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      Blog :: 02-2016

      Thinking of Buying a Home? What are You Waiting For?

      Thinking of Buying A Home? What Are You Waiting For? | Keeping Current Matters

      With spring right around the corner, you may be wondering if you should wait to enter the housing market. 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 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.2% a year for the next 5 years.

      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 remained below 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Freddie Mac & theNational Association of Realtors are in unison projecting that rates will be up almost three-quarters of a percentage point by this time next year.

      An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

      3. Either Way You Are Paying a Mortgage

      As a paper from the Joint Center for Housing Studies at Harvard University explains:

      "Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That's yet another reason owning often does--as Americans intuit--end up making more financial sense than renting."

      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 whether 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 it is time to buy.

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

      Bottom Line

      If you are ready and willing to buy, find out if you are able to. Meet with a local real estate professional who can help you find your dream home.

      Future Home Values: Where Do The Experts Think They Are Headed?

      Future Home Values: Where Do The Experts Think They Are Headed? | Keeping Current Matters

      Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

      Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

      The results of their latest survey:

      Home values will appreciate by 3.7% over the course of 2016, 3.3% in 2017 and 3.2% in the next two years, and finally 3.1% in 2020 (as shown below). That means the average annual appreciation will be 3.3% over the next 5 years.

      Future Home Values: Where Do The Experts Think They Are Headed? | Keeping Current Matters

      The prediction for cumulative appreciation slowed slightly from 21.6% to 17.7% by 2020. The experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 10.9%.

      Future Home Values: Where Do The Experts Think They Are Headed? | Keeping Current Matters

      Bottom Line

      Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

      What You Don't Need to Hear From Your Listing Agent

      What You Don't Need To Hear From Your Listing Agent | Keeping Current Matters

      You've decided to sell your house. You begin to interview potential real estate agents to help you through the process. You need someone you trust enough to:

      1. Set the market value on possibly the largest asset your family owns (your home)
      2. Set the time schedule for the successful liquidation of that asset
      3. Set the fee for the services required to liquidate that asset

      An agent must be concerned first and foremost about you and your family in order to garner that degree of trust. Make sure this is the case.

      Be careful if the agent you are interviewing begins the interview by:

      • Bragging about their success
      • Bragging about their company's success

      An agent's success and the success of their company can be important considerations when deciding on the right real estate professional to represent you in the sale of the house.

      However, you first need to know that they care about what you need and what you expect from the sale. If the agent is not interested in first establishing your needs, how successful they may seem is much less important.

      Look for someone with the 'heart of a teacher,' who comes in prepared well enough to explain the current real estate market and patient enough to take the time to show how it may impact the sale of your home.

      Not someone only interested in trying to sell you on how great they are.

      You have many agents from which to choose. Pick someone who truly cares.

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      Homes Selling Quickly Across the Country Boston Ranks!

      According to the National Association of Realtors' (NAR) Existing Home Sales Report, homes were on market for an average of 58 days in December. This was slightly longer than the 54 days in November, but still better than the 66 days experienced in December 2014.

      32% of homes across the country were on the market for less than a month!

      Colorado, Utah and Delaware led all states as homes are selling in 30 days or less on average. The map below was created using results from NAR's Monthly Realtor Confidence Survey.

      Homes Selling Quickly Across The Country | Keeping Current Matters

      Bottom Line

      Buyer demand remains strong. The inventory of homes available for sale remains low. If you are thinking about listing your home for sale this year, meet with a local real estate professional who can help you take advantage of current market conditions!

       

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        No Matter What The Groundhog Does, You Should Sell Before Spring!

        No Matter Which Groundhog You Listen to, You Should Sell Before Spring! | Keeping Current Matters

        Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season.

        Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

        Here are five reasons to sell now. 

        1. Demand is Strong

        Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy...and are in the market right now!

        Take advantage of the strong buyer activity currently in the market. 

        2. There Is Less Competition Now

        Housing supply just dropped to 3.9 months, which is well under the 6 months' supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

        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. Homeowners are now seeing a return to positive equity as real estate values have increased over the last three years. Many of these homes will be coming to the market in the near future.

        Also, new construction of single-family homes is again beginning to increase. A study byHarris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

        The choices buyers have will increase in the spring. Don't wait until all this other inventory of homes comes to market before you sell.

        3. The Process Will Be Quicker

        One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

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

        If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.4% over the next 12 months 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. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by three-quarters of a percent by the end of 2016.

        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 back 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.

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