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What Is the Cost of Waiting Until Next Year to Buy?

by Mary Jean Agostini

What Is the Cost of Waiting Until Next Year to Buy?

What Is the Cost of Waiting Until Next Year to Buy? [INFOGRAPHIC] | MyKCM

Some Highlights:

  • The “cost of waiting to buy” is defined as the additional funds necessary to buy a home if prices and interest rates were to increase over a period of time.
  • Freddie Mac forecasts interest rates will rise to 3.8% by Q4 2020.
  • CoreLogic predicts home prices will appreciate by 5.4% over the next 12 months.
  • If you’re ready and willing to buy your dream home, now is a great time to buy.

 

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Is the Recent Dip in Interest Rates Here to Stay?

by Mary Jean Agostini

Is the Recent Dip in Interest Rates Here to Stay?

Interest rates for a 30-year fixed rate mortgage climbed consistently throughout 2018 until the middle of November. After that point, rates returned to levels that we saw in August to close out the year at 4.55%, according to Freddie Mac’s Primary Mortgage Market Survey.

After the first week of 2019, rates have continued their downward trend. As Freddie Mac’s Chief Economist Sam Khater notes, this is great news for homebuyers. He states,

“Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy.”

In some areas of the country, the combination of rising interest rates and rising home prices had made some first-time buyers push pause on their home searches. But with more inventory coming to market, continued price growth, and interest rates slowing, this is a great time to get back in the market!

Will This Trend Continue?

According to the latest forecasts from Fannie Maethe Mortgage Bankers Associationand theNational Association of Realtors, mortgage rates will increase over the course of 2019, but not at the same pace they did in 2018. You can see the forecasts broken down by quarter below.

Is the Recent Dip in Interest Rates Here to Stay? | Simplifying The Market

Bottom Line

Even a small increase (or decrease) in interest rates can impact your monthly housing cost. If buying a home in 2019 is on your short list of goals to achieve, let’s get together to find out if you are able to today.

 

Are Homebuyers Starting to hit the 'PAUSE' Button?!

by Mary Jean Agostini
Are Homebuyers Starting to Hit the ‘Pause’ Button? | Simplifying The Market

Are Homebuyers Starting to Hit the ‘Pause’ Button?

For the last several years, buyer demand has far exceeded the housing supply available for sale. This low supply and high demand have led to home prices appreciating by an average of 6.2% annually since 2012.

With this being said, three of the four major reports used to measure buyer activity have revealed that purchasing demand may be softening. Here are the four indices, how they measure demand (methodology), what their latest reports said, and a quick synopsis of the report.

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
by ShowingTime

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 homebuying 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

Bottom Line

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.

 

Selling, a famous salesman once said, is essentially a transfer of feelings.

You love and cherish your home. You want the next owner to fall in love with it, too — through photos, through words, and through the experience of walking through your front door. But, perhaps most, you want to get the price you want.

This isn’t a small task. Selling a home requires work. It requires time. The journey isn’t always easy. There will be frustrations. But when you seal the deal and move on to your next chapter  — wow, what a blissful, boss feeling.

Below, we preview and link to each step in your journey.  We’ll discuss how to know what you want (and what your partner wants, if you’re selling together). How to understand the market, and ways to make a plan. And most importantly? How to create relationships with experts and trust them to help you get the job done.

Now, let’s talk about selling your house.

Jump to a specific home selling step using these links:

Know What You Want | Do Your Research | Interview and Select an Agent | Price Your Home | Prep Your Home for Sale | Market Your Home | Showcase Your Home | Receive Offers | Negotiate With the Buyer | Negotiate Home Inspection Repairs | Close the Sale

Know, Exactly, What You Want

First things first: You need to know what you want (and what your partner wants) in order to sell your home with minimum frustration. Why are you moving? What do you expect from the process? When, exactly, should you put that For Sale sign in the yard? We can help you get your thoughts in order with this home selling worksheet.

Do Your Research

Unless you bought your home last week, the housing market changed since you became a homeowner. Mortgage rates fluctuate, inventory shifts over time — these are just a few of the factors that affect the state of the market, and every market is unique. Educate yourself on what to expect. Start with our study guide on the market. 

Related Topic: Sell a Home: Step-by-Step

Interview and Select an Agent

This is the most important relationship you’ll form on your home selling journey. Pick the right agent and you’ll likely get a better sales price for your house. Here’s how to find and select the expert who’s right for you.

Price Your Home

How much is your home worth? That’s the … $300,000 question. Whatever the number, you need to know it. This is how your agent will help you pinpoint the price.

Prep Your Home for Sale

Today, home buyers have unfettered access to property listings online, so you have to make a great first impression — on the internet and IRL. That means you’ll have to declutter all the stuff you’ve accumulated over the years, make any necessary repairs, and get your home in swoon-worthy condition. Here’s how to stage your home. 

Market Your Home

Home buyers look at countless listings online. The best-marketed homes have beautiful photos and compelling property descriptions, so they can get likes — which can amount to buyer interest — on social media. Some agents are even using videos, virtual tours, texts, and audio messages. It’s time to consider how to promote your property.

Showcase Your Home

One of the best ways to get buyers in the door is to have an open house. This is your chance to show off your home’s best assets, and help buyers envision themselves living there. Know how your agent will organize, advertise, and host the event to ensure it’s a success.

Receive Offers

Yes, you might get offers plural, depending on your market. Assuming you’ve collaborated with your agent, you’ve likely positioned yourself to receive attractive bids. Your agent will review each offer with you to determine which is best for you. (Read: The offer price isn’t the only factor to consider: Here’s why.)

Negotiate With the Buyer

To get the best deal for you, you’ll likely have to do some negotiating. Your agent will help you craft a strategic counteroffer to the buyer’s offer, factoring in not only money, but contingencies, etc. Let’s talk about how to ask for what you want.

Negotiate Home Inspection Repairs

Ah, the home inspection. It’s as much a source of anxiety for buyers as it is for sellers. Nonetheless, most purchase agreements are contingent on a home inspection (plus an appraisal, which will be managed by the buyer’s lender). This gives the buyer the ability to inspect the home from top to bottom and request repairs — some even could be required per building codes. The upshot: You have some room to negotiate, including about certain repairs. Once again, your agent will be there to help you effectively communicate with the buyer.

Close the Sale

Settlement, or closing, is the last step in the home selling process. This is where you sign the final paperwork, make this whole thing official, and collect your check. Before that can happen though, you’ll have to prepare your home for the buyer’s final walk-through and troubleshoot any last-minute issues. We’ve got you covered with this closing checklist

The Difference an Hour Makes!

by Mary Jean Agostini

The Difference an Hour Will Make This Spring [INFOGRAPHIC]

The Difference an Hour Will Make This Spring [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Don’t forget to set your clocks forward this Sunday, March 11th at 2:00 AM EST in observance of Daylight Saving Time.
  • Unless of course, you are a resident of Arizona or Hawaii!
  • Every hour in the United States: 614 homes are sold, 81 homes regain equity (meaning they are no longer underwater on their mortgage), and the median home price rises $1.51!
 

Why Sell Now Instead of Later? The Buyers are Out Now!

by Mary Jean Agostini
 
Why Sell Now instead of Later? The Buyers are Out Now | Simplifying The Market

Why Sell Now Instead of Later? The Buyers are Out Now

Each year, most homeowners wait until the spring to sell their houses because they believe that they can get a better deal during the normal spring buyer’s market. However, recently released data suggests that a seller’s best deal may be available right now. The concept of ‘supply & demand’ reveals that the best price for an item will be realized when the supply of that item is low and the demand for that item is high. Let’s see how this applies to the current residential real estate market.

SUPPLY

It is no secret that the supply of homes for sale has been far below the number needed for over a year. A normal market requires six months of housing inventory to meet the demand. The latest report from the National Association of Realtors (NAR) revealed that there is currently only a 4.2-month supply.

Supply is currently very low!!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers out looking at homes) disclosed that there are more buyers right now than at any other time in the last twelve months. This includes more buyers looking at homes right now than at any time during last year’s spring market.

Demand is currently very high!! 

Bottom Line

Waiting until the spring to list your house for sale made sense in the past. This year is different. The best deal is probably available right now.

 

Slowing Sales in Summer

by Mary Jean Agostini

Highlights:

  • Existing Home Sales are now at an annual pace of 5.52 million.
  • Inventory of existing homes for sale dropped to a 4.3-month supply, marking the 25th month in a row of declines.
  • The median price of homes sold in June was $263,800. This is the 64th consecutive month of year-over-year price gains.

Why You Should Buy a Home in Early 2017!

by Mary Jean Agostini

The new year is upon us! It is time to sit down and set those New Year's resolutions for 2017. If buying a new home makes it onto your list of resolutions, the time to act on it is right a way in the New Year! 


2016 saw many positive real estate trends. Consumer confidence has risen. Home values throughout much of the nation has increased. At the same time, we have seen the inventory of homes decrease and mortgage rates are higher. Both of these factors show no signs of changing in 2017. Mortgage payments are currently 3% higher than they were last year.  Although this is still manageable for most, it is expected that payments will increase an additional 9% as we progress throughout the New Year! And, although low inventory has been a factor for many years, the emergence of new buyers and an increased sense of urgency has caused the inventory to reach an all time low.

 

What does this mean for you as a home buyer in 2017? Don't despair! In order to achieve your home buying resolution, we recommend buying a home early in the year. This will allow you to lock in the lower mortgage rates before they rise. In addition, you will have less competition from other buyers since January and February are slow real estate months. Inventory of homes is also not much lower than it is in the spring, which gives you plenty of options to pick from. 

 

Start your home hunt today! If you are interested in Buying a home in Central or Shoreline Connecticut during 2017, the MJ Agostini Real Estate Team is here to help you work towards your resolution! Give us a call today or visit our website at http://www.mjagostini.com/ to get a jump start today!


Source: Realtor.com

Why Now is Not the Time to Rent!

by Mary Jean Agostini

Have you been wondering whether or not to renew your lease or make the plunge to buy a new home? Well, it is important to know that now is NOT a good time to rent! According to the third quarter median rent numbers released by the Census Bureau, rent has been increasing since 1988 and does not show any signs of going down in the future.

 

When Is a Good Time to Rent? Not Now! | Simplifying The Market

It is the time to consider buying your own home and having regular monthly payments towards a mortgage as opposed to being faced with increasing rent costs! If you are interested in seeing if you can afford your own home, contact me today! I am happy to help you find your dream home!

 

Source: Keeping Current Matters

 

 

Get Organized Before Shopping for Your Dream Home

by Mary Jean Agostini

The process of buying a home has gotten more complicated in recent years. To make sure everything goes smoothly, you’ll want to get organized before you even begin to look for a house. Once you’ve taken care of these things, you’ll be ready to shop for the home of your dreams.

Check Your Credit Score. Examine and fix any blemishes on your credit score, before you apply for a loan. Also, avoid taking on any new debt at this time. This includes buying a new car or other large item on credit.

Look at Your Finances. Take an honest look at your budget and figure out how much home you can afford. There are many online calculators available to help you with this. In general, most loan programs require that your mortgage payment be no more than 28% to 31% of your gross monthly income.

Beef up Your Savings. You should have enough cash saved up to cover your down payment and closing costs. Depending on your mortgage, you’ll need anywhere from 3.5% to 20% down, plus money available for closing.

In addition, mortgage lenders like to see borrowers with a healthy savings account. This shows that you have enough money to pay for your closing costs and any incidental expenses, as well as enough to live on once you move in. Savers aren’t likely to be living paycheck to paycheck, and are good candidates for a loan.

Apply for Your Mortgage. Get pre-approved for a loan before you even start to look at homes. Applying for a loan first gives you a definitive answer on how much mortgage you can afford, and ensures you have financing ready when you find your dream home.

Refine Your Shopping List. Finally, think about the features you really want in a house. You’ll probably live in this house for several years, and you want it to serve your needs the entire time. After all, if you change your mind in a few years, you may not be able to sell this house quickly.

Shopping for a home is exciting. Take the time to organize and prepare before you look at properties, so you can be ready to make an offer when you do find a home that you love. Contact me today for a consultation. I will be happy to answer any questions you may have about the home buying process.

Mary Jean Agostini, CCIM,CRS,CRB
mj@mjagostini.com
www.mjagostini.com
860-995-9665
Licensed in CT,RI,MA
Realty 3
Offices in Berlin, Southington, Essex and Stonington

Photo courtesy Kristja, Stock.XCHNG

Displaying blog entries 1-10 of 10

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