If You are Thinking of Selling, Now’s the Time

If you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market. Jonathan Smoke, the chief economist of realtor.com, in a recent article revealed: “Our preliminary review of April activity on realtor.com shows that traffic, searches, and listing views are up more than 35% over last year. With 3 million jobs created and close to 1.5 million new households formed in the past 12 months, many more people want a new home of their own, and they want it bad. Their patience will be tested with tight supply—indeed, the No. 1 impediment of active shoppers in April was not being able to find a home that meets their needs.” In this type of market, a seller may ho
http://www.homesforsaleinirvingtx.net/if-you-are-thinking-of-selling-nows-the-time/

Homeownership as an Investment: The Role of Price Appreciation

We recently posted on the results from the latest Home Price Expectation Survey(HPES) showing where residential home prices are headed over the next five years. Today, we want to show you what the results of the report could mean to you. A good portion of every family’s wealth comes from the equity in the home they live in. As the value of their home (an asset) increases so does their equity. Let’s look at a possible case scenario based on the latest HPES. Here is a chart showing the survey’s projections on annual appreciation over the next five years: We then looked at the five-year impact this would have on the equity of a family that purchased a home in January for $250,000: Their family wealth (based on increased equity) would increase by $47,772 over those five years. Bottom Line If you don’t yet own, perhaps you should be thinking about purchasing. If you already own, maybe it’s time to move up to enjoy your dream home and also ride the increase in equity of the larger
http://www.homesforsaleinfortworthtx.org/homeownership-as-an-investment-the-role-of-price-appreciation/

“Lagging Supply” Leads to Slowdown in Sales

The National Association of Realtors (NAR) recently released the results of their Existing Home Sales Report. Despite the fact that properties are selling faster than they have at any other time since July of 2013, existing home sales declined 3.3% from March. NAR’s Chief Economist Lawrence Yun explained the main reason for the slow: April s setback is the result of lagging supply relative to demand and the upward pressure it s putting on prices.” One major news organization actually used this headline about the decline: Existing home sales crater in April, falling 3.3% They certainly haven’t cratered! April marked the second month in a row that the annual sales pace remained above the five million mark (5.04 million). Year-over-year sales have increased for seven consecutive months and are still 6.1% above a year ago. Every month, SentriLock, LLC provides NAR Research with data on the number of homes shown to potential buyers. This data is referred to as ‘Foot Traffic’ an
http://www.homesforsaleinarlingtontx.org/lagging-supply-leads-to-slowdown-in-sales/

New Construction: Hear Those Hammers in the Background?

If you are planning on selling your home over the next two years, now may be the time to act. Demand is high, supply is low and many homeowners are benefiting from an almost auction atmosphere with several buyers fighting for their house in the current multi-bid environment. Higher prices and less stringent contingencies are making it easier for the seller and their family. 

However, there may be more (and better) competition about to hit the market in the form of newly constructed homes. This may put an end to the buyers’ frenzy over the limited inventory of existing homes which has been below normal levels for over a year. According to the latest report from the National Association of Realtors (NAR), the forecast for new housing starts and sales will increase significantly over the next two years: 

NAR is forecasting 1.1 million new housing starts in 2015, jumping to 1.4 million in 2016. New home sales are projected to increase from the 437,000 in 2014 to 570,000 this year and 720,

http://www.homesforsaleinarlingtontx.org/new-construction-hear-those-hammers-in-the-background/

Where Are Prices Headed In The Next 5 Years?

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. 

The results of their latest survey Home values will appreciate by 4.3% in 2015. The cumulative appreciation will be 19.4% by 2019. That means the average annual appreciation will be 3.6% over the next 5 years. Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.8% by 2019. 

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

http://www.homesforsaleinirvingtx.net/where-are-prices-headed-in-the-next-5-years/

Buying a Home is 35% Less Expensive than Renting!

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States. 

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide! The other interesting findings in the report include: Interest rates have remained low and even though home prices have appreciated around the country (3.9%), they haven’t greatly outpaced rental appreciation (3.7%). “In the past year, these two trends have made home ownership even more affordable compared with renting.” 

Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy. Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying.

http://www.homesforsaleinfortworthtx.org/buying-a-home-is-35-less-expensive-than-renting/

The Truth About Rising Prices & Family Wealth

The National Association of Realtors (NAR) recently released a report revealing that the growing wealth gap in this country has been impacted by the recent increases in real estate values coupled with the drop in home ownership rates. 

The report discloses: “Over 90 percent of metro areas have experienced declining homeownership rates at a time when home values have risen and incomes have remained flat.” Increasing home values in many regions of the country have helped homeowners build housing wealth in recent years. 

However, the continued decline in home ownership means this increase in wealth is shared by fewer people and likely leading to worsening inequality in the U.S. Here is a chart showing the aforementioned increasing gap between renters and homeowners in regard to family wealth: 

Bottom Line 

If the experts are correct, and a homeowner really will have an average of 40 times the net worth of a renter by the end of this year.

http://www.homesforsaleinirvingtx.net/the-truth-about-rising-prices-family-wealth/

Attaining the American Dream: The 5 Financial Reasons to Buy

We have reported many times that the American Dream of home ownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities. Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper -The Dream Lives On: the Future of Homeownership in America. 

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available. “Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, home ownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. 

http://www.homesforsaleinfortworthtx.org/attaining-the-american-dream-the-5-financial-reasons-to-buy/

Do You Know The Cost of Renting vs. Buying?

Some Highlights: 
Historically the Percentage of your income needed to afford a home vs. renting was a much closer margin. Making renting make sense. Now Renting will cost you 30.1% of your income compared to buying a median home at 15.3% of your income. Either way you re paying a mortgage why not have it be yours? 
http://www.homesforsaleinarlingtontx.org/do-you-know-the-cost-of-renting-vs-buying/