Is a Bigger House Within Your Budget?

Is A Bigger House Within Your Budget? | MyKCM

At this time of year, many families come together to celebrate the season. It’s also the time when many realize their homes are just not quite big enough to host all of their guests and loved ones. Are you one of those homeowners dreaming for a larger space to call home?

You may have enough equity in your current home to move up.

According to the Q3 2019 U.S. Home Equity & Underwater Report by ATTOM Data Solutions,

“14.4 million residential properties in the United States were considered equity rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value.”

This means that one in four of the 54 million mortgaged homes in the U.S. have at least 50% equity. If these homeowners decide to sell, they can use their equity to put toward the purchase of a new home. Maybe you’ll be one of them.

NAR recently released their 2019 Profile of Home Buyers and Sellers showing that,

“This year, home sellers cited that they sold their homes for a median of $60,000 more than they purchased it, up from $55,500 the year prior. This accounted for a 31 percent price gain, up from 29 percent the year before.”

Here’s the equity gain breakdown based on the number of years these sellers lived in their homesIs A Bigger House Within Your Budget? | MyKCM

Bottom Line

If you’re one of the many homeowners with big dreams of owning a larger home, let’s get together. Working with a trusted advisor to find out how much equity you have is a great first step in putting your move-up plan in motion.I

Posted in Real Estate News | Leave a comment

Leave it Be? Weighing Your Fall Clean-Up Options

Golden retriever wearing wreath of yellow maple tree leafs

 
Fall is coming to an end. Do you still have leaves in your yard? If you haven’t taken action yet, check out this list of suggestions

Posted in Real Estate News | Leave a comment

Forget the Price of the Home – Cost is What Matters

Forget the Price of the Home. The Cost is What Matters. | MyKCM

Home buying activity (demand) is up, and the number of available listings (supply) is down. When demand outpaces supply, prices appreciate. That’s why firms are beginning to increase their projections for home price appreciation going forward. As an example, CoreLogic increased their 12-month projection for home values from 4.5% to 5.6% over the last few months.

The reacceleration of home values will cause some to again voice concerns about affordability. Just last week, however, First American came out with a data analysis that explains how price is not the only market factor that impacts affordability. They studied prices, mortgage rates, and wages from January through August of this year. Here are their findings:

Home Prices

“In January 2019, a family with the median household income in the U.S. could afford to buy a $373,900 house. By August, that home had appreciated to $395,000, an increase of $21,100.”

Mortgage Interest Rates

“The 0.85 percentage point drop in mortgage rates from January 2019 through August 2019 increased affordability by 9.7%. That translates to a $40,200 improvement in house-buying power in just eight months.”

Wage Growth

“As rates have fallen in 2019, the economy has continued to perform well also, resulting in a tight labor market and wage growth. Wage growth pushes household incomes upward, which were 1.5% higher in August compared with January. The growth in household income increased consumer house-buying power by 1.5%, pushing house-buying power up an additional $5,600.”

When all three market factors are combined, purchasing power increased by $24,500, thus making home buying more affordable, not less affordable. Here is a table that simply shows the data:Forget the Price of the Home. The Cost is What Matters. |  MyKCM

Bottom Line

In the article, Mark Fleming, Chief Economist at First American, explained it best:

“Focusing on nominal house price changes alone as an indication of changing affordability, or even the relationship between nominal house price growth and income growth, overlooks what matters more to potential buyers – surging house-buying power driven by the dynamic duo of mortgage rates and income growth. And, we all know from experience, you buy what you can afford to pay per month.”For

Get your Buyer’s Guide
Get your Seller’s Guide

Posted in Real Estate News | Leave a comment

The Difference an Hour Will Make This Fall

The Difference an Hour Will Make This Fall [INFOGRAPHIC] | MyKCM

Every Hour in the U.S. Housing Market: 

  • 614 Homes Are Sold
  • 95 Homes Regain Positive Equity
  • Median Home Values Go Up $1.3
Posted in Real Estate News | Leave a comment

Four Reasons to Buy a Home This Fall

4 Reasons to Buy a Home This Fall | MyKCM

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Insights Report shows that home prices have appreciated by 3.6% over the last 12 months. The same report predicts prices will continue to increase at a rate of 5.8% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase Next Year

The Primary Mortgage Market Survey from Freddie Mac indicates that interest rates for a 30-year mortgage have recently hovered just above 3.5%. This is great news for buyers in the market right now, because low interest rates increase your purchasing power – but don’t wait! Most experts predict rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is needed to buy your next home.

3. Either Way, You Are Paying a Mortgage 

There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you’re living rent-free with your parents, you are paying a mortgage – either yours or that of your landlord.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing costs to work for you?

4. It’s Time to Move on With Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you’re buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over custom renovations, maybe now is the time to buy.

Bottom Line

Buying a home sooner rather than later could lead to substantial savings. Let’s get together to determine if homeownership is the right choice for you and your family this fall.

Posted in Real Estate News | Leave a comment

Real Estate Pricing Update

July is the month we give our quarterly pricing update and we wanted to start with the FHFA (Federal Housing Finance Agency) Actual Year-Over-Year price change in regard to individual markets.  What we can see is that in each region we had a very nice uptick in prices. Michigan is realizing a 5.41% increase in appreciation from last year this time.

Just to give you some perspective on how well we are doing nationally, the normal historic appreciation level is 3.6% and every one of the regions performed better than the norm with no region losing appreciation. 

Inventory levels continue to be at all time lows since 2011 and the reason why home prices continue to rise and appreciate.  It’s simply a matter of supply and demand.

However, buyer foot traffic is slowing down a bit.  This doesn’t mean there aren’t enough buyers out there, if anything, buyers may be getting discouraged from competing with multiple offers on properties and losing out.  Many are simply sitting back to recoup their energy and save more so they can better position themselves before hitting the pavement again.

There is some good news for buyers and sellers for that matter… mortgage rates are predicted to remain below 4% the remainder of this year giving buyers and sellers more purchasing power.  Not only does this spur buyer demand for first time buyers, but also that second and third-time buyer who currently owns a house and has to put it on the market, bringing more inventory to the market.  So now is the time to act as this window of opportunity may disappear.

As we head into the end of summer and beginning a fall, typically we will see sales prices slow down a bit with less buyer competition, so the market is still strong with great opportunities for both sellers and buyers.  If you would like to learn more about selling or buying a home in this market, give me a call.

 

 

 

Posted in buying a home, First Time Buyer, Michigan real estate, Real Estate News, Royal Oak, Michigan | Leave a comment

The BEST Month to Sell a Home

In a recent article published on SmartZip.com data was collected and reviewed to determine the best month to sell your home throughout the United States. The results were interesting (see below). Michigan is still a “Summer” month with hot sales.  This information is also good insight for those looking to relocate or buy locally.  You’ll get a glimpse on when the market is hot with the most selection of homes and when you might be able to pick up a bargain in the off-season.  If you would like to learn more about strategies for buying or selling a home, I’m here to answer your questions.

sz_best-months-to-sell-a-home-2019
To read the entire article visit Smartzip.com.

Image | Posted on by | Leave a comment