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      Home Sales Expected to Increase Nicely in 2018

      Home Sales Expected to Increase Nicely in 2018 | MyKCM

      Freddie MacFannie Mae, and The Mortgage Bankers Association are all projecting that home sales will increase in 2018. Here is a chart showing what each entity is projecting in sales for the remainder of this year and the next.

      Home Sales Expected to Increase Nicely in 2018 | MyKCM

      As we can see, each entity is projecting sizable increases in home sales next year. If you have considered selling your house recently, now may be the time to put it on the market.

      5 Reasons to Sell This Fall

      5 Reasons to Sell This Fall | MyKCM

      Here are five reasons listing your home for sale this fall makes sense.

      1. Demand Is Strong

      The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

      Take advantage of the buyer activity currently in the market.

      2. There Is Less Competition Now

      Housing inventory is still under the 6-month supply that is needed for a normal housing market.

      This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

      Historically, the average number of years a homeowner stayed in their home was six, but that number has jumped to an average of almost nine years since 2008. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

      The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

      3. The Process Will Be Quicker

      Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 43 days, after seeing a 12-month high of 48 days in January.

      4. There Will Never Be a Better Time to Move Up

      If your next move will be into a premium or luxury home, now is the time to move-up!  The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

      Prices are projected to appreciate by 5.0% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

      5. It’s Time to Move on With Your Life

      Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

      Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

      That is what is truly important.

      4 Reasons to Buy a Home This Fall!

      4 Reasons to Buy a Home This Fall! | MyKCM

      Here are four great reasons to consider buying a home today, instead of waiting.

      1. Prices Will Continue to Rise

      CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.7% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.0% over the next year.

      The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

      2. Mortgage Interest Rates Are Projected to Increase

      Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

      An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

      3. Either Way, You Are Paying a Mortgage 

      There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

      As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

      Are you ready to put your housing cost to work for you?

      4. It's Time to Move on With Your Life

      The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

      But what if they weren’t? Would you wait?

      Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

      If purchasing a home for you and your family is the right thing for you to do this year, buying sooner rather than later could lead to substantial savings.

      How Your Home's Value Grows Your Family's Wealth

      How Your Home’s Value Grows Your Family’s Wealth | MyKCM

      Over the next five years, home prices are expected to appreciate 3.64% per year on average and to grow by 18.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

      So, what does this mean for homeowners and their equity position?

      As an example, let’s assume a young couple purchased and closed on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?

      How Your Home’s Value Grows Your Family’s Wealth | MyKCM

      Since the experts predict that home prices will increase by 5.0% this year alone, the young homeowners will have gained $12,500 in equity in just one year.

      Over a five-year period, their equity will increase by nearly $49,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

      Bottom Line

      Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

      Don't Disqualify Yourself? 52% of Approved Loans Have A FICO® Score Under 750

      Don’t Disqualify Yourself… 52% of Approved Loans Have A FICO® Score Under 750 | MyKCM

      The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.

      One such study by the Wharton School of Business at the University of Pennsylvania revealed that many millennials have not yet considered purchasing homes simply because they don’t believe they can qualify for a mortgage.

      A recent article about millennials by Realtor.com explained that:

      About 72% of aspiring millennial buyers said they’re waiting because they can’t afford to buy…

      The article also explained that 29% of millennials believe their credit scores are too low to buy.The problem here is the fact that they think they will be denied a mortgage is keeping them from even attempting to apply.

      Ellie Mae’s Vice President Jonas Moe encouraged buyers to know their options before assuming that they won’t qualify for a mortgage:

      “Many potential home buyers are ‘disqualifying’ themselves. You don’t need a 750 FICO® Score and a 20% down payment to buy.”

      So, what credit score is necessary?

      Below is a breakdown of the FICO® Score distribution of all closed (approved) loans in July from Ellie Mae’s latest Origination Report.

      Don’t Disqualify Yourself… 52% of Approved Loans Have A FICO® Score Under 750 | MyKCM

      Over 52% of all approved loans had a FICO® Score under 750. Many potential home buyers believe that they need a score over 780 to qualify.

      Bottom Line

      If owning a home of your own has always been your dream and you are ready and willing to buy, or if you are a homeowner who wants to move up, find out if you are able to! Let’s get together to determine if your dreams can become a reality sooner than you thought!

      Home Prices Up 6.64% Across the Country! [INFOGRAPHIC]

       

      Home Prices Up 6.64% Across the Country! [INFOGRAPHIC] | MyKCM

      Some Highlights:

      • The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report.
      • In the report, home prices are compared both regionally and by state.
      • Based on the latest numbers, if you plan on relocating to another state, waiting to move may end up costing you more!
      • Alaska & West Virginia were the only states where home prices are lower than they were last year.

      58% of Homeowners See a Drop in Home Values Coming

      58% of Homeowners See a Drop in Home Values Coming | MyKCM

      According to the recently released Modern Homebuyer Survey from ValueInsured58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

      After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

      The two major causes of the housing crash were:

      1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
      2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

      Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

      The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

      If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

      Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

      Bottom Line

      If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.

      5 Essentials When Buying Real Estate

      Problems and misunderstandings in the buying process lead to unhappy homeowners. A common one is buying close to their pre-approval and then they are stretched financially. It may seem like a great purchase at the time but will lead to frustration over time.   How do we limit these mistakes?

      Homebuyers remember these five strategies when making your next real estate purchase.

      #1 Stay Consistent: Real estate values tend to rise over time. If you give up on looking at properties, you will never find the home you are looking for. The key is to learn why you are losing out on your offers.

      #2 Be Creative: Personalize your offer. A video or letter will be unique and may draw attention to your offer. It will stand out from the others. Make the video short and entertaining or the letter short and sweet. Your agent can use this to introduce your offer to purchase.

      #3 Location: As months pass when you continue to look, the market may change. You may need to look in nearby towns and explore other options.

      #4: Rely on Documents Not Verbal: Written documentation is very important in real estate. If the seller says they will leave a refrigerator, make sure it is documented. Read through your offer letters and purchase and sale. Read through the clauses and make sure you understand what they are saying. Speak with your lawyer if unsure about a clause or phrase.

      #5 After Offer Accepted. The Real Work Begins: After accepted, the house is still the sellers until close. This can be between 30-60 days on average. The seller is responsible for insuring the property and keeping it in condition when the offer was accepted. You can schedule an inspection and renegotiate will the seller. You will review the purchase and sale. You will need a financing commitment from your lender.

      Hopefully, these 5 essential tips are helpful! Until you get the keys, the process is not officially over. If you found this article helpful, please share with a friend!

      Blog courtesy of Steve Bracero

       

      Your Opportunity to Achieve the American Dream Keeps Getting Better!

      Your Opportunity to Achieve the American Dream Keeps Getting Better! | MyKCM

      Forbes.com recently released the latest results of their American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the American Dream.”

      The monthly index measures several different economic factors, including goods-producing employment, personal and commercial bankruptcies, building permits, startup activity, unemployment insurance claims, labor force participation, and layoffs.

      The national index score was rounded out to 100.0 in January as a baseline for comparison and it rose the fourth straight month in a row to 101.8.

      Alaska, coming in at 89.4, represented the lowest score on the index due in part to the recent collapse in oil prices. In contrast, Wyoming came in with the highest score at 115.1. The full results can be seen in the map below.

      Your Opportunity to Achieve the American Dream Keeps Getting Better! | MyKCM

      Forbes Senior Editor Kurt Badenhausen explained why many states saw a boost in the index last month:

      “The American Dream Index rose for the fourth straight month to 101.8 propelled by gains in goods-producing jobs and building permits, as well as declines in unemployment claims and mass layoffs.

      Goods-producing jobs (manufacturing, mining, construction and agriculture) were up for the ninth straight month in May…Building permits rose for the fourth straight month compared to the prior year.”

      Bottom Line

      The American Dream, for many, includes being able to own a home of one’s own. With the economy improving in many areas of the country, that dream can finally become a reality.

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