Thursday, January 11, 2018

712,000 Homes in the US Regained Equity in the Past 12 Months! | Simplifying The Market


712,000 Homes in the US Regained Equity in the Past 12 Months!


CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today.
The report also revealed:
  • The average homeowner gained approximately $14,900 in equity during the past year.
  • Compared to Q3 2016, negative equity decreased 22% from 3.2 million homes, or 6.3% of all mortgaged properties.
  • U.S. homeowners with mortgages (roughly 63% of all homeowners) have seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8%, year-over-year.
The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.)
712,000 Homes in the US Regained Equity in the Past 12 Months! | Simplifying The Market
Significant Equity Is on The Rise
Frank Nothaft, Chief Economist at CoreLogic, believes this is great news for the “housing market.” He went on to say:
“Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in more than three years. This increase is primarily a reflection of rising home prices, which drives up home values, leading to an increase in home equity positions and supporting consumer spending.”
Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have significant equity (defined as more than 20%). This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.
The map below shows the percentage of homes by state with a mortgage and significant equity.
712,000 Homes in the US Regained Equity in the Past 12 Months! | Simplifying The Market

Bottom Line

If you are one of the many homeowners who are unsure of how much equity you have in your home and are curious about your ability to move, let’s meet up to evaluate your situation.

Monday, January 08, 2018


4 Reasons to Sell This Winter


4 Reasons to Sell This Winter [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available!
  • Housing inventory is still under the 6-month supply needed to sustain a normal housing market.
  • Perhaps the time has come for you and your family to move on and start living the life you desire.

Tuesday, December 12, 2017

Selling your home this winter could have advantages


The #1 Reason to List Your House Today!

Many people believe that selling their house during “the spring buyers’ market” is the best thing to do. Their reasoning is that there will be more buyers than there are during the winter months and, therefore, their house will sell quicker and for a higher price.
Historically, this made sense. However, today’s real estate market is not following the rules of the past.
The National Association of Realtors (NAR) measures buyer “foot traffic” each month. It receives data on the number of properties shown to a prospective purchaser by a Realtor® (based on the number of lockboxes used). The data reveals the number of buyers out actively looking for a home, not just window shopping on the internet. NAR explains:
“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.”
According to the latest Foot Traffic Report, buyer traffic is greater now than it was during this year’s spring market and there are more buyers out now than at any other time in the last five years (March of 2012).
The chart below shows that buyer activity over the last three months (blue bars) was greater than it was during this past spring market (green bars).
The #1 Reason to List Your House Today! | Simplifying The Market

Bottom Line

If you are waiting for next spring to list your home because you think that’s when the buyers will be out in force, perhaps you should reconsider. Buyers are out right now!

Tuesday, December 05, 2017

Millennials Flock Towards Low Down Payment Programs | Simplifying The Market


Millennials Flock Towards Low Down Payment Programs



report released by Down Payment Resource shows that 61% of first-time homebuyers purchased their homes with a down payment of 6% or less.
The trend continued among all buyers with a mortgage, as 73% made a down payment of less than 20%.
An article by Chase points to a new wave of millennial homebuyers:
“We teamed up with Google to help us better understand what customers are searching for and how the home buying landscape is evolving. We found that millennials and first-time homebuyers are making a big splash in the market, and affordability remains top of mind.”
Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said:
“It’s clear from the survey results that Millennials have a lot of anxiety built up about the home buying process.
There is good news, however, as there’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.”

Bottom Line

If you are one of the many millennials who is debating a home purchase this year, let’s get together to help you understand your options and set you on the path to preapproval.

Tuesday, October 17, 2017

Where Are the Home Prices Heading in the Next 5 Years? | Simplifying The Market


Where Are the Home Prices Heading in the Next 5 Years?


Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey:

Home values will appreciate by 4.4% over the course of 2017, 3.4% in 2018, 2.8% in 2019, 2.7% in 2020, and 2.8% in 2021. That means the average annual appreciation will be 3.22% over the next 5 years.
Where Are the Home Prices Heading in the Next 5 Years? | Simplifying The Market
The prediction for cumulative appreciation fell from 21.4% to 17.3% by 2021. The experts making up the most bearish quartile of the survey are projecting a cumulative appreciation of 6.3%.
Where Are the Home Prices Heading in the Next 5 Years? | Simplifying The Market

Bottom Line

Individual opinions make headlines. We believe this survey is a fairer depiction of future values.



Monday, October 09, 2017

For the moment, at least, some Twin Cities home sellers are being forced to cut prices More sellers cutting their asking prices as the winter slowdown approaches.

By Jim Buchta Star Tribune October 7, 2017 — 11:04pm Twenty percent of all house listings in the Twin Cities metro had a price reduction as of August, twice as many as in the spring. The bulk of the markdowns are in the upper-bracket market. For five long years, the owners of a house at 2104 Kenwood Parkway — known for its appearance in the opening credits of “The Mary Tyler Moore Show” — waited for a buyer. Though the Minneapolis house was in perfect condition, exquisitely staged and on a picture-perfect street in a prime neighborhood, there was only one thing the seller could do to entice a buyer: Reduce the price. After nearly $1.5 million in markdowns — about half of the original list price — the seller finally hit the sweet spot and got not one, but two offers. The sale closed late last month. The Twin Cities home market is closing in on a record year of sales even while supply is extremely tight, giving sellers an advantage over buyers. But with winter just around the corner, the competition among shoppers is waning, making it the best time of year to be a buyer. That change is visible in the growing number of sellers who are cutting prices. Last week, sellers around the metro area offered discounts ranging from a $500 reduction on a $47,000 condo in north Minneapolis to a $505,000 discount on a $2 million architect-designed house on Sunfish Lake. In August, nearly 20 percent of all house listings in the Twin Cities metro had a price reduction, twice as many as this spring and the highest monthly share in two years, according to an analysis of local listing data. “It’s price or patience,” said Nick George, a sales agent. “The one thing we can change is price.” The bulk of the markdowns are happening in the upper-bracket market, where there’s the deepest supply of listings and the smallest buyer pool. Discounts are less common among the most affordable listings, which are most scarce. At the current sales pace, there are still only enough listings priced from $190,000 to $250,000 to last less than two months. And while a greater share of sellers offered a discount last month, those markdowns are slightly smaller than last year largely because buyers this fall have far fewer options than they did last year, putting buyers on the sidelines and stifling sales. During the peak spring buying season this year, buyers were essentially paying sellers all of their original asking price or more, according to data from the Minneapolis Area Association of Realtors. But last week George, who works on the east side of the metro, advised the owner of a townhouse in Oakdale to drop the asking price by $5,000 to $175,000 after it had been visited by 24 prospective buyers without getting an offer. He also had the owners of a two-story house in Woodbury cut the price from $460,000 to $450,000. “I’m not a fan of discounts,” George said. “I’m a fan of pricing a house right.” During the spring, both properties would have sold instantly at their original prices, he said. This fall, however, properties have to be in perfect condition, thoughtfully staged and professionally photographed to get the kind of price they might have commanded before the Fourth of July. While the trend might be troubling for sellers, this seasonal correction is a healthy hedge against another housing price bubble. “People are pulling back a bit; they’re saying ‘I’m going to wait this out,’ ” said Skylar Olsen, senior economist
. “The slowing down is a good sign.” Olsen said while homes in the bottom price tier are appreciating far faster than the top tier — which is why they are less likely to see price cuts this fall — there’s evidence that rising prices in the Twin Cities are slowing slightly after three years of unusually strong gains. The latest S&P CoreLogic Case-Shiller Minneapolis Home Price NSA Index, for example, still hasn’t exceeded the previous high set in 2007. That’s in contrast to the national index, which hit a new high last summer. “Sellers can still be confident, but be aware when you’re listing your home that there might not be the fervor that there was in the main selling season,” Olsen said. “Hopefully this a sign of more sane times to come.”

Monday, November 28, 2016

Millennials Still Chasing American Dream Despite Hurdles Posted on Nov 21 2016 - 11:07am by Housecall Surprising to some, millennials are all about chasing the American dream and owning a home of their own despite current market and economic setbacks. This infographic from FirstTimeHomeFinancing.com explains what's keeping millennials from pursuing their home-ownership dreams and outlines several programs that could help them achieve their goals.