As home values continue to rise, some are questioning whether we are approaching another housing bubble. Zillow just reported that:
“National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade.”
Though that statement is correct, we must realize that just catching prices of a decade ago does not mean we are at bubble numbers. Here is a graph of median prices as reported by the National Association of Realtors (NAR).
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Real Estate News with Keith Kreis – Are Home Prices Approaching Bubble Territory?
In a blog post published last Friday, CNBC’s Diana Olnick reported on the latest results of the FAU Buy vs. Rent Index. The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers at FAU use a “‘horse race’ comparison between an individual that is buying a home and an individual that rents a similar-quality home and reinvests all monies otherwise invested in homeownership.”
Having read both the index and the blog post, we would like to clear up any confusion that may exist. There are three major points that we would like to counter:
1. The Title
The CNBC blog post was titled, “Don’t put your money in a house, says a new report.” The title of the press release about the report on FAU’s website was “FAU Buy vs. Rent Index Shows Rising Prices and Mortgage Rates Moving Housing Markets in the Direction of Renting.”
Now, we all know headlines can attract readers and the stronger the headline the more readership you can attract, but after dissecting the report, this headline may have gone too far. The FAU report notes that rising home prices and the threat of increasing mortgage rates could make the decision of whether to rent or to buy a harder one in three metros, but does not say not to buy a home.
2. Mortgage Interest Rates are Rising
According to Freddie Mac, mortgage interest rates reached their lowest mark of 2017 last week at 3.89%. Interest rates have hovered around 4% for the majority of 2017, giving many buyers relief from rising home prices and helping with affordability.
While experts predict that rates will increase by the end of 2017, the latest projections have softened, with Freddie Mac predicting that rates will rise to 4.3% in Q4. Buy Property in Downers Grove
3. “Renting may be a better option than buying, according to the report.”
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Keith Kreis News – The TRUTH Behind the RENT vs. BUY Debate
As we head into summer, it is a great time to review how the 2017 real estate market is doing so far. Here is what the experts are saying:
Ask Keith Your local Buyer Agent
“Positive demographic factors sphould continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates.”
“Even as more homes come on the market for this traditionally popular sales season, they’re flying off fast, with bidding wars par for the course. Home prices have now surpassed their last peak, and at the entry level, where demand is highest, sellers are firmly in the driver’s seat.”
“I am guessing we will see it get even better… If you are considering moving, it could be a really good time to sell.”
“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month. Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings…for sales to muster a strong gain. Sales will go up as long as inventory does.”
“Despite higher mortgage rates, the potential for home sales increased on an annual basis driven by steady income and job growth, along with a surge in building permits. While it may be a little late for this spring, the increase in building permits is a welcome sign that some relief may be in sight for the inventory shortages that are holding back many markets from realizing their full potential this spring.”
source: Keith Kreis Real Estate Agent
The concept of Supply & Demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high! Anything under a 6-month supply is a Seller’s Market!
READMORE: Real Estate News with Keith Kreis
If the home you’re considering buying, or the one in which you’re currently living is governed by a Homeowners Association, you’ll need to ensure that the privacy landscaping you want abides by the HOA rules. You’ll typically find landscaping rules in the CC&R section of the HOA documents. Continue reading…
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Here are four great reasons to consider buying a home today instead of waiting. click here
These are great times to look into investing in real estate. It’s a buyer’s market and there is the opportunity for you to benefit from the financial crisis that this country is facing. The following advice is provided to help you get the home of your dreams while avoiding the potential nightmares that could occur.
Now that you know that it is a buyer’s market and some great advice about how to make the most beneficial decisions, you will be able to hit the market with confidence. Keep all of the advice fresh in your mind as you work your way through the real estate market and you will find that the home of your dreams is there waiting for you.
Buy Property in Plainfield
If you are considering buying a house in a certain area, think about the area’s future prospects for growth. There may be a grassy meadow across the street from the house you are considering, but that might be a mini-shopping mall in five years. Try to choose a home where you can be sure of the surrounding area for years to come.
There are a lot of pro active things that you can do when selling real estate. From the way that you present your home to the way that you offer and negotiate, you can make a big difference in the results that you get. This article will give you some great ideas on how to get the most out of your real estate sale.
When showing your home to potential buyers, be sure to de-clutter prior to inviting them into what could be their new home. Pack away the little things that you do not feel reflect a welcoming space for them. You want to make your home look open with a lot of space for them to move their things in.
Homes are generally bucketed into three groups by price range: starter, trade-up, and premium.
Trulia’s market mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.” source: A Tale of Two Markets: Inventory Mismatch Paints a More Detailed Picture
As you can see, you have a lot of control over the sale of your home or property. The choices that you make will determine how much you get and if you are able to sell it in a quick time-line. Stick to the advice given here and you should see some great results.