Thin inventory and strong demand is pushing home prices upward according to Shu Chen, Economist with Corelogic. “In many markets, the percentage of homes selling at list price or higher has risen back to pre-crisis levels. While inventory has been declining, demand for housing has not.
According the Greater Boston Association of Realtors®, January 2016 inventory of homes for sale was down 11.7 percent, the months supply of inventory was down 19 percent, days on market, down 13.1 percent and pending sales were up 4.8 percent compared to January of 2015.
Buyers are wanting to take advantage of the low rates while they last. If you are considering a move and want to know the current value of your home, please call me.
You’ve found your dream home, survived the stressful negotiations and home inspection and now you can go shopping for your new furniture to fill your new home. Wrong!
Your pre-approval is based on many factors including your credit score, current debts and income to name a few. Approval of your loan is contingent of your financial profile during the underwriting process to the closing. Any changes in your financial profile could adversely affect you from receiving your bank commitment letter. This letter is issued from the bank stating that they will issue you the loan.
Do Not apply for any new credit, even if there is a 20% discount offered. This can affect your credit score.
Do pay all your bills on time. Just one 30-day late payment on your credit card or other loan can cause concern for the lender, nixing your mortgage qualification.
Do Not make any large deposits in your bank account.
Do keep all your personal documents that the lender requests organized and together. Items such as payment stubs and payment statements.
Do Not change jobs or become self-employed. Your initial pre-approval was based on your current job history and income, even if it is a promotion to a higher paying job.
Do Not acquire any non-sufficient overdrafts fees from your bank. Your lender will see these as your inability to manage your finances.
Do pay off your debt. This can positively affect your debt-to-income ratio.
This is the time to focus on what is at hand. Close on your mortgage first and then go shopping right away!
Coldwell Banker Real Estate has been helping people find their home for over 108 years, but this year through a partnership with Adopt-a-Pet.com, we are going to help 20,000 dogs find home through the Coldwell Banker Homes for Dogs Project. Our Coldwell Banker company in Arkansas created this heartfelt video.
Reality check and why watching a dog be a dog fills us with happiness.
Call me for all your real estate needs.
Jean Curley, 508-479-2106
Sold Price: $437,500.
List Price: $424,800.
Location: Mendon, Worcester County
6 Room | 3 Bedroom | 2.5 Bath
Sq. Ft.: 2347 | Lot Size: 1.38 Acre
Garage: 2 | Unfinished Basement
Perfect credit isn’t always needed to buy a home. MassHousing and USDA have mortgage programs available to those who have lower credit scores with less than 15-20% down monies required. The interest have jumped higher in the past few days and could continue upwards to 5%. I work with many mortgage lenders who can advise and guide you in the process. Call me at 508-479-2106 or email me at email@example.com.
The volatility of Greece and it possibly exiting the EU is causing concern, affecting the interest rates. After a 9-month high, the rates have retreated. Today all eyes are on the Federal Open Market Committee meeting and the uncertainty of their resolution to this debt issue.
Over the last two months, rates have begun to creep up as shown below.
The market is fluid and it is difficult to project mortgage interest rates as we move forward, but I do want you to be informed as to the happenings in the market when deciding to wait to purchase your first home or trading up to your next home.
Here are the most current mortgage rate projections from Fannie Mae, Freddie Mac, the Mortgage Bankers’ Association and the National Association of Realtors.
As always, when determining if this is the right time for you to purchase a home, consider your household budget along with the current interest rates and, if it makes financial sense to take out a home loan today, then talk with a mortgage lender. I work with many mortgage lenders who can guide you through the process, so reach out to me and I will get you started on your journey.
The bottom line is … if you are a “ready, willing and able” buyer and you are thinking of purchasing a home over the next twelve months, then waiting may not make sense.
Today’s housing market presents considerable opportunities for both sellers and home buyers. The demand for homes is high and now that prices are stabilizing, and in many cases increasing, across much of the country, it may be the right time to consider taking advantage of the market and selling your home.
While potential home buyers are aware of the positive impact of historically attractive low interest rates, we’re seeing many sellers who are confused and concerned whether now is indeed the right time to put their home on the market. If this is the fence that you’re sitting on, here are five questions to help you decide if now is the right time to move.
1. Have you built equity in your home? Home equity can be defined as the value of a home, minus the amount of outstanding debt. Although equity does not generally develop in the first few years of home ownership, five or more years of home payments may create significant unrealized gains. Any equity you may have can be used to move up to a larger home or as a comfortable nest egg if you’re nearing retirement and considering downsizing.
2. Has your income or financial situation improved? You should consider your overall financial situation, including current and future expenses, in order to make an educated decision on a price range for a new home. For example, an increase in salary may allow for an increased mortgage.
3. Has your lifestyle changed? Lifestyle changes are one of the most common reasons people choose to move. Starting or adding to a family may require an extra bedroom or additional square footage. A desire to live closer to work or family may provide the motivation for a new town. Or now may be the time to downsize to a home that requires less upkeep.
4. How is the housing supply in your neighborhood? Demand for homes is high and there are currently not enough sellers for potential buyers. Have you noticed there is only a spattering of for sale signs in your neighborhood? And more importantly – have you noticed how quickly those sale pending signs are posted? With fewer homes on the market, there is more competition for yours, which could mean more offers and potentially more money.
5. Are interest rates attractive? A low interest rate means lower mortgage payments on your next home, even if it is in the same price range. Visit sites like Bankrate.com to get a get a feel for what the national daily average rate is. Our in-house mortgage broker, Jim Hanewich can answer all your questions in a phone call, so don’t hesitate to call me for guidance. With every 1% the interest rates rise, your buyer (or your) purchasing power is reduced by 10%.
The National Association of Home Builders is reporting that today’s new home features are changing. All those master baths in need of a renovation should utilize the space more efficiently and remove the whirlpool tub and install an oversized shower stall with multiple shower heads. Interestingly, linen closets are losing their popularity and their rating has dropped since 2012, however, they will not be going away. In my opinion, you can never have too many storage areas … as long as they are designed appropriately within the home and does not interfere with the flow and function.
I’ve listed below the most likely to be included features and those that are least likely, and their average rating.
Please give me a call for all your real estate needs.
Less Competition: A limited number of homes on the market will help sellers nab top dollar, and may even spur bidding wars and multiple offers. The National Association of Realtors® reports that inventory levels nation-wide were at a 4.6 month supply in February. A balanced market is considered to fall between a 5-7 month supply.
Mortgage Rate Hikes Loom: Mortgage rates are still sitting near historical lows, with the 30 yr. fixed rate mortgage hovering under 4%. The low rates have helped push more buyers into the marketplace, but they could also be a good thing for sellers who are looking to rebuy. However, rates aren’t expected to remain this low for too much longer, which may prompt a rush this spring. “When interest rates are thought to be escalating, we see a wave up of activity with people getting off the sidelines,” say Budge Husky, president and CEO of Coldwell Banker Real Estate.
Soaring Rental Costs: Also spurring more potential home buyers off the sidelines: Rising rental costs. Rental prices have increased 15% nationwide in the past five years in 70 metro areas across the U.S. according to NAR research. “Every time there’s an increase, it triggers the decision processes on whether renters should go into the market and buy, “Huskey told CNN Money “It allows others to move up the chain in the market.”
Locally, our home inventory at some price points remain low. We are seeing more first time home buyers jumping into the market, creating opportunity for trade-up sellers to purchase with the low rates.
Today rates per Bankrate.com:
Fixed Rate: 3.75% – down .01 from last week
15 Year Rate: 2.95% – down .02 from last week
5/1 Arm Rate: 3.03% – down .19 from last week
© 2016 Jean Curley, Realtor. All Rights Reserved.
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