Hire a Real Estate Professional

 5 Reasons to Resolve to Hire a Real Estate Professional

Some Highlights:

 

• Why hire a Real Estate Professional? As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team!
• There are many benefits to using a local professional!
• Pick a pro who knows your local market and can help you navigate the housing market!

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On the last business day of 2016, 30-year fixed, 15-year fixed and 5/1 ARM mortgage rates all continued to fall, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

December existing home sales down slightly from November

According to its recently released Residential Real Estate Nowcast, online real estate transaction marketplace Ten-X indicates a modest month-over-month decrease in December existing home sales.

“December sales will fall between seasonally adjusted annual rates of 5.33 and 5.69 million,” per a statement Ten-X released this week, with a targeted number of 5.51 million, which is down 1.8% from last month, but up 0.9% from last year.

“It’s possible that we’re seeing the effect of rising mortgage rates slowing down existing home sales,” said Rick Sharga, Ten-X executive vice president. “It’s also possible that we may see the numbers trend upwards as buyers decide to enter the market before interest rates go even higher.”

» MORE: HARP: What you need to know

Ten-X chief economist Peter Muoio added in the release: “As we round out 2016, the U.S. housing market continues to benefit from a strong labor market, as solid job gains, low unemployment and promising wage growth fuel a high level of underlying demand for homes. While there are still headwinds to sales growth in the way of tight inventory, low affordability and the likelihood of mortgage rate increases, solid fundamentals continue pointing to the overall health of the housing market.”

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Mary Flory is an assistant assigning editor at NerdWallet, a personal finance website. Email: mflory@nerdwallet.com. 

The article Mortgage Rates Today, Friday, Dec. 30: End-Of-Year Declines Continue; Existing Home Sales Drop originally appeared on NerdWallet.

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As we are about to bring in the New Year, families across the country will be deciding if this is the year that they will sell their current house and move into their dream home. Many will decide that it is smarter to wait until the spring “buyer’s market” to list their house. In the past, that might have made sense. However, this winter is not like recent years.

The recent jump in mortgage rates has forced buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!! At the same time, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Here is a chart showing the decrease in inventory levels by category:

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2017, now may be the time.

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Thirty-year fixed, 15-year fixed and 5/1 ARM mortgage rates all fell on Thursday, according to a NerdWallet survey of mortgage rates published by national lenders.

The article Mortgage Rates Today, Thursday, Dec. 29: Declines Ahead Of Year End originally appeared on NerdWallet.

 

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You Need an Agent Who Will Put You First

 

When it comes to buying a home, whether you are a rookie homebuyer or have gone through the process many times, having a local real estate expert who is well versed in the neighborhood you are looking to move into, as well as the trends of that area, should be your goal.

One great example of an agent who is in your corner and is always looking out for your best interests is one of the main characters on ABC’s Modern Family, Phil Dunphy.

For those who aren’t familiar, the character Phil is a Realtor with a huge heart who always strives to do his best for his family and his clients.

In one recent episode, Phil even shared the oath that he created and holds himself accountable to:

“On my honor, I promise to aid in man’s quest for shelter, to recognize I’m not just in the business of houses — I’m in the business of dreams in the shape of houses. To disclose all illegal additions, shoddy construction, murders, and ghosts. And to put my clients’ needs before my own.” 

While this might seem silly, and it was definitely written with humor in mind, the themes of helping someone achieve the American Dream and putting a client’s needs above your own are not to be taken lightly. 

Bottom Line

When you make the decision to enter the housing market, as either a buyer or a seller, make sure you look for an agent who exemplifies these values and will help you through every step of the process.

You Need an Agent Who Will Put You First

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Thirty-year and 15-year fixed rates reversed course from yesterday and fell slightly, while 5/1 ARM rates notched up again Wednesday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

New home sales up in November

November saw newly built, single-family home sales rise by 5.2 percent, according to data released last week by the Department of Housing and Urban Development and the Census Bureau. The seasonally adjusted annual rate was 592,000 units. That compares with 490,000 in November 2015, according to the National Association of Homebuilders.

» MORE: Calculate your refinance savings

“New home sales showed growing strength in 2016, and builders expect more of the same next year,” Ed Brady, chairman of the NAHB, said in a release. “A key to continued growth in 2017 will be to ensure that prospective, qualified first-time homebuyers have access to affordable home loans.”

Adding to the builder optimism, NAHB chief economist Robert Dietz says the “NAHB expects an increase in single-family home construction next year, fueled by a growing economy and solid job growth.”

“Builder confidence has risen on anticipation of reductions in regulatory costs, which is good news for homebuyers and renters,” Dietz says. “However, the pace of construction will continue to be restricted by shortages of lots and labor in some markets.”

New home sales increased 43.8 percent in the Midwest and 7.7 percent in the West, but remained flat in the Northeast and fell 3.1 percent in the South.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Michael Burge is a staff writer at NerdWallet, a personal finance website. Email: mburge@nerdwallet.com. 

The article Mortgage Rates Today, Wednesday, Dec. 28: Slight Decreases; New Home Sales Up originally appeared on NerdWallet.

 

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Homeowner’s Net Worth Is 45x Greater Than A Renter’s

.

Homeowner’s Net Worth Is 45x Greater Than A Renter’s. Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that by the end of 2016, the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

Put Your Housing Cost to Work for You

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.

The latest National Housing Pulse Survey from NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, let’s get together and evaluate your ability to buy today!

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Mortgage Rates Today, Tuesday, Dec. 27

Thirty-year fixed, 15-year fixed and 5/1 ARM rates are all higher Tuesday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

Across the board, lenders were repricing their loans higher after a Christmas holiday break.

National home price index hits all-time high for second month in a row

On average, home prices across the nation have hit their highest levels ever for two consecutive months, according to the S&P CoreLogic Case-Shiller U.S. national home price index. The survey, covering all nine U.S. census divisions, notched a 5.6% annual gain in October, up from 5.4% in Sept. 2016.

» MORE: Calculate your refinance savings

“Home prices and the economy are both enjoying robust numbers,” David M. Blitzer, managing director at S&P Dow Jones Indices, said in a release. “However, mortgage interest rates rose in November and are expected to rise further as home prices continue to outpace gains in wages and personal income. … With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends.”

Among the 20 cities surveyed, Seattle, Portland, Oregon and Denver registered the highest year-over-year price appreciation, with gains of 10.7%, 10.3% and 8.3%, respectively.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: hal@nerdwallet.com. Twitter: @halmbundrick.

The article Mortgage Rates Today, Tuesday, Dec. 27: Rising; U.S. Home Prices Hit All-Time High Again originally appeared on NerdWallet.

 

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In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

• 51% on the internet
• 34% from a Real Estate Agent
• 9% from a yard sign
• 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s get together and discuss the options available in your market today.

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Some Highlights:

• November’s Existing Home Sales report revealed that sales are now at an annual pace of 5.61 million which is “now the highest since February 2007 (5.79 million) and is 15.4% higher than a year ago (4.86 million).”
• Total housing inventory (or the inventory of homes for sale) fell 8.0% from last month and is now 9.3% lower than November 2015.
• Inventory has dropped year-over-year for the last 18 months.
• The median price for all home sales in November was $234,900, up 6.8% from last year and marks the 57^th consecutive month of year-over-year gains.

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