Freddie Mac: Equity Matters (a Lot)

KCM Crew July 23rd, 2015

According to a Merrill Lynch survey, over 80% of the people in this country believe that homeownership is still “an important part of the American Dream”. There are many financial and non-financial reasons people feel this way.

One of the biggest reasons is because it helps build family wealth. Last week, Freddie Mac posted about the power of home equity. They explained:

“In the simplest terms, equity is the difference between how much your home is worth and how much you owe on your mortgage. You build equity by paying down your mortgage over time and through your home's appreciation. In a nutshell, your money is working for you and contributing toward your financial future.

They went on to show an example where a person bought a home for $150,000 with a down payment of 10%, resulting in a loan amount of $135,000. The buyer secured a 30-year fixed-rate mortgage at 4.5% with a monthly mortgage payment of $684.03 (not including taxes and insurance). They then illustrated what would happen after seven years of making a mortgage payment, assuming 3% per year home appreciation (the historic national average):

And that number continues to build as you continue to own the home. Merrill Lynch published a report earlier this year that showed the average equity homeowners have acquired at certain ages.

Bottom Line

Home equity is important to building wealth as a family. Referring to the first scenario above, Freddie Macexplained:

“Now, if you continued to rent, and made the same payment of $684.03 per month, you'd have zero equity and no means to build it.

Building equity is a critical part of homeownership and can help you create financial stability.”

Looking to Buy or Sell, contact us and let's get you moving.

Noemi Cardoso 
RE/MAX Terrasol
Licensed in CA
714-698-9555

'Empowered' Appliances Link Home, Internet

Get a good look at the smart-home tools making waves at the 2015 International Consumer Electronics Show in Las Vegas.January 2015 | By Sam Silverstein

 

Washer, dryer, and water heater, get ready to meet smartphone, tablet, and app.

Hooking up time-honored home equipment to the Internet is the latest trend being touted by some of the biggest names in the appliance industry at this year's International Consumer Electronics Show in Las Vegas.
This spring, Whirlpool Corp. will roll out Wi-Fi-equipped laundry machines that can download custom cycles, alert you if a load is unbalanced, and spot mechanical problems before they get out of hand. The new appliances, on display at Whirlpool's CES booth, communicate wirelessly with a dedicated app that will also let you start them remotely, offer instructional YouTube videos, and even make a charitable donation when you begin a new load.

The new appliances represent "a really exciting opportunity for Whirlpool … to do what we do best, which is helping families care for one another," said Ben Artis, senior category manager of connected homes for Whirlpool. "You can empower the appliances to offer new benefits that weren't possible before."

Whirlpool plans eventually to expand the app-based technology to other categories of appliances, such as ranges, ovens, and refrigerators. The company's booth at CES features an exhibit that displays its vision for the kitchen of the future, a concept that closely integrates appliance operation with the cooking requirements of specific recipes.

Another appliance maker exhibiting at CES, Robert Bosch GmbH, is also close to bringing wireless connectivity to its products. The German company has developed an app, dubbed Home Connect, that will control and monitor devices such as water heaters, thermostats, and refrigerators. It will be released in Europe later this year. Bosch expects to introduce the technology in the United States as well, but hasn't said when.

The drive toward linking devices to one another — an accelerating trend known as the Internet of Things — is spawning innovation across the electronics industry and playing a prominent role at CES.
In a packed keynote address at the start of the show, Boo-Keun Yoon, president and CEO of Korea's Samsung Electronics Co. Ltd., declared that 2015 will be the year when many of the futuristic promises companies have made about getting devices to work together will finally become real.

"These are not pipe dreams anymore," Yoon said, adding that by 2017, 90 percent of the products Samsung produces — including TVs, mobile phones, and home appliances — will be linked to the Internet of Things, or IoT.

Yoon also said companies must take steps to ensure that the IoT-based products they manufacture adhere to open standards, so equipment from one company is able to work with software and hardware from another.

Yoon was joined onstage by other leaders of the IoT movement who laid out their vision for a world where machines go beyond communicating with each other to responding to — and even anticipating — people's needs. For example, working in tandem, a user's smartphone, heating system, and other Internet-linked equipment could learn when that person tends to go to sleep and under what conditions. Then it can adjust the temperature of the user's bedroom to promote a good night's sleep.
Many companies exhibiting at CES are developing products that aim to take advantage of the ability of individual devices to communicate.

Engineers at Baintex, a startup based in Valencia, Spain, showed off its unreleased mobile app and an array of related devices that control and monitor a host of home functions. The Sentio system's capabilities include remotely turning lights on and off; opening, closing, and securing doors; and tracking how much energy is being consumed in various parts of a home, said Alberto Sendra, lead mobile applications engineer for the company.

Meanwhile, California-based Savant unveiled an app by the same name that aims to enable disparate connected-home systems to communicate with one another as well as with the company's own hardware for linking entertainment, climate control, lighting, and security devices.

2015 Remodeling Cost vs. Value: Less Is More

Smaller replacement projects, particularly those that enhance curb appeal, remain the most cost effective way for sellers to improve value. January 2015 | By Stacey Moncrieff

With home price gains slowing in most parts of the country, sellers will be looking for ways to get top dollar for their listing. Cleaning and staging make a big difference. But for some sellers—such as investors seeking to bring a property up to neighborhood standards before the sale—remodeling work may be the ticket.

What Is the Cost vs. Value Report?

The Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell. Projects range from a new garage door to a master suite addition.

Project costs for the 102 markets surveyed for the 2015 report were provided by RemodelMax, a publisher of estimating tools for remodelers, using Clear Estimates remodeling software. NAR members provided the expected value of the projects at resale.

To learn more and see all 36 projects broken down by region and market area, visit Remodeling at CostvsValue.com.

Remodeling magazine's 2015 Cost vs. Value Report, ©2015 by Hanley Wood LLC. Republication or re-dissemination of the Report is expressly prohibited without written permission of Hanley Wood, LLC. "Cost vs. Value" is a registered trademark of Hanley Wood LLC.

As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren’t likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost. Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.
As a general rule:

• Simpler, lower-cost projects tend to return greater value. The national average cost for a steel door replacement was $1,230, for example. That’s the least expensive project on the list, and it ranks highest on the payback scale, returning 101.8 percent nationally on average. In fact, in 43 of the 102 markets surveyed, REALTORS® said the new door would recoup more than 100 percent of its cost. Other projects expected to top 100 percent payback in multiple markets: the midrange garage door replacement, the upscale garage door replacement, the midrange wood window replacement, and the minor kitchen remodel. Notice a pattern? With the exception of the kitchen job, they’re all replacement projects. In general, replacements cost less and provide a bigger payback than remodels or additions.
• First impressions are important. The replacements that offer the greatest payback are the ones that are most obvious to buyers when they first view a house in person or online, such as new door or garage door. Siding replacement also provides great value at resale—particularly this year’s one new project, manufactured stone veneer,  which is expected to recoup 92.2 percent of its cost nationally on average.
• Kitchens still offer the most remodeling bang for the buck. The only remodeling job breaking into the top 10 in terms of payback is the minor kitchen remodel with a national average cost of $19,226 and a national average payback of 79.3 percent.

Top 5 projects nationally in terms of cost recouped:
1. Entry door replacement (101.8%)
2. Manufactured stone veneer (92.2%)
3. Garage door replacement (88.5%)
4. Siding replacement, fiber cement (84.3%)
5. Garage door replacement (82.5%)

• Expect bigger payoffs in the West. In addition to reporting national averages, Remodeling magazine breaks down Cost vs. Value data by Census region. In the Pacific region—which includes Alaska, California, Hawaii, Oregon, and Washington—six projects are expected to top 100 percent payback. The nearest competitor is the East South Central region—Alabama, Kentucky, Mississippi, and Tennessee—where two projects are expected to top 100 percent payback.

Just how much sellers can expect to recoup from home improvements depends on the job and the region of the country they live in. There are also factors that vary from house to house and sale to sale, such as what updates are typical for the neighborhood, the quality of the work, and how important the improvement is to a particular buyer. And while you can’t apply this data directly to any specific house or neighborhood, you can use the Cost vs. Value Report as a starting point in discussions with buyers and sellers about the cost and value of remodeling.

3 Questions to Ask Before Buying a Home

by The KCM Crew on January 20, 2015

 

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home.

 

There are three questions you should ask before purchasing in today’s market:

 

1. Why am I buying a home in the first place?

 

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of the space

 

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

 

2. Where are home values headed?

 

When looking at future housing values, Home Price Expectation Survey provides a fair assessment. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years.

 

They then average the projections of all 100+ experts into a single number.

 

Here is what the experts projected in the latest survey:

• Home values will appreciate by 4% in 2015.
• The cumulative appreciation will be 23.5% by 2019.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 15.1% by 2019.

 

3. Where are mortgage interest rates headed?

 

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates.

 

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.

 

Bottom Line

 

Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision.

More Home Owners Are Remodeling Again

 Daily Real Estate News |

A housing index that measures activity in the remodeling market reached a record-high in the final quarter of 2014, showing that home owners are once again sprucing up their homes following a large slowdown in remodeling activity in the years following the Great Recession.

Biggest Remodeling Payoffs:

• 2015 Remodeling Cost vs. Value Report
• Smaller Remodeling Jobs Get Better ROI

The National Association of Home Builders’ Remodeling Market Index rose to 60 in the fourth quarter of 2014. Any reading above 50 indicates more remodelers are reporting higher market activity than those who say they are experiencing less activity.

“The recent pace and volume of business has been a boon to our remodeler members' confidence in the recovery of the housing market," says NAHB Remodelers Chair Paul Sullivan. "The upward trajectory of the RMI results over the past year has shown that home owners are ready, willing, and deciding to remodel."

All of the subcomponents measured within the index posted increases, including large additions, small remodels, and maintenance and repair.

"Even with some weakness in existing homes sales and house prices earlier in the year, remodelers are upbeat as 2014 closes," says NAHB Chief Economist David Crowe. "The consistent improvement in RMI results throughout 2014 are a sign of the gradual recovery of the remodeling market."

Source: National Association of Home Builders

Conduct a Safety Assessment in Your New Home

Conduct a Safety Assessment in Your New Home | RISMedia's Home Update

The Two Things You Don’t Need to Hear from Your Listing Agent

 

by The KCM Crew on September 16, 2014

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 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.

Thinking of selling a home, contact someone who cares.

Noemi Cardoso
William Raveis Real Estate
911 Main Rd, Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

4 Reasons to Buy Before Winter

 

by The KCM Crew on September 8, 2014    
                

It's that time of year, the seasons are changing and with them bring thoughts of the upcoming holidays, family get togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.
 

1. Prices Will Continue to Rise

 

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between 11.2% (most pessimistic) and 27.8% (most optimistic).
 

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

 

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of 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 recent 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.
 

Bottom Line

 

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.

Home Mortgage Rates: Where are They Headed?

by The KCM Crew on July 15, 2014 in Interest Rates

Many of our readers ask us where interest rates are headed over the next several months. While no one has a crystal ball, we did want to share what some experts are saying on the subject.

HSH.com

 

“For now, and likely through the summer, we may see data-driven bumps and dips in rates. Although we managed a slight dip presently, a bump is in order before long.”

Freddie Mac

 

“In the next few months, mortgage rates are likely to remain at their current, low level, but will not remain there for long. As the Federal Reserve is expected to ‘taper’ its purchases of long-term Treasuries and mortgage-backed securities, and as economic growth picks up, long-term yields will gradually rise. Fixed-rate mortgages are expected to be higher in six months, and may even approach 5 percent a year from now.”

National Association of Realtors

 

“Mortgage rates could move suddenly higher in anticipation of rate increases, much as they did last summer when refinance and transaction activity was high. Steady purchase transaction volume and lower refinance volume could mean that mortgages rates may adjust in a more gradual fashion. In either case, as the economy improves—and today’s data clearly suggests it is improving—the overall trend for mortgage rates is up, not down.” 

Fannie Mae

 

Projects the 30 year fixed mortgage rate to be 4.3% by the end of the year.

Mortgage Bankers Association

 

Projects the 30 year fixed mortgage rate to be 4.7% by the end of the year.

If you are ready to buy or sell and take advantage of the still lower rates, call us and let's get the process in motion.

Noemi Cardoso
William Raveis Real Estate
 Cell: 508-558-1945
www.DistinctiveHomes-NE.com

5 Reasons to Hire a Real Estate Professional

by The KCM Crew on May 14, 2014 in For Buyers, For Sellers

Whether you are buying or selling a home, you need an experienced Real Estate Professional to lead you toward your ultimate goal. In this world of instant gratification and Internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but rather have been strengthened in recent months due to rising interest rates & home prices as the market recovers.

1. What do you do with all this paperwork?

 

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

 

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

 

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

 

Not only is it important for your home to be priced correctly from the start, to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.

According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

 

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave Ramsey

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:

 

You wouldn’t hike up Kilimanjaro without a Sherpa, or replace the engine in your car without a trusted mechanic, why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

If you are ready to buy contact us. Learn about our past clients experiences and see why we have sold over 150 houses in 9 years in real estate.

Noemi Cardoso
William Raveis Real Estate
Serving MA & RI
2014 Fiver Star Real Estate Agent
Fluent in Portuguese and English
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

A Great Reason to Sell Now

by The KCM Crew on May 8, 2014 in For Sellers

The price of any item (including residential real estate) is determined by ‘supply and demand’. If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

According to the National Association of Realtors (NAR), the supply of homes for sale is still below the normal 6 month level of inventory. That means less competition.


However, a recent study revealed that 71% of current homeowners are considering selling their home this year. Putting your home on the market now instead of waiting for this increased competition to come to the market might make a lot of sense.

Buyers currently in the market are motivated purchasers. They want to buy now. With limited inventory available in most markets, a seller will be in a great position to negotiate their best possible price.

If you are ready to sell and want the best marketing plan and ideas around, give us a call and let's get your house ready to SELL.

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
www.DistinctiveHomes-NE.com
Cell: 508-558-1945

Gallup Poll: Real Estate Best Long Term Investment

 

By the KCM Group - Posted: 28 Apr 2014

The Gallup organization just released their April Economy and Personal Finances Poll which asked Americans to choose the best option for long term investment. It was no surprise to us that real estate returned to the top position over other investment categories (gold, stocks/mutual funds, savings accounts/CDs and bonds).

Back in 2011, gold was the most popular long-term investment among Americans. However, with the housing market improving across the U.S. and home prices rising, more Americans now consider real estate the best option for long-term investments.

The poll also revealed that real estate was considered to be the best long term investment by all four subgroups by age and two out of three by income:

________________________________________________________________

If you are ready to make a move and plunge into the real estate market, give me a call and let's start searching for you new home.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
 

12,575 Houses Sold Yesterday!

 

by The KCM Crew on April 23, 2014 


If you read certain headlines, you might be led to believe that the housing recovery has come to a screeching halt. Naysayers are claiming that rising mortgage rates and a lack of consumer confidence are keeping Americans on the fence when it comes to purchasing real estate. That is actually far from reality.


After all 12,575 houses sold yesterday, 12,575 will sell today and 12,575 will sell tomorrow. 12,575!

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. According to the report, annualized sales now stand at 4.59 million. Divide that number by 365 (days in a year) and we can see that, on average, over 12,500 homes sell every day.

If you are considering whether or not to put your house up for sale, don't let the headlines scare you. There are purchasers in the market and they are buying - to the tune of 12,575 homes a day.

So, if you are ready to sell give me a call and let's get started.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

Real Estate: This Spring Will Be Different.

The KCM Crew. - Posted: 17 Apr 2014.

Just like May flowers, every spring the housing market blossoms as buyers come out ready to purchase their dream house. This spring, we believe we are going to see the strongest purchasing market we have seen in a decade.

Why are we so bullish on the housing market this spring?

Here are a few reasons:

MILLENNIALS

Contrary to many reports, this age demographic is READY, WILLING and ABLE to become homeowners. As a matter of fact, the latest National Association of Realtors’ gender study revealed that the Millennial generation has recently accounted for a greater percentage of all buyers than any other generation.

BABY BOOMERS

As prices have risen, so has the equity in many homes across American. Homeowners, having been shackled to their house because of low or negative equity for the last several years, are again free to make a move without worrying about bringing cash to a closing table in order to sell. We believe this new-found freedom will release a pent-up demand of sellers who want to move-up to the home they’ve always dreamed of or want to downsize their primary residence and also purchase a second home they can use for vacation, retirement or both.

BOTH PRICES and MORTGAGE RATES are on the RISE

As the economy improves, more and more Americans are regaining faith that their own personal finances are headed in a positive direction. With this new confidence, they want to take advantage of the opportunity that presents itself with real estate still undervalued in most parts of the country and mortgage rates being well below historic numbers.

A Home’s Cost vs. Price Explained

by The KCM Crew on April 2014.

We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned about price but instead about the ‘long term cost’ of the home. Let us explain.

Recently, we reported that a nationwide panel of over one hundred economists, real estate experts and investment & market strategists projected that home values would appreciate by approximately 8% from now to the end of 2015.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30 year fixed mortgage rate will be 5.7% by the end of next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

3 Reasons to Sell Your Home This Spring

by The KCM Crew on April 8, 2014    

 

 

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.

These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition - For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. 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 approximately 4% this year and 8% by the end of 2015. 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 at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.

Moving up to a new home will be less expensive this spring than later this year or next year.

Hispanic Millennials & Housing

by Jeymy Gonzalez on April 2, 2014    

Nielsen recently released their report “Millennials – Breaking the Myths” and today I want to focus on the information reported about Hispanic Millennials.

Of the 77 million Millennials, 19% are Hispanic. This group (age 18-36) is the most racially and ethnically diverse than any previous generation. According to this report, Nielsen expects the Hispanic population to grow by 167% by 2050.
Millennials are 14% first generation, and 12% second generation Americans, keeping strong ties to their home country, culture and language. For example:

1. 63% of the Millennials feel it is their responsibility to care for an elderly parent, according to Nielsen: “this is partially tied to the ethnic diversity of the generation. Typically ‘Hispanic and Asian Americans’ have cultural expectations that elderly family members will be cared for by the younger generations.”

This can help you to understand why when a Hispanic Millennial is looking for a home, they are requesting that extra bedroom.

2. 65% of Hispanic Millennials are U.S. Born and are more bilingual than other generations

• In 2003, 34% were Spanish dominant, 44% English dominant, 22% bilingual
• In 2013, 31% were Spanish dominant, 31% English dominant, 38% bilingual

"Today, the bilingual Hispanic is the dominant group within these Millennials.” According to this report, this is telling us that “Hispanics are choosing to speak more Spanish and maintain cultural ties.”

Where are they looking for homes?

This report revealed “62% of the Millennials prefer to live in the type of mixed-use communities found in urban centers where they live in close proximity to a mix of shopping, restaurants and offices. This is the first time since the 1920s where the growth in U.S. cities outpaces growth outside of the cities. And, 40 percent say they would like to live in an urban area in the future.

The “American Dream” is transitioning from the white picket fence in the suburbs to the historic brownstone stoop in the heart of the city” and the markets with a major concentration of Millennials reflect this desire:

Top 10 markets for Millennials (by %):

• Austin, TX (16%)
• Salt Lake City, UT (15%)
• San Diego, CA (15%)
• Los Angeles, CA (14%)
• Denver, CO (14%)
• Washington, DC (14%)
• Houston, TX (14%)
• Las Vegas, NV (14%)
• San Francisco, CA (14%)
• Dallas-Ft. Worth, TX (14%)

 

Millennials: Optimistic & Ready to Buy

by The KCM Crew

We believe that 2014 will be the year that Millennials re-enter the housing market in a big way. Because of that, we will be dedicating our blog posts each day this week to a better understanding of this generation. - The KCM Crew

A recent survey by the PulteGroup revealed that the Millennial generation has a more optimistic outlook regarding the American economy than other generations. According to the survey, 54% of Millennials believe the economy is in better shape today than it was last year compared to only 41% of the total population.

It seems this optimism is impacting purchasing decisions as 74% of Millennials view now as an excellent or good time to buy the things they want or need. Jim Zeumer, vice president of corporate communications for the PulteGroup explained:

"No other cohort of adults is nearly as confident about their economic future as the millennials are right now. This is definitely a change, as millennials have regularly been viewed as the disenfranchised generation vastly affected by the fallout of the recession. But now, with an increased sense of optimism, this generation is starting to feel as though they have the resources available to lead the lives they want or expect to in the future."

WHAT ABOUT HOUSING?

Specific to real estate, the survey indicated:

• 85% of Millennials plan to purchase a home in the future
• 49% plan to purchase a home in the next two years
• Of those planning to purchase in the near-term, 56 percent are current homeowners and 41 percent are renters
• 65% prefer spending more money on a home that is move-in ready compared to doing renovations
• 58% increased their interest in purchasing a home in the past year as the positive attributes of homeownership resonate with this generation.

If you, or anyone you know is thinking about buying or selling a home, feel free to contact me and find out why our services are above and beyond the competition.

Noemi Cardoso
William Raveis Real Estate
www.DistinctiveHomes-NE.com

Money Magazine: Buy Now Not Later

by The KCM Crew on March 24, 2014 in For Buyers

We have often suggested that potential home buyers consider rising interest rates when thinking about the true cost of a home. Remember, cost is not determined by price alone but by price and mortgage rate. The longer a buyer waits, the higher the mortgage payment will be if rates continue to increase (as is projected by Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association).

Money Magazine, in its latest issue, agreed with our analysis as they also warned their readership of the same ramification if they waited to buy a home.

Here is what they said:

"BE MINDFUL OF RATES. The average interest rate on a 30-year fixed loan is predicted to climb from the current 4.4% to 5.3% by the 2015 spring buying season, according to Freddie Mac. For a $250,000 loan, that means that a borrower who waits would pay $136 more per month and an additional $49,090 in interest over the life of the loan. Will you need a big loan? Better to act soon before rates tick up."

And the monthly increase Money mentioned did not take into consideration that prices are also projected to increase over the next year. Here is what the additional cost would be if prices rise by the 4.5% projected by the latest Home Price Expectation Survey and interest rates go to 5.3%.

Home Sales Up in 3 of 4 Regions

Some industry gurus are questioning whether the housing momentum we saw early in 2013 began to dissipate later in the year. The more dramatic have claimed the housing sector is still on shaky ground. Others have blamed the slowdown in sales on a lack of consumer confidence or rising interest rates.

The National Association of Realtors (NAR) just released their 2013 4th Quarter Housing Report. The report revealed that home sales numbers barely outperformed (an .08% increase) those in the 4th quarter of 2012.

We believe the leveling in home sales is directly attributable to a lack of salable listing inventory; specifically in the West.

Three of the four regions in the NAR report had an increase in sales: Northeast (+7.1%), Midwest (+2%) and South Regions (+3.6%). A big fall-off in sales occurred in the Western Region. The dramatic fall-off in the West (-8.1%) can be directly linked to a shortage of inventory in their hottest markets.

If the decrease in sales was caused by an eroding of consumer confidence and/or rising interest rates, we believe each region would have seen similar decreases.

by The KCM Crew on February 19, 2014 in For Sellers

Spring is just around the corner and this is the best time of the year to sell a home. If you are ready to sell your home and  are looking for an agent that work with your goal in mind give me a call and let's start working and get your home sold.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com