Sunday, April 19, 2015
Monday, April 13, 2015
3 Questions to Ask Yourself Before Buying A Home
If you are debating purchasing a home right now, you are surely getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home.
There are questions you should ask before purchasing in today’s market:
1. Why am I buying a home in the first place? This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:
A good place to raise children and for them to get a good education.
A place where you and your family feel safe.
More space for you and your family.
Control of the space.
Using An Agent in Purchasing a Home
When buying a home, there is a difference in the process with or without a professional real estate agent. Some home buyers prefer not to use an agent when buying in an effort to save commissions. Many find that working with an agent when buying a home helps the process be more efficient.
What are the benefits of working with a real estate agent? An agent can determine how much you can afford and recommend mortgage lenders and work on your behalf. A real estate agent has access to MLS. An agent can arrange open houses and showings for homes you have interest in. An agent can answer all your questions about current market trends, home buying issues, interest rates and many other real estate related issues. An agent will assist with necessary documents, negotiations and deals.
A real estate agent will guide you through the entire home buying process. An agent will ensure all your wants and needs are met and all the necessary steps are completed.
Thursday, April 9, 2015
Is Getting a Mortgage Getting Easier?
There has been a lot of discussion about how difficult it is to get a home mortgage in this market. There is no doubt that the process is not as easy as it was eight to ten years ago and that’s probably good news. However, it does appear that availability to mortgage money is increasing with each passing day.
The Mortgage Bankers’ Association publishes the Mortgage Credit Availability Index(MCAI). According to their site the index is “a summary measure which indicates the availability of mortgage credit at a point in time”. As we can see from the graph below, mortgage availability has been increasing dramatically over the last six months.
Accompanying the latest index was this comment from Mike Fratantoni, MBA s Chief Economist: A number of factors contributed to a loosening of credit in March: Freddie Mac s introduction of their 97 LTV program (Fannie Mae s was implemented in December) [and the] additional loosening of parameters on jumbo loan programs.
Housing Market is Healthiest in Years!
According to Nationwide’s recently unveiled, Health of Housing Market (HoHM) Report, the US housing market is at it’s healthiest levels since the index’s creation in 2001. The index analyzes the health of the housing market across the country and in 373 metro areas every quarter. Using the data that they have collected over the past 15 years, Nationwide will look to give a “data-driven view of the near-term performance of housing markets based upon current health indicators.” The fourth quarter of 2014 ended with the highest indicator score in over 15 years of data analyzed by the study at 109.8.
The report explains: “An index value over 100 suggests that the national housing market is healthy, with lower chances of a housing downturn over the next year as the index moves increasingly above the 100 breakeven value.” Employment, demographics, the mortgage market, and housing prices are all used to evaluate the health of each market.
Pending Sales Surge: Great Sign for the Housing Market
The most recent Pending Homes Sales Index from the National Association of Realtors revealed that homes going into contract in February increased to their highest level since June 2013. The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The Index is now 12.0 percent above February 2014.
The index is at its highest level since June 2013, has increased year-over-year for six consecutive months and is above what is considered “the average level of activity” – for the 10th consecutive month. Here is a graph showing the Pending Sales numbers: Here is a chart showing the Pending Sales increases by region:
Sunday, April 5, 2015
Selling Your House? Price it Right Up Front
In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy.
However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them. There is no “later.” Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.
John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price.
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