Report: U.S. is not experiencing a housing bubble
CoreLogic this week released its July MarketPulse report in which CoreLogic Chief Economist Mark Fleming, Ph.D., and Deputy Chief Economist Sam Khater share their optimism about the ongoing recovery in the U.S. housing market.
Key findings in the July MarketPulse report include:
- According to CoreLogic the market is not experiencing a housing bubble, and the rise in mortgage rates will help to prevent one in the future.
- Housing affordability is near its height due to historically low interest rates and home prices.
- According to the housing affordability index, all but two states are affordable today, and most states are near their recent affordability high points.
- Cash sales peaked above 40 percent two years ago and are slowly receding.
- Cash sales are one of the drivers behind the rapid house price recovery.
More info>>> Click HERE to find out how much your home’s value has risen since last year.
The History of Rising Rates and Housing
With the sudden jump in mortgage rates, market spectators are wondering what the impact might be on the housing recovery.
After analyzing previous instances when mortgage rates increased significantly, Mark Palim, VP of Fannie Mae’s Economic and Strategic Research Group, determined history suggests rate increases won’t stop the current recovery. Instead, a rapid rise in rates is “more likely to contribute to a decrease in home purchase volume and an increase in the market share of adjustable-rate mortgages (ARMs).” Over the past 10 years, there have been two other instances when mortgage rates saw significant increases, according to Palim.
From October 1993 to December 1994, rates increased to 9.20 percent, and in October 1998 to May 2000, rates rose to 8.51 percent. When rates rose from 1993 to 1994, existing home sales fell after increasing, though the impact on home prices was more subdued. Home price appreciation did in fact slow, but annual gains were still in positive territory. The second time around from 1998 to 2000, the housing market reacted in a more “muted” way over the longer period of time. Home sales and home price appreciation “moved sideways” rather than reversing course, according to Palim. Meanwhile, the appetite for ARMs increased during both periods.
However, Palim does not expect this happen the market share for ARMs to increase substantially this time around.
“Given the limitations on ARMs under the recently promulgated Qualified Mortgage rule and the fact that rates on fixed-rate mortgages remain relatively low in historical terms, we may see a more muted increase in the ARM share of the market than in prior periods of rising rates,” he said.
Want to sell fast? ‘Green’ your home
Source: The San Diego Union-Tribune
Home buyers are looking increasingly for energy efficient or “green” homes to cut down on energy costs, and a few simple home improvement tips could make all the difference in selling sooner than later. For example, an aerator on all the faucets in your home can cut annual water usage in half. Landscaping to maximize shade with strategically placed trees can also provide a low-cost solution to cooling.
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Want to find GREEN HOMES in your area? Click Here.
Generational Trends: Younger Buyers More Optimistic
While eight out of ten recent home buyers say their recent purchase was a positive financial investment, the number is even higher for younger buyers under the age of 32, as 85 percent felt confident about their recent home purchase. Such generational trends were explored in an inaugural study from the NATIONAL ASSOCIATION OF REALTORS®. Younger buyers cited honesty and trustworthiness as the most important traits they were looking for in a REALTOR®.
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Successfully Navigating Short Sales and Foreclosures Takes Assistance from Qualified Real Estate Professionals
Financial hardship has led many homeowners to go through the harrowing process of selling their property through a short sale or losing their home entirely to foreclosure. A homeowner is often forced into this difficult position if negotiations with the lender do not result in a loan modification or a lower monthly mortgage payment through refinancing. Navigating the process behind a short sale or a foreclosure can be less stressful with the assistance of a qualified real estate professional who has the knowledge to guide buyers and sellers successfully through the steps.
Making sense of the story:
Real estate professionals who possess Short Sales and Foreclosure Resource (SFR®) certification have received specialized training in short sales and foreclosures and will have the skills to work on these transactions. The certificate is offered by the NATIONAL ASSOCIATION OF REALTORS®.
A short sale avoids the lengthy and costly foreclosure process by selling the property for less than the amount due on the mortgage. Real estate professionals are a key asset in this process because they can help develop a short-sale package and get homeowners qualified for short sales. They will also assist in setting a price that will bring offers and that has a good chance of being approved by the bank.
From the buyer’s perspective, a professional can help to determine a fair offer and negotiate with the bank. A short sale is a complicated and time-consuming transaction, but it often allows a buyer to purchase a house at a reduced price.
In a foreclosure process, homeowners must protect themselves by ensuring the title is legally transferred to another entity. Otherwise, the previous owners may have moved out while still holding the property’s title, which means they would be liable for the costs and responsibilities of homeownership.
Purchasing a foreclosure can lead to getting a home at a discount, but in many cases a buyer is not able to inspect the property before making a bid. There is often no guarantee of condition, which could detract from any savings in the home’s lower selling price.
Read the full story If you feel you may be heading into a short sale scenario, Click Here to contact us today for help!
Survey: Mobile technology dominates home buying process
Demonstrating the proliferation of mobile technology into nearly every facet of our lives, more than eight out of 10 home buyers are accessing home information on their smart phones and computer tablets, according to C.A.R.’s “2013 Survey of California Home Buyers.”
The survey found 85 percent of buyers used a mobile device during the home-buying process, with the majority of buyers (70 percent) accessing the Internet from their smart phones and 15 percent accessing it from their tablets.
While the majority of buyers (61 percent) found their home through an agent, the percentage who found their home online more than doubled from 16 percent in 2012 to a record high of 37 percent in 2013.
Almost one-third (30 percent) of buyers rated Realtor.com as the most useful website, followed closely by Zillow at 28 percent. Broker and agent websites were also helpful in the home-buying process as buyers increasingly seek local expertise and information.
More info>>> Click HERE to Search for your Next Home.
Courtesy of the American Red Cross:
With a heat wave scorching the East Coast this week, the American Red Cross encourages pet owners to pay attention to how the heat is affecting your furry friends. Heat stroke (hyperthermia) occurs when a pet severely overheats. The good news is if the heat stroke hasn’t advanced too far (with body temperature of more than 104° F), you can help your pet recover.
Common causes of heat stroke include: a previous episode of heat stroke, leaving a pet in a parked car, excessive exercise in hot, humid weather (this may be exercise that your pet can usually handle but not in warmer weather), lack of appropriate shelter outdoors, thicker-coated pets in warm weather and underlying disease such as upper airway, heart of lung disease. Read the whole story HERE>>>>
Click Here for a Card of Warm Weather Pet Tips you can print out and save.