Back to School
The kids are headed back to the classroom and it got me thinking that a lot of adults could use some schooling as well. So much has changed in mortgage and real estate in the last few years and recent numbers from Black Knight Financial Services show evidence of housing market recovery:
- Home prices are up 5.3% year-over-year
- Prices as of June rose for the 50th consecutive month
Interest rates are still low, but a lot of young people grew up during a time of great real estate distress and haven’t experienced the strong markets that propelled the worth and wealth building of their parents. They also haven’t experienced the evolution of interest rates and how high they’ve been to know anything other than the “historic lows” we’ve had for years. They won’t last…it’s time to get schooled up on the current market and what’s involved in buying a home to make an educated decision as to whether homeownership is possible and the right decision for the long run. The GCS Title team and I work with many outstanding, experienced real estate and mortgage professionals who can “teach” you what’s involved in the process and “instruct” you on your options. We’re happy to introduce you! ~Charlie
- Published in On the House
Could? Should?
Zillow has been busy. That makes sense – it takes a lot of research activity and media attention to create the massive online presence they have. Their latest release is a data analysis with this headline: “14% of Renters Can Afford to Buy.” It’s human nature to react to headlines, and that’s a statement that can either prompt people to say, “Maybe I can qualify to buy a home!” or “There’s more than an 80% chance I can’t qualify to buy a home.” Outside of an initial reaction to a news story, many renters really do want to know two things: Could I buy a home? Should I buy a home? It’s definitely worth finding out the answer to both of these questions.
The “could” question can easily be answered by talking to a qualified mortgage loan officer. Qualified lenders can tell you what your status is now and help you get prepared to get approved for a loan if you’re not quite ready or have some work or organizing to do with your financing. A loan officer can help you plan and give you a timeline.
The “should” question is a little more complicated. Ultimately, the individual consumer needs to decide that homeownership is for them. Realtors can provide information to help you decide if owning a home will help you move forward with your goals in the short and long term. Housing is the biggest monthly expense most of us have. Advice from a qualified mortgage loan officer and Realtor can help you figure out how to get the best return on that huge monthly investment.
The GCS Title team and I can introduce you to great people who can help you answer the “coulds” and “shoulds” of owning a home. We’re here to help! ~Charlie
- Published in On the House
Upside
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
- Published in On the House
No Cause for Alarm
Home prices are up again, though not as much as previous months. It’s funny…the real estate and lending industry trades announce things like the 5% year-over-year home appreciation gain noted in the April S&P/Case-Shiller U.S. National Home Price Index cautiously because the April gain was less than the one in March. Here’s where you need to grab the grain of salt: The gain was 5.1% in March – so the “drop” was a whopping .1%. Here’s what the Managing Director and Chairman of the Index Committee at the S&P Dow Jones Indices had to say: “… the greatest threat to U.S. housing may come from across the Atlantic and from the domestic political scene.” While the Brexit vote and the crazy presidential race we’re watching are important, they don’t change the fact that we all need a place to live and the biggest expense most people have each month goes to housing. SO, as industry experts and TV pundits wring their hands in print, on air and online, talk to local industry experts about what’s going on in your neighborhood, city and personal housing scenario. Ask questions…find out how you’re doing personally and if there are any adjustments that you should or could make to protect yourself or advance your goals. Checking in with experienced real estate and mortgage professionals should be part of a regular routine. The news can be really scary, but your local experts are here to interpret markets and events and can give you great advice and peace of mind.
~Charlie
- Published in On the House
MN in the Middle?
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!
- Published in On the House