Low Inventory, Rising Rates and a Bustling Spring Market

Low Inventory, Rising Rates and a Bustling Spring Market

RECBL - Real Estate News

Spring is here, and, with it, a busy home-buying and -selling season. While real estate markets can vary widely by region, housing is currently seeing similar developments across the country.

The Kiplinger Letter, an online source for personal finance advice and business forecasts, recently shared spring market trends. According to Kiplingers David Payne, staff economist, and Rodrigo Sermeño, reporter, REALTORS(R) can expect tight inventory, increased buyer competition and a rise in interest rates across the board this spring.

The biggest obstacle? Not enough homes, particularly in heavily-populated areas and others that are growing quickly.

"Buyers should expect tight inventory of existing homes across the nation, particularly in fast-growing metro areas such as Denver, Dallas, Seattle and Portland-but also most major metros in the West and in the South," say Payne and Sermeño.

Buyers are out in full-force, and with less inventory to choose from, they are flocking to any available homes in their price point and submitting aggressive bids.

"Buyers should expect more competition for entry-level homes, both existing and new," Payne and Sermeño say. "Tight inventories of existing homes will likely lead to bidding wars in many markets."

What the industry sorely needs right now is new construction, and that’s where the South is prospering.

"The South is seeing strong growth in residential construction, including starter homes," say Payne and Sermeño. "Builders are gradually adding entry-level homes in certain markets in the South, such as Dallas, Phoenix and Atlanta. Some builders are focusing on peripheral areas around these cities, where it is cheaper for them to build entry-level homes."

According to The Kiplinger Letter, buyers in the South and West can expect new homes on the market later this year, especially duplexes and townhomes; however, new-construction growth is generally slow across the U.S. due to high costs and insufficient land to build.

"Builders will continue to gradually bring starter homes to the market, but the rising cost of labor and building materials will make it difficult," Payne and Sermeño say.

While skyrocketing prices have been a concern with tight inventory, REALTORS(R) can breathe a small sigh of relief, as growing home prices seem to be slowing down, if only slightly, for the foreseeable future.

"Home price growth will slow a bit, to 5 percent from 6.5 percent last year," say Payne and Sermeño. "Price appreciation has been strong for a while, and some areas are seeing demand hurt by affordability problems, especially for high-end homes; however, the slowdown this year will only be modest because of continuing lack of inventory, especially at the low-to-middle price ranges."

REALTORS(R) are watching the market closely, as one factor could change the status of todays market. Rising interest rates are homebuyers biggest concern, and contributing to this springs flurry of home-buying activity.

"The prospective rise in interest rates this year and next is actually boosting buyer demand to purchase before rates rise further, according to REALTOR(R) surveys," Payne and Sermeño say. "Next year, once it appears that mortgage rates will be stabilizing, then the higher rates will have a somewhat depressive effect on prices and demand."​


Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.





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Staging the Most Important Rooms in Your Listing

Staging the Most Important Rooms in Your Listing

RECBL - Real Estate News

Staging every room in a for-sale listing may sound ideal; however, it may be a daunting task to both the seller and the listing agent.

If your seller can’t afford to invest in staging the entire home, it’s OK to scale down-after all, it’s better to do a good job on a few rooms than to do nothing at all.

When deciding which rooms to cut and which to keep, remember that not every room is created equally and that half the battle is de-cluttering.

Why Stage?
Because it’s primarily individuals rather than companies who buy homes, it’s important to appeal to the largest number and widest range of buyers possible. Even the most basic DIY staging (like having your client pack up their extensive porcelain doll collection or take down their numerous hunting trophies) can help buyers without those specific interests envision themselves in the home.

When buyers picture themselves in the home, they’re willing to pay more. NARs 2017 Profile of Home Staging reported that 29 percent of sellers agents reported a 1 to 5 percent increase in offer amount compared to similar homes. A further 21 percent reported a 6 to 10 percent increase in their offer amount. Staging also decreases the amount of time a listing will spend on the market. Photos of a nicely staged home make people more willing to walk through a property they found online.

What to Stage?
You don’t have to stage every room in a house to get good results. For example, it’s far more important to stage the living room than the laundry room. Here are the most popular rooms to stage, according to the 2017 Profile of Home Staging, as well as some ideas of what you can do in each:

Living Room
Remove the oversized couch and other bulky furniture and substitute smaller, narrower options. This will make the whole room feel larger. Also, remove all personal photos and enough books, movies and knickknacks to give the shelves extra room, emphasizing how the home offers plenty of "room to grow."

Kitchen
Pack up all the small appliances and do-dads cluttering up the counter, from the coffee pot to the can opener. Clear off the top of the fridge and get rid of all coupons, magnets, personal bulletins, etc. Once all the useful but non-decorative clutter is gone, consider adding a fruit bowl or flowers to add some color to the kitchen. It’s also important to de-clutter inside the cabinets to make them seem more spacious when interested buyers start poking around.

Master Bedroom
Again, start by de-cluttering. The only things on the floor should be furniture and maybe a rug. Most bedrooms don’t need much more than the bed, dresser, end tables, and a mirror. Make sure the surfaces of the furniture are cleared of all personal items. Remove any laundry baskets, TVs, and items visible under the bed. Dress the end tables up with a nice decorative lamp and make sure the bed is neatly and attractively made. If the master bedroom is particularly large, you can also add a comfy sitting area.

Dining Room
Dress the table up with a nice centerpiece and some simple but attractive place settings, but don’t make the table feel cluttered. If the table sits six, lay out four places. If it sits four, lay out two. This will ensure the table looks spacious and inviting. Remove any extra chairs that are gathered around the room, and make sure there is plenty of light, as well.

Bathroom
If you want the bathroom to appeal to buyers, make sure it is spotless. Everything from the tub to the walls should look fresh and clean. You should also remove any medications from the bathroom and put out fresh rugs and towels. Adding a few decorative candles or jars to the shelves will help create a more spa-like environment, as well.

Outside
The first thing a buyer sees when they visit your listing is the outside. Make sure the lawn is freshly mown, the bushes are trimmed, the driveway is clear of leaves and weeds, the windows are clean, and you have an inviting threshold.

Child’s Bedroom
Start by packing up anything that will identify who the child in the room is, such as school memorabilia, sports jerseys, trophies or photos. Most of the toys and all electronics devices should go, as well. Try to emphasize the child’s bedroom as a creative space. A desk or table can help with this. Keep the center of the room clear to emphasize plenty of play space, and use a gender-neutral color scheme to help buyers imagine their children in the room.

Once your client's home is staged, it's your turn to step up to the plate and get it sold. Homes.com makes it easy to find interested buyers and sellers with Featured Agent ads, which display your listings at the top of Homes.com, just one click away from popular Google searches.

For more information, please visit connect.homes.com.

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Struggling With Mortgage Payments? HARP May Help

Struggling With Mortgage Payments? HARP May Help

RECBL - Real Estate News

(TNS)-HARP, or the Home Affordable Refinance Program, is a great way to refinance your mortgage and save a ton of money in interest charges. HARP allows homeowners who have little or no equity in their homes to refinance their mortgages and get lower interest rates. You can even refinance if your mortgage is upside down.

The program was due to expire in September, but it has been extended through December 2018, adding 15 months to this popular initiative.

The 2008 housing crisis left many homeowners owing more on their mortgages than their homes were worth. The rate of foreclosures rose 81 percent in 2008 alone and more than 860,000 homeowners lost their homes.

In 2009, mortgage finance giants Fannie Mae and Freddie Mac launched HARP. More than 3.4 million homeowners have refinanced their mortgages through HARP since then.

By refinancing your home through HARP, you may be able to reduce the interest you pay.

If you don’t want to start over with a 30-year mortgage, that’s OK-your loan terms can be set from 10 to 30 years. HARP also offers a streamlined refinancing process that requires less documentation than traditional refinance programs.

For homeowners whose mortgage rates are much higher than current interest rates, they’re likely see an immediate drop in their house payments.

HARP loans are specifically designed for homeowners whose mortgages have a loan-to-value ratio of 80 percent or more.

To calculate your loan-to-value ratio, divide the amount of money you owe on your mortgage by your homes appraised value. For example, if you owe $170,000 on your mortgage and your homes appraised value is $200,000, your loan-to-value ratio is 85 percent.

You may be eligible to refinance your mortgage through HARP if you meet the following criteria:

• You’re up to date on your mortgage payments, have not been 30 or more days late in the past six months and have not been late more than once in the past 12 months.

• The home is your primary residence, a one-unit second home or a one- to four-unit investment property.

• Your loan is owned by Freddie Mac or Fannie Mae.

• Your loan-to-value ratio is 80 percent or greater.

• You had the mortgage before May 31, 2009.

Many people don’t know if their mortgage is owned by Fannie Mae or Freddie Mac, but you can use their online tools to find out.

If you were previously denied a HARP-sponsored mortgage because you were upside down on your mortgage, it may be time to apply again. Borrowers who owe more on their loan than their homes values are now eligible.

Like with refinancing any mortgage, you’ll have to pay closing costs (which can be rolled into your loan). While a lower mortgage payment reduces your monthly expenses, you’ll want to calculate whether the savings in your monthly payment outweigh your costs.

When you apply for your loan, the lender will give you a "good faith estimate" and a "truth in lending statement." This outlines your costs for the life of the loan. Compare these documents to your current loan terms to determine if you’ll come out ahead with your new refinancing package.

If your existing mortgage includes mortgage insurance, you’ll be required to have the same amount of mortgage insurance with your new loan. If your existing mortgage doesn’t have mortgage insurance, you won’t be required to carry it for the new loan.

If you think a HARP refinancing might save you money, gather your most recent financial records, including mortgage statements, pay stubs and income tax returns. Contact your lender and ask if it participates in HARP. If your lender doesn’t, contact a HARP lender approved by Fannie Mae or Freddie Mac on their websites or on the Federal Housing Finance Authority website.

Visit Bankrate online at www.bankrate.com.

(C)2017 Bankrate.com
Distributed by Tribune Content Agency, LLC




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Home Price Growth Outpaces Inflation

Home Price Growth Outpaces Inflation

Ahead of the Curve: Home Price Growth Outpaces Inflation
#realestate #cashbuyerslists #homeprices #corelogic #salesgrowth #sales #house #housesales #risingsales #rising #propety #forsale #price #index

Home prices continue to chart growth, rising on an annual basis to outpace inflation, according to CoreLogics recently released Home Price Index (HPI) for January 2017. Prices increased 0.7 percent month-over-month and 6.9 percent year-over-year. A combination of factors is driving momentum ahead of the curve, says Dr. Frank Nothaft, chief economist of CoreLogic. "With lean for-sale inventories and low rental vacancy rates, many markets have seen housing prices outpace inflation," Nothaft says. "Over the 12 months through January of this year, the CoreLogic Home Price Index recorded a 6.9 percent rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7 percent-both rising faster than inflation."
Read More> http://bit.ly/RECBL-March9

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