight months. Many areas of the country are at or near their peak prices achieved before the last housing bubble burst. This has many worried that we are headed towards another housing bubble.
Reality: The biggest challenge facing today's real estate market is a lack of homes for sale! Demand is strong, as many renters have come off the fence and are searching for their dream homes.
Historically, a normal market requires a 6-month supply of inventory in order for prices to rise with the rate of inflation. According to the National Association of Realtors (NAR) there is currently a 4.3-month supply of inventory.
The US housing market hasn't had 6-months inventory since August 2012! The concept of supply and demand is what is driving home prices up!
Myth #2: The Rumored Recession Will Lead to Another Housing Market Crash
Economists and analysts know that the country has experienced economic growth for almost a decade. When this happens, they also know that a recession can't be too far off. But what is a recession?
Merriam-Webster defines a recession as "a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two consecutive quarters."
Reality: Recession DOES NOT equal housing crisis. Many people associate these two terms with one another because the last time we had a recession it was caused by a housing crisis. According to the Federal Reserve, over the last 40 years, there have been six recessions. In each of the previous five recessions, home values appreciated.
Myth #3: There is an Affordability Crisis Looming
Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream - their own home.
There are many different affordability indexes supported by different organizations that all measure different data. For this reason, there is a lot of confusion about what "affordable" actually means.
The monthly cost of a home is determined by the home's price and the interest rate on the mortgage used to purchase it. According to Freddie Mac, interest rates have risen from 3.95% in January to 4.59% just last week.
Reality: As we mentioned earlier, home prices have appreciated year-over-year for the last 76 months, largely driven by high demand and low supply.
According to a recent study by Zillow, the percentage of median income necessary to buy a home in today's market (17.1%) is well below the mark reached in 1985 - 2000 (21%), as well as the mark reached in 2006 (25.4)! Interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.
The starter-home market has appreciated at higher levels (9.4% year-over-year) than any other market. One reason for this is the fact that many of the first-time buyers who have flocked to the starter-home market are being met with high competition. For some hopeful buyers, it may take more than a good offer to stand out from the crowd!
There is a lot of confusion in today's real estate market. If your future plans include buying or selling, make sure you have a trusted advisor and market expert by your side to help guide you to the best decision for you and your family.
We got good news for all homeowners who are planning on selling their homes. Studies show a steady increase of up to 0.2 in home sales over the coming year. If you're asking whether or not this is the best time to put your home up in the market, then take a look at the chart below.
As we can see, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association all believe that homes sales will increase steadily over the next year. If you are a homeowner who has considered selling your house recently, now may be the best time to put it on the market.
When buying groceries, people often pick one product out of the countless others because of one reason, they want to spend their money correctly. Have you ever wondered if you're spending your money correctly on the right mortgage?
As Entrepreneur Magazine, a premier source for small business, explained in their article, "12 Practical Steps to Getting Rich":
"While renting on a temporary basis isn't terrible, you should most certainly own the roof over your head if you're serious about your finances. It won't make you rich overnight, but by renting, you're paying someone else's mortgage. In effect, you're making someone else rich."
With home prices rising, many renters are concerned about their house-buying power. Mark Fleming, Chief Economist at First American, explained:
"Over the last three years, renter house-buying power has increased fast enough to keep pace with house price appreciation, so the share of homes that a renter can afford to buy has remained the same since 2015.
Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been. Assuming this trend continues, our measure of affordability, which takes into account income, interest rates, and house prices, indicates that homeownership is still within reach for renters."
As an owner, your mortgage payment is a form of 'forced savings' which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.
Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac's latest report shows that rates across the country were at 4.51% last week.
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.
CO-OP FOR SALE!
Check our newest listing! This mid-rise co-op building is located at 2 LOUSIANA AVENUE YONKERS, NY 10708. The unit #3F has lots of built-ins, simple yet beautiful. Location is great! It is close to transportation, a quiet and peaceful neighborhood.
For showing requests give us a call at 914.920.2299 or visit www.nyreex.com
Here's the direct link for more details.
It did not take long for Kickstarter to become popular since it was founded in 2009. And it has given birth to a multitude of internet based crowdsourcing and crowdfunding institutions. Only recently has it been utilized to benefits home buyers.
Many couples are asking their wedding guests to contribute to their "Down Payment Fund" rather than fulfilling a traditional registry. This is fueled by the fact that many couples live together prior to marriage and already have the necessary items to make a house a home...they just need the house!
The average wedding in the United States has 120 guests who give wedding gifts valued, on average, at $186. This means that couples could walk away from their nuptials with over $22,000 towards their down payment!
Services like HomeFundMe allow friends, family members, and almost anyone else in a buyer's network to contribute funds toward the buyer's down payment. Contributors can determine, at the time of their donation, if their gifts are 'conditional' or 'non-conditional' on the beneficiary buying a home.
According to a recent Wall Street Journal article, "about 400 borrowers have used HomeFundMe to help buy homes since the program launched in October and on average, they raise about $2,500." The article went on to explain that most borrowers use these funds in combination with their personal savings to shorten the time needed to achieve their goal of homeownership.
There are more and more programs surfacing from lenders that allow buyers to put down as little as 3% to buy their dream home. Fannie Mae and Freddie Mac loan programs require 3% down payments, while FHA programs require as little as 3.5%, and VA Loans are often approved with 0% down!
Gone are the days of 20% down or no loan! If your dreams include buying a home of your own in the next year, you can get creative with your down payment savings to make it happen!
It is with my utmost pleasure and excitement to announce that NYREEX has joined eXp Reality. We have started a strong relationship built on logic, trust and a shared vision of unconditionally satisfying our clients in terms of coverage, client experience, and level of service.
We are looking forward to the great opportunities this partnership will bring to all of us. Connecting with like-minded, top tier experts and innovators opens new doors for expansion to other locations, possibilities of coverage in different states, and the early adoption of what will become the most reliable, trust worthy, and effective cloud brokerage platform.
I am so blessed to be in a position to support my family doing what I love to do and so excited to help others do the same thing!
If you want to know how NYREEX and eXp Realty can help you make more money. Give us a call at 914.920.2299 or drop a comment below and visit our website www.nyreex.com to learn more.
See the beauty of our newest listing perfect for a big family with our OPEN HOUSE on Sunday, 26th of August at 1PM-3PM.
This spacious single family home located at 17 Sycamore Drive Newburgh, NY 12550 will surely captivate your heart. Be amazed with its vibrant green grass surrounding, brick walls, hardwood floors and lots of built-in amenities.
For inquiries and showing request call us at 914.920.2299 or visit www.nyreex.com
Direct link: https://bit.ly/2OZQJqn
We are all aware that not everything shown on television is true, even those shown on reality TV shows. And although most reality TV shows about Real Estate try to stay honest to the science and process of home buying and selling, and often comes close to portraying real-life situations. They just can't show the entirety of the process. Let's admit it, editing teams just wouldn't find it favorable to show a 3-hour discussion, in a 30-minute segment. Anyway, let's find out the top 5 myths that just aren't true about real estate reality TV.
Reality TV Show Myths vs. Real Life:
Myth #1: Buyers look at 3 homes and decide to purchase one of them.
Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors the average homebuyer tours 10 homes as a part of their search.
Myth #2: The houses the buyers are touring are still for sale.
Truth: Everything is staged for TV. Many of the homes being shown are already sold and are off the market.
Myth #3: The buyers haven't made a purchase decision yet.
Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy.
Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.
Truth: Of course, this would be great! Open houses are important to guarantee the most exposure to buyers in your area but are only a PIECE of the overall marketing of your home. Keep in mind that many homes are sold during regular showing appointments as well.
Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.
Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives/goals.
Having an experienced professional on your side while navigating the real estate market is the best way to guarantee that you can make the home of your dreams a reality!
If you think about it, it makes sense to pay for something monthly that you know will be yours in a few years time. You can consider your monthly amortization a deposit to your personal savings, only you cannot withdraw cash from it.
A study revealed that the median net worth of a homeowner was $231,400 - a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).
These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.
Owning a home is a great way to build family wealth
As we've said before, simply put, homeownership is a form of 'forced savings.' Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
That is why, for the fifth year in a row, Gallup reported that Americans picked real estate as the best long-term investment. This year's results showed that 34% of Americans chose real estate, followed by stocks at 26% and then gold, savings accounts/CDs, or bonds.
Greater equity in your home gives you options
If you want to find out how you can use the increased equity in your house to move to a home that better fits your current lifestyle, meet with a real estate professional in your area who can guide you through the process.
Witness the timeless elegance of this home by our Open House on Saturday, 25th of August at 12pm-2pm. Located at 9 Woodland Road Bedford, NY 10506. Plus! We just reduced the price by $40,000!
For more information about this listing give us a call or visit our website.
For more details:
Over and over for the past several months now, experts and critics alike, repeatedly sit around to discuss and compare the figures we had a decade ago and how it lead to the infamous housing crisis. They gather amongst themselves to brainstorm about how our current numbers may lead to another housing crisis, but here's why we think otherwise.
There is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of the inventory of homes available for sale leading up to the 2008 crash.
A normal market should have approximately 6 months supply of housing inventory. As we can see, that number jumped to over 11 months supply leading up to the housing crisis. When questionable mortgage practices ceased, and demand dried up, there was a glut of inventory on the market which caused prices to drop as there was too much supply and not enough demand.
Today is radically different!
There are those who believe that low mortgage rates have created an artificial demand in the current market. They fear that if mortgage rates continue to rise, some of the current demand will dry up
(which is a possibility).
However, if we look at supply again, we can see that the current supply of homes is well below the norm of 6 months.
We will not have a glut of inventory like we did back in 2008 and home values won't come tumbling down. Instead, if demand weakens, we will return to a normal market (approximately a 6-month supply) with historic levels of appreciation (3.6% annually).
Every homebuyer has a must-have list in their minds when choosing their dream home. Anything from walk-in closets, to a carport for four to backyard patio. Admit it, you have one in mind too. Here are the top five must-have items people are willing to cross out their list just to get a home within school districts.
Buyers are attracted to schools with high test scores, accelerated academic programs, art and music programs, diversity, and before and after-school programs.
With a limited number of homes available to buy in today's real estate market, competition is fierce for homes in good school districts. Danielle Hale, Chief Economist for Realtor.com, explained further,
"Most buyers understand that they may not be able to find a home that covers every single item on their wish list, but our survey shows that school districts are an area where many buyers aren't willing to compromise.
"For many buyers and not just buyers with children, 'location, location, location,' means 'schools, schools, schools."
For buyers across the country, the quality of their children's (or future children's) education ranks highest on their must-have lists. Before you start the search for your next home, meet with a local real estate agent who can explain the market conditions in your area.
Whether it's because of proximity to work or business or simply because your family has grown. You will come to think at some point that your home cannot keep up with your needs anymore.
It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it's okay to admit that your home no longer fits your needs!
According to CoreLogic's latest Home Price Index, prices in the starter home market have appreciated faster than any other category over the last year, at 9.4%. At the same time, inventory in this category has dropped 14.2%.
These two stats are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.
This is great news if you own a starter home and are looking to move up to a larger home as the equity in your home has risen as prices have gone up. Even better is the fact that there is a large pool of buyers out there searching for your starter home to help them achieve their American Dream!
If you have outgrown your starter home, contact a local real estate professional who can explain the market conditions in your area and help you find your next home!
Currently, sellers are enjoying huge if not undivided attention from buyers as their visibility is at peak. There are reports, however, that this will change in the following months to come as permits for single-family units are granted.
According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of building permits issued in June was 850,000, a 0.8% increase from May.
How will this impact buyers?
More inventory means more options. Mark Fleming, First American's Chief Economist, explained that this is good news for the housing market -- especially for those looking to buy:
"The continued year-over-year growth in completions means more homes on the market in the short-term, offering some immediate relief in alleviating housing supply shortages."
How will this impact sellers?
More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:
If you are considering selling your house, you'll want to beat this new competition to market to ensure that you get the most attention on your listing and the best price for your house.
The law of supply and demand has been an existential issue in basically all known market (real estate included) since the early days of commerce. This has been seen and used time and again by power players in the arena as an opportunity to dominate and earn more. A lot of studies and speculation points at the recent mortgage rate changes as the main reason for home value increase this year. Here's the reason why we think otherwise.
"The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price."
When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.
Here are the numbers for supply and demand as compared to last year since the beginning of 2018:
The increase in the June numbers doesn't mean that prices won't continue to appreciate. In that same report, Lawrence Yun, NAR's Chief Economist, explained:
"It's important to note that despite the modest year-over-year rise in inventory, the current level is far from what's needed to satisfy demand levels.
Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up."
The reason home prices are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.