Hi Friends,
From: 3 Question to Ask Before Buying a Home:
"If you are thinking about purchasing a home right now, you are surely
getting a lot of advice. Though your friends and family have your best
interests 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 three 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
What non-financial benefits will you and your family derive from
owning a home? The answer to that question should be the biggest reason
you decide to purchase or not.
2. Where are home values headed?
When looking at future housing values, Home Price Expectation Survey provides a fair assessment. 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.
Here is what the experts projected in the latest survey:
- Home values will appreciate by 4% in 2015.
- The cumulative appreciation will be 19.5% by 2018.
- Even the experts making up the most bearish quartile of the survey
still are projecting a cumulative appreciation of over 11.2% by 2018.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long term
cost’ of a home can be dramatically impacted by an increase in mortgage
rates.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.
Bottom Line
Only you and your family can know for certain the right time to
purchase a home. Answering these questions will help you make that
decision."
And as always, please let me know if you have any questions or I can be of any help at all.
~Amy
Source: KCMBLOG.com
Hi Friends,
Purchasing a home is one of, if not entirely, the largest & most significant purchases a person makes in their lifetime.
Take a look at this article, Buying A Home? You Don't Need to Do It Alone! You
don't have to go it alone when buying your first or next home!
"Discover Home Loans conducted an interesting survey that revealed how prepared homebuyers are for the actual mortgage process.
The survey reported that 94% of prospective buyers believe they are
making a good investment decision if they buy a home. The survey also
explained that 66% of buyers reach out to real estate agents to help
determine whether buying a certain home would be a good investment.
However, there is less certainty regarding the mortgage process.
Most buyers overwhelmed
The majority of potential buyers are actually overwhelmed with the
plethora of information available about the home financing process.
Here are some interesting highlights from the report:
- Nearly 66% feel overwhelmed with the amount of information available
- 76% of those under the age of 30 feel overwhelmed
- 76% of first time buyers feel the same way
- 54% of those buyers who have previously owned also were overwhelmed
- 59% of buyers turn to mortgage bankers to help evaluate mortgage terms and comparing offers
- 49% of buyers turn to real estate agents to help evaluate mortgage terms and comparing offers
There is help available…use it!
Cameron Findlay, chief economist at Discover Home Loans, gives great advice:
“The industry is becoming more transparent in an
effort to help homebuyers become informed about changes that may affect
their process. The sheer amount of information can lead to confusion and
stress. Those looking to purchase should work closely with their lender
and realtor to make sure they are comfortable with mortgage terms and
understand the impact a loan will have on their finances.”
Bottom Line
Purchasing a home can put great pressure on a family. Reach out to
the best mortgage and real estate professionals in your market for
assistance throughout the process."
As always, let me know if you have any questions!
~Amy
**Source: KCMBlog.com
Hi Friends!
There's nothing worse than that feeling of being stuck wondering whether to stay or to make a move.
With a stabilizing market, even here in the Salem-Keizer area, folks are still wondering if now is the time.
Take a a look at this article, Don't Wait! Move Up To The Home You Always Wanted!,
as it offers some wisdom on how the current & projected interest
rates could affect your buying power in the coming months.
As always, let me know if you have any questions or if I can be of help!
~Amy
Source: KCM Blog
Hi Friends!
It's finally Fall here in Salem - and so many are wondering how, and if, to move forward with the process of selling their home.
Take a look at this article, Why You Should Sell Your House Now, and consider the insight this author offers.
"
School is back in session, the holidays are right around the corner,
you might not think that now is the best time to sell your house. But
with inventory below historic numbers and demand still strong, you could
be missing out on a great opportunity for your family.
1. Demand is Strong
Foot traffic refers to the number of people out actually physically
looking at home right now. The latest foot traffic numbers show that
there are more prospective purchasers currently looking at homes than at
any other time in the last twelve months which includes the latest
spring buyers’ market. These buyers are ready, willing and able to
buy…and are in the market right now!
As we get later into the year, many people have other things
(weather, holidays, etc.) that distract them from searching for a home.
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing supply is still under the historical number of 6 months’
supply. This means that, in many markets, there are not enough homes for
sale to satisfy the number of buyers in that market. This is good news
for home prices. However, additional inventory is about to come to
market.
There is a pent-up desire for many homeowners to move as they were
unable to sell over the last few years because of a negative equity
situation. Homeowners are now seeing a return to positive equity as real
estate values have increased over the last two years. Many of these
homes will be coming to the market in the near future.
Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).
The choices buyers have will continue to increase over the next few
months. Don’t wait until all this other inventory of homes comes to
market before you sell.
3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the
length of time it takes from contract to closing. Banks are requiring
more and more paperwork before approving a mortgage. Any delay in the
process is always prolonged during the winter holiday season. Getting
your house sold and closed before those delays begin will lend itself to
a smoother transaction.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing
it now. Prices are projected to appreciate by over 19% from now to
2018. 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. You can also lock-in your 30 year housing expense with an
interest rate in the low 4’s right now. Rates are projected to be over
5% by this time next year.
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 think you should?
Only you know the answers to the questions above. You have the power
to take back 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.
That is what is truly important."
As always, let me know if your thoughts or have any questions!
~Amy
