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…

September 25, 2018 rummy

With the amount of time spent in its current state, it’s a little hard to establish the true norm for everyone. Newcomers to the industry who experienced the pre-bubble burst market may perceive what we have now as their norm. Some may have an ideal vision of how the normal market status should be and some may base it on how things were before the bubble burst. After the bubble burst in June 2007, values depreciated 6.1% annually until February 2012. From March 2012 to today, the market has been recovering with values appreciating 6.2% annually. These wild swings in…

September 14, 2018 rummy

There are no complex forces at work here, just a normal case on Supply and Demand imbalance. Figures shown below are from the best and most reliable source explaining the future of the market. Let’s find out more. The Foot Traffic Report by the National Association of Realtors Methodology: Every month SentriLock, LLC provides NAR Research with data on the number of properties shown by a REALTOR. Lockboxes made by SentriLock, LLC are used in roughly a third of home showings across the nation. Foot traffic has a strong correlation with future contracts and home sales, so it can be…

August 28, 2018 rummy

We got good news for all homeowners who are planning on selling their homes. Studies show a steady increase of up to 0.2 in home sales over the coming year. If you’re asking whether or not this is the best time to put your home up in the market, then take a look at the chart below. As we can see, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association all believe that homes sales will increase steadily over the next year. If you are a homeowner who has considered selling your house recently, now may be the best time…

August 21, 2018 rummy

If you think about it, it makes sense to pay for something monthly that you know will be yours in a few years time. You can consider your monthly amortization a deposit to your personal savings, only you cannot withdraw cash from it. A study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net worth of a homeowner is over 44 times greater than that of…

August 17, 2018 rummy

Over and over for the past several months now, experts and critics alike, repeatedly sit around to discuss and compare the figures we had a decade ago and how it lead to the infamous housing crisis. They gather amongst themselves to brainstorm about how our current numbers may lead to another housing crisis, but here’s why we think otherwise. There is a major difference between the two markets. Last decade, while demand was being artificially created by extremely loose lending standards, a tremendous amount of inventory was coming to the market to satisfy that demand. Below is a graph of…

August 15, 2018 rummy

Whether it’s because of proximity to work or business or simply because your family has grown. You will come to think at some point that your home cannot keep up with your needs anymore. It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it’s okay to admit that your home no longer fits your needs! ​ According to CoreLogic’s latest Home Price Index, prices in the starter home market have appreciated faster than…