According to the BMO Harris
Bank Home Buying Report, 52% of Americans say they are likely
to buy a home in the next five years. Americans surveyed for the report said
that they would be willing to pay an average of $296,000 for a home and would
average a 21% down payment. The report also included other interesting
revelations.
Those
Looking to Buy
Those Who
Already Own
The
last point is very interesting: Of those who purchased a home, 8% bought "without
any plan to buy at all". A property caught their attention and they
acted on it.
Why Are More People Not Planning Their Next Move?
Why
are people that are considering a move not putting their home search to a
plan, and instead, buying only when a property catches their attention? An article
by Fannie Mae reveals evidence that a large number of homeowners are
dramatically underestimating the equity they have in their current home. The
report explains that:
"Homeowners
may be underestimating their home equity. In particular, if homeowners
believe that large down payments are now required to purchase a home, then
widespread, large underestimates of their home equity could be deterring them
from applying for mortgages, selling their homes, and buying different
homes."
Bottom Line
Perhaps
it is time to sit with a real estate professional to determine the actual
equity you have in your house and to take a look at the opportunities that
currently exist in the real estate market. This may be the perfect time to
move-up, move-down or buy that vacation home your family has always wanted.
Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
|
Saturday, April 30, 2016
Over Half of Americans Planning on Buying in the Next 5 Years
Sunday, April 24, 2016
Don’t Wait! Move Up To Your Dream Home Now!
Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.
Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs.
Here is a chart detailing this point:
According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%.With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).
Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.
Act now to get the most house for your hard-earned money.
Looking to Buy, Sell, or Invest? Contact:David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
Saturday, April 23, 2016
Building Wealth: First Rung on the Ladder is Housing
How
Housing Matters is a joint project of the Urban Land Institute and
the MacArthur Foundation.
It is “an online resource
for the most rigorous research and practical information on how a quality,
stable, affordable home in a vibrant community contributes to individual and
community success”. A recent story they published, The First Rung
on the Ladder to Economic Opportunity Is Housing, discussed the
importance of having affordable housing available to as many families as
possible because:
“The ladder to economic success can stretch only so high without
the asset-building power of homeownership. Home
equity provides Americans with the ability to send their children to college
with less student loan debt and is the primary source of funds for retirement.
Half of the assets of Americans over age 55 are in their home.”
Bottom Line
Bottom Line
We have often posted
that the net worth of a family owning a home is 45 times greater than that of a
family that rents. That is not a coincidence.
Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
Sunday, April 17, 2016
The Main Reasons to Use a Real Estate Professional when Selling your House
Every homeowner hopes to accomplish five goals
when selling their home:
1.
Sell it for the best price
2.
Sell it within a predetermined time
3.
Sell it with the least amount of hassles
4.
Close on the sale the same day they move into their new home
The fifth reason is the most obvious and the most important:
5.
They want to make sure it sells.
In order to dramatically increase the chances that the house
sells, a homeowner should list with a real estate professional in their market.
Why? Because agents have access to the vast majority of the available buyers!!
According to the National
Association of Realtors’ (NAR)
recently released 2016 Home Buyer
and Seller Generational Trends Report, 87% of all buyers
purchased their home through a real estate agent or broker. And more that 8 out
of 10 buyers in every age group used an agent (see chart below). 
Bottom Line
If you want your home sold, the best way is to
go where the buyers are. The NAR study revealed that the vast majority of
purchasers will use an agent when they buy. Meet with a local real estate
professional today if you want the best chance of selling.Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
Sunday, April 10, 2016
Housing Market To “Spring Forward” This Year
Just like our clocks this weekend in the
majority of the country, the housing market will soon “spring forward!” Similar
to tension in a spring, the lack of inventory available for sale in the market
right now is what is holding back the market. Many potential sellers believe
that waiting until Spring is in their best interest, and traditionally they
would have been right. Buyer demand has seasonality to it, which usually falls
off in the winter months, especially in areas of the country impacted by arctic
temperatures and conditions.
That hasn’t happened
this year.
Demand for housing has remained strong as mortgage rates have
remained near historic lows.
The National Association of
REALTORS (NAR) recently reported that the top 10 dates
sellers listed their homes in 2015 all fell in April, May or June. Those who
act quickly and list now could benefit greatly from additional exposure to
buyers prior to a flood of more competition coming to market in the next few
months.
Bottom Line
If you are planning on selling your home in
2016, meet with a local real estate professional to evaluate the opportunities
in your market. Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
Saturday, April 9, 2016
Further Proof This Isn’t a Housing Bubble
Two weeks ago, we posted a blog which
explained that current increases in home prices were the result of the well-known
concept of supply & demand and should not lead to
conversations of a new housing bubble. Today, we want to look at home prices as
compared to current incomes. Here is a graph showing the monthly mortgage
payment on a median priced home in the U.S. over the last 25 years: 
Mortgage payments are
currently well below the historic average over that time period. Purchasers are
not overextending themselves to buy a home like they did on the run-up to the
housing crash. Lawrence Yun, the Chief Economist at the National Association of Realtors,
recently explained in a Forbes
article:
“Even though home prices are climbing far above people’s income,
exceptionally low mortgage rates have permitted people to buy a home without
overstretching their budget. For someone making a 20% down payment, the monthly
mortgage payment at today’s mortgage rates would take up 15% of a person’s
gross income. During the bubble years, it was reaching 25% of income. The
long-term historical average is around 20%. Therefore, a middle-income
household does not need to overstretch their budget much if at all to buy a
typical home.”
Bottom Line
Due to low interest rates, demand for housing has dramatically increased. This has caused a jump in home prices. However, low interest rates have also allowed the monthly cost of buying a home to remain well below historic norms. We are in a strong housing market, not a housing bubble.
Bottom Line
Due to low interest rates, demand for housing has dramatically increased. This has caused a jump in home prices. However, low interest rates have also allowed the monthly cost of buying a home to remain well below historic norms. We are in a strong housing market, not a housing bubble.
Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
Sunday, April 3, 2016
Lack of Inventory Challenging Many Housing Markets
Going into the 2016 spring market, the biggest
challenge the real estate industry has is the lack of available housing
inventory for sale. Here are a few experts and their thoughts on the subject:
David Crowe,
Chief Economist for the National
Association of Home Builders:
“Many sellers may not have an absolute decision as to whether to
buy an existing home or a new home. So the low inventory of existing homes is
locking them in place.”
Ralph McLaughlin,
Chief Economist with Trulia:
“We are in a time of short supply, which is great news for
sellers because they will likely be faced with multiple offers due to the
little inventory out there…Buyers will be up against a lot of other people and
against a short supply of existing homes.”
Lawrence Yun,
Chief Economist with NAR:
“First-time buyers in high demand areas continue to encounter
instances where their offer is trumped by cash buyers and investors. Without a
much-needed boost in new and existing-homes for sale in their price range,
their path to homeownership will remain an uphill climb.”
Fitch Ratings:
“One important issue that has restrained sales and starts is
inventory. On an absolute basis, inventory has not expanded as much as in past
recoveries, leading to less selection for buyers. This is especially true for
existing home sales but is evident for new home construction as well. When it
comes to U.S. housing inventory, more is better."
Jonathan Smoke,
Chief Economist for Realtor.com:
“The increase in sales is resulting in continued
tighter-than-tight supply—measured by NAR to be four months in January.
For you non-economists out there, that metric measures the number of months it
would take to sell the current inventory of available homes, at the current
pace. Got it? Six to seven months’ worth of homes on the market is considered
normal; four months is cray-cray.”
Looking to Buy, Sell, or Invest? Contact:
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
Saturday, April 2, 2016
We Helped Another Seller Achieve Over Asking
David Demangos
858.232.8410
Locally Known, Globally Connected
Luxury Home Marketing Specialist
Global Property Specialist
David@AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
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