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Facts & Figures

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Are we heading toward another housing bubble?

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According to a recent article on Keeping Current Matters, many experts have weighed in and agree:  we’re not headed for another crisis. The housing crisis of 2006-2008 was caused by poor lending practices which have since been cleaned up, and the financial turmoil present 10 years ago does not factor into today’s real estate market.

While median home prices have been steadily increasing this year, and a good many of the nation’s metropolitan areas experiencing record appreciation, it’s only natural to be concerned about another possible recession a decade after the biggest housing collapse in America’s history. We will most likely experience a shift from the rapid growth and appreciation that we are currently experiencing as the market corrects itself, but it won’t be a “burst”. Locally, we have never experienced a burst and although some buyers were unfortunately encouraged to overpay, our personal belief is that most local homeowners should not be affected by a bigger national shift.

Is it the right time for you to buy? It’s a personal issue we can’t answer for you. Start by thinking about these questions:  Am I comfortable with a mortgage payment? Would I still be okay with the payment if the market did correct in the future? Contact us with any other questions that come up!

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Housing demand continues to surpass inventory

A recent article published on RISmedia.com tells us that inventory is now at its lowest in 20 years! There are many reasons why, but according to a new survey by realtor.com, 63% of the homeowners polled are happy where they are - whether they have recently purchased their home, have plans to upgrade their current home, or they don't want to give up their current low interest rate. 

Many are also hesitant to sell knowing how few homes are available, even if they stand to make a decent profit on their home. However, 35% of millennial homeowners polled are planning on listing their homes within the next year, which could give the market a healthy boost. 

If you've been thinking about selling your home, now is the time to get it on the market! Contact us for a full market analysis!

 

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Are you planning on buying a home this year? 

It's tough buying a home anywhere right now, due to low inventory and increasing prices, but if you are toying with the idea of buying, or are anticipating changes forcing you to move, you may want to do so sooner rather than later. 

Here are 3 reasons why you should buy a home before the end of 2017: 

- Interest rates are rising, and all signs are pointing to this trend continuing. Right now, the interest rate is just above 4%, and could easily climb to 6% by 2020. This may not seem like much, but each increase of 1% could potentially add about $100 to your monthly mortgage payment. 

- Inventory is shrinking, and experts predict this will continue. Every day you wait to start looking for a new home, you face more competition for fewer homes. 

- Home prices are still rising, increasing 5% from 2015 to 2016, and experts are predicting another 2-3% jump in 2017. While this may be great for sellers, this is not ideal for buyers. 

The good news is that if you start your home search now, you just might find a home that is right for you, before the door on 2017 closes. 

Are you thinking of buying a home soon? Now is the time! Contact us now to get started.

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Do homeowners have a greater net worth than renters?

In the latest survey by the Federal Reserve, which is conducted every three years, it is reported that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). It is predicted that by the end of 2016, the net worth gap will widen even further to 45 times greater.

Homeownership is a form of 'forced savings'. Every time you pay your mortgage, you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth. 

The bottom line is that homeownership is still a great way for a family to build wealth in America. If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, meet with us and we can guide you through the process.

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Should you buy your dream home this winter?

You might be having doubts about being one of those brave house hunters out in the rain, sleet or snow to find your perfect home in the winter months. Here are a few reasons why you shouldn't put off your home search until the spring:

  • Prices will continue to rise. A recent report shows that home prices have appreciated by over 6% this year, and will continue to rise over the next year. Waiting no longer makes sense!
  • Interest rates are projected to increase. Current rates are just over 4%, and it is predicted that over the next year, those rates will rise; impacting the mortgage payment on your next home. 
  • Either way, you're already paying a mortgage. If you haven't purchased a home because you're afraid to take on the obligation of paying a mortgage, know that unless you're living rent free, you're already paying a mortgage: your landlord's. 
  • Because you want to own a home. The cost of a home is determined by the price of the home as well as the current interest rate, and both are on the rise. Now is the time to look at the reasons you've been waiting to buy to determine if it makes sense to put it off any longer. 

Are you thinking of buying a home soon? Contact us to get started!

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Data shows consumers still understand the value of a Realtor

According to the newly released National Association of Realtors®' annual Profile of Home Buyers and Sellers, for-sale-by-owner transactions remained at an all-time low of 8 percent for the second year in a row. Given the strength of the market, we frequently hear people think there is no need for Realtors. Of course, we know that getting the best price, strongest buyer and managing all the other aspects of the transaction go beyond what you can find on Zillow!

Now that the data is in, nearly 90% of the participants surveyed who purchased or sold a home between July 2015 and June 2016 worked with a real estate agent. Additionally, while the recent years’ low inventory in relation to demand have put many sellers in the driver's seat, they're still looking for a full-service real estate agent to price their home competitively, market their home to the widest audience possible and close the deal within a given timeframe, rather than a more limited set provided by what is often referred to as a “discount broker”. 

This year's survey also proved that despite a record-high 51& of buyers saying they found the home they purchased online, 90% of buyers who used the internet still ended up purchasing their home through an agent.

With real estate purchases being one of the biggest financial transactions you'll experience in your lifetime, why not let a professional that has years of experience and knowledge help you? Contact me if you're thinking about buying or selling your home.  

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The housing market is getting stronger

While some would-be buyers are being hindered by low inventory and tight lending, this is the strongest performance we've seen since the housing boom. According to Keeping Current Matters, this is why:

  • Mortgage availability is increasing. But while a buyers chance of being approved for a mortgage has increased over the past three years, this does not indicate another housing bubble; it is still difficult for many buyers to become qualified. 
  • The current Housing Affordability Index shows that is more affordable to buy a home today, than any other time since 1990. With household incomes increasing, houses should continue to remain affordable and housing demand should remain strong.
  • Home prices have increased substantially over the past several years, and are well within historic norms. 
  • Demand for housing is growing. We continue to see fewer homes for resale compared to a year ago. In fact, the supply of these homes has been well below normal for the last 4 years. 
  • New homes are beginning to increase, which is addressing the issue of low inventory. But right now we're building only about half the new homes we need to keep pace with the number of households being formed.

Eventually the combination of higher prices and higher mortgage rates will lead to softening demand across the U.S. However, that is not imminent and now has very little chance of occurring before winter, when we reach the slowest time of the year for home sales.

Are you thinking about buying a home? Contact me with any questions. 

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"Old Millennials" are dominating in the first-time homebuyer category

The oldest members of the massive millennial generation are reaching peak home-buying age, and many are just as determined to own homes as prior generations. As they push into their mid-30s, their financial resources will grow, and it is evident that the demand for housing is going to grow even faster than demographic data would suggest. 

Are you considering buying? Contact us and we'll help answer any questions!

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Hot Buffalo Niagara Real Estate market continues!

Based on a recent Business First article, the heart of the selling season has yet to begin. According to the Buffalo Niagara Association of Realtors, current sales numbers for the first two months of the year are already almost 30% higher than last year. February's sales alone were 33% higher than last year. 

Sale prices also showed increases. The median sale price in February was up 7.7% from February 2015, and the average sale price showed,a gain of 6.5%.

With the increase in activity this year, supply has dropped 12% from last year. Are you thinking about selling your home? Now is the time!  Contact me to sell your home quickly and for the best possible price. 

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