November 2019 - Realty Solutions Group

The Cost Across Time In Wisconsin

Some Highlights:

With interest rates around 3.66%, now is a great time to look back at where they’ve been over the past few decades. Comparatively, they’re pretty low!
According to Freddie Mac, rates are projected to increase to 3.9% by this time next year.
The impact your interest rate has on your monthly mortgage payment is significant. An increase of just $20 dollars in your monthly payment can add up to $240 per year and $7,200 over the life of your loan.
Maybe it’s time to lock in now, while rates are still historically low.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

How Long Will The Wisconsin Economic Recovery Last?

The Wisconsin economy is at the moment experiencing the longest recovery in our nation’s historical past. The stock market has hit all time highs, whereas unemployment rates are at record lows. Home value appreciation is starting to reaccelerate. This begs the question: How lengthy can this financial recovery last?

The Wall Street Journal (WSJ) Survey of Economists not too long ago called for a financial slowdown (recession) within the near future. The newest survey, nonetheless, now reveals the economists are pushing that timetable again. When requested when they anticipate a recession to begin, 42.5% of the economists in the earlier survey projected between now and the end of next year. The newest survey confirmed that percentage drop to 34.2%. Listed here are probably the most present results:Just like the economists surveyed by the WSJ, most specialists are nonetheless predicting a recession will seemingly happen someday within the next few years. Nevertheless, many are pushing again the date for the financial slowdown.

Bottom Line

Wisconsin Real estate is impacted by the financial system (and the buyer’s perception in the strength of the financial system). The fact that most financial specialists are calling for the restoration to continue through next year means the Wisconsin housing market may even stay robust for the foreseeable future.

Wisconsin Home Buyers Are Looking Now! Are You Prepared to List Your Home?

Inventory on the market today is low, especially among existing homes in the entry and middle-level tiers of the market. It is hovering well below the 6-month supply typically found in a more normal market, as shown in the graph below:
With inventory being one of the biggest housing market challenges today, finding a starter home right now isn’t easy. According to the Q3 Housing Trends Report from the National Association of Homebuilders (NAHB), 68% of those searching for a home think their search will get harder or stay about the same over the next 12 months.

The same study reveals,

“In Qtr3’19, buyers actively engaged in the process of buying a home are more likely to have spent at least 3 months searching (58%) than a year earlier (55%).”

This is certainly no surprise, given the current inventory status. So, what’s the good news? The NAHB continues to say,

“If still unable to find a home in the next few months, the next step for most long-time searchers is to continue looking for the ‘right’ home in the same preferred location (52%). The next step for 35% is to expand their search area and for 16% is to accept a smaller/older home. Only 15% will give up looking.”

What does this mean for homeowners?

If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t planning on giving up anytime soon. The majority of potential buyers who are still searching for their dream home are eager, willing, and ready to buy, so maybe it’s time to list your house and make your move.

Bottom Line

With buyer demand as high as it is today, and inventory in the entry and middle-tier markets remaining low, it’s never been a better time to move up. Let’s get together to determine if now is your time to sell.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Expert Advice: 3 Benefits to Owning a Home in Wisconsin

Success is something often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has certainly made his way in a momentum-driving direction. Here are 3 tips he shares from a recent piece in Business Insider on the benefits of owning Wisconsin real estate:

1. Real estate diversifies your income

“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”

The article highlights how having multiple sources of income, such as those derived from WI real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement.

2. Real estate produces near-immediate results

“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”

Currently, Wisconsin home prices are appreciating in all price ranges, and just last week CoreLogic announced their 12-month home value projection at 5.6%, an increase from 4.5% noted earlier this summer. With that in mind, Wisconsin real estate today is definitely driving immediate results!

3. Passive income can help you become financially independent sooner

“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.

While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”

Wisconsin Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence.

Bottom Line

If you want to increase your savings and overall net worth, Owning real estate in Wisconsin is a great way to go. To learn how you can make it happen, let’s get together to discuss the process.

Who is Brent Sutherland?

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

This is Not Wisconsin’s 2008 All Over Again: The WI Mortgage Lending Factor

There are concerns that the Wisconsin real estate market may be looking a lot like it did prior to the housing crash in 2008. One of the factors they’re pointing at is the availability of mortgage money in Wisconsin.

Recent articles about the availability of low-down payment loans and down payment assistance programs are causing concern that we’re returning to the bad habits of a decade ago. Let’s alleviate the fears about the current mortgage market.

The Mortgage Bankers’ Association releases an index several times a year titled: The Mortgage Credit Availability Index (MCAI). According to their website:

“The MCAI provides the only standardized quantitative index that is solely focused on mortgage credit. The MCAI is…a summary measure which indicates the availability of mortgage credit at a point in time.”

Basically, the index determines how easy it is to get a mortgage. The higher the index, the more available the mortgage credit.

Here is a graph of the MCAI dating back to 2004, when the data first became available:As we can see, the index stood at about 400 in 2004. Mortgage credit became more available as the Wisconsin housing market heated up, and then the index passed 850 in 2006. When the WI real estate market crashed, so did the MCAI (to below 100), as mortgage money became almost impossible to secure.

Thankfully, lending standards have eased since. The index, however, is still below 200, which is half of what it was before things got out of control.

Bottom Line

It is easier to get a Wisconsin mortgage today than it was immediately after the market crash, but it is still difficult. The difference in 2006? At that time, it was difficult not to get a mortgage.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Wisconsin Homeownership Rate Remains on the Rise

Great News! In the 3rd quarter of 2019, the Wisconsin and U.S. homeownership rate increased once again, showing another very strong indicator of the current housing market.

The U.S. Census Bureau announced,

“The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”

Currently there is still low inventory, especially at the entry and middle-level segments of the real estate market, however that is not preventing buyers from aggresively pursueing homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.

Bottom Line

If you’re thinking of buying real estate, let’s work together to make your dream a reality!

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

In Wisconsin, 75 Years of VA Home Loans!

Today, on Veterans Day, we salute those who have served our country in war or peace, and we thank them for their sacrifice.

This year marks the 75^th anniversary of VA Home Loan Benefit offerings through the Servicemen’s Readjustment Act, also known as the GI Bill. Since 1944, this law has created opportunities for those who have served our country, ranging from vocational training to home loans.

Facts About VA Home Loans:

Nearly 24 million home loans have been guaranteed by the Veterans Administration.
Nearly 82% of VA home loans are made with no down payment.
The VA also provides grants to help seriously disabled Veterans purchase, modify, or construct a home to meet their needs. Last year the VA provided 2,000 grants totaling $104 million.

Benefits of a VA Home Loan:

No down payment
No Private Mortgage Insurance*
Lower credit score requirements
Limitation on closing costs
Lower average interest rates

*More information on VA Home Loan Fees

Bottom Line

The best thing you can do today to celebrate Veterans Day is to share this information with those who can benefit from these opportunities. For more information, or to find out how to qualify to use a VA Home Loan Benefit, let’s get together to navigate through the process. Thank you for your service!

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Wood County Listings in the Winter Months Attracts Better Buyers

A recent report of greater than seven million property sales over the past many years revealed that the season in which a property is listed may be able to shed some light on the chances that the house will close for more than asking sales price, as well as how soon the sale will occur.

It’s no surprise that listing a home for sale during the spring saw the best return, as the spring is usually the craziest time of year for home sales. What is amazing, though, is that listing during the winter came in second!

“Among springtime listings, 18.7 percent of houses got above asking price, with winter listings not far behind at 17.5 percent. While 48.0 percent of properties listed in in the spring months sold within thirty, 46.2 percent of homes in winter did the same.”

The study continues on to say that:

“Buyers [in the winter] often need to move, so they are much less likely to make a lowball offer and they’ll often want to close fast — two things that may make the sale much smoother.”

Bottom Line

If you are thinking about listing your Wood County home for sale in 2020, keep in mind that the spring months is when most other sellers will choose to list their houses also. Selling your home this winter will ensure that you have the absolute best exposure to the serious buyers who are searching now!

The report used the astronomical seasons to figure out which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 – June 20; Summer: June 21 – Sept 21; Autumn: Sept 21 – Dec. 20).

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Winnebago County Listings in the Winter Months Gets More Serious Buyers

A recent report of exceeding seven million property sales over the past several years demonstrated that the season in which a property is listed may be able to shine some light on the likelihood that the home will close for more than asking sales price, as well as how quickly the sale will occur.

It’s not surprising that listing a house for sale during the March, April and May saw the best return, as the March, April and May is usually the busiest time of year for home sales. What is amazing, though, is that listing during the winter came in 2nd!

“Among springtime listings, 18.7 % of homes got above asking, with winter months listings not far behind at 17.5 percent. While 48.0 percent of properties listed in in the spring months sold within thirty, 46.2 percent of homes in winter did the same.”

The research goes on to suggest that:

“Buyers [in the winter] sometimes need to move, so they’re much less likely to make a low offer and they’ll often want to close quickly — 2 things that may make the sale much smoother.”

Bottom Line

If you are thinking about listing your Winnebago County home for sale in 2020, remember that the spring months is when most other homeowners will choose to sell their houses also. Selling your property this winter will ensure that you have the absolute best visability to the serious buyers who are searching now!

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

Waushara County Listings in the Winter Months Attracts Better Buyers

A recent study of over 7 million home sales over the past four years showed that the season in which a home is listed may be able to shed some light on the chances that the property will close for more than asking price, as well as how soon the sale will occur.

It’s not surprising that listing a house for sale during the spring saw the largest return, as the spring is usually the busiest season for home sales. What is surprising, though, is that listing during the winter months came in 2nd!

“Among springtime listings, 18.7 percent of homes fetched above asking price, with winter months listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within thirty, 46.2 percent of listing in winter did the same.”

The research goes on to say that:

“Buyers [in the winter] sometimes need to move, so they’re much less likely to make a low offer and they’ll often want to close ASAP — 2 things that can make the sale much smoother.”

Bottom Line

If you are debating listing your Waushara County home for sale in 2020, keep in mind that the spring months is when most other sellers will choose to list their homes also. Listing your home this winter will help ensure that you have the best visability to the serious buyers who are out looking now!

The report used the seasons to figure out which season the listing date fell into (Winter: Dec. 21 – Mar. 20; Spring: Mar. 21 – June 20; Summer: June 21 – Sept 21; Autumn: Sept 21 – Dec. 20).

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.