Home prices are up again according to the latest figures from CoreLogic. In June, U.S. home prices saw a 5.7% year-over-year increase. Anyone looking for a home in the Twin Cities Metro – whether it’s a first home, a move up or a down-size – has probably experienced the fast pace of the market due in part to low housing inventory. Some of that could be attributed to supply and demand, but CoreLogic’s Chief Economist Frank Nothaft says, “Mortgage rates dipped in June to their lowest level in more than three years, supporting home purchases. Local markets with strong economic growth have generally had stronger home-price growth.”
We did a blog recently explaining how home appreciation outpaced a leading investment index in 2015, and this year looks equally strong. If you have questions about whether or not real estate is a sound investment, now is a great time to talk to a real estate professional about the home you have – or the one you want. A conversation with a loan officer is also a great idea – CoreLogic’s chief economist mentioned interest rates and you should find out what they mean to you. At GCS Title, our team helps home buyers and sellers get to the “closing finish line” – but, we’re here for you at other times as well. What does the housing market news mean to you? We can help you get the answers you need – let’s talk! ~Charlie
…when a house goes on the market these days! Zillow’s June Market Report says properties are selling one week faster than they did a year ago and there are 5% fewer homes on the market. The average time on market for a home is 78 days nationwide – including the time it takes to close! Here are some things people need to know about these fast-paced market conditions: Both home buyers and home sellers need to get ready – because things are going to move quick once the sale is set in motion. If you’re buying your first home – or if you’re a seller moving to another home – make sure you have your financing lined up and that you’re pre-approved (that’s different from pre-qualified). If you haven’t found an experienced, professional Realtor and lender to work with – we can help!
Also, GCS Title is all about the customers. We understand the pressures buyers and sellers are under and what how important the transaction we are closing for you is. You can count on us to “bring the hustle” and make sure you can keep up with the market, your closing date and your goals. We’re here to help! ~Charlie
Pokemon might be coming to your neighborhood. The app claiming to get gamers off the couch has sent them into the streets, roaming parks and other public places in a zombie-like state. Online real estate resource Trulia couldn’t resist getting into the game (and probably tapping the phenomenon for publicity) by creating a “cheat map” for enthusiasts that works like this according to Trulia’s senior public relations manager Andrea McDonald: “Assuming the Pokémon in Go are popping up based on the habitat they thrive in, we have tapped into our map making prowess to showcase the potential hotspots across the U.S. for Electric, Fire, Grass, Psychic and Water Pokémon types.”
Whether you’re looking to “catch ’em all” or for someplace to live, apps can be a great help. They don’t replace the expertise of great real estate agents though. We happen to know a lot of them and we’re happy to connect you. The GCS Title team also works really hard to make sure buyers and sellers don’t feel like they’re walking blindly through the closing process…we love being part of your home buying and selling experience. How can we help you? ~Charlie
Every day, the GCS Title team and I talk with real estate and mortgage professionals. A hot topic lately is “low inventory” in some areas and price ranges. It’s an issue at the national level too according to Zillow – their Chief Economist Dr. Svenja Gudell says, ” There still aren’t enough homes on the market to keep up with the high demand from every type of home buyer. In many markets, those looking to buy a home in the bottom or middle of the market will need to be prepared for bidding wars and homes selling for over the asking price. This summer’s selling season’s borders will most likely be blurred again as many buyers are left without homes and will need to keep searching.” With this in mind, it’s a great idea for current homeowners to find out what their properties are worth. CoreLogic reported that home prices grew 6.7% year-over-year nationwide, so you could have more equity than you think.
Homeowners: Have you checked in with a Realtor lately? You may have options you didn’t know you had. We can connect you with great real estate pros who can give you current, accurate information for your home and neighborhood. Get a status report…you may get some big ideas!
A very official-sounding report called “Government Regulation in the Price of a New Home” released by the National Association of Home Builders (NAHB) that has some surprising info. It claims that government regulations and the cost of complying with them make up nearly one-fourth of the price of a new home. Think about that as you walk through the model on a new construction project or a house on the Parade of Homes! You can read about it yourself at https://www.nahb.org/en/news-and-publications/press-releases/2016/05/regulatory-costs-account-for-nearly-a-quarter-of-the-price-of-a-new-home.aspx .
Apparently, the costs associated with regulation have jumped 30% between 2011 and 2015 which coincides with the launch of the main agency and many new rules associated with the Dodd Frank reform bill. NAHB’s CEO Jerry Howard says “The cost of regulation in the price of a new home is rising more than twice as fast as the average American’s ability to pay for it. That is simply not sustainable.” Even though the rules and regulations that have been created for and imposed on real estate and mortgage transactions were mostly created by politicians, our “On the House” blog isn’t about politics. We’re here to share important and interesting news that affects consumers, mortgage loan officers and Realtors.
We at GCS Title think the takeaway is this: The NAHB report highlights how many regulations there are and we’re here to help consumers and our real estate and mortgage partners navigate the rules to successful closing. Our entire team is dedicated to making the process as easy and comfortable for everyone involved. Got questions? We’re here to help!
Pretty much everybody wants a pat on the back, but absolutely everybody likes money in their pocket. New home price information doesn’t exactly put money in your pocket – more like in your portfolio. CoreLogic says home prices went up 2.1% between February and March and they’re up 6.7% year over year between March 2015 and 2016. Here’s what CoreLogic’s chief economist Frank Nothaft said:
“Housing helped keep U.S. economic growth afloat in the first quarter of 2016 as residential investment recorded its strongest gain since the end of 2012. Low interest rates and increased home building suggest that housing will continue to be a growth driver.”
To real estate and mortgage professionals, these numbers are encouraging for the market and business. Consumers may take them either way…renters in particular may get nervous and think homeownership is out of their reach before they’ve taken even the most preliminary steps to pursue it. Let’s work together to get the word out that while “timing is everything,” it’s also very individualized. Getting help and guidance from professional Realtors and loan officers will help determine the right time to buy a home and getting into one will help people start building equity. Their pocketbooks will appreciate it. Let’s help them get started! ~ Charlie
I guess you could say MN is physically in the middle of the country, but you might find it surprising to find that it’s in the same position with regard to median rents. Check this out: Nationally, the average rent for a one-bedroom apartment is $1140 and $1300 for a two-bedroom. We’re keeping right up here in Minnesota – the average price for a one-bedroom in the metro area is $1036 and $1438 for a two-bedroom. Year over year, rents are up 2.8% nationwide as of April. Isaac Newton’s famous quote “What goes up must come down” never seems to apply to things that require money coming from your pocket, so it’s doubtful rents will be headed in the opposite direction.
Price, market, interest rate fluctuations and compliance issues make it really hard to publish comparisons between monthly rent and payments on a home. But that shouldn’t stop those of us in the industry from having comparisons on hand between rent and mortgage payments that can be rattled off in conversation with our leads, prospects, strangers and anyone else we come in contact with. The fact that a home can be purchased for the same amount or less than rent often sparks “water cooler conversations” and a lot of questions that we and our Realtor and loan officer partners are happy to answer. Let’s get the buzz going!
The Spring-Summer market is underway and everywhere you read and watch, you’ll find comments about the real estate market, interest rate movement, shortages of homes for sale in certain areas and price ranges. People outside the real estate and mortgage industries may wonder what it all means – and if they don’t, they should. It’s so easy to draw a conclusion about how the market’s doing, whether or not it’s a good time to buy or sell, if mortgage interest rates are good and so on. The problem with that is, it’s virtually impossible to know whether or not that conclusion is true without information from a real estate and mortgage professional that was researched and prepared specifically for an individual or family. Here are some questions consumers should NEVER try to answer by reading the news or surfing the net alone:
- Can I afford and qualify for a home?
- Can I get enough money for my home to buy a different one?
- Are interest rates good or should I wait to see if they’ll go lower?
- Is it a good time to buy a home or are prices going to hold steady or go down?
These are just a few typical questions that should be verified with a review of your personal situation. Drawing the wrong conclusion based on general information or statistics can cause you to miss an opportunity. Don’t worry – you don’t have to “sign your life away” to get a professional, specific opinion. We at GCS Title work with many experienced professionals and can connect you with people who can answer your questions with no obligation or pressure. Let us know what questions are on your mind – we’re happy to help you get them answered. ~ Charlie