The Real Estate StarRecently posted or modified blog postshttps://www.firstsourcere.com/blog/Copyright FirstSourceRE.com2023-10-12T14:19:53-07:00tag:firstsourcere.com,2012-09-20:1359The Smart Move: Buying a Home Now and Refinancing Later for Lower RatesThe Smart Move: Buying a Home Now and Refinancing Later for Lower Rates
In today's ever-changing real estate market, prospective homebuyers often find themselves facing a dilemma: Should they buy a home now, despite current interest rates, or wait for potentially lower rates in the future? While the decision may seem daunting, there's a strategy that combines the best of both worlds. In this blog post, we'll explore the benefits of buying a home now and refinancing in a few years when rates are lower, and how First Source Realty can help you make this smart move.
1. Locking in Today's Prices:
The real estate market is known for its fluctuations, and housing prices can rise significantly over time. By purchasing a home now, you secure a property at today's prices, potentially saving you money in the long run. Waiting for lower interest rates to buy may mean paying a higher price for the same property down the line.
2. Building Equity:
Every mortgage payment you make contributes to building equity in your home. By buying now, you start building equity sooner rather than waiting for lower rates and potentially missing out on years of equity growth.
3. Enjoy Homeownership Sooner:
Buying a home now allows you to enjoy the benefits of homeownership sooner rather than later. You can personalize your space, establish roots in your community, and enjoy the stability and security that come with owning your own home.
4. Refinancing for Lower Rates:
One of the most significant advantages of this strategy is the ability to refinance your mortgage when interest rates drop in the future. Refinancing allows you to take advantage of lower rates without the stress of selling your current home and buying a new one. This can lead to reduced monthly payments and substantial savings over the life of your loan.
5. Improved Financial Position:
Refinancing to lower rates can improve your overall financial situation. With lower monthly mortgage payments, you'll have more disposable income to invest, save, or use for other financial goals.
How First Source Realty Can Help:
Our experienced real estate professionals at First Source Realty understand the intricacies of the housing market and the importance of making strategic decisions. We can guide you through the process of purchasing a home that suits your needs and budget today and help you explore refinancing options when the time is right.
Conclusion:
Buying a home now and refinancing in a few years when rates are lower is a savvy financial move that allows you to enjoy the benefits of homeownership while keeping an eye on future savings. At First Source Realty, we're committed to helping you make informed decisions that align with your long-term financial goals. Contact us today to take the first step towards securing your future through smart real estate investments. Don't miss out on the opportunity to lock in today's prices while preparing for a more financially advantageous future.2023-10-13T07:30:00-07:002023-10-12T14:19:53-07:00Robin Frankstag:firstsourcere.com,2012-09-20:1358Exploring Your Options When Behind on Mortgage Payments: A Path to Financial ReliefAre you a homeowner facing the daunting challenge of falling behind on your mortgage payments due to high insurance rates or other personal reasons? You're not alone. Life can throw unexpected curveballs at us, and sometimes, it becomes challenging to keep up with the financial responsibilities of homeownership. The good news is that there are options available to help you regain your financial footing and prevent foreclosure. In this blog post, we'll explore these options and discuss how selling your home may also be a viable solution.
Understanding the Challenge: High Insurance Rates and Personal Reasons
High insurance rates can significantly impact your monthly mortgage payments, making it difficult to stay current on your obligations. Additionally, personal reasons such as job loss, medical expenses, or unforeseen family emergencies can further strain your finances, making it harder to keep up with your mortgage.
Exploring Your Options:
Loan Modification: One potential solution to consider is a loan modification. This involves renegotiating the terms of your mortgage with your lender to make it more manageable for you. It can lead to lower interest rates, extended loan terms, or even a reduction in the principal balance.
Forbearance: If you're facing temporary financial hardship, a forbearance agreement with your lender might be an option. This allows you to temporarily pause or reduce your mortgage payments until you get back on your feet financially.
Refinancing: Refinancing your mortgage to secure a lower interest rate can help reduce your monthly payments. This option may be more suitable if your credit score and financial situation allow for it.
Selling Your Home: In some cases, selling your home might be the best course of action. While it can be a difficult decision to make, it can provide a fresh start and prevent foreclosure. Selling your home quickly and at a fair price is essential in this scenario, and that's where our experienced realtors at First Source Realty can assist you.
How First Source Realty Can Help:
Our team of dedicated real estate professionals understands the challenges you're facing. We offer a FREE consultation to homeowners like you who are exploring their options. We'll discuss your unique situation, provide guidance on the best path forward, and assist you in selling your home if that's the right choice for you.
Conclusion:
Falling behind on mortgage payments due to high insurance rates or personal reasons is a stressful situation, but it's essential to remember that you have options. Whether you choose to explore loan modification, forbearance, refinancing, or selling your home, it's crucial to take proactive steps to secure your financial future.
At First Source Realty, we're here to support you every step of the way. Contact one of our Realtors today or fill out the form below for a FREE consultation and take the first step toward regaining control of your financial situation and achieving peace of mind. Your path to financial relief starts here.2023-10-12T13:14:47-07:002023-10-12T13:24:51-07:00Robin Frankstag:firstsourcere.com,2012-09-20:1307Navigating the Insurance StormNavigating the Storm: What to Do When Your Home Insurance Costs Surge or Gets Cancelled
Home insurance is a critical safety net for homeowners, protecting their most significant investment. However, the insurance landscape is changing rapidly, making it increasingly challenging for homeowners to secure affordable and comprehensive coverage. In light of extreme weather events and natural disasters, some insurance companies are either going out of business or hiking up their prices. This blog post aims to guide you through the steps you can take if you find yourself facing a sudden increase in insurance costs or, worse, a cancellation of your policy.
The Mortgage Lender's Role
Your mortgage lender generally requires your property to be insured. If you let your insurance policy expire or stop paying for it, the lender has the right to purchase a policy on your behalf and charge you for it. This is known as "force-placed" or "lender-placed" insurance. However, this type of insurance usually only protects the lender and can cost you twice as much as a regular policy. Federal law mandates that your mortgage servicer must notify you at least 45 days before charging you for force-placed insurance.
How to Stay Ahead of High Insurance Costs
To avoid surprises, keep an eye on the renewal date of your current insurance policy. Your insurer should notify you one to three months before this date if they decide not to renew your coverage. This gives you ample time to shop for another policy. Even if your insurer renews your coverage, be prepared for the cost to increase.
What to Do If Your Coverage Is Not Renewed
If you receive a notice stating that your coverage won't be renewed, the first step is to contact your insurance agent or company to find out why. Depending on the circumstances, they might reconsider their decision.
Shopping for the Right Coverage
To avoid force-placed insurance, you need a policy that aligns with your property and any unique requirements, such as specific risks like fire. Contact your state's insurance department to find out which companies are operating in your area. You can also look up information through the National Association of Insurance Commissioners.
State's FAIR Plan
Most U.S. states and the District of Columbia offer insurance programs called Fair Access to Insurance Requirements (FAIR) plans. These plans provide coverage even in areas where insurance companies have decided not to sell policies. However, FAIR plans typically cost more than standard policies.
Notify Your Mortgage Servicer
Once you've secured your own coverage, inform your mortgage servicer about the change. You have the right to remove force-placed insurance once you have your own policy.
Stay Prepared for Change
Making home improvements like installing a fire alarm, security system, or updating your plumbing can make it more likely for your insurer to renew your policy and might even lower the cost. Stay updated on your climate risk and keep track of your important financial information.
Conclusion
The changing landscape of home insurance is a growing concern for homeowners across the country. By staying informed and taking proactive steps, you can navigate through these turbulent times and secure the best possible coverage for your home.
This blog post is based on information provided by the Consumer Financial Protection Bureau. For more details, you can visit their <a href="https://www.consumerfinance.gov/about-us/newsroom/consumer-advisory-take-action-when-home-insurance-is-cancelled-or-costs-surge/" target="_new">official website</a>.2023-08-31T10:56:00-07:002023-08-30T11:04:43-07:00Robin Frankstag:firstsourcere.com,2012-09-20:1303Navigating the Surge in Monthly Payments due to Increased Insurance Premiums in Southeast LouisianaNavigating the Surge in Insurance Premiums in Southeast Louisiana
The beauty and culture of southeast Louisiana are unparalleled, but the region has faced its share of challenges. Recent hurricanes and other natural disasters have not only left a mark on our landscapes but have also significantly impacted homeowners' pockets. The aftermath of these events has led to a surge in insurance premiums, with many insurance companies facing insolvency or choosing to stop writing policies in Louisiana altogether.
Understanding the Insurance Crisis:
The frequency and intensity of natural disasters in southeast Louisiana have placed immense strain on insurance companies. Many have found it financially unsustainable to continue offering coverage in the region, leading to fewer options for homeowners and, consequently, higher premiums.
What Can Homeowners Do?
Selling Your Home: If the weight of increased insurance premiums is becoming too much, selling your home might be a practical solution. This can provide financial flexibility and the opportunity to relocate to an area with more affordable insurance rates.
First Source Realty: Your Partner in Challenging Times
During such tumultuous times, having a trusted partner can make all the difference. First Source Realty is committed to assisting homeowners in southeast Louisiana navigate these challenges. If you're contemplating selling your home, our experienced agents can offer insights into the current market, ensuring you get the best value for your property.
Reach out to us at 504-754-0059. We're here to help you explore your options and make informed decisions.2023-08-28T08:30:00-07:002023-08-27T09:16:33-07:00Robin Frankstag:firstsourcere.com,2012-09-20:1302Is a Short Sale Right for You? Understanding the Basics and the Benefits.Is a Short Sale Right for You? Understanding the Basics and Benefits
In the ever-evolving world of real estate, there are numerous options available for homeowners. One such option that often comes up, especially in challenging financial times, is a short sale. But what exactly is a short sale, and is it the right choice for you? Let's delve into the details.
What is a Short Sale?
A short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage. This type of sale is typically considered when the homeowner is facing financial hardship and cannot keep up with their mortgage payments. The lender, usually a bank, agrees to accept a reduced amount than what's owed to avoid a lengthy and costly foreclosure process.
Benefits of a Short Sale:
Avoid Foreclosure: Foreclosure can have long-lasting effects on your credit score. A short sale can help you avoid this and potentially allow for a quicker financial recovery.
Control Over the Sale: Unlike a foreclosure where the bank takes control, in a short sale, you still have a say in the sale process, including choosing the buyer and setting the sale date.
Potential for Financial Relief: Some lenders offer financial incentives or assistance to homeowners who opt for a short sale, which can help with relocation costs.
Reduced Stress: Facing the possibility of losing your home can be emotionally taxing. A short sale can provide a way out, offering peace of mind in a challenging situation.
Is a Short Sale Right for You?
While the benefits are clear, a short sale might not be the best option for everyone. It's essential to consider your financial situation, the real estate market in your area, and your long-term goals. Here are some things to ponder:
Your Financial Situation: If you believe your financial hardship is temporary, there might be other options worth exploring, like loan modifications or refinancing.
Market Conditions: If home values are rising in your area, it might be worth waiting a bit longer to see if you can sell your home without resorting to a short sale.
Future Plans: Remember that a short sale can impact your credit, which might affect your ability to purchase another home in the near future.
Need More Information?
Deciding on a short sale is a significant decision, and it's crucial to have all the information at your fingertips. If you have questions about the value of your home, the short sale process, or other available options, we're here to help.
Contact First Source Realty<br />Our experienced real estate agents at First Source Realty are equipped with the knowledge and expertise to guide you through this process. Whether it's a short sale or another real estate solution, we're committed to finding the best option for you.
📞 Call us today at 504-754-0059. Let's discuss your situation and explore the best path forward for you and your home.
Remember, in the world of real estate, knowledge is power. And with First Source Realty by your side, you're in capable hands.2023-08-25T17:44:30-07:002023-08-25T18:14:09-07:00Robin Frankstag:firstsourcere.com,2012-09-20:1215King Cake BabyKing Cake Baby Meaning
<img src="https://assets.site-static.com/userfiles/795/image/king-cake-with-bab.jpg" width="373" height="373" alt="king cake baby" />
Finding the tiny plastic baby in your slice of king cake symbolizes luck and prosperity, and it earns you the title of “queen” or “king” of the festivities. However, you’re probably wondering why there is a baby in the king cake in the first place. There are two theories:
Christian Roots - Religious revelers believe the baby symbolizes baby Jesus, connecting it to the cake's history with Kings Day. Also known as Epiphany, Kings Day is a Christian holiday commemorating the Three Kings' visit to Baby Jesus. King cake is enjoyed between King's Day and Mardi Gras. It is considered bad luck to eat king cake outside of Carnival season and will result in a rainy Mardi Gras day.
Local Lore - New Orleans locals believe the plastic baby evolved from a historical event during Louisiana's colonial period. Legend has it that an ornate ring was baked into the elaborate cake served at the king's ball. Whoever found the expensive trinket in their slice of cake was crowned the king or queen of the balls leading up to the opulent Mardi Gras bash.
The plastic baby baked into modern king cakes blends these two traditions by replacing the expensive ring used at the king's ball with an affordable item imbued with religious symbolism. Today, whoever finds the plastic baby is transferred hosting duties for the next year and tasked with providing the king cake. Along with their new responsibilities, they also receive good luck.2023-02-02T09:16:41-07:002023-02-02T09:21:53-07:00Robin Frankstag:firstsourcere.com,2012-09-20:1204Self Employed Tax Return and Buying a Home<img src="https://assets.site-static.com/userfiles/795/image/tax_return.jpg" width="222" height="148" />
How Will Your 2022 Tax Return affect your ability to purchase a home in 2023?
If purchasing a home in 2023 is one of your New Years’ resolutions, Filing your 2022 Tax return should be high on your list of items that need to be completed. It’s a good time to start gathering your receipts and organizing your bank statements, W2’s, 1099’s or deposits if you are self-employed.
When you are ready to get pre approved before you start looking for a home, one of the first things a Lender will require you to provide is multiple years of your income tax returns in order to verify your income especially if you are self employed. You may have a full time job that does provide a W2, but if you also have a small business that you claim business expenses the lender needs that information as well. Keep in mind that your tax return is used to determine your income. So if you have a job or a small business and show a loss on your tax return, that will reflect on your total income which determines your borrowing power.
Your borrowing power is determined by your income and debt. Reducing your income by claiming business expenses, whether it is unreimbursed business expenses or deductions for a small business, will result in reducing the amount of home you will qualify to purchase.
If you are not sure how this will affect you, contact your Realtor or lender before filing your 2022 income tax return. You can always reach one of our Realtors at 504.754.0059 or <a href="mailto:info@firstsourceRE.com">info@firstsourceRE.com</a>.2023-01-02T20:00:00-07:002023-08-30T11:05:54-07:00Robin Frankstag:firstsourcere.com,2012-09-20:764Buyer Activity Remains High
<img src="https://assets.site-static.com/userfiles/795/image/south_showing_activity.JPG" width="648" height="733" alt="may 2021 showing activity" />May 2021 Showing Index Results: Unseasonable Decline Seen in Showings, Though Buyer Activity Remains High
June 22, 2021 – Although May buyer traffic declined compared to April, it remains elevated from the same time last year, according to the ShowingTime Showing Index®.
Of the 30 busiest markets for showings across the U.S., 28 recorded month-over-month declines from April. The exceptions were Orlando, Fla., and Raleigh, N.C., which were unchanged. Jackson, Tenn., bucked the trend, recording an 11 percent increase in the average number of showings per listing.
May’s ebb in traffic suggests the U.S. residential real estate market is adjusting and stabilizing, as inventory levels begin to rise again.
“It’s common for showing traffic to reach a high point in April and remain there for a couple of months,” said ShowingTime President Michael Lane. “The unusual May decline doesn’t take away from the fact that showings continue to be at an all-time high, with year-over-year traffic up nearly 65 percent in some regions of the country.”
Showings increased 49.6 percent year-over-year in the U.S., with the Northeast region leading the way with a 63.5 percent increase compared to last May. It was followed closely by the West’s increase of 60.5 percent, while the South increased 43.7 percent and the Midwest was up 40.7 percent year over year.
“Although showing traffic continues at a historic pace, we saw a substantial month-to-month decrease from April’s levels,” said ShowingTime Chief Analytics Officer Daniil Cherkasskiy. “As we stated last month, even if demand begins to weaken, we’ll still be far from a buyer’s market since the demand for real estate remains at an unprecedented level.”
May marks the one-year point in which showing activity resumed in earnest after pandemic-induced drops. The infusion of additional inventory should come as a relief to buyers.
The ShowingTime Showing Index is compiled using data from more than six million property showings scheduled across the country each month on listings using ShowingTime products and services. The Showing Index tracks the average number of appointments received on active listings during the month.2021-06-25T07:38:00-07:002023-08-30T11:06:21-07:00Robin Frankstag:firstsourcere.com,2012-09-20:7375 Reasons to Sell Your House This Spring<img src="https://assets.site-static.com/userfiles/795/image/Copy_of_Lead_Page_Template.png" width="456" height="303" alt="For Sale" />
When selling a house, most homeowners hope for a quick and profitable transaction that puts them in a position to make a great move. If you’re waiting for the best time to win as a seller, the market is calling your name this spring. Here are five reasons why this is the perfect time to sell your house if you’re ready.
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1. There’s high demand from homebuyers.
Buyer demand is strong right now, and buyers are active in the market. ShowingTime, which tracks the average number of buyer showings on residential properties, recently announced that buyer showings are up 51.5% compared to this time last year. Daniil Cherkasskiy, Chief Analytics Officer at ShowingTime, <a href="https://www.showingtime.com/blog/january-2021-showing-index-results/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As anticipated, demand for real estate remains elevated and continues to be affected by low levels of inventory…On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.”
When your house is positioned to get a ton of attention from competitive buyers, you’re in the best spot possible as the seller.
2. There aren’t enough houses for sale.
Purchaser demand is so high, the market is <a href="https://www.mykcm.com/2021/02/22/where-have-all-the-houses-gone/" title="running out">running out</a> of available houses for sale. Recently, realtor.com <a href="https://www.realtor.com/research/february-2021-data/" title="reported" target="_blank" rel="noopener noreferrer">reported</a>:
“Nationally, the inventory of homes for sale in February decreased by 48.6% over the past year, a higher rate of decline compared to the 42.6% drop in January. This amounted to 496,000 fewer homes for sale compared to February of last year.”
The National Association of Realtors (NAR) also <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="reveals" target="_blank" rel="noopener noreferrer">reveals</a> that, while home sales are skyrocketing, the inventory of existing homes for sale is continuing to drop dramatically. Houses are essentially selling as fast as they’re hitting the market – in fact, NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="reports" target="_blank" rel="noopener noreferrer">reports</a> that the average house is on the market for only 21 days.
It’s this imbalance between high buyer demand and a low supply of houses for sale that gives sellers such an advantage. A seller will always negotiate the best deal when demand is high and supply is low. That’s exactly what’s happening in the real estate market today.
3. You have a lot of leverage in today’s market.
Clearly, many more people are interested in buying than selling this spring, creating the ultimate <a href="https://www.mykcm.com/2021/02/26/its-a-sellers-market-infographic/" title="sellers’ market">sellers’ market</a>. When this happens, homeowners in a position to sell have the upper hand in negotiations.
According to NAR, agents are <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-01-realtors-confidence-index-02-19-2021.pdf" title="reporting" target="_blank" rel="noopener noreferrer">reporting</a> an average of 3.7 offers per house and an increase in bidding wars. As a seller, this means the ball is in your court – so much so that you can use your <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="leverage">leverage</a> to negotiate the best possible contract. Demand is there, and now is the perfect time to sell for the most favorable terms.
4. It’s a great way to use your home equity.
According to the latest <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" title="data" target="_blank" rel="noopener noreferrer">data</a> from CoreLogic, as of the third quarter of 2020, the average homeowner gained $17,000 in equity over the past year, and that number continues to grow as <a href="https://www.mykcm.com/2021/03/02/home-prices-what-happened-in-2020-what-will-happen-this-year/" title="home values">home values</a> appreciate. <a href="https://www.mykcm.com/2021/02/17/3-ways-home-equity-can-have-a-major-impact-on-your-life/" title="Equity">Equity</a> is a type of forced savings that grows during your time as a homeowner and can be put toward bigger goals like buying your next dream home.
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/housing-market-potential-reaches-highest-level-since-2007" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
5. It’s a chance to find a home that meets your needs.
So much has changed over the past year, including what many of us need in a home. Spending extra time where we currently live is enabling many of us to re-evaluate homeownership and what we find most important in a home.
Whether it’s a house that has the features suited to working remotely, space for virtual or hybrid schooling, a home gym or theater, or something else, selling this spring gives you a chance to make a move and <a href="https://www.mykcm.com/2021/02/25/are-there-going-to-be-more-homes-to-buy-this-year/" title="find">find</a> the home of your dreams.
Bottom Line
Today’s housing market belongs to the sellers. If you’ve considered making a move but have been waiting for the right market conditions, your wait may be over. Let’s connect so you’ll be positioned to win when you sell your house this spring.
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If you'd like to tips to prepare your home this spring, <a href="https://assets.site-static.com/userfiles/795/image/prepare_to_sell_spring.png" title="How to Prepare Your House This Spring">Click here</a>
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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.
2021-03-09T07:56:00-07:002021-03-23T07:32:02-07:00Robin Frankstag:firstsourcere.com,2012-09-20:729Lumber Prices Continue to Soar<img src="https://assets.site-static.com/userfiles/795/image/lumber700.jpg" width="700" height="360" alt="Lumber" />
The price of lumber hit a record high last week and is up more than 170% over the past 10 months. That is prompting builders to have to raise new-home prices as soaring lumber costs add thousands of dollars to the price of building a new home, the National Association of Home Builders reports.
Builders point to tariffs on Canadian lumber shipments into the U.S. as exacerbating “unprecedented price volatility in the lumber market” over recent months.
“Lumber price spikes are not only sidelining buyers during a period of high demand, they are causing many sales to fall through and forcing builders to put projects on hold at a time when home inventories are available at a record low,” NAHB reports.
Several builders reportedly are having to delay construction starts due to the higher lumber costs. Those delays are occurring at a time when home purchases and demand are on the rise.
“This increase has definitely hurt my business,” Alicia Huey, a high-end custom builder from Birmingham, Ala., told NAHB. Huey says the lumber framing package on identically sized homes has more than doubled over the past year—$35,000 to $71,000. “I’ve had to absorb much of this added cost and even put some construction on hold because I would be losing money by moving forward,” Huey says.
In late 2020, NAHB reported that a median of $16,000 had been added to the cost of a newly built home due to the increase in lumber prices. However, lumber prices are much higher since then and the added costs are likely even more now. Compounding the issue, appraisers are not factoring in the higher lumber costs, “which is disrupting home sales and preventing closings,” says Carl Harris, NAHB’s third-vice chair.
The rise in lumber prices is unsustainable and is pressing on the housing affordability crisis, notes Chuck Fowke, NAHB’s chairman. “Given the ongoing period of high demand, the Commerce Department should be investigating why output from lumber producers and lumber mills are at such low levels,” Fowke adds.
Source:
“<a href="https://nahbnow.com/2021/02/record-high-lumber-prices-are-hammering-housing-affordability/" data-di-id="di-id-6db76fc-c1db0d95">Record-High Lumber Prices Are Hammering Housing Affordability</a>,” National Association of Home Builders (Feb. 12, 2021)2021-02-18T11:20:00-07:002021-03-09T08:03:49-07:00Robin Frankstag:firstsourcere.com,2012-09-20:687What Does 2021 Have in Store for Home Values?<img width="750" height="410" src="https://files.mykcm.com/2021/01/06083234/20210107-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What Does 2021 Have in Store for Home Values? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/01/06083234/20210107-KCM-Share.jpg 750w, https://files.mykcm.com/2021/01/06083234/20210107-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/01/06083234/20210107-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
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According to the latest CoreLogic <a href="https://www.corelogic.com/insights-download/home-price-index.aspx" title="Home Price Insights Report" target="_blank" rel="noopener noreferrer">Home Price Insights Report</a>, nationwide home values increased by 8.2% over the last twelve months. The dramatic rise was brought about as the inventory of homes for sale reached historic lows at the same time buyer demand was buoyed by record-low mortgage rates. As CoreLogic <a href="https://www.corelogic.com/blog/2020/12/us-for-sale-home-supply-tightened-during-pandemic.aspx" title="explained" target="_blank" rel="noopener noreferrer">explained</a>:
“Home price growth remained consistently elevated throughout 2020. Home sales for the year are expected to register above 2019 levels. Meanwhile, the availability of for-sale homes has dwindled as demand increased and coronavirus (COVID-19) outbreaks continued across the country, which delayed some sellers from putting their homes on the market.
While the pandemic left many in positions of financial insecurity, those who maintained employment and income stability are also incentivized to buy given the record-low mortgage rates available; this is increasing buyer demand while for-sale inventory is in short supply.”
Where will home values go in 2021?
Home price appreciation in 2021 will continue to be determined by this imbalance of supply and demand. If supply remains low and demand is high, prices will continue to increase.
Housing Supply
According to the National Association of Realtors (NAR), the current number of single-family homes for sale is 1,080,000. At the same time last year, that number stood at 1,450,000. We are entering 2021 with approximately 270,000 fewer homes for sale than there were one year ago.
However, there is some speculation that the inventory crush will ease somewhat as we move through the new year for two reasons:
1. As the health crisis eases, more homeowners will be comfortable putting their houses on the market.
2. Some households impacted financially by the pandemic will be forced to sell.
Housing Demand
Low mortgage rates have driven buyer demand over the last twelve months. According to Freddie Mac, rates stood at <a href="http://www.freddiemac.com/pmms/archive.html" title="3.72%" target="_blank" rel="noopener noreferrer">3.72%</a> at the beginning of 2020. Today, we’re starting 2021 with rates one full percentage point lower than that. Low rates create a great opportunity for homebuyers, which is one reason <a href="https://www.mykcm.com/2020/12/31/four-expert-views-on-the-2021-housing-market/" title="why">why</a> demand is expected to remain high throughout the new year.
Taking into consideration these projections on housing supply and demand, real estate analysts forecast homes will continue to appreciate in 2021, but that appreciation may be at a steadier pace than last year. Here are their forecasts:<a href="https://files.mykcm.com/2021/01/08134331/20210107-MEM-Eng-1-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-96977" src="https://files.mykcm.com/2021/01/08134331/20210107-MEM-Eng-1-1.jpg" alt="What Does 2021 Have in Store for Home Values? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/01/08134331/20210107-MEM-Eng-1-1.jpg 1000w, https://files.mykcm.com/2021/01/08134331/20210107-MEM-Eng-1-1-600x450.jpg 600w, https://files.mykcm.com/2021/01/08134331/20210107-MEM-Eng-1-1-768x576.jpg 768w, https://files.mykcm.com/2021/01/08134331/20210107-MEM-Eng-1-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Bottom Line
There’s still a very limited number of homes for sale for the great number of purchasers looking to buy them. As a result, the concept of “supply and demand” mandates that home values in the country will continue to appreciate. If selling in 2021 is a possibility, let's discuss today's market and how it can benefit you. Give us a call at 504.754.0059 or request more info below.
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2021-01-11T08:21:00-07:002021-01-11T08:28:14-07:00Robin Frankstag:firstsourcere.com,2012-09-20:6833 Things to Consider If You Plan on Selling Your House This Year.<img src="https://assets.site-static.com/userfiles/795/image/website_Photos_/Sierra_Blog_Photo.png" width="525" height="350" />
It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.
When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.
1. Price Your Home Right
When <a href="https://www.mykcm.com/2020/12/10/why-it-makes-sense-to-sell-your-house-this-holiday-season/" title="inventory">inventory</a> is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that the buyer’s bank will send an appraiser to determine the fair value for your house. The bank will not lend more than what the house is worth, so be aware that you might need to renegotiate the <a href="https://www.mykcm.com/2020/12/28/why-its-important-to-price-your-house-right-today/" title="price">price</a> after the appraisal. A real estate professional will help you set the true value of your home.
2. Keep Your Emotions in Check
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years (as shown in the graph below):<a href="https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-96876" src="https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1.jpg" alt="3 Must-Do’s When Selling Your House This Year | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2020/12/17112858/20210104-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.
3. Stage Your Home Properly
We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes, but not all buyers will feel the same way about your design. That’s why it’s so important to make sure you stage your house with the buyer in mind.
Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk down the hall. A real estate professional can help you with tips to get your home ready to stage and sell.
Bottom Line
Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your house, let’s connect so you have the help need to navigate through the process while prioritizing these must-do’s.
Let's get started today. We can set up a video call or personal consulation. Call us at 504-754-0059, email at info@firstsourceRE.com or complete the form below.
2021-01-04T11:26:00-07:002021-01-11T08:21:24-07:00Robin Frankstag:firstsourcere.com,2012-09-20:666Pending Home Sales Dip 1.1% in OctoberPending Home Sales Dip 1.1% in October with an Exception of the South with a 0.1% Gain
WASHINGTON (November 30, 2020) – Pending home sales fell slightly in October, according to the National Association of Realtors. Contract activity was mixed among the four major U.S. regions, with the only positive month-over-month growth happening in the South, although each region achieved year-over-year gains in pending home sales transactions.
<img src="https://assets.site-static.com/userfiles/795/image/market.png" width="-1" height="-1" />
The Pending Home Sales Index (PHSI),* <a href="http://www.nar.realtor/pending-home-sales" data-di-id="di-id-debf71c4-3c19b1f0">www.nar.realtor/pending-home-sales</a>, a forward-looking indicator of home sales based on contract signings, fell 1.1% to 128.9 in October, the second straight month of decline. Year-over-year, contract signings rose 20.2%. An index of 100 is equal to the level of contract activity in 2001.
"Pending home transactions saw a small drop off from the prior month but still easily outperformed last year's numbers for October," said Lawrence Yun, NAR's chief economist. "The housing market is still hot, but we may be starting to see rising home prices hurting affordability."
Both the inventory of homes for sale and mortgage rates are now at historic lows, according to Yun.
"The combination of these factors – scarce housing and low rates – plus very strong demand has pushed home prices to levels that are making it difficult to save for a down payment, particularly among first-time buyers, who don't have the luxury of using housing equity from a sale to use as a down payment," said Yun. "Work-from-home flexibility has also increased the demand for both primary and secondary homes."
Realtor.com®'s Housing Market Recovery Index, which reveals metro areas where the market has recovered or even exceeded January 20 levels, showed Las Vegas-Henderson-Paradise, Nev.; San Francisco, Calif.; Seattle-Tacoma-Bellevue, Wash.; San Jose-Sunnyvale-Santa Clara, Calif.; and Los Angeles-Long Beach-Anaheim, Calif., had enjoyed the most significant recovery as of November 14.
October Pending Home Sales Regional Breakdown
The Northeast PHSI slid 5.9% to 112.3 in October, a 18.5% increase from a year ago. In the Midwest, the index fell 0.7% to 119.6 last month, up 19.6% from October 2019.
Pending home sales in the South increased 0.1% to an index of 151.1 in October, up 21.0% from October 2019. The index in the West remained the same in October, at 116.8, which is up 20.8% from a year ago.
The National Association of Realtors® is America's largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20% of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.
NOTE: Existing-Home Sales for November will be reported December 22. The next Pending Home Sales Index will be December 30; all release times are 10:00 a.m. ET.
2020-12-01T06:40:00-07:002020-12-01T07:01:36-07:00Robin Frankstag:firstsourcere.com,2012-09-20:642Selling Now is the Right Move<img src="https://assets.site-static.com/userfiles/795/image/20201023-MEM.png" width="1300" height="2175" alt="Selling now" />
Some Highlights
Demand from homebuyers has skyrocketed this year, which means today’s sellers are poised to win big. This ideal moment in time to <a href="https://www.firstsourcere.com/sellers/">sell your house</a> won’t last forever, though.
With more sellers coming to the market in the spring, waiting until next year means buyers will have more choices, so your home may not stand out from the crowd.
Let’s connect today to discuss why now may be the right time to make a move on your terms.
Submit the form below and one of our Agents will contact you shortly.2020-10-24T07:35:00-07:002020-10-26T15:28:38-07:00Robin Frankstag:firstsourcere.com,2012-09-20:625Builders & Realtors Agree: Real Estate Is Back<img width="750" height="410" src="https://files.mykcm.com/2020/08/24083304/20200825-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Builders & Realtors Agree: Real Estate Is Back | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/24083304/20200825-KCM-Share.jpg 750w, https://files.mykcm.com/2020/08/24083304/20200825-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/08/24083304/20200825-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
When shelter-in-place orders brought the economy to a screeching halt earlier this year, many believed the residential housing market would follow suit. Countless analysts predicted buyer demand would disappear and home values would depreciate for the first time in almost a decade. That, however, didn’t happen. It appears the opposite is taking place.
After the bottom fell out of the real estate market immediately following the shutdown, it has come roaring back – and seems to still be gaining steam. Here’s a look at two recent reports – one from the National Association of Home Builders (NAHB) and one from the National Association of Realtors (NAR) – showing this growing strength.
Builder Confidence Hits All-Time High
Last week, it was <a href="http://www.mba.org/2020-press-releases/august/july-new-home-purchase-mortgage-applications-increased-39-percent-year-over-year" title="reported" target="_blank" rel="noopener noreferrer">reported</a> that applications for new home purchases with home builders were 39% higher than in July of 2019. That has builder confidence soaring.
Each month, NAHB releases its Housing Market Index, a survey of NAHB members who rate market conditions for the sale of new homes at the present time and over the next six months, as well as prospective buyer traffic for new homes.
This month, they reported that builder confidence in the market for newly-built single-family homes increased to the highest reading in the 35-year history of the series. NAHB Chairman, Chuck Fowke, explained:
“The demand for new single-family homes continues to be strong, as low interest rates and a focus on the importance of housing has stoked buyer traffic to all-time highs…Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020.”
The number of newly constructed homes being built will be almost at the same level as last year, even though the economic shutdown crushed home building earlier in the year.
Existing Homes Are Also Selling Like Hotcakes
Last Friday, NAR released its Existing Home Sales Report. The report revealed that month-over-month sales increased by 24.7%, setting another record for the category. The Wall Street Journal reported that the increase crushed expert forecasts:
“Economists surveyed by The Wall Street Journal expected a 14.2% monthly increase in sales of previously-owned homes, which make up most of the housing market.”
Home sales increased by 8.7% year-over-year.
Lawrence Yun, Chief Economist for NAR, explained how the resale market is just as hot as the new construction market:
“The housing market is well past the recovery phase and is now booming with higher home sales compared to the pre-pandemic days. With the sizable shift in remote work, current homeowners are looking for larger homes and this will lead to a secondary level of demand even into 2021.”
In addition, the Housing Market Recovery Index, which is released monthly by realtor.com, also showed the market is recovering nicely. The <a href="https://www.realtor.com/research/housing-market-recovery-index/" title="latest index" target="_blank" rel="noopener noreferrer">latest index</a> reading was 104.8, which means the housing market is doing better than it was in January and February of this year. As a reference, the highest point in the index was a 106.5 in early March, just prior to the health crisis setting in.
Bottom Line
Both the newly constructed and existing home sale markets are posting numbers greater than a year ago. Real estate is back. If you’re thinking of buying or selling, let’s connect so you have the expert counsel you need along the way.
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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.
2020-10-07T08:37:00-07:002020-10-07T08:43:11-07:00First Source Realtytag:firstsourcere.com,2012-09-20:624The Importance to Be Pre-Approved in the Homebuying Process?Why Is It so Important to Be Pre-Approved in the Homebuying Process?
<img width="750" height="410" src="https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Is It so Important to Be Pre-Approved in the Homebuying Process? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share.jpg 750w, https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/08/26091204/20200827-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.
According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:
“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.”
This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.
How competitive is today’s market? Extremely – especially among buyers.
With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.
Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.
Danielle Hale, Chief Economist for realtor.com notes:
“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”
In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.
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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.
2020-10-07T08:33:00-07:002020-10-07T08:35:44-07:00First Source Realtytag:firstsourcere.com,2012-09-20:623The Cost of Renting Vs. Buying a Home [INFOGRAPHIC]<img width="1046" height="1129" src="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg" class="attachment-entry size-entry wp-post-image" alt="The Cost of Renting Vs. Buying a Home [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg 1046w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-556x600.jpg 556w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-948x1024.jpg 948w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-768x829.jpg 768w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1423x1536.jpg 1423w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1897x2048.jpg 1897w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-100x108.jpg 100w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1484x1602.jpg 1484w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
The <a href="https://www.zillow.com/research/affordability/" title="percentage" target="_blank" rel="noopener noreferrer">percentage</a> of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
This is making buying a home an increasingly attractive option for many people, especially with low mortgage <a href="https://www.simplifyingthemarket.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" title="rates" target="_blank" rel="noopener noreferrer">rates</a> driving purchasing power.
Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.
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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.
2020-10-07T08:25:00-07:002020-10-07T08:27:04-07:00Robin Frankstag:firstsourcere.com,2012-09-20:622Three Ways to Win in a Bidding War<img width="750" height="410" src="https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Three Ways to Win in a Bidding War | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share.jpg 750w, https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/08/28075138/20200831-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
With so few houses for sale today and low mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are heating up, so it’s important to get pre-approved before you start your search. This way, you can put your best foot forward – quickly and efficiently – if you’re planning to buy a home this season.
Javier Vivas, Director of Economic Research at realtor.com, explains:
“COVID-19 has accelerated earlier trends, bringing even more buyers than the market can handle. In many markets, fierce competition, bidding wars, and multiple offer scenarios may be the common theme in the weeks to come.”
Here are three things you can do to make your offer a competitive one when you’re ready to make your move.
1. Be Ready
A recent survey shows that only 52% of active homebuyers obtained a pre-approval letter before they began their home search. That means about half of active buyers missed out on this key part of the process.
Buyers who are pre-approved are definitely a step ahead when it’s time to make an offer. Having a pre-approval letter indicating you’re a qualified buyer shows sellers you’re serious. It’s often a deciding factor that can tip the scale in your direction if there’s more than one offer on a home. It’s best to contact a mortgage professional to start your pre-approval process early, so you’re in the best position right from the start of your home search.
2. Present Your Best Offer
In a highly competitive market, it’s common for sellers to pick a date and time to review all offers on a house at one time. If this is the case, you may not have an opportunity to negotiate back and forth with the sellers. As a matter of fact, the National Association of Realtors (NAR) notes:
“Not only are properties selling quickly, but they are also getting more offers. On average, REALTORS® reported nearly three offers per sold property in July 2020.”
Make sure the offer you’re presenting is the best one the sellers receive. A real estate professional can help you make sure your offer is a fair and highly competitive one.
3. Act Fast
With existing homes going like hotcakes, there’s no time to waste in the process. NAR reports how the speed of home sales is ramping up:
“Properties typically remained on the market for 22 days in July, seasonally down from 24 days in June and from 29 days in July 2019. Sixty-eight percent of homes sold in July 2020 were on the market for less than a month.”
In addition, NAR notes:
“Total existing-home sales…jumped 24.7% from June to a seasonally adjusted annual rate of 5.86 million in July. The previous record monthly increase in sales was 20.7% in June of this year. Sales as a whole rose year-over-year, up 8.7% from a year ago (5.39 million in July 2019).”
As you can see, the market is gaining steam. For two consecutive months houses have sold very quickly. Essentially, you may not have time to sleep on it or shop around when you find a home you love. Chances are, someone else loves it too. If you take your time, it may not be available when you’re ready to commit.
Bottom Line
The housing market is very strong right now, and buyers are scooping up available homes faster than they’re coming to market. If you’re planning to purchase a home this year, let’s connect to discuss the trends in our current area, so you’re ready to compete – and win.
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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.
2020-10-07T08:16:00-07:002020-10-07T08:22:54-07:00First Source Realtytag:firstsourcere.com,2012-09-20:621 It’s Not Just About the Price of the Home<img width="750" height="410" src="https://files.mykcm.com/2020/08/31133909/20200901-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="It’s Not Just About the Price of the Home | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/08/31133909/20200901-KCM-Share.jpg 750w, https://files.mykcm.com/2020/08/31133909/20200901-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/08/31133909/20200901-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
When most of us begin searching for a home, we naturally start by looking at the price. It’s important, however, to closely consider what else impacts the purchase. It’s not just the price of the house that matters, but the overall cost in the long run. Today, that’s largely impacted by low mortgage rates. Low rates are actually making homes more affordable now than at any time since 2016, and here’s why.
Today’s low rates are off-setting rising home prices because it’s less expensive to borrow money. In essence, purchasing a home while mortgage rates are this low may save you significantly over the life of your home loan.
Taking a look at the graph below with data sourced from the National Association of Realtors (NAR), the higher the bars rise, the more affordable homes are. The orange bars represent the period of time when homes were most affordable, but that’s also reflective of when the housing bubble burst. At that time, distressed properties, like foreclosures and short sales, dominated the market. That’s a drastically different environment than what we have in the housing market now.
The green bar represents today’s market. It shows that homes truly are more affordable than they have been in years, and much more so than they were in the normal market that led up to the housing crash. Low mortgage rates are a big differentiator driving this affordability.<a href="https://files.simplifyingthemarket.com/2020/08/31133910/20200901-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-95547" src="https://files.mykcm.com/2020/08/31133910/20200901-MEM-Eng-1.jpg" alt="It’s Not Just About the Price of the Home | MyKCM" width="600" height="450" /></a>
What are the experts saying about affordability?
Experts agree that this unique moment in time is making homes incredibly affordable for buyers.
<a href="https://www.nar.realtor/newsroom/metro-home-prices-grow-in-96-of-metro-areas-in-second-quarter-of-2020" title="Lawrence Yun, Chief Economist, NAR" target="_blank" rel="noopener noreferrer">Lawrence Yun, </a>Chief Economist, NAR:
“Although housing prices have consistently moved higher, when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.”
<a href="https://www.marketwatch.com/story/the-housing-market-is-on-a-sugar-high-home-sales-are-soaring-but-is-it-a-good-time-to-buy-heres-what-the-experts-say-2020-08-21" title="Bill Banfield, EVP of Capital Markets, Quicken Loans" target="_blank" rel="noopener noreferrer">Bill Banfield,</a> EVP of Capital Markets, Quicken Loans:
“No matter what you’re looking for, this is a great time to buy since the current low interest rates can stretch your spending power.”
Mortgage News Daily:
“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”
Forbes:
“Homeowners are the clear winners. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.”
Bottom Line
When purchasing a home, it’s important to think about the overall cost, not just the price of the house. Homes on your wish list may be more affordable today than you think. Let’s connect to discuss how affordability plays a role in our local market, and your long-term homeownership goals.
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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.
2020-10-07T08:00:00-07:002020-10-07T08:02:07-07:00Robin Frankstag:firstsourcere.com,2012-09-20:620How Will the Presidential Election Impact Real Estate?<img width="750" height="410" src="https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Will the Presidential Election Impact Real Estate? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
The year 2020 will be remembered as one of the most challenging times of our lives. A worldwide pandemic, a recession causing historic unemployment, and a level of social unrest perhaps never seen before have all changed the way we live. Only the real estate market seems to be unaffected, as a new forecast projects there may be more homes purchased this year than last year.
As we come to the end of this tumultuous year, we’re preparing for perhaps the most contentious presidential election of the century. Today, it’s important to look at the impact past presidential election years have had on the real estate market.
Is there a drop-off in home sales during a presidential election year?
BTIG, a research and analysis company, looked at new home sales from 1963 through 2019 in their report titled One House, Two House, Red House, Blue House. They noted that in non-presidential years, there is a -9.8% decrease in November compared to October. This is the normal seasonality of the market, with a slowdown in activity that’s usually seen in fall and winter.
However, it also revealed that in presidential election years, the typical drop increases to -15%. The report explains why:
“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty.”
Are those sales lost forever?
No. BTIG determined:
“This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”
In a separate study done by Meyers Research & Zonda, Ali Wolf, Chief Economist, agrees that those purchases are just delayed until after the election:
“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year.”
Will it matter who is elected?
To some degree, but not in the overall number of home sales. As mentioned above, consumer confidence plays a significant role in a family’s desire to buy a home. How may consumer confidence impact the housing market post-election? The BTIG report covered that as well:
“A change in administration might benefit trailing blue county housing dynamics. The re-election of President Trump could continue to propel red county outperformance.”
Again, overall sales should not be impacted in a significant way.
Bottom Line
If mortgage rates remain near all-time lows, the economy continues to recover, and unemployment continues to decrease, the real estate market should remain strong up to and past the election.
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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.
2020-10-07T07:55:00-07:002020-10-07T07:57:40-07:00Robin Frankstag:firstsourcere.com,2012-09-20:619The 2020 Homebuyer Wish List [INFOGRAPHIC]<img width="1046" height="1536" src="https://files.mykcm.com/2020/09/03121217/20200904-MEM-1046x1536.jpg" class="attachment-entry size-entry wp-post-image" alt="The 2020 Homebuyer Wish List [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/03121217/20200904-MEM-1046x1536.jpg 1046w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-409x600.jpg 409w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-697x1024.jpg 697w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-768x1128.jpg 768w, https://files.mykcm.com/2020/09/03121217/20200904-MEM-100x147.jpg 100w, https://files.mykcm.com/2020/09/03121217/20200904-MEM.jpg 1080w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
The word “home” is taking on a whole <a href="https://www.zillow.com/resources/new-construction/rethinking-floor-plans-for-covid/" title="new meaning" target="_blank" rel="noopener noreferrer">new meaning</a> this year, and buyers are starting to look for new features as they re-think their needs and what’s truly possible.
From more outdoor space to virtual classrooms for their children, buyers have a <a href="https://www.simplifyingthemarket.com/2020/08/24/the-top-reasons-people-are-moving-this-year/?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" title="growing list" target="_blank" rel="noopener noreferrer">growing list</a> of what they’d like to see in their homes.
Let’s connect today if your needs have changed and your wish list is expanding too.
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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.2020-10-07T07:51:00-07:002020-10-07T07:53:25-07:00First Source Realtytag:firstsourcere.com,2012-09-20:618How Low Inventory May Impact the Housing Market This Fall<img width="750" height="410" src="https://files.mykcm.com/2020/09/16104421/20200917-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Low Inventory May Impact the Housing Market This Fall | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/16104421/20200917-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/16104421/20200917-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/16104421/20200917-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of homes for sale.
Buyers are actively searching for and purchasing homes, looking to capitalize on today’s historically low interest rates, but there just aren’t enough houses for sale to meet that growing need. Sam Khater, Chief Economist at Freddie Mac, explains:
“Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery…These low rates have ignited robust purchase demand activity…However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.”
According to the National Association of Realtors (NAR), right now, unsold inventory sits at a 3.1-month supply at the current sales pace. To have a balanced market where there are enough homes for sale to meet buyer demand, the market needs inventory for 6 months. Today, we’re nowhere near where that number needs to be. If the trend continues, it will get even harder to find homes to purchase this fall, and that may slow down potential buyers. Danielle Hale, Chief Economist at realtor.com, notes:
“The overall lack of sustained new listings growth could put a dent in fall home sales despite high interest from home shoppers, because new listings are key to home sales.”
The realtor.com Weekly Recovery Report keeps an eye on the number of listings coming into the market (houses available for sale) and the total number of listings staying in the market compared to the previous year (See graph below):<a href="https://files.simplifyingthemarket.com/2020/09/16104423/20200917-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-95717" src="https://files.mykcm.com/2020/09/16104423/20200917-MEM-Eng-1.jpg" alt="How Low Inventory May Impact the Housing Market This Fall | MyKCM" width="600" height="450" /></a>Buyers are clearly scooping up homes faster than they’re being put up for sale. The number of total listings (the orange line) continues to decline even as new listings (the blue line) are coming to the market. Why? Javier Vivas, Director of Economic Research at realtor.com, notes:
“The post-pandemic period has brought a record number of homebuyers back into the market, but it’s also failed to bring a consistent number of sellers back. Homes are selling faster, and sales are still on an upward trend, but rapidly disappearing inventory also means more home shoppers are being priced out. If we don’t see material improvement to supply in the next few weeks, we could see the number of transactions begin to dwindle again even as the lineup of buyers continues to grow.”
Does this mean it’s a good time to sell?
Yes. If you’re thinking about selling your house, this fall is a great time to make it happen. There are plenty of buyers looking for homes to purchase because they want to take advantage of low interest rates. Realtors are also reporting an average of 3 offers per house and an increase in bidding wars, meaning the demand is there and the opportunity to sell for the most favorable terms is in your favor as a seller.
Bottom Line
If you’re considering selling your house, this is the perfect time to connect so we can talk about how you can benefit from the market trends in our local area.
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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.
2020-10-07T07:44:00-07:002020-10-07T07:48:10-07:00First Source Realtytag:firstsourcere.com,2012-09-20:617Home Equity Gives Sellers Options in Today’s Market<img width="750" height="410" src="https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Home Equity Give Sellers Options in Today’s Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
Homeownership is one of the best ways to invest in your financial future, especially as your home equity grows. Home equity is a form of forced savings that can work to your advantage as the value of your home appreciates. Across the country, home equity was increasing before the health crisis swept our nation, and it continues to grow throughout the year, giving sellers powerful options in this market.
According to the just-released Q2 Homeowner Equity Insights Report by CoreLogic:
“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $620 billion since the second quarter of 2019, an increase of 6.6%, year over year.”
Dr. Frank Nothaft, Chief Economist for CoreLogic, attributes much of the equity growth to rising home prices:
"The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”
As the map below shows, CoreLogic also indicates that home equity is increasing in every state:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”
<a href="https://files.simplifyingthemarket.com/2020/09/23083138/20200924-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-95890" src="https://files.mykcm.com/2020/09/23083138/20200924-MEM-Eng-1.jpg" alt="Home Equity Give Sellers Options in Today’s Market | MyKCM" width="600" height="450" /></a>
What Does This Mean for Sellers?
When equity is rising, as it is today, you may have more invested in your home than you realize. Mark Fleming, Chief Economist at First American, notes:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
If you’ve been considering making a move – whether that’s to get into a bigger home or to downsize to a smaller one – it’s a great time to reach out to a real estate professional to learn how to put your equity to work for you. You may be in a position to pay that equity forward toward your next home purchase and afford it sooner rather than later.
Bottom Line
If you’re thinking of selling, let’s connect so you can take advantage of what the current market has to offer today.
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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.
2020-10-07T07:39:00-07:002020-10-07T07:41:57-07:00Robin Frankstag:firstsourcere.com,2012-09-20:616Housing Market on Track to Beat Last Year’s Success<img width="750" height="410" src="https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Housing Market on Track to Beat Last Year’s Success | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
Back in March, as the nation’s economy was shut down because of the coronavirus, many were predicting the real estate market would face a major collapse. Some forecasts called for a 15-20% decline in transactions. However, six months later, it seems as though the housing market has fully recovered.
Mark Fleming, Chief Economist at First American, announced last week:
“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”
The Economic & Strategic Research Group at Fannie Mae upgraded its forecast for home sales last week:
“Housing data over the past month continued to show a strong V-shape rebound, helping drive the broader economy. Existing home sales jumped to a pace not seen since 2006…We have substantially upgraded our forecasts for both new and existing home sales. For 2020, total home sales are now expected to be 1.3% higher than in 2019.”
The National Association of Realtors (NAR) agrees. In their last Pending Sales Report, NAR shared projections from Chief Economist Lawrence Yun:
“Yun forecasts existing-home sales to ramp up to 5.8 million in the second half. That expected rebound would bring the full-year level of existing-home sales to 5.4 million, a 1.1% gain compared to 2019.”
Yun’s forecast for 2021 was even more optimistic, stating, “Home sales will ramp up again next year, increasing between 8% - 12%.”
Bottom Line
The housing market has come roaring back and looks as though it may even surpass last year’s success.
Frank Martell, President and CEO of CoreLogic, hit the nail on the head when he said, “On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic.”.
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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.
2020-10-07T07:15:00-07:002020-10-07T07:17:46-07:00First Source Realtytag:firstsourcere.com,2012-09-20:615Where Are Home Values Headed Over the Next 12 Months?<img width="750" height="410" src="https://files.mykcm.com/2020/09/28080821/20200929-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Where Are Home Values Headed Over the Next 12 Months? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/28080821/20200929-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/28080821/20200929-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/28080821/20200929-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean to the real estate market. Specifically, there was concern about home values. After years of rising home prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would home values begin to depreciate?
Original forecasts modeled this uncertainty, and they ranged anywhere from home values gaining 3% (Zelman & Associates) to home values depreciating by more than 6% (CoreLogic).
However, as the year unfolded, it became clear that there would be little negative impact on the housing market. As Mark Fleming, Chief Economist at First American, recently revealed:
“The only major industry to display immunity to the economic impacts of the coronavirus is the housing market.”
Have prices continued to appreciate so far this year?
Last week, the Federal Housing Finance Agency (FHFA) released its latest Home Price Index. The report showed home prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation accelerated to record levels over the summer months:
“Between May & July 2020, national prices increased by over 2%, which represents the largest two-month price increase observed since the start of the index in 1991.”
What are the experts forecasting for home prices going forward?
Below is a graph of home price projections for the next year. Since the market has changed dramatically over the last few months, this graph shows forecasts that have been published since September 1st.<a href="https://files.simplifyingthemarket.com/2020/09/28080823/20200929-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-95960" src="https://files.mykcm.com/2020/09/28080823/20200929-MEM-Eng-1.jpg" alt="Where Are Home Values Headed Over the Next 12 Months? | MyKCM" width="600" height="450" /></a>
Bottom Line
The numbers show that home values have weathered the storm of the pandemic. Let’s connect if you want to know what your home is currently worth and how that may enable you to make a move this year.
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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.
2020-10-07T07:09:00-07:002020-10-07T07:11:45-07:00Robin Frankstag:firstsourcere.com,2012-09-20:614A Homeowner’s Net Worth Is 40x Greater Than a Renter’s<img width="750" height="410" src="https://files.mykcm.com/2020/10/06123105/20201007-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/10/06123105/20201007-KCM-Share.jpg 750w, https://files.mykcm.com/2020/10/06123105/20201007-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/10/06123105/20201007-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is actually over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home, especially when they’re so affordable in today’s market.
Every three years the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap between owning and renting just keeps getting wider over time, making homeownership more and more desirable for those who are ready.<a href="https://files.simplifyingthemarket.com/2020/10/06123109/20201012-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-96048" src="https://files.mykcm.com/2020/10/06123109/20201012-MEM-Eng-1.jpg" alt="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM" width="600" height="450" /></a>
Owning a home is a great way to build family wealth.
For many families, homeownership serves as a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity you have in your home (See chart below):<a href="https://files.simplifyingthemarket.com/2020/10/06123107/20201012-MEM-Eng-2.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-96047" src="https://files.mykcm.com/2020/10/06123107/20201012-MEM-Eng-2.jpg" alt="A Homeowner’s Net Worth Is 40x Greater Than a Renter’s | MyKCM" width="600" height="450" /></a>The impact of home equity is part of why Gallup reports that Americans picked real estate as the best long-term investment for the seventh year in a row. According to this year’s survey, 35% of Americans chose real estate over stocks, savings accounts, gold, and bonds.
Today, there are great opportunities available for those planning to buy a home. The housing market has made a full recovery, and all-time low interest rates are giving homebuyers a big boost in purchasing power. If you’re ready, buying a home this fall can set you up to increase your net worth and create a safety net for your family’s future.
Bottom Line
To learn how you can use your monthly housing cost to build your family’s net worth, let’s connect so you have a trusted professional to guide you through the homebuying process.
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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.
2020-10-07T07:02:00-07:002020-10-07T07:05:43-07:00Robin Frankstag:firstsourcere.com,2012-09-20:608Why Pricing Your Home Right Matters This Fall [INFOGRAPHIC]<img width="1046" height="588" src="https://files.mykcm.com/2020/09/24122226/20200925-MEM-1046x588.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Pricing Your Home Right Matters This Fall [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/24122226/20200925-MEM-1046x588.jpg 1046w, https://files.mykcm.com/2020/09/24122226/20200925-MEM-600x338.jpg 600w, https://files.mykcm.com/2020/09/24122226/20200925-MEM-1024x576.jpg 1024w, https://files.mykcm.com/2020/09/24122226/20200925-MEM-768x432.jpg 768w, https://files.mykcm.com/2020/09/24122226/20200925-MEM-1536x864.jpg 1536w, https://files.mykcm.com/2020/09/24122226/20200925-MEM-100x56.jpg 100w, https://files.mykcm.com/2020/09/24122226/20200925-MEM-1484x835.jpg 1484w, https://files.mykcm.com/2020/09/24122226/20200925-MEM.jpg 1600w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
As a seller today, you may think pricing your home on the high end will result in a higher final sale price, but the opposite is actually true.
To sell your home quickly and for the best possible price, you should eliminate buyer concerns by pricing your home competitively right from the start.
Let’s connect today to make sure you have the guidance you need to price your home right this fall. Give us a call 504-754-0059 or request an appointment below.
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.
2020-10-06T07:39:00-07:002020-10-12T07:46:38-07:00Robin Frankstag:firstsourcere.com,2012-09-20:607Why Selling this Fall May Be Your Best Move
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<img width="750" height="410" src="https://files.mykcm.com/2020/09/29081226/20200930-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Selling this Fall May Be Your Best Move | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/09/29081226/20200930-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/29081226/20200930-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/29081226/20200930-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
If you’re thinking about moving, selling your house this fall might be the way to go. Here are four highlights in the housing market that may make your decision to sell this fall an easy one.
1. Buyers Are Actively in the Market
ShowingTime, a leading real estate showing software and market stat service provider, just reported that buyer traffic jumped 60.7% compared to this time last year. That’s a huge increase.
It’s clear that buyers are ready, willing, and able to purchase – and they’re in the market right now. In many regions of the country, multiple buyers are entering bidding wars to compete for the home they want. Take advantage of the buyer activity currently in the market so you can sell your house in the most favorable terms.
2. There Are Not Enough Homes for Sale
In the latest Existing Home Sales Report, the National Association of Realtors (NAR) announced that there were only 1.49 million units available for sale. That number was down 18.6% from one year ago. This means in the majority of the country, there aren’t enough homes for sale to satisfy the number of buyers.
Due to the health crisis, many homeowners were reluctant to list their homes earlier this year. That will change as the economy continues to recover. The choices buyers have will increase going into the new year. Don’t wait until additional sellers come to market before you decide to make a move.
3. The Process Is Going Quickly
Today’s ultra-competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler, as buyers know exactly what they can afford before shopping for a home. According to the latest Origination Insights Report from Ellie Mae, the time needed to close a loan is just 49 days.
4. There May Never Be a More Important Time to Move
You’ve likely spent much of the last six months in your current home. Perhaps you now realize how small it is, and you need more space. If you’re working from home, your children are doing virtual school, or you just need more space, your current floor plan may not work for your family’s changing needs.
Homebuilders are beginning to build houses again, so you can choose the exact floor plan to match what your family needs, and you can make sure the outdoor space is what you want too.
Bottom Line
The housing market is prime for sellers right now, so let’s connect to get the process started this fall. If the timing is right for you and your family, the market is calling your name.
Let's schedule an appointment. One of our agents will meet you and go through your home, offer some suggestions to make your home more appealing during showings and prepare a Market Analysis to know how much you can expect on the sale your home.
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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.
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2020-10-06T07:28:00-07:002020-10-12T07:42:28-07:00Robin Frankstag:firstsourcere.com,2012-09-20:606Is it Time to Move into a Single-Story Home?
<img width="750" height="410" src="https://files.mykcm.com/2020/10/05132529/20201006-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Is it Time to Move into a Single-Story Home? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/10/05132529/20201006-KCM-Share.jpg 750w, https://files.mykcm.com/2020/10/05132529/20201006-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/10/05132529/20201006-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Once the kids have left the nest, you may be wondering what to do with all of the extra space in your home. Chances are, you don’t need four bedrooms anymore, and it may be a great time to sell your house and downsize, maybe even into a single-story home. You’ve likely gained significant equity if you’ve lived in your home for a while, so making a move while demand for your current house is high could be your best step forward toward the retirement goals you set out to achieve several years ago.
The dilemma, though, is where to go next. A big concern for many homeowners who are ready to sell is finding a home to move into, given today’s lack of houses available for sale. There is, however, some good news: the number of single-family 1-story homes being built today is on the rise, improving your odds of finding the right home for your changing needs. In a recent article, The National Association of Home Builders (NAHB) explains:
“Nationwide, the share of new homes with two or more stories fell from 53% in 2018 to 52% in 2019, while the share of new homes with one story grew from 47% to 48%.”
Here’s a map showing the breakdown of newly constructed homes being built by region, and the percentage of 1-story and 2-story homes in that mix:<a href="https://files.mykcm.com/2020/10/05132531/20201006-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-96038" src="https://files.mykcm.com/2020/10/05132531/20201006-MEM-Eng-1.jpg" alt="Is it Time to Move into a Single-Story Home? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/10/05132531/20201006-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/10/05132531/20201006-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2020/10/05132531/20201006-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2020/10/05132531/20201006-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What are the benefits of buying a one-story home?
Still not sure about buying a single-story home? An article from Home Talk covers several advantages of switching from two floors to one:
1. Energy Efficient
“It is easier to heat and cool a single-story house [than] it would be to regulate the temperatures of a multi-story house.”
Most single-story homes only need one heating or cooling unit, and they typically stay cooler than a two-story home, both of which can lead to significant savings.
2. Easier to Maintain
“Doing a general cleaning in a single story requires less effort and you will be able to see all areas that need cleaning and the areas are easily accessible.”
Cleaning and maintenance of a single-story home can take less time and effort, and better upkeep helps improve the overall value of the home.
3. Accessible for Everyone
“A single-story house can be accessed by anyone, whether they are young children or the senior citizens.”
If you’re looking for a house that provides a safe and easily accessible environment at any age, a single-story home may be optimal.
4. Good Resell Potential
“When buying a single-story house, you should consider the resale value should you think of reselling it in case of a circumstance that can happen. Look at the growth rate of that area. Due to the high demand of these types of houses it is [easy] to resell them and depending on the growth rate of an area, it increases in value significantly.”
Single-story homes have a lot of benefits and are often in higher demand. This bodes well for future resale opportunities.
Bottom Line
There are many benefits to downsizing into a one-story home. Doing so while demand for your current house is high might make it easier than ever to make a move. Let’s connect if you’re ready to purchase the single-story home you need while homes are so affordable today.
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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.
2020-10-06T07:21:00-07:002020-10-06T07:25:31-07:00Robin Frankstag:firstsourcere.com,2012-09-20:605Why Pricing Your House Right Is Essential
<article id="post-96016" class="post-96016 post type-post status-publish format-standard has-post-thumbnail hentry category-sellers category-pricing">
Why Pricing Your House Right Is Essential
<img width="750" height="410" src="https://files.mykcm.com/2020/10/02092118/20201005-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Pricing Your House Right Is Essential | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/10/02092118/20201005-KCM-Share.jpg 750w, https://files.mykcm.com/2020/10/02092118/20201005-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/10/02092118/20201005-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.
According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values will continue climbing into next year. Today, low inventory is largely keeping prices from depreciating. Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-august-1-2020/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.”
When it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.
How to Price Your Home
As a seller, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. You’re thinking, higher price, greater profit, right? But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers and have them looking at the houses your neighbors are selling instead.
Even today, when the advantage tips toward sellers because there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running in the other direction if it isn’t priced just right.<a href="https://files.mykcm.com/2020/10/02092124/20201005-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-96018" src="https://files.mykcm.com/2020/10/02092124/20201005-MEM-Eng-1.jpg" alt="Why Pricing Your House Right Is Essential | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/10/02092124/20201005-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/10/02092124/20201005-MEM-Eng-1-600x338.jpg 600w, https://files.mykcm.com/2020/10/02092124/20201005-MEM-Eng-1-768x432.jpg 768w, https://files.mykcm.com/2020/10/02092124/20201005-MEM-Eng-1-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
A Trusted Real Estate Professional Will Help
It’s important to make sure your house is priced correctly by working in partnership with a trusted real estate professional. When you price it competitively, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers <a href="https://www.mykcm.com/2020/08/31/three-ways-to-win-in-a-bidding-war/" title="competing">competing</a> for the home, and that’s what ultimately increases the final sale price.
The key is making sure your house is priced to sell immediately. That way, it will be seen by the most buyers. More than one of them may be interested, and your house will be more likely to sell at a competitive price.
Bottom Line
If you’re thinking about listing your house this fall, let’s discuss how to price it right so you can maximize your exposure and your return.
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<a href="https://www.mykcm.com/2020/10/02/rising-home-equity-can-power-your-next-move-infographic/" rel="prev" title="« Rising Home Equity Can Power Your Next Move [INFOGRAPHIC]">« Rising Home Equity Can Power Your Next Move [INFOGRAPHIC]</a>
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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.
2020-10-05T09:19:00-07:002020-10-05T09:19:49-07:00Robin Frankstag:firstsourcere.com,2012-09-20:594Why Is It so Important to Be Pre-Approved in the Homebuying Process?
<img src="https://assets.site-static.com/userfiles/795/image/preapproval.jpg" width="300" height="168" />
You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this, regardless of price range or income bracket.
According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:
“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.”
This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.
How competitive is today’s market? Extremely – especially among buyers.
With limited <a href="https://www.firstsourcere.com/property-search/results/?searchid=81">inventory</a>, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.
Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.
Danielle Hale, Chief Economist for realtor.com notes:
“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”
In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.2020-09-16T07:30:00-07:002020-09-15T17:40:16-07:00Robin Frankstag:firstsourcere.com,2012-09-20:593Is Now a Good Time to Move?
<a href="https://assets.site-static.com/userfiles/795/file/family_house.jpg"><img src="https://assets.site-static.com/userfiles/795/file/family_house.jpg" width="275" height="183" /></a>
How long have you lived in your current home? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time to time to be in one place, considering the average length of time homeowners used to stay put hovered closer to 6 years.
With today’s changing homebuyer needs, especially given how the current health crisis has altered our daily lifestyles, many homeowners are reconsidering where they’re at and thinking about moving to a home with more space for their families. Here’s why it might be a great time to make that happen.
The real estate market has changed in many ways over the past 10 years, and current homeowners are earning much more equity today than they used to have. According to CoreLogic, in the first quarter of 2020 alone, the average homeowner gained approximately $9,600 in equity. If you’re considering selling your house right now, you may have accumulated more equity to put toward a move than you realize. You can request a <a href="https://www.firstsourcere.com/sellers/free-market-analysis/">Free Market Analysis</a>.
Dialing back 10 years, many homeowners also locked in a fairly low mortgage rate. In 2010, the average rate was only 4.09%. This motivated homeowners to stay in their houses longer than usual to keep their rate low, rather than moving. Just last Thursday, however, average mortgage rates hit a new historic low at 2.86%. Sam Khater, Chief Economist at Freddie Mac <a href="https://freddiemac.gcs-web.com/node/20771/pdf" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery…These low rates have ignited robust purchase demand activity, which is up twenty-five percent from a year ago and has been growing at double digit rates for four consecutive months.”
Ten years ago, we couldn’t have imagined a mortgage rate under 3%. Looking at the math today, making a move into a new home and locking in a significantly lower rate than you have now could save you greatly on a monthly basis, and over the life of your loan (See chart below):<a href="https://files.mykcm.com/2020/09/14133412/20200915-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-95682" src="https://files.mykcm.com/2020/09/14133412/20200915-MEM-Eng-1.jpg" alt="Is Now a Good Time to Move? | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/09/14133412/20200915-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/09/14133412/20200915-MEM-Eng-1-600x338.jpg 600w, https://files.mykcm.com/2020/09/14133412/20200915-MEM-Eng-1-768x432.jpg 768w, https://files.mykcm.com/2020/09/14133412/20200915-MEM-Eng-1-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the example shows, you can save a substantial amount every month if you qualify for today’s low mortgage rate, and the savings can really add up over the life of a 30-year fixed-rate loan.
Bottom Line
As a homeowner, you have a huge opportunity to move up right now. Whether you want to save more each month or get more home for your money based on your family’s changing needs, it’s a great time to connect to discuss the market in our area. Buyers are actively looking for more homes to buy, and you can win big by making a move if the time is right for you. We're available by phone or in person appointments. Call us at 504-754-00592020-09-15T07:16:00-07:002020-09-15T17:32:56-07:00Robin Frankstag:firstsourcere.com,2012-09-20:590Have You Ever Seen a Housing Market Like This?<img src="https://assets.site-static.com/userfiles/795/image/HOUSING_MARKET.JPG" width="304" height="166" alt="MARKET" />
The year 2020 will certainly be one to remember, with new realities and norms that changed the way we live. This year’s real estate market is certainly no exception to that shift, with historic highlights continuing to break records and challenge what many thought possible in the housing market. Here’s a look at four key areas that are fundamentally defining the market this year.
Housing Market Recovery
The economy was intentionally put on pause this spring in response to the COVID-19 health crisis. Many aspects of the common real estate transaction were placed on hold at the same time. Thankfully, <a href="https://www.mykcm.com/2020/04/22/keys-to-selling-your-house-virtually/" title="technology">technology</a> and innovation helped the industry power forward, and business gradually ramped back up as shelter-in-place orders were lifted.
The result? Total transformation of the market from rock-bottom lows to exceptional highs. Today, the housing recovery is being called truly remarkable by many experts and is far exceeding expectations. From <a href="https://www.nar.realtor/newsroom/pending-home-sales-rise-5-9-in-july" title="pending home sales" target="_blank" rel="noopener noreferrer" aria-label="pending home sales - opens in new tab">pending home sales</a> to <a href="https://www.mykcm.com/2020/08/19/just-how-strong-is-the-housing-recovery/" title="purchase applications">purchase applications</a>, buyers are back in business and homes are selling – fast.
According to the <a href="https://www.realtor.com/research/housing-market-recovery-index/" title="Housing Market Recovery Index" target="_blank" rel="noopener noreferrer" aria-label="Housing Market Recovery Index - opens in new tab">Housing Market Recovery Index</a> by realtor.com, the market has surpassed pre-pandemic levels, and has regained the strength we remember from February of this year (See graph below):<a href="https://files.mykcm.com/2020/09/03135456/20200908-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank" aria-label="Have You Ever Seen a Housing Market Like This? | MyKCM - opens in new tab"><img class="aligncenter wp-image-95571" src="https://files.mykcm.com/2020/09/03135456/20200908-MEM-Eng-1.jpg" alt="Have You Ever Seen a Housing Market Like This? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/09/03135456/20200908-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/09/03135456/20200908-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2020/09/03135456/20200908-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2020/09/03135456/20200908-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Record-Breaking Mortgage Rates
Historically <a href="https://www.mykcm.com/2020/07/15/mortgage-rates-hit-record-lows-for-three-consecutive-weeks/" title="low">low</a> mortgage rates are another 2020 game-changer. Today’s low rate is one of the big motivating factors bringing buyers back into the market. The average rate reached an all-time low on multiple occasions this year, and it continues to hover in record-low territory.
When rates are this low, buyers have a huge opportunity to get more for their money when purchasing a home, something many are eager to find while continuing to spend <a href="https://www.mykcm.com/2020/08/24/the-top-reasons-people-are-moving-this-year/" title="more time">more time</a> than expected at home this year, and likely beyond.
Continued Home Price Appreciation
One of the key drivers of home price appreciation this year is historically low <a href="https://www.mykcm.com/2020/07/20/thinking-of-selling-your-house-now-may-be-the-right-time/" title="inventory">inventory</a>. Inventory was low going into the pandemic, and it is still sitting well below the level needed for a normal market. Although sellers are slowly making their way back into the game, buyers are scooping up homes faster than they’re coming up for sale.
This is a classic supply and demand scenario, forcing home prices to rise. Selling something when there is a higher demand for what is available naturally bumps up the price. If you’re ready to sell your house today, this may be the optimal time to make your move. As Bill Banfield, EVP of Capital Markets at Quicken Loans, <a href="https://themreport.com/daily-dose/07-28-2020/home-price-increases-decelerate" title="notes" target="_blank" rel="noopener noreferrer" aria-label="notes - opens in new tab">notes</a>:
“The pandemic has not stopped the consistent home price growth we have witnessed in recent years.”
Increasing Affordability
Even as home prices continue to rise, <a href="https://www.mykcm.com/2020/09/01/its-not-just-about-the-price-of-the-home/" title="affordability">affordability</a> is working in favor of today’s homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family’s needs have changed. If you now need space for a home office, gym, virtual classroom, and more, it may be time to <a href="https://www.mykcm.com/2020/09/04/the-2020-homebuyer-wish-list-infographic/" title="reconsider">reconsider</a> your current house.
According to <a href="http://www.mortgagenewsdaily.com/08032020_black_knight_mortgage_monitor.asp" title="Mortgage News Daily" target="_blank" rel="noopener noreferrer" aria-label="Mortgage News Daily - opens in new tab">Mortgage News Daily</a>:
“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”
Bottom Line
With mortgage rates hitting historic lows, home prices appreciating, affordability rising, and the market recovering like no other, 2020 has been quite a year for real estate – perhaps one we’ve never seen before and may never see again. Let’s connect today if you’re ready to take advantage of this year’s record-breaking opportunities.2020-09-09T07:31:00-07:002020-09-09T07:33:55-07:00Robin Frankstag:firstsourcere.com,2012-09-20:554Thinking of Selling Your House?
Thinking of Selling Your House?
<img width="750" height="410" src="https://files.mykcm.com/2020/07/17105210/20200720-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Thinking of Selling Your House? Now May be the Right Time | MyKCM" srcset="https://files.mykcm.com/2020/07/17105210/20200720-KCM-Share.jpg 750w, https://files.mykcm.com/2020/07/17105210/20200720-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/07/17105210/20200720-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them, so the scale is tipped in favor of the sellers.
According to the latest <a href="https://www.nar.realtor/newsroom/existing-home-sales-fall-9-7-in-may-while-nar-expects-strong-rebound-in-coming-months" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below what was available last year, and the houses that do come to the market are selling very quickly.
Sam Khater, Chief Economist at Freddie Mac <a href="http://www.freddiemac.com/fmac-resources/research/pdf/Insight-State-Supply-Press-Release.pdf" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”
Why is inventory so low?
There are many reasons why it’s hard to find a home to buy today, stemming from an undersupply of newly constructed homes to sellers pressing pause on their moving plans due to the current health pandemic. One of the key factors making it even more challenging, however, is the amount of time current homeowners are staying in their homes. There has truly been a fundamental shift in the market that started about 10 years ago: people are staying put longer, and it’s contributing to the shortage of houses for sale.
In the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="2019 Profile of Home Buyers and Sellers" target="_blank" rel="noopener noreferrer">2019 Profile of Home Buyers and Sellers</a>, NAR explained:
“In 2019, the median tenure for sellers was 10 years…After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”
As shown in the graph below, historical data indicates that staying in a home for 5-7 years used to be the norm, until the housing bubble burst. Since 2010, that length of time has trended upward, toward 9-10 years, largely due to homeowners aiming to recoup their <a href="https://www.mykcm.com/2020/06/18/want-to-make-a-move-homeowner-equity-is-growing-year-over-year/" title="equity">equity</a>:<a href="https://files.mykcm.com/2020/07/17105231/20200720-MEM-ENG.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-94718" src="https://files.mykcm.com/2020/07/17105231/20200720-MEM-ENG.jpg" alt="Thinking of Selling Your House? Now May be the Right Time | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/07/17105231/20200720-MEM-ENG.jpg 1000w, https://files.mykcm.com/2020/07/17105231/20200720-MEM-ENG-600x338.jpg 600w, https://files.mykcm.com/2020/07/17105231/20200720-MEM-ENG-768x432.jpg 768w, https://files.mykcm.com/2020/07/17105231/20200720-MEM-ENG-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Thankfully, with the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for homeowners who are ready to make a move to break the 10-year trend and sell their houses, especially while buyer demand is so high and inventory is so low. It’s a prime time to sell.
In addition, with today’s historically <a href="https://www.mykcm.com/2020/07/17/mortgage-rates-fall-below-3-infographic/" title="low interest rates">low interest rates</a>, there’s an opportunity for sellers to maintain a low monthly payment while getting more house for their money. Think: move-up opportunity, more square footage, or finding the features they’re really looking for rather than doing costly renovations. With more <a href="https://www.mykcm.com/2020/06/30/are-new-homes-going-to-be-available-to-buy-this-year/" title="new homes">new homes</a> poised to enter the market this year, homeowners ready to make a move may have a golden opportunity to do so right now.
Bottom Line
There are simply not enough houses for sale today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes to buy is extremely high.
If you would like to get an idea what your home might be worth, fill out the form below and one of our agents will be in touch shortly.
2020-07-20T06:39:00-07:002020-07-20T06:45:22-07:00Robin Frankstag:firstsourcere.com,2012-09-20:475Another Housing Crash? Not so Fast!
<img src="/blogphotos/thumb/795/475-housing.jpg" />
All of us have a mind-boggling range of challenges to deal with in these stressful and uncharted times of COVID-19. But for many home owners, sellers, and buyers, one concern rises to the top: Are we heading straight into another housing crash?
Little is assured these days, and our current situation is without precedent. But most housing experts believe the wave of across-the-board home-price slashing and desperate sell-offs that characterized the aftermath of the Great Recession are far less likely to materialize this time around.
Why will things be different? Because bad mortgages, rampant home flipping and speculation, and overbuilding all contributed to the lastfinancial meltdown. This time around, the much-stronger housing market isn't the driver of the crisis—it's one of COVID-19's many victims.
That could provide something of a cushion for real estate to prevent another repeat of the late aughts.
"There's no way we get through this unscathed. But I don't think the world will fall apart in the housing market the way it did in the last recession," says realtor.com®'s chief economist, Danielle Hale. "We won’t see prices driven down out of necessity because people were forced to sell like before.”
In fact, the fundamentals of the housing market couldn't be more different from the economic meltdown of 2007–09. In the lead-up to the Great Recession, it seemed like just about anyone could get a mortgage—or two or three. Today, only buyers deemed less of a risk can score a loan. Credit scores need to be higher, debt-to-income ratios need to be lower, and lenders verify incomes much more carefully.
Additionally, in the mid- to late-aughts, there was a vast oversupply of homes. So when the market crashed, there simply weren't enough qualified buyers to purchase them. And with all of the foreclosures going up for sale, a result of bad loans, home prices plummeted.
But today, there's a severe housing shortage that's keeping prices high.
The biggest wildcards in this current mess are just how long it takes to get the virus under control—and then how quickly the economy takes to bounce back. About 22 million people, or 13% of the U.S. workforce, filed for unemployment in a month's time. Experts predict unemployment could rise to 15% or even 20% before the pain subsides.
Those financial struggles have made it increasingly difficult for folks to pay their rents and mortgages—let alone purchase starter homes or trade-up residences. Roughly 6% of mortgages were in forbearance as of April 12, according to the most recent data released from the Mortgage Bankers Association.
This has sparked fears of another <a href="https://www.realtor.com/news/real-estate-news/mortgage-forbearance-is-not-all-its-cracked-up-to-be/" target="_blank" rel="noopener noreferrer" data-omtag="web:article:content:link">foreclosure crisis</a>—one of the hallmarks of the Great Recession and its aftermath.
"We're [not going to] get through this recession without any challenges for the housing market," says Hale.
Will there be another housing fire sale? Probably not
Deep price cuts are the dream of many cash-strapped buyers—and dread of home sellers. They may not happen this time around, but a slowdown in the price hikes of the past decade are likely, most housing experts say. Home prices may dip—but just slightly, says Hale. (The median home price was $320,000 in March, according to the most recent realtor.com data.)
Prices are driven by the rules of supply and demand. On the supply side there is a record-low inventory of homes on the market, as sellers have been steadily yanking them off. Many don't want potentially infected strangers walking through their homes and want to wait for the economy to improve so they can fetch top dollar for their properties. Others don't want their homes to linger on the market unsold during a time when fewer transactions are taking place.
Still, demand for new homes hasn't evaporated. There are simply too many would-be buyers out there: millennials eager to put down roots and start families, folks who lost their homes during the last recession and want to buy another property, and boomers looking to downsize.
“People need a place to live, and at some point we’re going to get past the virus," says Robert Dietz, chief economist of the National Association of Home Builders.
And while many potential buyers will grapple with job losses or the prospect of them, others will be lured in by the prospect of superlow mortgage interest rates. Rates were just 3.31% for 30-year fixed-rate loans as of the week ending April 16, according to Freddie Mac.
“I don’t think we’ll see significant price cuts," says Dietz. "There's a lot of young people who want to attain homeownership.”
There will likely be a "sharp decline" in home sales until the threat of the virus and its economic toll have waned, says Lawrence Yun, chief economist of the National Association of Realtors®. But he anticipates sales will pick right back up as soon as things return to some semblance of normalcy. That will also keep prices high.
The luxury market could take the biggest blows, however.
Even in the best of times, these ultraexpensive homes can be harder to unload. But it will likely be harder to find buyers willing to pay top dollar with the economy and stock market in shambles. Wealthier buyers often have more invested in financial markets, which are being buffeted by wild fluctuations.
"The higher-priced homes are the ones that are being withdrawn [from the market] more often," says Frank Nothaft, chief economist of the real estate data firm CoreLogic. "The lower-priced homes continue to be in really strong demand.”
But not everyone has such confidence that home prices will remain strong.
Ken Johnson, a real estate economist at Florida Atlantic University in Boca Raton, FL, expects that prices will fall much more along the lines of what many bargain-hunting buyers have been hoping to see.
If the economy reopens quickly, prices may decrease only by 5% to 10% nationally, says Johnson. They could be more or less depending on the individual market. But if the crisis and stay-at-home orders go on for another 60 to 90 days, he anticipates prices will plummet up to 50% as there won't be many folks shopping for homes.
“I expect sales to dry up. I expect listings to dry up. I expect showings to dry up," says Johnson. "I hope for the best and fear the worst."
We've underbuilt rather than overbuilt in the run-up to this crisis
The glut of new construction was a calling card of the Great Recession. Newly built homes and communities sat vacant, or mostly empty, after the crash. Cities and suburbs were pocked with stalled construction sites. There were too many homes for too few buyers.
But things are quite different now. Last year, builders put up just under 900,000 single-family homes, shy of the nearly 1.1 million homes considered necessary to alleviate the housing shortage and accommodate the growing population.
"We entered this [new] recession underbuilt rather than overbuilt," says NAHB's Dietz.
But a reduced demand from buyers will likely translate to fewer homes being erected in the near future. And the financial crisis is already making it more difficult for builders to secure the financing needed to put up new homes and developments.
Housing starts, construction that's begun but not completed, were down 22.3% from February to March, according to the seasonally adjusted numbers in the most recent U.S. Census Bureau and the U.S. Department of Housing and Urban Development report. Traditionally, this is a time when construction generally picks up alongside the warmer weather heading into the busy spring and summer season.
"Building has been far below average for 10 consecutive years, which is the reason why we've faced housing shortages," says NAR's Yun. "Today during the pandemic, there are even fewer listings."
Bad mortgages are largely a thing of the past
One of the biggest culprits of the last economic downturn were riskier subprime mortgages and "liar loans." Since the housing bubble popped, these loans have largely ceased to exist.
Subprime loans were doled out to less qualified and often uninformed buyers, typically lower-income minorities with lower credit scores. After a set period of time, the interest rates on these loans ballooned higher—well out of reach of the borrowers. They defaulted on their mortgages, which set off the housing bust resulting in scores of foreclosures and short sales.
Liar loans were those given to folks whose lenders didn't verify their income. That slipshod practice has largely vanished.
"The mortgages made today have much lower risk. Lenders have tightened up their standards for making loans," says CoreLogic's Nothaft. "They verify income, they verify employment. Subprime lending and liar loans are gone from the market.”
Of course, it's still likely to be difficult for even the most qualified homeowners to make their mortgage payments if they've lost their jobs or a portion of income to the coronavirus. So the federal government is stepping in.
Mortgage forbearance, as well as loan modifications in many cases, are being offered on government-backed mortgages for up to 12 months for those affected by the coronavirus. Many lenders are offering similar assistance to those who don't have a Fannie Mae or Freddie Mac loan.
"The mortgage forbearance is going to prevent foreclosures," says Yun.
But that doesn't mean there won't be some down the line.
"We will probably see some delinquencies rise," says realtor.com's Hale. "And once the moratoriums are lifted, some people are going to struggle to pay their mortgages."
In addition, investors aren't running rampant like they were in the aughts. Instead of buying properties to hold them and jack up the prices, they've been investing in and upgrading the properties they're buying. And they've had a tougher time of it as the number of foreclosures, short sales, and other cheap and auctioned-off homes have become harder to find as the economy had rebounded.
What does the future of the housing market look like?
How the housing market will fare over the coming months and years is still a mystery, since no one knows just how long this public health pandemic will last and how long the economy will take to rebound. Real estate is likely to suffer until the economy improves and folks feel more confident in buying and selling homes again.
The stimulus bill and extra $600 a week in additional unemployment funding are likely to buoy the economy and "relieve some of the anxiety," says Yun.
Even in a worst-case scenario, the majority of Americans are still employed. And mortgage interest rates are at record lows. They're hovering around 3%, unlike the more than 6% they were at at the beginning of the Great Recession.
"This [crisis] is short-term," says Yun. "We will come out of this."
Even those with less rosy views believe that a strong rebound for housing may be in the cards.
“If we go for an extended period where we’re under stay-at-home orders, then we can expect a crash on par with the previous one," says real estate economist Johnson. "But the comeback could be quicker."
By: Clare Trapasso, Realtor.com 4/22
2020-04-26T13:24:00-07:002020-04-26T13:34:45-07:00Robin Frankstag:firstsourcere.com,2012-09-20:463Think This Is a Housing Crisis? Think Again.
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" src="https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With all of the unanswered questions caused by COVID-19 and the economic slowdown we’re experiencing across the country today, many are asking if the housing market is in trouble. For those who remember 2008, it's logical to ask that question.
Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession – the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country.
Let’s look at five things we know about today’s housing market that were different in 2008.
1. Appreciation
When we look at appreciation in the visual below, there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.<a href="https://files.simplifyingthemarket.com/2020/04/14143838/20200415-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-92565" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" src="https://files.mykcm.com/2020/04/14143838/20200415-MEM-Eng-1.jpg" /></a>
2. Mortgage Credit
The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way leading up to today.<a href="https://files.simplifyingthemarket.com/2020/04/14143835/20200415-MEM-Eng-2.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-92564" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" src="https://files.mykcm.com/2020/04/14143835/20200415-MEM-Eng-2.jpg" /></a>
3. Number of Homes for Sale
One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory, an undersupply of homes available for interested buyers.<a href="https://files.simplifyingthemarket.com/2020/04/14143833/20200415-MEM-Eng-3.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-92563" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" src="https://files.mykcm.com/2020/04/14143833/20200415-MEM-Eng-3.jpg" /></a>
4. Use of Home Equity
The chart below shows the difference in how people are accessing the equity in their homes today as compared to 2008. In 2008, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance their lifestyles. Today, consumers are treating the equity in their homes much more cautiously.<a href="https://files.simplifyingthemarket.com/2020/04/14143830/20200415-MEM-Eng-4.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-92562" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" src="https://files.mykcm.com/2020/04/14143830/20200415-MEM-Eng-4.jpg" /></a>
5. Home Equity Today
Today, 53.8% of homes across the country have at least 50% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to walk away from their homes.<a href="https://files.simplifyingthemarket.com/2020/04/14143828/20200415-MEM-Eng-5.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-92561" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" src="https://files.mykcm.com/2020/04/14143828/20200415-MEM-Eng-5.jpg" /></a>
Bottom Line
The COVID-19 crisis is causing different challenges across the country than the ones we faced in 2008. Back then, we had a housing crisis; today, we face a health crisis. What we know now is that housing is in a much stronger position today than it was in 2008. It is no longer the center of the economic slowdown. Rather, it could be just what helps pull us out of the downturn.
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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.
2020-04-15T07:28:00-07:002020-04-15T07:30:48-07:00First Source Realtytag:firstsourcere.com,2012-09-20:461Recession? Yes. Housing Crash? No.
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Recession? Yes. Housing Crash? No. | MyKCM" src="https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not in one already. What does that mean to the residential real estate market?
What is a recession?
According to the National Bureau of Economic Research:
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan, and Morgan Stanley are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.
Does that mean we’re headed for another housing crash?
Many fear a recession will mean a repeat of the housing crash that occurred during the Great Recession of 2006-2008. The past, however, shows us that most recessions do not adversely impact home values. Doug Brien, CEO of Mynd Property Management, explains:
“With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.”
CoreLogic, in a second study of the last five recessions, found the same. Here’s a graph of their findings:<a href="https://files.simplifyingthemarket.com/2020/04/10102713/20200413-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="338" class="aligncenter wp-image-92494" alt="Recession? Yes. Housing Crash? No. | MyKCM" src="https://files.mykcm.com/2020/04/10102713/20200413-MEM-Eng-1.jpg" /></a>
What are the experts saying this time?
This is what three economic leaders are saying about the housing connection to this recession:
Robert Dietz, Chief Economist with NAHB
“The housing sector enters this recession underbuilt rather than overbuilt…That means as the economy rebounds - which it will at some stage - housing is set to help lead the way out.”
Ali Wolf, Chief Economist with Meyers Research
“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”
John Burns, founder of John Burns Consulting, also revealed that his firm’s <a title="research" href="https://www.realestateconsulting.com/march-19-2020-housing-survival-to-date/" target="_blank" rel="noopener noreferrer">research</a> concluded that recessions caused by a pandemic usually do not significantly impact home values:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”
Bottom Line
If we’re not in a recession yet, we’re about to be in one. This time, however, housing will be the sector that leads the economic recovery.
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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.
2020-04-13T07:13:00-07:002020-04-13T07:19:09-07:00Robin Frankstag:firstsourcere.com,2012-09-20:459Will Surging Unemployment Crush Home Sales?
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Will Surging Unemployment Crush Home Sales? | MyKCM" src="https://files.mykcm.com/2020/04/05100417/20200406-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/04/05100417/20200406-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/05100417/20200406-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/05100417/20200406-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Ten million Americans lost their jobs over the last two weeks. The next announced unemployment rate on May 8th is expected to be in the double digits. Because the health crisis brought the economy to a screeching halt, many are feeling a personal financial crisis. James Bullard, President of the Federal Reserve Bank of St. Louis, explained that the government is trying to find ways to assist those who have lost their jobs and the companies which were forced to close (think: your neighborhood restaurant). In a recent interview he said:
“This is a planned, organized partial shutdown of the U.S. economy in the second quarter. The overall goal is to keep everyone, households and businesses, whole.”
That’s promising, but we’re still uncertain as to when the recently unemployed will be able to return to work.
Another concern: how badly will the U.S. economy be damaged if people can’t buy homes?
A new concern is whether the high number of unemployed Americans will cause the residential real estate market to crash, putting a greater strain on the economy and leading to even more job losses. The housing industry is a major piece of the overall economy in this country.
Chris Herbert, Managing Director of the Joint Center for Housing Studies of Harvard University, in a post titled Responding to the Covid-19 Pandemic, addressed the toll this crisis will have on our nation, explaining:
“Housing is a foundational element of every person’s well-being. And with nearly a fifth of US gross domestic product rooted in housing-related expenditures, it is also critical to the well-being of our broader economy.”
How has the unemployment rate affected home sales in the past?
It’s logical to think there would be a direct correlation between the unemployment rate and home sales: as the unemployment rate went up, home sales would go down, and when the unemployment rate went down, home sales would go up.
However, research reviewing the last thirty years doesn’t show that direct relationship, as noted in the graph below. The blue and grey bars represent home sales, while the yellow line is the unemployment rate. Take a look at numbers 1 through 4:<a href="https://files.simplifyingthemarket.com/2020/04/05100412/20200406-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="338" class="aligncenter wp-image-92364" alt="Will Surging Unemployment Crush Home Sales? | MyKCM" src="https://files.mykcm.com/2020/04/05100412/20200406-MEM-Eng-1.jpg" /></a>
The unemployment rate was rising between 1992-1993, yet home sales increased.
The unemployment rate was rising between 2001-2003, and home sales increased.
The unemployment rate was rising between 2007-2010, and home sales significantly decreased.
The unemployment rate was falling continuously between 2015-2019, and home sales remained relatively flat.
The impact of the unemployment rate on home sales doesn’t seem to be as strong as we may have thought.
Isn’t this time different?
Yes. There is no doubt the country hasn’t seen job losses this quickly in almost one hundred years. How bad could it get? Goldman Sachs projects the unemployment rate to be 15% in the third quarter of 2020, flattening to single digits by the fourth quarter of this year, and then just over 6% percent by the fourth quarter of 2021. Not ideal for the housing industry, but manageable.
How does this compare to the other financial crises?
Some believe this is going to be reminiscent of The Great Depression. From the standpoint of unemployment rates alone (the only thing this article addresses), it does not compare. Here are the unemployment rates during the Great Depression, the Great Recession, and the projected rates moving forward:<a href="https://files.simplifyingthemarket.com/2020/04/05100415/20200406-MEM-Eng-2.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="338" class="aligncenter wp-image-92365" alt="Will Surging Unemployment Crush Home Sales? | MyKCM" src="https://files.mykcm.com/2020/04/05100415/20200406-MEM-Eng-2.jpg" /></a>
Bottom Line
We’ve given you the facts as we know them. The housing market will have challenges this year. However, with the help being given to those who have lost their jobs and the fact that we’re looking at a quick recovery for the economy after we address the health problem, the housing industry should be fine in the long term. Stay safe.
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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.
2020-04-06T08:09:00-07:002020-04-06T08:12:32-07:00First Source Realtytag:firstsourcere.com,2012-09-20:458Classic Basil Pesto RecipeBasil Pesto is such a versatile sauce. It’s fantastic tossed with any pasta or used as a spread on sandwiches. It’s the secret ingredient in Chicken Pesto Pasta or these Chicken Pesto Roll-Ups.
Homemade pesto is surprisingly easy and inexpensive to make and fresh tastes so much better than storebought. We keep a steady supply of this fantastic sauce in the fridge and freezer since it stores really well.
<img width="600" height="900" title="Pesto Sauce is so easy to make and homemade pesto tastes way better than storebought. This Basil Pesto recipe is fantastic with pasta or on sandwiches. #pesto #pestorecipe #basilpesto #howtomakepesto #natashaskitchen #basilrecipes #easypesto" class="alignnone wp-image-59894 size-large" alt="Pesto Sauce Recipe in jar " src="https://natashaskitchen.com/wp-content/uploads/2019/07/Basil-Pesto-Sauce-2-600x900.jpg" sizes="(max-width: 600px) 100vw, 600px" />
Basil Pesto Recipe
Try this homemade basil pesto recipe, you’ll never want the store-bought stuff again! Freshly made sauce is so vibrant in color and flavor. The lemon juice here keeps the color beautiful and adds fresh flavor without needing too much salt.
All you need is a handful of simple ingredients, a food processor, and a few minutes of spare time to get the best pesto sauce you’ve ever had!
<img width="600" height="900" title="Pesto Sauce is so easy to make and homemade pesto tastes way better than storebought. This Basil Pesto recipe is fantastic with pasta or on sandwiches. #pesto #pestorecipe #basilpesto #howtomakepesto #natashaskitchen #basilrecipes #easypesto" class="alignnone wp-image-59896 size-large" alt="Basil pesto in jar with spoon " src="https://natashaskitchen.com/wp-content/uploads/2019/07/Basil-Pesto-Sauce-4-600x900.jpg" sizes="(max-width: 600px) 100vw, 600px" />
What Is Pesto Sauce?
I’m sure you’ve seen pesto placed in the menus of any Italian restaurant or trendy pizza shop you’ve been to, but what really is it? Pesto is basically a bright green sauce that is made from crushing together basil, pine nuts, garlic, olive oil, and parmesan cheese. It’s a sauce that originated in Italy, with the term pesto deriving from an Italian verb “pestare” which means “to crush”. It was originally made using a Mortar and Pestle.
Ingredients for Basil Pesto:
Most of the ingredients needed for this recipe are things you probably already have on hand. Just pick up some fresh basil leaves the day you want to make the sauce.
Fresh basil leaves
Shredded Parmesan cheese
Extra virgin olive oil
Pine nuts (or walnuts)
Garlic Cloves
Lemon juice
Salt & Pepper
Can I substitute the Pine Nuts?
While traditional pesto sauce is made with pine nuts, you can certainly replace the pine nuts with a less expensive nut such as walnuts, or blanched almonds.
What Type of Basil Should I Use?
There are many varieties of basil. A few of the most popular include, Italian large leaf, sweet basil, Thai, and lemon.
Any of these can be used for pesto but each has a slightly different flavor profile. For a traditional basil pesto flavor, you’ll want to use the Italian large leaf. It’s the basil leaf that most people typically think of as “normal” basil. For a sweeter pesto use the sweet basil leaves. For a slight spicy kick, try the Thai, and if you like a little hint of lemon, definitely try lemon basil.
Most grocery stores will only sell one type of basil, so if you want to try the less common types, check your local farmers market or specialty produce shop.
<img width="600" height="400" title="Best Basil for Pesto Sauce" class="alignnone wp-image-59898 size-large" alt="Fresh Italian basil in colander" src="https://natashaskitchen.com/wp-content/uploads/2019/07/Basil-Pesto-Sauce-6-600x400.jpg" sizes="(max-width: 600px) 100vw, 600px" />
How to Make Basil Pesto Recipe:
1. Gently rinse fresh basil leaves and pat dry or use a salad spinner to remove excess water.
2. Place all of your ingredients to a food processor or a high powered blender and process until smooth.
Pro Tip: After blending the pesto, add more salt to taste if desired. Keep in mind that store-bought pesto sauces can be significantly saltier since they are compensating for freshness. Salt also preserves the sauce for a longer shelf life.
<img width="600" height="450" title="Pesto Sauce is so easy to make and homemade pesto tastes way better than storebought. This Basil Pesto recipe is fantastic with pasta or on sandwiches. #pesto #pestorecipe #basilpesto #howtomakepesto #natashaskitchen #basilrecipes #easypesto" class="alignnone wp-image-59897 size-large" alt="How to Make Basil Pesto in food processor" src="https://natashaskitchen.com/wp-content/uploads/2019/07/Basil-Pesto-Sauce-5-600x450.jpg" sizes="(max-width: 600px) 100vw, 600px" />
What Does Basil Pesto Go With?
Basil pesto is an easy and healthy summer sauce that adds incredible flavor to a variety of dishes. Of course, there are the obvious uses for basil pesto, like mixing it in with your favorite pasta dish, or as the base for a pizza, but there’s so much more you can do with it!
Spread on to a sandwich for an elevated lunch
Thin it down with oil or vinegar and make a basil pesto salad dressing
Marinate or toss with your veggies instead of the typical oil and parmesan
Use as a sauce topping for meat: chicken, salmon, pork tenderloin, and of course beef steaks.
<img width="600" height="900" title="Pesto Sauce is so easy to make and homemade pesto tastes way better than storebought. This Basil Pesto recipe is fantastic with pasta or on sandwiches. #pesto #pestorecipe #basilpesto #howtomakepesto #natashaskitchen #basilrecipes #easypesto" class="alignnone wp-image-59895 size-large" alt="Pesto sauce blended and in a jar ready to serve with pasta" src="https://natashaskitchen.com/wp-content/uploads/2019/07/Basil-Pesto-Sauce-3-600x900.jpg" sizes="(max-width: 600px) 100vw, 600px" />
Prep Time: 10 minutes
Total Time: 10 minutes
Pesto Sauce is so easy to make and homemade pesto tastes way better than storebought. This Basil Pesto recipe is fantastic with pasta or on sandwiches.
Servings: 8 people (makes 1 1/2 cups pesto)
Ingredients
2 cups fresh basil leaves tightly packed
3/4 cup shredded parmesan cheese
1/2 cup extra virgin olive oil
1/2 cup pine nuts or walnuts
2 garlic cloves (large)
1/4 cup lemon juice (juice of 2 small lemons)
1/2 tsp salt or to taste
1/4 tsp black pepper
Instructions
Wash and dry the basil leaves.
Place basil into a food processor, add cheese, nuts, garlic cloves, lemon juice, olive oil, salt, and pepper. Process until smooth.
Season with more salt to taste if desired.
2020-04-03T06:23:00-07:002020-04-03T06:49:02-07:00First Source Realtytag:firstsourcere.com,2012-09-20:456The #1 Thing You Can Do Now to Position Yourself to Buy a Home This Year
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="The #1 Thing You Can Do Now to Position Yourself to Buy a Home This Year | MyKCM" src="https://files.mykcm.com/2020/03/31120213/20200401-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/03/31120213/20200401-KCM-Share.jpg 750w, https://files.mykcm.com/2020/03/31120213/20200401-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/03/31120213/20200401-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus. The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.
One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year. According to John Burns Consulting:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.”
Given this situation, if you’re thinking about buying a home this year, the best thing you can do <a title="right now" href="https://looksee.it/Swcni" target="_blank">right now</a> is use this time to get <a title="pre-approved" href="https://looksee.it/WV8Wr" target="_blank">pre-approved</a> for a mortgage, which you can do from the comfort of your home. Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:
1. Gain a Competitive Advantage
Today’s low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home, which is always a plus in your corner.
2. Accelerate the Homebuying Process
Pre-approval can also speed-up the homebuying process so you can move faster when you’re ready to make an offer. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.
Bottom Line<br />
Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. Let’s connect today to get the process started. Call us at 504-754-0059 or email at info@firstsourceRE.com.
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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.
2020-04-01T07:06:00-07:002020-04-06T06:03:28-07:00First Source Realtytag:firstsourcere.com,2012-09-20:455Stay Safe Online<img width="750" height="410" src="https://assets.site-static.com/userfiles/795/image/data_thief_Bigger_2.jpg" />
Cybersecurity spending is projected to reach $42 Billion in 2020. Consumers are increasingly concerned about protecting their personal information and data to avoid being a victim of cybercrime. Its estimated that 44% of consumers have personally been a victim of some form of cybercrime, yet many continue to freely provide their information without even knowing it.
There are many avenues hackers and criminals are using to obtain your data. Your personal information can be obtained using a variety of methods such as social media, fake emails or public Wi-Fi connections.
In recent weeks many Americans have spent countless hours on the internet, especially social media. As we become increasingly bored, many are falling victim to social media games and surveys. While it may be fun to get answers and participate with your friends to challenges like what type of flower are you, who is your actor twin, what is your favorite color, each of these surveys and quizzes are designed to obtain personal data.
Think of what some password challenge questions are.
Anniversary date, name of oldest child, favorite flower, first car, mothers first name, place you met your spouse etc.
Now let’s look at what some of the social media games are.
What’s your favorite vacation spot?
Post a photo with your pet? – usually includes the pet’s name
Post a photo of you and your oldest child.
Post a photo of your husband and anniversary date.
Where did you meet your spouse?
Post a photo of you and your mother.
Post a photo of you and your best friend.
Many times, these games usually ask you to tag the person in the photo. You have now provided hackers with, the first name of your oldest child, your anniversary date, your mothers first name, your childhood friend’s first name, name your favorite pet. Every answer gives cyber pirates more clues to resetting your passwords and gaining access to your identity.
EMAIL is also a commonly used method. Hackers send emails that look similar to banks and financial institutions that you know and trust. Often times, the email is requesting you to verify your account, or prevent your account from being deleted or review previous access etc. Usually the link in these emails are fake and when you fill in your account numbers or passwords, it gives the hacker access to your real account. If you receive an email requesting you update or provide personal information, you should never click the link. Go directly to that company’s website and log in to your account as you normally would. If it is a valid request, the same request will show up in your account.
When using Public WIFI accounts, you should never log in to financial or confidential sites that are not fully encrypted. Always be sure to log out when you are finished. If you use Public WIFI frequently, you should consider using a VPN (Virtual Private Network), these can be obtained from a VPN service provider. There are also some add-ons or plugs-ins provided by some web browser that can help.
If you have more questions, some suggested sites to help are
Federal Trade Commission <a href="http://www.consumer.ftc.gov/">www.consumer.ftc.gov</a>
FBI Safe Online Surfing <a href="http://www.sos.fbi.gov/">www.sos.fbi.gov</a>
National Cyber Security Alliance <a href="http://www.staysafeonline.org/">www.staysafeonline.org</a>2020-03-31T12:18:00-07:002020-03-31T12:46:58-07:00Robin Frankstag:firstsourcere.com,2012-09-20:444The Best Advice Does Not Mean Perfect Advice
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="The Best Advice Does Not Mean Perfect Advice | MyKCM" src="https://files.mykcm.com/2020/03/27094607/20200330-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/03/27094607/20200330-KCM-Share.jpg 750w, https://files.mykcm.com/2020/03/27094607/20200330-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/03/27094607/20200330-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The angst caused by the coronavirus has most people on edge regarding both their health and financial situations. It’s at times like these when we want exact information about anything we’re doing – even the correct protocol for grocery shopping. That information brings knowledge, and this gives us a sense of relief and comfort.
If you’re thinking about buying or selling a home today, the same need for information is very real. But, because it’s such a big step in our lives, that desire for clear information is even greater in the homebuying or selling process. Given the current level of overall anxiety, we want that advice to be truly perfect. The challenge is, no one can give you “perfect” advice. Experts can, however, give you the best advice possible.
Let’s say you need an attorney, so you seek out an expert in the type of law required for your case. When you go to her office, she won’t immediately tell you how the case is going to end or how the judge or jury will rule. If she could, that would be perfect advice. What a good attorney can do, however, is discuss with you the most effective strategies you can take. She may recommend one or two approaches she believes will be best for your case.
She’ll then leave you to make the decision on which option you want to pursue. Once you decide, she can help you put a plan together based on the facts at hand. She’ll help you achieve the best possible resolution and make whatever modifications in the strategy are necessary to guarantee that outcome. That’s an example of the best advice possible.
The role of a real estate professional is just like the role of the lawyer. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen throughout the transaction – especially in this market.
An agent can, however, give you the best advice possible based on the information and situation at hand, guiding you through the process to help you make the necessary adjustments and best decisions along the way. An agent will get you the best offer available. That’s exactly what you want and deserve.
Bottom Line
If you’re thinking of buying or selling, give us a call at 504-754-0059 or email us at info@firstsourceRE.com and let us get you the best advice possible.
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.
2020-03-30T07:45:00-07:002020-03-30T09:30:33-07:00First Source Realtytag:firstsourcere.com,2012-09-20:442Is Now a Good Time to Refinance My Home?
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Is Now a Good Time to Refinance My Home? | MyKCM" src="https://files.mykcm.com/2020/03/24130030/20200325-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/03/24130030/20200325-KCM-Share.jpg 750w, https://files.mykcm.com/2020/03/24130030/20200325-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/03/24130030/20200325-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With interest rates hitting all-time lows over the past few weeks, many homeowners are opting to refinance. To decide if refinancing your home is the best option for you and your family, start by asking yourself these questions:
Why do you want to refinance?
There are many reasons to refinance, but here are three of the most common ones:
1. Lower Your Interest Rate and Payment: This is the most popular reason. Is your current interest rate higher than what’s available today? If so, it might be worth seeing if you can take advantage of the current lower rates.
2. Shorten the Term of Your Loan: If you have a 30-year loan, it may be advantageous to change it to a 15 or 20-year loan to pay off your mortgage sooner rather than later.
3. Cash-Out Refinance: You might have enough equity to cash out and invest in something else, like your children’s education, a business venture, an investment property, or simply to increase your cash reserve.
Once you know why you might want to refinance, ask yourself the next question:
How much is it going to cost?<br />
There are fees and closing costs involved in refinancing, and The Lenders Network explains:
“As an example, let’s say your mortgage has a balance of $200,000. If you were to refinance that loan into a new loan, total closing costs would run between 2%-4% of the loan amount. You can expect to pay between $4,000 to $8,000 to refinance this loan.”
They also explain that there are options for no-cost refinance loans, but be on the lookout:
“A no-cost refinance loan is when the lender pays the closing costs for the borrower. However, you should be aware that the lender makes up this money from other aspects of the mortgage. Usually charging a slightly higher interest rate so they can make the money back.”
Keep in mind that, given the current market conditions and how favorable they are for refinancing, it can take a little longer to execute the process today. This is because many other homeowners are going this route as well. As Todd Teta, Chief Officer at ATTOM Data Solutions notes about recent mortgage activity:
“Refinancing largely drove the trend, with more than twice as many homeowners trading in higher-interest mortgages for cheaper ones than in the same period of 2018.”
Clearly, refinancing has been on the rise lately. If you’re comfortable with the up-front cost and a potential waiting period due to the high volume of requests, then ask yourself one more question:
Is it worth it?
To answer this one, do the math. Will it help you save money? How much longer do you need to own your home to break even? Will your current home meet your needs down the road? If you plan to stay for a few years, then maybe refinancing is your best move.
If, however, your current home doesn’t fulfill your needs for the next few years, you might want to consider using your equity for a down payment on a new home instead. You’ll still get a lower interest rate than the one you have on your current house, and with the equity you’ve already built, you can finally purchase the home you’ve been waiting for.
Bottom Line
Today, more than ever, it’s important to start working with a trusted real estate advisor. Whether you connect by phone or video chat, a real estate professional can help you understand how to safely navigate the housing market so that you can prioritize the health of your family without having to bring your plans to a standstill. Whether you’re looking to refinance, buy, or sell, a trusted advisor knows the best protocol as well as the optimal resources and lenders to help you through the process in this fast-paced world that’s changing every day.
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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.
2020-03-25T07:21:00-07:002020-03-25T07:25:02-07:00First Source Realtytag:firstsourcere.com,2012-09-20:441How to Disinfect a Home Correctly
<img width="624" height="417" src="https://assets.site-static.com/userfiles/795/image/Long_Pictures_/63a03d562fa5d9d209ef628429461886.jpg" />
Real estate pros are taking disinfectant wipes to home showings and in their car to clean frequently touched surfaces as they interact with clients to help slow the spread of COVID-19. But are you disinfecting correctly?
HouseLogic.com reports that the best cleaners are either a bleach solution or a 70% alcohol solution. “Follow this bleach recipe: 5 tablespoons (1/3 cup) bleach per gallon of water, or 4 teaspoons of bleach per quart of water,” the site advises, reminding readers to properly ventilate while disinfecting with bleach. The site also notes that bleach can expire, so check the bottle’s expiration date, and never mix bleach with anything other than water.
If you don't have bleach, use 70% rubbing alcohol, which is already diluted, HouseLogic says. Disinfecting wipes use an ammonium compound, which could allow viruses to become resistant over time. “Disinfection isn’t instantaneous,” Erica Marie Hartman, an environmental microbiologist at Northwestern University in Evanston, Ill., told HouseLogic. “[For a bleach solution], you want to leave it on the surface for 10 minutes before wiping it off. "
Allow for “dwell time,” agrees an article at Apartment Therapy that features an interview with microbiologists. Disinfecting solutions need to remain on the surface for a certain amount of time to be effective. That can vary by product. For example, Clorox Wipes instructions advise treating a surface “using enough wipes for the treated surface to remain visibly wet for four minutes.” Other disinfectants, including bleach, have their own instructions for proper use. Be sure to check the bottle.
Also, disinfectants don’t provide lasting protection. If a sick person touches the surface right after you clean it, new germs will be left there. “The reality is that bacteria are complex organisms, and the vast majority of people don’t understand the intricate mechanisms that power them, which leads to them underestimating just how easily they can be reintroduced and quickly multiply on an unprotected surface,” says Morgan Brashear, the scientific communications manager at Proctor & Gamble.
However, there is such a thing as over-disinfecting surfaces too. <a href="https://www.apartmenttherapy.com/disinfectant-cleaning-tips-36724375" target="_blank" data-di-id="di-id-3095dd8e-ed9a4cff"></a>
Source:
"<a href="https://www.houselogic.com/improve/how-to-disinfect-your-home/" target="_blank" data-di-id="di-id-debf71c4-37f4abcf">How to Disinfect Your Home in the Time of Coronavirus</a>," Houselogic.com (March 16, 2020); “<a href="https://www.apartmenttherapy.com/disinfectant-cleaning-tips-36724375" target="_blank" data-di-id="di-id-bc0f9580-45e1b3c2">3 Things Everyone Gets Wrong About Disinfectants</a>,” Apartment Therapy (March 16, 2020)
2020-03-24T09:11:00-07:002020-03-24T09:15:53-07:00First Source Realtytag:firstsourcere.com,2012-09-20:440Economic Slowdown: What the Experts Are Saying
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Economic Slowdown: What the Experts Are Saying | MyKCM" src="https://files.mykcm.com/2020/03/20120942/20200323-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/03/20120942/20200323-KCM-Share.jpg 750w, https://files.mykcm.com/2020/03/20120942/20200323-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/03/20120942/20200323-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research:
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
Bill McBride, the founder of Calculated Risk, believes we are already in a recession:
“With the sudden economic stop, and with many states shutting down by closing down schools, bars and restaurants…my view is the US economy is now in a recession (started in March 2020), and GDP will decline sharply in Q2. The length of the recession will depend on the course of the pandemic.”
How deep will it go?
No one knows for sure. It depends on how long it takes to beat this virus. Goldman Sachs anticipates we will see a difficult first half of the year, but the economy will recover in the second half (see below):<a href="https://files.simplifyingthemarket.com/2020/03/20120944/20200323-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-92096" alt="Economic Slowdown: What the Experts Are Saying | MyKCM" src="https://files.mykcm.com/2020/03/20120944/20200323-MEM-Eng-1.jpg" /></a>Goldman also projects we’ll have “further strong gains in early 2021.”
This aligns with the projection from Wells Fargo Investment Institute:
“Once the virus infection rate peaks, we expect a recovery to gain momentum into the final quarter of the year and especially into 2021.”
Again, no one knows for sure how long the pandemic will last. The hope is that it will resolve sometime over the next several months. Most agree that when it does, the economy will regain its strength quickly.
*Quarter 1 data from Goldman Sachs was updated from 0% to -0.2% on 3/17/20 after the initial release.
Bottom Line
This virus is not only impacting the physical health of Americans, but also the financial health of the nation. The sooner we beat it, the sooner our lives will return to normal.
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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.
2020-03-23T10:08:00-07:002020-03-23T10:10:58-07:00First Source Realtytag:firstsourcere.com,2012-09-20:439Crawfish Pies<img width="750" height="410" src="https://assets.site-static.com/userfiles/795/image/Recipes_/Crawfish_Pies.jpg" />
Prep time 30 minutes.
Cook time: 20-30 minutes.
Serving size: 10-12 Crawfish pies
Ingredients:
2 Packs of Crawfish Tails (peeled / 12 or 16 oz bags)
1 Cup of Green Onion
1/4 Cup of Fresh Garlic (chopped)
1/2 Cup of Chicken or Shrimp Stock
1/4 Cup of Bell Pepper
1/4 Cup of Fresh Chopped Parsley
1/2 Cup of Milk
1 Stick of Butter
2 Tablespoons of Corn Starch
Pinch of Crab boil
Salt pepper, Paprika, and Cayenne Pepper
10-12 Miniature Pie Shells
Directions:
Can’t get much better than an overstuffed flaky crawfish pie. These little tarts have always been served as a Special treat.
Take miniature pie shells out of the freezer. Take a knife and make 2-3 small slits in bottom of crust.
Bake only the pie shells on 350 degrees until crust is lightly brown.
Take out oven and let cool.
Melt butter in a large skillet over medium heat
Cook and stir the onion, bel pepper, garlic, salt, pepper<br /> cayenne pepper until the vegetables are tender and the onion<br /> is translucent about 5 minutes.
Stir in the crawfish tails, throw in that pinch of crab boil, reduce heat to medium-low, and cook<br /> for about 3 minutes to blend flavors, stirring occasionally.
Whisk corn starch into cold milk and stock in a bowl until<br /> the mixture is smooth, and pour the mixture into the skillet.<br /> Bring the filling to a simmer, and cook, stirring constantly, until the<br /> mixture thickens, about 5 minutes. Add chopped parsley.
Remove from heat and allow to stand for 20 to 30 minutes to finish<br /> thickening.
While filling is cooling, preheat oven to 400 degrees.
Pour the filling into the prepared pie crust, Fill over the base of the rim<br /> of the pie shell. Bake in the preheated oven until the crust is golden brown<br /> and the filling is hot and bubbling 15-20 minutes.
Cool for 10 minutes before serving.
Footnotes:
If mixture is too thick, add a little more milk. If you want mixture to be thicker, add more corn starch to cold milk.
2020-03-20T07:51:00-07:002020-03-20T08:07:19-07:00First Source Realtytag:firstsourcere.com,2012-09-20:437Happy First Day Of Spring!<img width="2913" height="1920" src="https://assets.site-static.com/userfiles/795/image/Happy_First_Day_of_Spring.jpg" />
Start Your Home Search Now!2020-03-19T06:38:00-07:002020-03-19T06:43:33-07:00First Source Realtytag:firstsourcere.com,2012-09-20:436Three Reasons Why This Is Not a Housing Crisis
<img width="750" height="410" class="attachment-entry size-entry wp-post-image" alt="Three Reasons Why This Is Not a Housing Crisis | MyKCM" src="https://files.mykcm.com/2020/03/17130331/20200318-KCM-Share.jpg" srcset="https://files.mykcm.com/2020/03/17130331/20200318-KCM-Share.jpg 750w, https://files.mykcm.com/2020/03/17130331/20200318-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/03/17130331/20200318-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.
1. The Market Today Is Vastly Different from 2008
We all remember 2008. This is not 2008. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, housing is not a catalyst that could spiral us back to that time or place.
According to Danielle Hale, Chief Economist at Realtor.com, if there is a recession:
"It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There's no dysfunction in the banking system, we don't have many households who are overleveraged with their mortgage payments and are potentially in trouble."
In addition, the Goldman Sachs GDP Forecast released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.<a href="https://files.simplifyingthemarket.com/2020/03/17130327/20200318-MEM-Eng-1.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="450" class="aligncenter wp-image-91902" alt="Three Reasons Why This Is Not a Housing Crisis | MyKCM" src="https://files.mykcm.com/2020/03/17130327/20200318-MEM-Eng-1.jpg" /></a>Both of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.
2. A Recession Does Not Equal a Housing Crisis
Next, take a look at the past five recessions in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):<a href="https://files.simplifyingthemarket.com/2020/03/17130329/20200318-MEM-Eng-2.jpg?a=405107-9471cd910d9f25ad62dd7bb899cbc8d0" target="_blank" rel="noopener noreferrer"><img width="600" height="338" class="aligncenter wp-image-91903" alt="Three Reasons Why This Is Not a Housing Crisis | MyKCM" src="https://files.mykcm.com/2020/03/17130329/20200318-MEM-Eng-2.jpg" /></a>
3. We Can Be Confident About What We Know
Concerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.
According to Bloomberg,
“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”
That said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that housing isn’t the driver.
The reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the New York Times, “Everyone needs someplace to live.” That won’t change.
Bottom Line
Concerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, let’s connect to discuss your needs.
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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.
2020-03-18T07:50:00-07:002020-03-18T07:52:21-07:00First Source Realtytag:firstsourcere.com,2012-09-20:435Is a Career in Real Estate Very Real?
<img width="1280" height="800" src="https://assets.site-static.com/userfiles/795/image/Recruiting_/is_a_Career_in_Real_Estate_very_real.jpg" />
Why consider a career in real estate?
Real Estate sales provide an opportunity to run your own business with a minimum amount of up-front cost. The idea of flexible hours can be a huge incentive, plus most people like the idea of not having a limit placed on the amount of income they can earn.
Becoming a real estate agent takes dedication and support. It requires long hours, but can be a highly rewarding career. To start, the Louisiana Real Estate Commission requires that you must:
• Be at least 18 years of age.
• Have obtained a high school diploma or equivalency certificate (GED).
• Complete 90 hours of real estate education in courses approved by the LREC.
• Pass the real estate salesperson licensing examination.
• Provide a criminal background history
• Select a Broker who you would like to affiliate with (Sponsoring Broker).
How do I get business?
Your objective in this business is to assist people through the process of buying or selling homes. Your business can come from people you already know or from complete strangers. You will get assistance from our Broker, who has over 25 years’ experience and is a past licensed instructor for the Louisiana Real Estate Commission. You will learn what tools to use to enhance your business performance.
What does it cost to get started?
We estimate the start-up cost to be approximately $1,500. Some of these expenses include your tuition, your real estate license, membership dues in the local, state and National Association of Realtors, errors and omission insurance, etc. Our manager will elaborate on what fees are due and when.
How soon will I begin to earn an income?
Highs and lows are part of any sales career—some months will be higher producing then others; consistency over time will be the key to your success. Remember the first commission check may not come for a couple of months because real estate sales are paid on a commission basis and it takes time to establish and build a customer and client base for your business. So, it really depends on you and how much time you devote to developing your business.
Job Brief
We are looking for professional real estate agents to be an intermediary between sellers and buyers. A Real estate agent’s responsibilities include marketing listings and providing guidance to buyers and sellers. This is a great opportunity for someone looking to grow their career in real estate.
Responsibilities
Provide guidance and assistance to sellers and buyers in marketing and purchasing properties for the right price under the best terms.
Determine clients’ needs and financial abilities to propose solutions to them.
Perform comparative market analysis to estimate property value.
Display and market real property to possible buyers.
Prepare necessary paperwork (Leases, Purchase Agreements, etc).
Maintain and update listings of available properties.
Cooperate with appraisers, escrow companies, lenders and home inspectors.
Develop networks and cooperate with attorneys, mortgage lenders and contractors.
Promote sales through advertisements, and open houses.
Remain knowledgeable about real estate markets and best practices.
Sales Person Requirements and Characteristics
You must be at least 18 years of age.
You must have obtained a high school diploma or equivalency certificate (GED).
You must show proof of successful completion of 90 hours of real estate education in courses approved by the LREC.
You must comply with all application procedures required by the LREC. This includes the submission of a criminal background history.
You must pass the real estate salesperson licensing examination.
You must be sponsored by a licensed real estate broker and provide proof of Errors and Omissions insurance prior to license issuance.
Must have the ability to work independently combined with excellent interpersonal skills.
Must have strong sales, negotiation and communication skills.
Pleasant and trustworthy.
Apply Here!2020-03-17T05:52:00-07:002020-03-17T06:09:07-07:00First Source Realtytag:firstsourcere.com,2012-09-20:434Oreo Gold Coins
<img alt="Oreo Gold Coins" src="https://static1.squarespace.com/static/5a24c7df8a02c7c08b0e2746/5a24d60571c10b3508f1eb23/5aa8aa11e4966b2fc599829c/1521004073933/edible-gold-spray.jpg?format=500w" data-image-resolution="500w" data-image="https://static1.squarespace.com/static/5a24c7df8a02c7c08b0e2746/5a24d60571c10b3508f1eb23/5aa8aa11e4966b2fc599829c/1521004073933/edible-gold-spray.jpg" data-image-dimensions="1333x2000" data-image-focal-point="0.5,0.5" data-load="false" data-src="https://static1.squarespace.com/static/5a24c7df8a02c7c08b0e2746/5a24d60571c10b3508f1eb23/5aa8aa11e4966b2fc599829c/1521004073933/edible-gold-spray.jpg" />
<article class="entry--item h-entry clearfix hentry category-dessert category-holiday tag-oreos tag-decorations tag-ice-cream tag-dessert tag-cookies tag-chocolate tag-gold tag-st-patricks-day tag-garnish tag-paint tag-wilton tag-spray author-jillian-beck-rogers post-type-text" id="article-5aa8aa11e4966b2fc599829c">
</article>
These are fun to top ice cream with, like my Shamrock Sundaes for St. Patrick's Day. All you need are some Oreos and edible gold spray paint.
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Lay out a piece of foil or parchment paper to spread the cookies out on. Shake the can of edible gold spray really well (We used Wilton Gold Color Mist) and spray an even coat across the Oreos. Do at least three coats, letting dry a few minutes in between each. Once one side is totally dry, turn over and do the same thing with the other side.
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2020-03-16T10:26:00-07:002020-03-16T10:34:45-07:00First Source Realty