Tuesday, February 28, 2023

Wondering What’s Going on with Home Prices?

The supply of homes for sale remains low in many areas, which has contributed to the increase in home prices. This has been driven in part by a shortage of new construction, as well as homeowners choosing to stay in their homes longer and delaying the sale of their properties. Higher mortgage rates can also impact home prices by reducing demand. As of February 2023, mortgage rates have risen slightly from historic lows seen in 2020 and early 2021, but they are still relatively low by historical standards. Nonetheless, rising rates can make homes less affordable for some buyers and may contribute to a slowdown in price growth. Overall, while the U.S. housing market has experienced significant price increases in recent years, the pace of growth has moderated somewhat in 2022. Low inventory and rising mortgage rates continue to be factors to watch in the coming months. As always, it's important to consult with local real estate professionals for the most up-to-date information on home prices in a specific area.

Monday, February 27, 2023

The Two Big Issues the Housing Market’s Facing Right Now

Rate-Locked Homeowners: Many homeowners have taken advantage of historically low mortgage rates in recent years and locked in their rates for longer periods, making them less likely to sell their homes and move to a new one. This has resulted in a lower supply of homes for sale, as well as a decrease in the number of buyers who are able to find affordable housing. Low Housing Inventory: The low inventory of available homes is driven by both the rate-locked homeowners and the fear of not finding something to buy. Many potential sellers are hesitant to list their homes due to concerns about finding a suitable replacement property in a highly competitive market. This has led to a situation where there are fewer homes on the market, which has increased demand and driven up prices. However, with mortgage rates expected to come down in the coming year, homeowners who previously locked in their rates may start exploring their options for selling their homes and buying new ones. This could lead to an increase in the number of homes for sale, which would help to ease the housing inventory shortage. Additionally, the increasing number of new construction projects in some areas could help to address the housing supply issue in the long term.

The Power of Your Home Equity

Wednesday, February 15, 2023

Should You Consider Buying a Newly Built Home?

Whether or not to buy a newly built home depends on several factors, including your personal preferences, budget, and the local real estate market. Here are some points to consider: Pros: • Customization: One of the biggest advantages of buying a newly built home is the ability to customize it according to your preferences. You may be able to choose finishes, colors, and even the layout of the home before it is built. • Low maintenance: A new home typically requires less maintenance and repairs than an older home since everything is new and under warranty. • Energy efficiency: New homes are typically more energy-efficient than older homes, which can lead to lower utility bills. Cons: • Cost: New homes can be more expensive than older homes, especially if you add customizations. • Limited location options: New homes are often built in new developments or subdivisions, which may be located outside of established neighborhoods with existing infrastructure and amenities. • Potential construction issues: Although everything is new, newly built homes may still have construction issues that need to be addressed. Ultimately, whether or not to buy a newly built home depends on your individual preferences and circumstances. It's important to do your research, consult with a real estate agent, and thoroughly inspect any home before making a purchase.

Tuesday, February 14, 2023

It’s Easy To Fall in Love with Homeownership

Owning a home provides personal benefits such as a sense of attachment, comfort, and a space that's truly yours. These benefits remain constant regardless of the housing market changes. The recent increase in time spent at home has emphasized the emotional benefits of homeownership even more.

Monday, February 13, 2023

What You Should Know About Closing Costs

Closing costs are fees associated with the purchase or refinance of a property that are paid at the closing of a real estate transaction. These costs can include a variety of fees charged by lenders, title companies, attorneys, and government agencies. Here are some common closing costs you should know about: 1. Origination fee: This is a fee charged by the lender for processing the loan application. 2. Appraisal fee: This fee covers the cost of determining the value of the property. 3. Title search and title insurance: This fee covers the cost of searching public records to ensure that the seller is the rightful owner of the property and that there are no liens or other claims on the property. Title insurance protects the buyer against title-related issues that may arise in the future. 4. Survey fee: This fee covers the cost of having the property surveyed to confirm its boundaries. 5. Recording fee: This fee covers the cost of recording the transfer of ownership with the local government. 6. Underwriting fee: This fee covers the cost of the lender's underwriters reviewing the loan application and determining the borrower's creditworthiness. 7. Attorney fee: This fee covers the cost of an attorney reviewing and preparing the closing documents. 8. Tax and transfer fee: This fee covers the cost of transferring ownership of the property and paying any taxes that may be due. It's important to note that closing costs can vary widely depending on the lender, the location of the property, and other factors. To get an estimate of the closing costs for a specific transaction, you can ask the lender for a Good Faith Estimate or a Loan Estimate.

Friday, February 10, 2023

one reason Its not a bubble today is because lending standards are tight

Lending standards are indeed one of the factors that can affect the existence of a financial bubble. Tight lending standards refer to strict loan requirements that banks and financial institutions have in place to reduce the risk of default. This helps to minimize the amount of credit that is extended to borrowers who may not be able to repay their loans, which can help to prevent a bubble from forming. However, it's important to note that lending standards are just one of several factors that can contribute to a financial bubble, and other factors such as economic growth, interest rates, investor sentiment, and government policies can also play a role. Additionally, even if lending standards are tight, there is always the risk of a bubble forming if other factors align in a way that creates an environment of excessive risk-taking and over-optimism.

How To Win as a Buyer in Today’s Housing Market

Here are some tips to help you win as a buyer in today's housing market: Get pre-approved for a mortgage: This will give you a better idea of what you can afford and also make you a more competitive buyer. Work with a knowledgeable real estate agent: An experienced real estate agent can help guide you through the home-buying process, negotiate on your behalf, and provide valuable insights into the local housing market. Be flexible: Be open to considering different neighborhoods, types of homes, and even different cities. This will increase your chances of finding the perfect home for you. Be prepared to move quickly: In a competitive market, homes can sell quickly. Be prepared to make an offer and move forward with the process if you find a home you love. Be realistic: It's important to have a clear understanding of what you're looking for in a home and what you can afford. This will help you make informed decisions and avoid disappointment. Make a strong offer: If you find a home you love, don't be afraid to make a strong offer. This can help set you apart from other buyers and increase your chances of winning the bid. Be persistent: The housing market can be tough, but don't give up. Keep searching and working with your real estate agent until you find the right home for you.

Thursday, February 9, 2023

Why Today’s Housing Market Isn’t Headed for a Crash

While there is no way to predict the future with certainty, there are several reasons why experts believe that the current housing market is not headed for a crash: Strong economic fundamentals: The economy is currently strong, with low unemployment and steady economic growth, which supports the demand for housing. Low interest rates: Interest rates are at historically low levels, making borrowing for homes more affordable and boosting demand. Limited supply: The supply of housing is currently limited, which is helping to keep prices up. This is due in part to the difficulty in obtaining building permits and the slow pace of new construction. Changing demographics: The aging of the baby boomer generation and the increasing number of young adults entering the housing market are driving demand for housing. Stable lending standards: Lending standards have become more stringent since the 2008 financial crisis, which has helped to prevent another housing bubble. It's worth noting that real estate markets can be impacted by local factors such as job loss, natural disasters, and changes in local economic conditions. However, the overall trend of the housing market seems to be stable and not headed for a crash at this time.

Wednesday, February 8, 2023

How Experts Can Help Close the Gap in Today’s Homeownership Rate

Closing the gap in today's homeownership rate requires addressing the systemic barriers that have historically disadvantaged non-white communities, including the Black community. This can be done through a combination of measures including: Increasing access to affordable financing options, such as down payment assistance programs and low-interest loans. Providing financial education and counseling to help potential homebuyers understand the home buying process and improve their credit score. Promoting fair housing practices and ensuring that all borrowers have equal access to credit regardless of their race or ethnicity. Investing in communities to improve neighborhood stability and increase the supply of affordable housing.

Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years

The number of homes for sale has increased compared to the previous year, but it still remains lower than the levels seen before the COVID-19 pandemic. The pandemic has caused changes in the real estate market, including shifts in consumer demand and disruptions to the supply chain. Despite the increase in the number of homes for sale, the current market conditions may still be challenging for buyers and sellers.

Monday, February 6, 2023

What Past Recessions Tell Us About the Housing Market

Past recessions can offer some insights into how the housing market may behave during an economic downturn. Typically, during a recession, there may be a decrease in demand for housing and a rise in foreclosures, leading to a decline in home values. However, the extent of the impact on the housing market can vary greatly depending on the specific circumstances of each recession. After the recession, the housing market may recover as the economy improves, interest rates remain low, and demand for housing increases. However, the timeline for recovery can vary, and it can take several years or longer for the housing market to return to pre-recession levels. It's important to note that while past recessions can provide some insights, each recession is unique and may have different impacts on the housing market. Therefore, it's essential to monitor economic and market conditions, as well as seek advice from real estate professionals, when making any decisions about the housing market.

Have Home Values Hit Bottom?

It is difficult to predict with certainty if home values have hit bottom, as real estate markets can be affected by various factors such as interest rates, the economy, and supply and demand. However, some industry experts and economists suggest that the housing market has shown signs of stabilizing and may have hit bottom in certain regions. Nevertheless, it's important to keep in mind that the housing market can be unpredictable and subject to fluctuations, and that specific local markets may be impacted differently. It's always recommended to do your own research and consult with real estate professionals before making any decisions.

Friday, February 3, 2023

putting down 20% is a common misconception when buying a home

putting down 20% is a common misconception when buying a home. While a 20% down payment is often recommended, it's not a requirement. There are many loan options available that allow for lower down payments, such as FHA loans which only require a minimum of 3.5% down payment. Additionally, many lenders offer programs for first-time homebuyers with even lower down payment requirements. It's important to explore all options and choose the one that works best for your financial situation.

Thursday, February 2, 2023

Experts Forecast a Turnaround in the Housing Market in 2023

many experts are forecasting a turnaround in the housing market in 2023, after a period of slowdown due to the COVID-19 pandemic. Factors such as low mortgage rates, increasing demand, and a shortage of inventory are expected to drive up home prices and lead to a more active market. However, it's important to note that real estate markets can be highly local and can vary greatly depending on specific region and city. So, the prediction for a nationwide turnaround may not hold true for all areas.

Mortgage Rates Historically DECLINE in Recessions

During a recession, the demand for borrowing decreases, which leads to lower interest rates as lenders compete to attract borrowers. Additionally, central banks often take measures to reduce interest rates to stimulate the economy during a recession, which also contributes to lower mortgage rates. However, it's worth noting that the relationship between the economy and interest rates is complex, and other factors such as inflation and government policies can also have an impact.

Wednesday, February 1, 2023

Homeownership in New York can be a powerful tool for building wealth over time.

Homeownership in New York can be a powerful tool for building wealth over time. As you make mortgage payments, you are not only paying off the loan but also building equity in the property. Over time, the value of the property may increase, leading to further appreciation in the equity you hold. Additionally, owning a home often provides a stable and appreciating asset, which can be a source of financial security in retirement or a source of funding for other financial goals. However, it's important to consider the responsibilities and costs associated with homeownership, such as property taxes, maintenance, and repairs.