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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

Merry Christmas from MJ Agostini Real Estate

by Mary Jean Agostini

Jingle bells are filling the air! Christmas has finally arrived! This weekend will be filled with delicious food, festive cheer, colorful gifts, and time with family and friends! It is also time to celebrate the end of the year and reflect on all there is to be thankful for. Here at MJ Agostini Real Estate, we would love to say THANK YOU to all of our past and current clients for giving us the opportunity to help you with all your real estate needs this year!

 

Our team feels very blessed to help serve Central and Shoreline Connecticut Communities. We love our towns and helping people discover why they are such incredible communities to call home! 

 

The new year often brings about new changes. If you are interested in buying and selling your Connecticut home in 2017, our team would love to assist you along the way! Contact our team today so that we can help you reach all your real estate goals!

 

We Wish You a Very Merry Christmas and Happy New Year!
 

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

 

 

Why Are Mortgage Interest Rates Increasing?

by Mary Jean Agostini

According to Freddie Mac’s latest Primary Mortgage Market Survey, the 30-year fixed rate mortgage interest rate jumped up to 3.94% last week. Interest rates had been hovering around 3.5% since June, and many are wondering why there has been such a significant increase so quickly.

 

Why did rates go up?

 

Whenever there is a presidential election, there is uncertainty in the markets as to who will win. One way that this is noticeable is through the actions of investors. As we get closer to the first Tuesday of November, many investors pull their funds from the more volatile and less predictive stock market and instead, choose to invest in Treasury Bonds.

 

When this happens, the interest rate on Treasury Bonds does not have to be as high to entice investors to buy them, so interest rates go down.  Once the elections are over and a President has been elected, investors return to the stock market and other investments, leaving the Treasury to raise rates to make bonds more attractive again.

 

Simply put, the better the economy, the higher interest rates will go. For a more detailed explanation of the many factors that contribute to whether interest rates go up or down, you can follow this link to Investopedia.

 

The Good News

 

Even though rates are closer to 4% than they have been in nearly 6 months, they are still slightly below where we started 2016, at 3.97%.

 

The great news is that even at 4%, rates are still significantly lower than they have been over the last 4 decades, as you can see in the chart below.

Why Are Mortgage Interest Rates Increasing? | MyKCM

Any increase in interest rate will impact your monthly housing costs when you secure a mortgage to buy your home. A recent Wall Street Journal article points out that, “While still only roughly half the average over the past 45 years, according to Freddie Mac, the quick rise has lenders worried that home loans could become more expensive far sooner than anticipated.”

 

Tom Simons, a Senior Economist at Jefferies LLC, touched on another possible outcome for higher rates:

 

“First-time buyers look at the monthly total, at what they can afford, so if the mortgage is eaten up by a higher interest expense then there’s less left over for price, for the principal. Buyers will be shopping in a lower price bracket; thus demand could shift a bit.”

 

Bottom Line

 

Interest rates are impacted by many factors, and even though they have increased recently, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

 
 

Source: Keeping Current Matters

 

 

A Lack of Listings Remains 'Huge' Challenge in the Market

by Mary Jean Agostini

The housing crisis is finally in the rearview mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures & short sales) are at their lowest mark in over 8 years. This has been, and will continue to be, a great year for real estate.

 

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. According to the National Association of Realtors (NAR), buyer traffic and demand continues to be the strongest it has been in years. The supply of homes for sale has not kept up with this demand and has driven prices up in many areas as buyers compete for their dream home.

 

Traditionally, the winter months create a natural slowdown in the market. Jonathan Smoke, Chief Economist at realtor.com, points to low interest rates as one of the many reasons why buyers are still out in force looking for a home of their own.

 

“Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”

 

NAR’s Chief Economist, Lawrence Yun, points out that the inventory shortage we are currently experiencing isn’t a new challenge by any means:

 

"Inventory has been extremely tight all year and is unlikely to improve now that the seasonal decline in listings is about to kick in. Unfortunately, there won't be much relief from new home construction, which continues to be grossly inadequate in relation to demand."

 

Bottom Line

Healthy labor markets and job growth have created more and more buyers who are not just ready and willing to buy but are also able to. If you are debating whether or not to put your home on the market this year, now is the time to take advantage of the demand in the market.

 

Source: Keeping Current Matters

 

 

 

How Long Do Families Stay in a Home?

by Mary Jean Agostini

 

The National Association of Realtors (NAR) keeps Historic Homes data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.

How Long Do Families Stay in a Home? | Simplifying The Market

Why the dramatic increase?

The reasons for this change are plentiful. The top two reasons are:

  1. The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property).
  2. The uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

However, with home prices rising dramatically over the last several years, over 90% of homes with a mortgage are now in a positive equity situation with 70% of them having at least 20% equity.

And, with the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstances. They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple planning to start a family that currently lives in a one-bedroom condo.

These homeowners are ready to make a move. Since the lack of housing inventory is a major challenge in the current housing market, this could be great news.

 

Source: Keeping Current Matters

CTFastrak

by Mary Jean Agostini

“CTFastrak is Connecticut's bus rapid transit (BRT) solution to improve mobility and manage congestion in the I-84 New Britain to Hartford corridor. BRT is an innovative, high capacity, cost-effective public transit solution that can significantly improve travel times through heavily-congested areas by using dedicated transit guide ways or lanes to avoid traffic and quickly transport passengers to their destinations.” Read more here..

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

Article Courtesy of ctfastrak.com

Is It Time to Downsize Your Home?

by Mary Jean Agostini

In 2010, the average size of a new home was 2,169 square feet. That’s over a 1000 square foot increase in the last 30 years. A large home can be nice, especially when you’re raising a family. However, if your kids are now grown or you’re just tired of cleaning and maintaining all that space, you may be thinking about downsizing to a smaller home.

However, selling your home and buying a smaller one is a big commitment. To be sure that you are ready to move to a smaller place and before putting your home on the market or shopping for a new house, take an earnest look at your reasons for making this change.

You may have rooms you never use. Do you find yourself wondering why you even have a formal dining room, or when you’ll ever use that fourth bedroom again? Your home should suit your lifestyle. So, if your formal dinner party days are over and your current home no longer makes sense, it might be time to downsize.

Upkeep on a larger home is time consuming.  Extra rooms and a large yard need regular cleaning and maintenance.  Significant dollars spent on hiring help for extensive landscape and lawn care, systems inspections and other maintenance or repairs can be a cash drain for spaces rarely used.

Your family and friends may have already moved out of your neighborhood and into smaller homes or city condos. When the people you care about and socialize with have moved on with their lives, it may be time for you to move on, too.

Accessibility will eventually become an issue. That second floor master suite may no longer be optimal and a smaller, one-story home, designed for easy access, could be exactly what you need for prolonged independence.

Fortunately, if you are ready to downsize, now is a great time to do it. Home prices are affordable, and mortgage interest rates are low. If your downsize time has arrived and you’re ready for your new dream home, contact me at any time and we can discuss how I can help you to make that transition more easily.

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 of Lonnie Bradley, Stock.XCHNG.

Displaying blog entries 1-10 of 13