September 4, 2019 rummy

It appears that the balance between housing supply and demand continues to elude us. We’re no stranger to its ever so active fluctuations and we know very well the benefits and repercussions it brings. Let’s take a closer look at the housing market’s current state and find out about the opportunities that come with it. The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List, “From 1990 to 2005, the number of single-family permits…

August 22, 2019 rummy

We’ve been reading a lot of comments and questions about housing affordability lately that we decided to address what most people find confusing about this particular topic. If you’re one of the many people in the gray zone as to whether or not to believe the thing you see and hear about housing affordability crisis, then you better read this. 1. National Association of Realtors’ (NAR) Housing Affordability Index: Here is a graph showing the index going all the way back to 1990. The higher the column, the more affordable homes are: We can see that homes are less affordable…

August 20, 2019 rummy

There’s a good side in everything, rising home prices included. Today we’re listing down not one, not two, but three benefits of growing equity in your home. Read more to find out. 1. Move-Up Opportunity With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic, “In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.” This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to…

August 8, 2019 rummy

If you’re one of the many homeowners who took advantage of buying a home or moving up to their dream home early this year, then the short answer is a simple “Yes”. But do not fret, if you haven’t made that big leap yet. With the figures, we’re about to show you, it’s not too late for you to do something about it. Many of the questions currently surrounding the real estate industry focus on home prices and where they are heading. The most recent Home Price Expectation Survey (HPES) helps target these projected answers. Here are the results from…

July 31, 2019 rummy

Are you fed up with the consistent rise in rent? Have you ever thought of buying a home instead of paying someone else’s mortgage? What’s holding back could simply be your hesitation as you may be pleasantly surprised by what’s needed to purchase a home. According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years. When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. The results of the…

June 18, 2019 rummy

If you ask prospective home buyers what they think the biggest obstacle they need to tackle is, sure enough, you’ll hear two constant answers come up in almost all of them. Let’s find out what they are and see if any of them holds ground. Freddie Mac recently released a report entitled, “Perceptions of Down Payment Consumer Research.” Their research revealed that, “For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will…

June 14, 2019 rummy

More and more baby boomers sell their home for a lot of different reasons. But despite what triggered them to sell in the first place, there is something in common with every home put on the market by boomers – they all consider these things important. The National Association of Realtors recently released their 2019 Home Buyer and Seller Generational Report. The report revealed many interesting tidbits about both categories of baby boomers: younger boomers (ages 54 to 63) and older boomers (64 to72). Here are a few of the more interesting topics. Percentage of Buyers who Looked Online First…

June 6, 2019 rummy

Many buyers worry about home prices because of news about “affordability crisis” here and there, although there is truth to some statements that home prices now is less affordable than it was a decade ago, we cannot overlook other factors in today’s overall markets. On a monthly basis, the National Association of Realtors (NAR), produces a Housing Affordability Index. According to NAR, the index… “…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.” Their…

June 5, 2019 rummy

Recent studies show a new trend in the buyers market. There is a slow build-up of demand for multigenerational homes. This good news for homeowners thinking of selling their home this season. The average life expectancy in the U.S. is 78 years old! As a result, 41% of Americans in the market are searching for a home that can accommodate a multigenerational family. The graph below shows the number of people by generation that purchased a multigenerational home because they will either be taking care of an aging parent or they just want to spend time together. Of those buyers,…

June 4, 2019 rummy

Despite the lack of inventory all across the United States, prices of homes for sale are increasing slowly. In fact, slower than what most home sellers expect. Therefore, we have been observing quite a gap between expectations and reality. In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal. Every month, the Home Price Perception Index (HPPI)…