Showing posts with label home prices. Show all posts
Showing posts with label home prices. Show all posts

Monday, September 9, 2019

Home Sales Expected to Continue Increasing In 2020


Freddie MacFannie Maeand the Mortgage Bankers Association are all projecting home sales will increase nicely in 2020.
Below is a chart depicting the projections of each entity for 2019, as well as for 2020.
As we can see, Freddie MacFannie Mae, and the Mortgage Bankers Association all believe homes sales will increase steadily over the next year. If you’re a homeowner who has considered selling your house recently, now may be the best time to put it on the market.

Contact The McLeod Group Network at 971.208.5093 or admin@mgnrealtors.com for ALL your Real Estate needs!

By: KCM Crew

Monday, May 6, 2019

7 Times to Offer Over Asking Price on a House—or Else You May Lose Out

Offering over asking price on a house often makes buyers wince. But let's face it, paying above list price is just a reality in certain circumstances—at least if you really have any hopes of getting that house!
So when exactly should you aim high and offer over asking? Check for these signs below that suggest this pricey move is essential.

1. It’s a seller’s market

seller’s market is when there are more home buyers than sellers—meaning demand outpaces the supply of homes for sale. As a result, home buyers in a seller's market face a tough challenge: Due to increased competition, they often have to act fast and bid high to woo sellers into accepting their offer, says Seth Lejeune, a real estate agent with Berkshire Hathaway in Malvern, PA.
Looking at a couple of key factors can help you determine whether you’re in a seller’s market, Lejeune says, starting with the average days on market.
A good rule of thumb: “If houses are selling in your neighborhood in less than 10 days, it’s a strong seller’s market,” Lejeune says. You can find what the average days on market is in your city using realtor.com's Local Market Trends tool.
You’ll also want to evaluate what homes are selling for compared with their list price. In a strong seller's market, Lejeune says, the final sales price is typically at least 10% higher than the asking price. (Your real estate agent can pull this data for you.)

2. You know, for a fact, you're going up against other offers

Bidding wars can erupt, even in a buyer’s market—sometimes all it takes is an aggressively priced home, which is why it’s important to find out whether there are other bids on a property before you make an offer. So go ahead and ask (or have your real estate agent ask on you behalf); generally it's in their interests to say if other offers are on the table since it might spur you to act fast.

3. The house is blatantly underpriced

Some sellers decide to list their home well below the property’s fair market value in an effort to spark a bidding war. In that instance, it may make sense for you to offer over asking price in order for your bid to outshine other offers.
To figure out if a house is underpriced, you and your agent should assess recently sold homes in the area (also known as comparables, or “comps”). This will give you a baseline that you can use to calculate a home’s true market value, which you can use as a benchmark when pricing your offer.

4. You’re competing with cash buyers

Home sellers swoon over all-cash offers for one simple reason: It means there's no doubt that you've got the coin to close the deal. Consequently, all-cash home buyers have a distinct advantage over those who need a mortgage, because there's no guarantee that lenders will fork over the money.
Cash offers made up 29% of single-family home and condo sales in 2017, according to ATTOM Data Solutions. So, if you know you’re competing against one, making a bid that’s over a home’s list price could persuade the seller to accept your offer.

5. The seller isn’t motivated

Some home sellers have to unload their house as quickly as possible, say, due to an imminent relocation for a new job or a need to raise cash to purchase their next home. Other sellers, though, aren’t quite as motivated—and they may just be listing their house to “test the market” and see what sized offer they can get, which is why it’s important to ascertain what the seller’s motivations are, says Diana George, founder of Vault Realty Group, in Oakland, CA.
“I always call the real estate listing agent and speak to them directly to get a better understanding as to what's driving the seller,” George says.
If you find yourself dealing with an unmotivated seller, offering above the home’s list price could make the seller bite. The caveat, of course, is you don’t want to offer so much above asking price to the point where you significantly overpay for the home.

6. You absolutely adore the home—and can’t risk losing it

Sometimes buyers simply fall head over feels for a house, says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis. If you find a house and feel your heart would be broken if you lose it, offering over asking price can help you lock down the property, Dossman says.

7. You can afford to pay over asking price

One word of warning: If you’re obtaining a mortgage, be aware that if you pay way over what a home is really worth, the home still has to pass appraisal in order for your lender to provide you with the loan that you need. Any difference between a home’s appraised value and your contract price would have to come out of your pocket. As always, you’ll want to rely on your real estate agent to help you craft a winning offer you can afford.
Contact The McLeod Group Network to start the search for your new home! 971.208.5093 or admin@mgnrealtors.com
By: Realtor.com, Daniel Bortz

Wednesday, January 16, 2019

Selling Your Home? Make Sure the Price is Right!

If you’ve ever watched “The Price is Right,” you know that the only way to win is to be the one to correctly guess the price of the item you want without going over! That means your guess must be just slightly under the retail price.
In today’s shifting real estate market, where more inventory is coming to market and home values are projected to appreciate at lower rates, homeowners will not be able to price their homes as aggressively as they were able to just last year.
They will have to employ the same strategy: be the closest without going over!
As we have explained before, pricing your home at or slightly below market value actually increases the number of buyers who will see your home in their search!
Over the last six months, more inventory has come to market while the months’ supply of inventory available has dropped. This means that the demand for homes to buy is still very strong throughout the country!
Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the homes when in reality nothing was wrong, the price was just too high!
Bottom Line
If you are thinking about listing your home for sale this year, let McLeod Group Network properly price your home from the start! 971.208.5093 or 
admin@mgnrealtors.com

By: KCM Crew

Wednesday, September 12, 2018

7 Promising Signs the Home You're Buying Will Have Good Resale Value

While it might seem premature to think about selling a home before you even buy it, it's important to remember that a house is an investment. And in an ideal world, investments make money—not lose it.
That's why resale value should be an important consideration when house hunting. No, it shouldn't supersede your must-have requirements (if you demand 20 acres and lakefront access, prioritize that). But if you do your best to predict how the house you're buying—and the neighborhood it's in—will appeal to future buyers, then future-you will be a whole lot happier. And possibly richer.
Considering resale value "also saves the buyers a lot of money, as they will not need to spend big on renovations or updates," says real estate agent Lukasz Kukwa.
But one caveat: Good resale value is never a promise.
"It is almost impossible to guarantee that a home will retain its full resale value, as the local market and economic factors have a large effect on the housing market," Kukwa says.
In short: Resale value is anybody's guess if the economy tanks. But there are some indicators to watch for that could be the difference between barely squeaking by or coming out ahead. As you hit the house-hunting trail, look for these promising signs that suggest your investment will be a smart one.

1. The neighborhood's hopping...

Pay attention to your surroundings when house hunting. Is the neighborhood walkable? Or is a trip to the grocery store so onerous it requires snacks for the road? Meanwhile, are there restaurants nearby for those nights you simply just can't?
"If you buy in an area that is not well-developed and doesn't have good infrastructure—like shopping close by—you will not have a high rate of return on the home," says Realtor® Patricia Vosburgh.
"The more amenities, the higher chances the home will sell faster and for more money," she explains.
Even if there are development plans in the works, don't bank on that to prop up property values; construction can stall or be scrapped entirely. When calculating your home's future worth, focus on what exists now.

2. ... but the street itself is quiet

Buying a home is a study in contrasts: You want a gorgeous kitchen—and good delivery options, too. You need five bedrooms—and a decent hotel around the corner, because no way is your mother-in-law staying with you. You want things to be hopping—but not in your backyard.
"We advise against buying on a busy street or purchasing a home surrounded by commercial properties nearby," Vosburgh says.
Not that there aren't buyers—possibly even you—who love living in the middle of the action. But before you buy the bungalow next to your favorite watering hole, consider that future buyers might not be so keen.

3. The home's systems are in good shape

Many people consider return on investment to be the sum of a simple calculation: Will the home sell for more than you paid?
But it's a little more complex than that. You have to factor in how much you'll spend on the home while living there—even if the market becomes red-hot. And if the home's vital components are falling apart, you'll be spending a lot.
Your inspector can give you a rundown of your future home's health, but keep a close eye on the roof, water heater, HVAC system, windows, and foundation. Pay attention to the plumbing and electrical, too. A problem with any one of these major systems can require a costly repair—and take a bite out of your payday.
"When these items are new or in good standing, that's a great sign," Kukwa says.

4. The schools are great

If you're child-free, this one might seem entirely irrelevant. But a word to the wise: If you think you might someday sell your home, you'll want to factor in the school district before you buy.
"Even if buyers personally don't have children, for resale it is imperative that they buy in a great school zone," Vosburgh says. (You can check school ratings at GreatSchools.org.)
Just make sure to do your research and determine where the home sits in relation to the school district boundaries.
“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” explains Tina Maraj, a Realtor with Re/Max North Orange County in Fullerton, CA. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”

5. The light is inspiring

"Any apartment in any neighborhood that has good light will sell—and will always sell," says New York City broker Noemi Bitterman.
With good light, "there is always a good feeling—a feeling of embracing and belonging," she continues. "When [a home] is dark, no matter how nice and new it is, it doesn't feel inviting, it takes a much longer time to sell, and the price reflects the lack of light."
Whether you're shopping for a condo, apartment, or house, visit the property at different times of the day to see how the light affects the space.

6. The floor plan is family-friendly

Again? asks the child-free reader. Must all my housing decisions be dictated by families? No. But if you're hoping to sell that home for a profit down the road, you should keep kid-friendliness in mind.
"Look for a home with a floor plan that will appeal to families," says broker Kris Lindahl. That means at least three—if not four—bedrooms on the same level, an open concept kitchen, and at least one bathtub.
And always pay attention to the number of bathrooms. You want "enough to avoid fights in the morning," Lindahl says.
On a related note: No matter how much you love that gloriously unique Frank Lloyd Wright spiral house, it's often best to stick to a more traditional floor plan if you're worried about selling later.
"Buying a home that is too quirky or has very untraditional features can result in a decreased ROI and smaller pool of potential buyers in the future," Kukwa says.

7. The community is restrictive

Homeowners associations can be a pain in the butt—the irritating restrictions, the monotonous meetings, the monthly dues that you're not always sure you can account for.
But an HOA can actually be helpful, at least when it comes to resale value. That's because HOAs usually keep everyone in line, preventing your neighbors from letting weeds take over their lawn, painting their houses bright pink, or permanently parking an RV in the middle of your street—all things that could ding the value of your home.
Of course, purchasing an HOA-regulated home isn't for everyone. But if you're seriously concerned about the resale value of your new home, covenants and restrictions could keep you flush.

Contact the professionals on the McLeod Group Network to start the search for your new home! 971.208.5093 or admin@mgnrealtors.com.

By: Realtor.com, Jamie WiebeWendy Helfenbaum.

Wednesday, July 25, 2018

You'll Never Guess How Far New Home Prices Have Dropped

If you've been hoping to buy a pristine, newly built home, but hesitating over the price, you may want to take the plunge now.
The median price of a new-construction home continued its slide, hitting $302,100 in June, according to a joint report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. That's the lowest it's been since February 2017, when the median was $298,000.
"It's just a couple months of price declines, so I don't want to read too much into it," says realtor.com® Chief Economist Danielle Hale. The median price has been declining each month since it peaked in March at $335,400. "But a shift toward lower prices could indicate a shift toward more affordable construction to come."
That's promising news for buyers who have been growing increasingly frustrated by the lack of homes on the market, along with high prices and rising mortgage rates. In fact, the price gap between existing homes (which have previously been lived in) and new homes, which are typically more expensive, has been closing in recent months.
Existing homes cost a median $276,900 in June, according to the most recent National Association of Realtors® report. That's a new all-time high, but is still 9.1% less than the median price tag of a newly constructed abode.
Meanwhile, the number of new homes sold and for sale, 631,000, was down 5.3% from May, according to the report. However, it was up 2.4% from June of 2017. (Realtor.com® looked only at the seasonally adjusted numbers in the report.)
The Northeast was the only region that saw a surge in new homes being sold and hitting the market in June. It was up 26.8% from the previous month and 20.9% from the the previous year.
The West experienced a 5.2% monthly drop and a 15% annual plunge in the number of new homes sold and for sale. It was followed by the South, where it was down 7.7% from May, but was up 8.1% from June of 2017. In the Midwest, it plummeted 13.4% month-over-month, but the number of homes sold and for sale rose 7.6% year-over-year.
The biggest takeaway from this month's report were the lower prices.
"Entry-level buyers might see some relief on the horizon," says Hale. "We're not talking a huge change in the market where buyers overnight will find the [housing] market is now easy. But it should be easier."
Contact McLeod Group Network to find your new home. 971.208.5093 or mcleodgroupoffice@gmail.com.
By: Realtor.com, Clare Trapasso

Monday, June 4, 2018

4 Reasons Why Summer Is a Great Time to Buy a Home!

Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insights reports that home prices have appreciated by 7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% 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 increased by half a percentage point already in 2018 to around 4.5%. 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 nearly a full percentage point 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 a home 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 have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with 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.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Let’s talk about your options! 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew

Wednesday, May 23, 2018

Get One While You Can: New-Home Prices Have Fallen to a 12-Month Low

For years, all home buyers have heard is that prices are going up, up, and away. But the cost of buying a newly constructed abode has fallen to its lowest price point of the last 12 months. So if you've been wanting to buy a home that's never been touched by another owner, we give you permission do a happy dance.
The median price of a new home dropped nearly 6.9% from March to April to reach $312,400, according to a joint report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. That was only up 0.4% from April 2017, less than inflation.

"This could be a sign that builders are trying to build at lower price points," says realtor.com® Chief Economist Danielle Hale. That would be a boon to the many would-be homeowners, particularly first-time buyers or those on a tight budget, who are being priced out of the market. "The largest share of home buyers and home shoppers in the market are looking to buy entry-level homes."
Hale pointed out that 5% of new-home sales were for abodes priced under $150,000. That may not sound like much, but it's the largest share we've seen at that super-desirable price point since August 2016.
However, new homes were still about 24.8% more expensive than the $250,400 median cost of an existing home (one that has previously been lived in), according to the most recent data available from the National Association of Realtors®.
That's because new homes have pricier finishes and appliances, with no wear and tear on anything. Plus, land, labor, and building materials costs have been on the rise.
Meanwhile, the number of new homes sold and for sale dipped 1.5% from the previous month to about 662,000, according to the report. They rose, however, 11.6% from the same month a year earlier.
(Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to compensante for ups and downs at certain times of year.)
The Midwest saw the biggest annual bump in the number of homes sold or for sale in April.  About 91,000 home hit the market or were closed on in April, rising a whopping 26.4% from the same month a year earlier, but remaining flat from the previous month.
The West came in second, with a 18.9% year-over-year rise. But the 176,000 abodes for sale or sold were down 7.9% from March.
In the South, the 355,000 homes on the market or changing hands were up 6% annually and increased 0.3% from the previous month. In the Northeast, the number was up 5.3% year-over-year and 11.1% month-over-month, with 40,000 new homes.
"The absolute level of [new-home] sales remains quite low compared to current demand levels and the overall population. But you can’t sell what hasn’t been built," Freddie Mac Deputy Chief Economist Len Kiefer said in a statement. "As long as single-family home construction remains at a low level, so too will new home sales."

Contact The McLeod Group Network for all your Real Estate needs. 971.208.5093 or mcleodgroupoffice@gmail.com.

By: Realtor.com and Clare Trapasso

Thursday, May 17, 2018

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. Let’s get together and discuss your options - 971.208.5093 or mcleodgroupoffice@gmail.com.
By: KCM Crew

Thursday, May 3, 2018

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again


With home prices rising again this year, some are concerned that we may be repeating the 2006 housing bubble that caused families so much pain when it collapsed. Today’s market is quite different than the bubble market of twelve years ago. There are four key metrics that explain why:
1.    Home Prices
2.    Mortgage Standards
3.    Mortgage Debt
4.    Housing Affordability
1. HOME PRICES
There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.
Frank Nothaft is the Chief Economist for CoreLogic (which compiles some of the best data on past, current, and future home prices). Nothaft recently explained:
“Even though CoreLogic’s national home price index got to the same level it was at the prior peak in April of 2006, once you account for inflation over the ensuing 11.5 years, values are still about 18% below where they were.” (emphasis added)
2. MORTGAGE STANDARDS
Some are concerned that banks are once again easing lending standards to a level similar to the one that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.
The Urban Institute’s Housing Finance Policy Center issues a Housing Credit Availability Index (HCAI).According to the Urban Institute:
“The HCAI measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”

The graph below reveals that standards today are much tighter on a borrower’s credit situation and have all but eliminated the riskiest loan products.

3. MORTGAGE DEBT

Back in 2006, many homeowners mistakenly used their homes as ATMs by withdrawing their equity and spending it with no concern for the ramifications. They overloaded themselves with mortgage debt that they couldn’t (or wouldn’t) repay when prices crashed. That is not occurring today.
The best indicator of mortgage debt is the Federal Reserve Board’s household Debt Service Ratio for mortgages, which calculates mortgage debt as a percentage of disposable personal income.
At the height of the bubble market a decade ago, the ratio stood at 7.21%. That meant over 7% of disposable personal income was being spent on mortgage payments. Today, the ratio stands at 4.48% – the lowest level in 38 years!

4. HOUSING AFFORDABILITY

With both house prices and mortgage rates on the rise, there is concern that many buyers may no longer be able to afford a home. However, when we look at the Housing Affordability Index released by the National Association of Realtors, homes are more affordable now than at any other time since 1985 (except for when prices crashed after the bubble popped in 2008).


Bottom Line

After using four key housing metrics to compare today to 2006, we can see that the current market is not anything like the bubble market.

Contact The McLeod Group Network for all your Real Estate needs! 971.208.5093 or mcleodgroupoffice@gmail.com.

By: KCM Crew