November 15, 2018 rummy

When the demand is high, it is normal to expect that the supply will dwindle at some point in time. It is safe to say that this phenomenon will open opportunities for prices to be pushed up giving sellers an edge. On the other hand, an increase in supply does not necessarily equate to a dip in demand. For over three years leading up to this point, the exact opposite was true; Inventory dropped as sales soared. NAR’s Chief Economist Lawrence Yun shed some light on what could be contributing to this shift, “This is the lowest existing home sales…

November 9, 2018 rummy

With drastic events in the real estate industry like the mortgage interest rate increase this year, it’s not uncommon for one to wonder what the future has in store for us. Sources: Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments. The National Association of Realtors (NAR) – The largest association of real estate professionals in the world. Freddie Mac – An organization which provides liquidity, stability, and affordability to the U.S. housing market in all…

November 2, 2018 rummy

With the rate that we’re at, one can’t help but wonder how much will home prices go up to by next year. There’s no sure way to tell exactly as there are a lot of factor that come in to play when it comes to real estate. The best the we can do is rely on intelligent studies and researches to give as the closest forecast of what the future holds for us. The Home Price Expectation Survey – A survey of over 100 market analysts, real estate experts, and economists conducted by Pulsenomics each quarter. Zelman & Associates -…

October 31, 2018 rummy

A lot of news and articles talk about the issue of housing affordability in the whole of the United States. Let’s take a closer look to find out if the same incline happens all across the board. According to NAR: “A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.” The national…

October 18, 2018 rummy

As most of us know, real estate markets in most areas have been very competitive due mortgage interest rate increase and low inventory of homes for sale. Now that the inventory has loosened up a lot of people have conflicting impressions about it. New listings jumped 8% year-over-year nationally, the largest increase since 2013 Total listings in the 45 largest markets are now up 6% on average over last year This increase in housing inventory has sparked two different reactions. Some are saying this is the first sign of a potential collapse while others are saying it is a welcomed…

October 12, 2018 rummy

There have been countless reports saying that home prices nowadays are more expensive that is was 10 years ago. While this is accurate, most reports do not include why this is not necessarily a bad thing. Let’s find out why. The reason is that homes were less affordable 25, 20, or even 11 years ago than they are today. Obviously, buying a home is more expensive now than during the ten years immediately following one of the worst housing crashes in American history. Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) that were…

October 11, 2018 rummy

As the shortage of existing homes continues to drive home prices up, new home sales are giving us a glimpse of how the foreseeable future home sales will look like. According to the latest New Residential Sales Report from the Census Bureau, new construction sales in August were up 3.5% from July and 12.7% from last year! This marks the second consecutive month with double-digit year-over-year growth (12.8% in July). Below is a table showing the change in starts, completions, and sales from last August. Other notable news from the report is that the percentage of new construction sales in…

October 9, 2018 rummy

With recent market developments such as the mortgage interest rate increase and dwindling supplies, many of us expected a significant bump in home prices this year. But recent reports indicate that this year marks the first time since 2016 when home prices did not mark up by 6%. CoreLogic’s Chief Economist Frank Nothaft gave some insight into this change, “The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home. The slackening in demand is reflected in the slowing of national appreciation, as illustrated in…

September 27, 2018 rummy

The way we plan and live our lives greatly depend on our ability to pay for the things we use and will be using. At the top part of most people’s list is mortgage. Changes in mortgage rate directly impact us and our day to day lifestyle. Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year. Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can…

September 26, 2018 rummy

One of the main reasons why real estate have been at the top of the list of great investments is its structurally sound appreciation model. The premise is, as time goes, the population grows but the land mass of a region remains the same. Thus, circling back to the ever dependable law of supply and demand. The rate on increase of a home’s value varies greatly per location and it’s economic state. CoreLogic broke down appreciation even further into four price ranges, giving us a more detailed view than if we had simply looked at the year-over-year increases in national…