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      Blog :: 03-2018

      4 Reasons Spring is a Great Time to Buy a Home!

      4 Reasons Spring is a Great Time to Buy a Home! | MyKCM

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

      Prices Will Continue to Rise

      CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.3% 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.

      Mortgage Interest Rates Are Projected to Increase

      Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage hovered close to 4.0% in 2017. 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 nearly a full percentage point 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.

      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?

      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 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.

      My New Company

      I have recently moved my business to be affiliated with COMPASS.  They are a new hybrid of real estate company that is part proprietary technology company and part traditional real estate firm.  The proprietary technology puts our group light years ahead of those that are relegated to the past, while also providing outstanding personal service to the customer.  This is the combination that I was looking for as my own company's sales vehicle, as I am totally on-board with excellent communication and customer service.  COMPASS provides every high tech sales tool that we were sorely lacking as independent Brokers.  We are proud to be a part of this company and I intend to pass every advantage that we have gained on to our customers.  Welcome to a new era in Boston real estate!

      Competition is Coming, Are You Thinking of Selling Your Home?

      Competition is Coming, Are You Thinking of Selling Your Home? | MyKCM

      The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.4% over last year.

      How will this impact buyers?

      More inventory means more options. Lawrence Yun, NAR’s Chief Economistexplained this is good news for the housing market – especially for those looking to buy:

      “This rise in single-family housing construction will help tame home price growth, and the increase in multifamily units should continue to help slow rent growth.”

      How will this impact sellers?

      More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:

      1. A great price on their home as buyers outbid each other for it
      2. A quick sale as buyers have so little to choose from
      3. Fewer hassles as buyers don’t want to “rock the boat” on the deal

      With an increase in competition, the seller may not enjoy these same benefits. As Chief EconomistNela Richardson, added:

      “Because existing home inventory has been so low for so long, new construction is taking a larger share of the market…Builders meet the buyers and see the demand firsthand.”

      Bottom Line

      If you are considering selling your house, you’ll want to beat this new competition to market to ensure you get the most attention for your listing and the best price.


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        Housing Market Expected To ?Spring Forward? This Year

        Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.

        Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

        Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

        That hasn’t happened this year.

        Demand for housing has remained strong as mortgage rates have remained near historic lows. Even with the recent increase in rates, buyers are still able to lock in an affordable monthly payment. Many more buyers are jumping off the fence and into the market to secure a lower rate.

        The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2017 all fell in April, May, or June.

        Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

        Bottom Line

        If you are planning on selling your home in 2018, let’s get together to evaluate the opportunities in our market.


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          Are Home Values Really Overinflated?

          Are Home Values Really Overinflated? | MyKCM

          Last week, the National Association of Realtors (NAR) released their most recent Existing Home Sales Report. According to the report:

          “The median existing-home price for all housing types in January was $240,500, up 5.8 percent from January 2017 ($227,300). January’s price increase marks the 71st straight month of year-over-year gains.”

          Seventy-one consecutive months of price increases may have some concerned that current home values may be overinflated.

          However, at the same time, Zillow issued a press release which revealed:

          “If the housing bubble and bust had not happened, and home values had instead appreciated at a steady pace, the median home value would be higher than its current value.”

          Here are two graphs that help show why home prices are exactly where they should be.

          The first graph shows actual median home sales prices from 2000 through 2017.

          Are Home Values Really Overinflated? | MyKCM

          By itself, this graph could heighten concerns as it shows home values rose in the early 2000s, came tumbling down and are now headed up again. It gives the feel of a rollercoaster ride that is about to take another turn downward.

          However, if we also include where prices would naturally be, had there not been a boom & bust, we see a different story.

          Are Home Values Really Overinflated? | MyKCM

          The blue bars on this graph represent were prices would be if they had increased by the normal annual appreciation rate (3.6%). By adding 3.6% to the actual 2000 price and repeating that for each subsequent year, we can see that prices were overvalued during the boom, undervalued during the bust, and a little bit LOWER than where they should be right now.

          Bottom Line

          Based on historic appreciation levels, we should be very comfortable that current home values are not overinflated.

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