Jump & Crash
On the House
Charlie Lawson – GCS Title
Different aspects of the housing market are going in different directions. But the latest “ups and downs” are pretty favorable. RE/Max is out with its latest National Housing Report and it shows we’ve got a healthy market that’s really picking up:
- The U.S. housing market has gone 50 months without a drop in the median sales price
- Home sales jumped 33.4% from February to March – that’s also a 3.6% year-over-year increase
- Forty-four of the 53 metro areas included in the report experienced home price increases
More homes have sold, prices are holding steady and rising in most areas; we’re also finding that the time it takes a home to sell is decreasing:
- March marked the 36th consecutive month where time on market was fewer than 80 days
- The average days on market in March was 71 – down four days from February and seven days year-over-year
As we’re seeing a jump in market activity, we’re simultaneously seeing a crash in mortgage interest rates. We’ve got the lowest interest rates since May 2013 according to the Primary Mortgage Market Survey from guarantor Freddie Mac. This “crash” is a good thing for a lot of people! Lower rates will make it possible for more people to qualify for mortgages and can stimulate buying activity, allowing more homeowners to be able to move up, downsize or move on. One thing to be concerned about is low housing inventory in some housing areas and price ranges; however, your professional real estate and lending professionals can help you be prepared to compete for the home of your dreams in a fast-paced marketplace. Getting pre-approved for a mortgage (and talking to a lender even if you’re not quite ready to buy) and discussing your goals and preferences with a Realtor will help you navigate the market conditions and take advantage of interest rates that won’t last forever. ~Charlie
- Published in On the House
Forever Home?
On the House
Charlie Lawson – GCS Title
Bank of America released its inaugural Homebuyer Insights Report and there was a stat that really jumped out at me: 35% of the people 18 or older surveyed who want to buy a home in the future say they plan to retire wherever they buy. Some of our parents – and probably a lot of our grandparents – lived in one home for most of their adult lives, but the last few decades have seen people buying, selling and moving every 3-7 years. Here are some of the other responses to the survey questions along with some important talking points that we as real estate professionals need to be sure consumers hear and understand:
32% of Millennials said they will wait to pay down debt before buying a home
We need to stress that paying off debt isn’t the only aspect of qualifying for a mortgage and how important it is to make an overall plan for debt, credit and payment-preparedness. “Waiting to pay down debt” doesn’t mean you’re qualified – there are more pieces to the puzzle.
66% of Millennials said they would likely need assistance from their parents to buy their first home
It’s important to include rules and parameters for gift money as well as highlight and publicize the various down payment assistance programs available in our state, cities and counties.
75% of first-time homebuyers said they would skip bypass a starter home in favor of something more desirable
Going from renter to homeowner is a big step for anyone, so making a larger leap from the starting block will require more strategic planning. Again, talking to a lender far in advance of when a consumer *thinks* they’ll be ready to buy is the best way to learn about and maximize opportunity.
My team and I are here to help our Realtor and Loan Officer partners communicate the current conditions and issues in our market as well as help spread the word about the incredible benefits of homeownership. Let’s talk!
~Charlie
- Published in On the House
Trendy – Not Spendy
On the House
Charlie Lawson – GCS Title
Trendy – Not Spendy
Minneapolis got a big shout out from Realtor.com by being included in their recent list of “The Top 10 Trendiest Cities That You Can Still Afford to Buy In.” They made the list based on different things that appeal to and impact hipsters (their word – not mine) – which I’ll interpret as the group the rest of us refer to as Millennials. Minneapolis came in at #5 in this list that boasts a high number of yoga studios and bike shops per capita. Don’t laugh – there’s more to this and good news for the normal folk too.
Outside of Minnesota, the entire Minneapolis-Saint Paul Metropolitan area is referred to as “Minneapolis” and while it’s not fair to Saint Paul or the other cool spots in the ‘burbs, it’s unavoidable. Just like the pro sports teams use the concept of “community benefit” to get us to pay for stadiums, publicity like this is great for our whole metro market that extends far beyond the Minneapolis city limits. (And we are getting a new stadium soon too.) The key word in this list is “afford” though. The idea that jobs, salaries and home prices fall into a range where a significant number of people can become homeowners is great news not just for real estate professionals, but for our communities at large. Think about pride of ownership in neighborhoods, the likelihood that people will live, work and volunteer close to home and the long term boost to people’s financial health that owning a home can bring.
Every week my research team and I bring you news, facts, stats and ideas that boost not only our business, but the reason most of us got into it in the first place: To help people achieve the American Dream. So, let’s make sure we claim some bragging rights and spread the word. ~Charlie
The whole list: 1. Salt Lake City 2. Richmond, Va. 3. Asheville, NC 4. Pittsburgh 5. Minneapolis 6. Ann Arbor, 7. Cincinnati 8. St. Louis 9. New Orleans 10. Charleston, SC
- Published in On the House, Uncategorized
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