Your "Local" Specialist Blog

March 7th, 2016 3:57 PM
Put Your Housing Cost To Work For You!

Posted: 07 Mar 2016 04:00 AM PST

Put Your Housing Cost To Work For You! | Keeping Current Matters
There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home. As we have said before, mortgage interest rates are still near historic lows and rents continue to rise.

Housing Cost & Net Worth

Whether you rent or buy, you have a monthly housing cost.

As a buyer, you are contributing to YOUR net worth.

Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “forced savings.”
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.

As a renter, you are contributing to YOUR LANDLORD’S net worth.

Below is an example of the home equity that would be accrued over the course of the next five years if you had purchased a home in January; based on the results of the Home Price Expectation Survey. Put Your Housing Cost To Work For You! | Keeping Current Matters In this example, simply by paying your mortgage, you would have increased your net worth by over $44,000!

Bottom Line

Use your monthly housing cost to your advantage! Meet with a local real estate professional who can explain the opportunities available in your market.

Posted by Cheryl Talbot ABR,GRI,e-PRO,MRP,SFR on March 7th, 2016 3:57 PMLeave a Comment

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Posted: 01 Apr 2015 
Industry Experts Agree: Housing Supply Too Low | Keeping Current Matters
Last week, we reported on the lack of housing supply and how that was impacting the real estate market. Today, we want to let you know what other industry experts are saying. Daren Blomquist, RealtyTrac Vice President:
“It’s kind of a seesaw right now between supply and demand. One of the reasons for fewer sales is not so much a lack of demand but a lack of supply, especially in the price range the majority of buyers were looking for.”
Diana Olick, CNBC’s Realty Check:
“Total sales are still running below expectations for the year. Don't blame winter weather, though. Blame the lack of supply.”
Bill McBride, Founder of Calculated Risk:
“Inventory is still very low (down 0.5% year-over-year in February). This will be important to watch over the next month at the start of the spring buying season.”
Lawrence Yun, Chief Economist at the National Association of Realtors:
“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels. Stronger price growth is a boon for homeowners looking to build additional equity.”
Realtor.com
“The National Housing Trend Report shows that inventory has decreased 10.9 percent year over year.”

And some experts are actually calling it a “seller’s market”

Forbes.com
“Tight inventory is a main reason the ball is still in the sellers' court.”
Bill Banfield, VP of Quicken Loans:
“We’re a bit low on the supply-side which could force prices up for buyers, further hammering home that we’re in a seller’s market.”

Bottom Line

If you are debating putting your home on the market this year, now may be the time. The amount of buyers ready and willing to make a purchase is at the highest level in years. Contact a local professional in your area to get the process started.

Posted by Cheryl Talbot ABR,GRI,e-PRO,MRP,SFR on April 1st, 2015 11:12 AMLeave a Comment

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