Experts are predicting that these prices and rates are the lowest
it’s going to get and that both will soon be picking up. “Several
housing experts are predicting that this year will be the last chance
for bargain hunters to cash in on the best deals of the weak housing
market.” More details:
Many of the bank-owned
properties currently coming out of the foreclosure pipeline are being
snapped up by investors who are fixing them up and renting them out —
often to those who were displaced by the foreclosure of their own home.
That has helped to lift prices on foreclosed properties, according to
Alex Villacorte, the director of analytics for Clear Capital, which
specializes in housing market valuations.
"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.
In
some markets hit hard by foreclosures, the turnaround in prices is
already underway. Phoenix recorded an 8.4% jump in home prices during
the three months ended April 30, compared with the three months ended
January 31, according to Clear Capital.
"It's crazy,"
said Tanya Marchiol, founder of Team Investments, a Phoenix real estate
investing firm. "Stuff I was selling six months ago for $60,000 to
$80,000 is now $90,000 to $110,000."
Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.
Goodbye 3.8% mortgage. In addition to home prices, mortgages could also move higher.
Mortgage
rates have been at or near historic lows for much of the past six
months. The average interest rate for a 30-year, fixed-rate mortgage has
not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.
But
rates aren't expected to remain at these record-low levels much longer.
As the economy continues to recover, rates will move higher, said Doug
Lebda, CEO of LendingTree, the online lending site. Although, he said,
they will "stay very reasonable."
The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.
Greater demand for loans will help fuel the increase, according to Lebda.
Even
though mortgage rates have been cheap, borrowing for home purchases has
been sluggish. The Mortgage Bankers Association estimates that
homebuyers will take out mortgage loans totaling about $415 billion this
year, an increase of less than 3% compared with 2011. Next year,
however, it forecasts that amount will almost double to $706 billion.
What
does this mean for you? It means if you are considering buying a
property for you, your family, or as an investment or an upgrade, the
market is offering you an opportunity for a fraction of the historic
cost! This is an opportunity you don’t want to miss. Even if you hadn’t
been considering purchasing a property or wanted to buy 5 years down the
road, taking advantage of the market now may make the best sense for your situation.
If you’d like to find out more and see if buying (or selling) a property makes sense for you, please give us a call or e-mail! We’re happy to help you make the right choice!
You can read the original article from CNN Money here.
What's happening in the Morris, Essex, Somerset and Union County New Jersey Real Estate Markets. North NJ Real Estate Specialists. Real Estate Sales and News in Morristown, Morris Twp, Denville, Parsippany, Montville, Hanover, East Hanover, Randolph, Mountain Lakes, Whippany, Madison, Chatham, Basking Ridge, Short Hills, Summit, New Providence, Livingston, Roseland and more.
Wednesday, May 16, 2012
Wednesday, May 9, 2012
May 2012-Market Update
The housing market and the overall economy are improving at modest rates nationally, and in some areas they have actually gained momentum. The Conference Board’s CEO confidence index is up a notable 14 points—from 49 last quarter to a current reading of 63. A reading of 50 is the threshold above which indicates an optimistic outlook and below indicates pessimism. Rapidly growing optimism is a good sign for future hiring and growth.
“The recovery is happening, though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” NAR Chief Economist Lawrence Yun said. “Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year. With job growth, low interest rates, bargain home prices, and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”
As rents continue to rise, buying becomes a more and more attractive option as home affordability, or the percent of income it takes to pay the mortgage, continues to be among the most favorable in history. The current record interest rates, which factor into affordability, cannot last forever—buyers wanting to take advantage of this unique time in history will want to act before rates rise.
Home Sales
In Millions
Home sales slipped 2.6% from the previous month to 4.48 million units, yet are 5.2% higher from a year ago. A strengthening economy is improving consumer confidence and drawing an increasing number of people into the market. In some local markets, there is not enough inventory of quality homes for buyers to purchase. As these markets see more new listings for their hungry buyers, national home sales could increase..
Home Price
In Thousands
Thanks to a decline in distressed properties, which sell for a 15%–20% less on average compared to non-distressed homes, the median home price rose 5.3% compared to the previous month and 2.6% compared to a year earlier to $163,800. This is the first time in 8 months that home prices have been up by over 1% month-to-month. NAR President Moe Veissi said, “In most areas over the long term, home prices have nowhere to go but up.”Inventory- Month's Supply
In Months
Housing inventory remained stable from the previous month at 6.3 months supply and was 26% below year-ago levels. This marks the fourth consecutive month of inventory near a six-month supply, which is the threshold of a balanced market. Movement out of the deep buyer’s market that has persisted over the past three years is an important step that must precede a full-scale housing market recovery.Source: National Association of Realtors
Interest Rates
Mortgage rates continue to boost home affordability by remaining below 4%—some of the lowest rates on record since 1971. These rates may have begun to find a bottom as there is not much more room to go down, adding to the urgency to buy a home now while these record lows hold.
This Month's Video
Topics For Home Owners, Buyers & Sellers
Pricing a listing at market value is a critical component to getting it sold. Here are a few of the advantages of pricing it right:
- Less Time on the Market. Homes that were priced at market value sold in half the number of days as homes that were overpriced.
- More Money. Pricing right when the home is first listed leads to sellers netting a higher percentage of their asking price, also referred to as the list-to-sell ratio.
- Less Hassle. When a home is priced right, it means that fewer buyers need to view the home to understand it is a good value—and that leads to fewer showings before getting an offer.
- Fewer Reductions. When a home is priced at market value, often it won’t need a price reduction. Depending on local market conditions, sometimes it will—either way, it will be less likely to require one if it is priced right to begin with.
- More Multiple Offers. Homes that are priced right are twice as likely to have multiple offers. This can lead to a higher sold price and it puts the seller in the driver’s seat by providing more options to choose from.
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. 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. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
Smitha and Rahul Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com.Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany
Monday, May 7, 2012
These rock-bottom prices and rates won't last long!
Experts are predicting that these prices and rates are the lowest it’s going to get and that both will soon be picking up. “Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.” More details:
Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.
"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.
In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital.
"It's crazy," said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. "Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000."
Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.
Goodbye 3.8% mortgage. In addition to home prices, mortgages could also move higher.
Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.
But rates aren't expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will "stay very reasonable."
The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.
Greater demand for loans will help fuel the increase, according to Lebda.
Even though mortgage rates have been cheap, borrowing for home purchases has been sluggish. The Mortgage Bankers Association estimates that homebuyers will take out mortgage loans totaling about $415 billion this year, an increase of less than 3% compared with 2011. Next year, however, it forecasts that amount will almost double to $706 billion.
What does this mean for you? It means if you are considering buying a property for you, your family, or as an investment or an upgrade, the market is offering you an opportunity for a fraction of the historic cost! This is an opportunity you don’t want to miss. Even if you hadn’t been considering purchasing a property or wanted to buy 5 years down the road, taking advantage of the market now may make the best sense for your situation.
If you’d like to find out more and see if buying (or selling) a property makes sense for you, please give us a call or e-mail! We’re happy to help you make the right choice!
You can read the original article from CNN Money here.
Smitha and Rahul Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com.
Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany
Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations.
"That could have a significant impact on the market overall in terms of providing a rising floor to home values," he said.
In some markets hit hard by foreclosures, the turnaround in prices is already underway. Phoenix recorded an 8.4% jump in home prices during the three months ended April 30, compared with the three months ended January 31, according to Clear Capital.
"It's crazy," said Tanya Marchiol, founder of Team Investments, a Phoenix real estate investing firm. "Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000."
Miami saw a 4.6% increase quarter-over-quarter through April, and Tampa, Fla., was up 4.4%, according to Clear Capital.
Goodbye 3.8% mortgage. In addition to home prices, mortgages could also move higher.
Mortgage rates have been at or near historic lows for much of the past six months. The average interest rate for a 30-year, fixed-rate mortgage has not topped 4.5% since July 2011 and this week, it hit 3.84%, a new low.
But rates aren't expected to remain at these record-low levels much longer. As the economy continues to recover, rates will move higher, said Doug Lebda, CEO of LendingTree, the online lending site. Although, he said, they will "stay very reasonable."
The Mortgage Bankers Association is forecasting that the 30-year fixed will hit 4.5% by the end of the year.
Greater demand for loans will help fuel the increase, according to Lebda.
Even though mortgage rates have been cheap, borrowing for home purchases has been sluggish. The Mortgage Bankers Association estimates that homebuyers will take out mortgage loans totaling about $415 billion this year, an increase of less than 3% compared with 2011. Next year, however, it forecasts that amount will almost double to $706 billion.
What does this mean for you? It means if you are considering buying a property for you, your family, or as an investment or an upgrade, the market is offering you an opportunity for a fraction of the historic cost! This is an opportunity you don’t want to miss. Even if you hadn’t been considering purchasing a property or wanted to buy 5 years down the road, taking advantage of the market now may make the best sense for your situation.
If you’d like to find out more and see if buying (or selling) a property makes sense for you, please give us a call or e-mail! We’re happy to help you make the right choice!
You can read the original article from CNN Money here.
Smitha and Rahul Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com.
Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany
Foreclosure is Not the Only Option. Why a Short Sale can be a Better Option than a Foreclosure?
Headlines today are filled with stories about homeowners in financial
distress—people who face a lender’s foreclosure on their home.
Do You Owe More on your Mortgage than the House is Worth and Can't Afford the Payments? Foreclosure is Not the Only Option. You might be able to Sell it for Less than you Owe - Without Having to Pay the Lender the Difference.
Consider a Short Sale Instead. Here are the benefits compared to a Foreclosure:
Call Us Today at 973-953-7777 for a Confidential Consultation to see if you qualify for a Short Sale!
Smitha and Rahul Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com.
Smitha and Rahul and their team specialize in North-Central New Jersey and all Morris County Towns such as Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany
Do You Owe More on your Mortgage than the House is Worth and Can't Afford the Payments? Foreclosure is Not the Only Option. You might be able to Sell it for Less than you Owe - Without Having to Pay the Lender the Difference.
Consider a Short Sale Instead. Here are the benefits compared to a Foreclosure:
- We will List and Sell Your House.
- The Lender Will Pay the Realtor Fee.
- And You Get to Protect Your Credit Score.
Call Us Today at 973-953-7777 for a Confidential Consultation to see if you qualify for a Short Sale!
Smitha and Rahul Ramchandani are a licensed real estate Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey. They are Buyer Specialists and a Home Marketing Experts. You can reach Smitha and Rahul and their team online at: http://www.Morris-Homes.com.
Smitha and Rahul and their team specialize in North-Central New Jersey and all Morris County Towns such as Boonton, Chatham, Chester, Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown, Morris Plains, Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany
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