Existing Home versus New Home

There are reasons that people choose to buy a new home or an existing home.

Here are the reasons buyers gave for choosing and existing home:

Notice that price and value are the top reasons.

Given that, why do some buyers choose a brand new home? Here are the top reasons:

There is no right or wrong answer.  When you are ready to make the move to a new or existing home please call text or email.

Today's Homebuyer

A Snapshot of Homebuyers [INFOGRAPHIC]

simplify

March 13 2015

When you would like to see how this applies to your unique situation, Please call, text or email.

Is Another Bubble Forming?

March 12 2015

After the housing market bust we experienced across the country in 2008, many experts have been quick to warn that a new bubble may be forming in some areas.

One particular example of this is a recent article pointing toward the California Bay Area’s price gains over the last 18 months.

The quickest and easiest way to show how far we’ve come and how far we still need to go in regards to the ‘Peak’ is to share CoreLogic’s Price & Time Since Peak figures, used to create the map below.

Even with the high performance of prices in the Bay Area, the state of California as a whole is still -14.4% below their Peak, experienced in May of 2006.

Note that Pennsylvania as a whole is still 8.4% below the 2006 peak.

The biggest challenge facing the housing market’s recovery right now is the lack of inventory available for sale. Prices are determined by supply and demand. Right now buyer demand is out-pacing seller supply, across many price ranges, driving prices up.

Bottom Line

Traditionally the Spring months have been the most popular dates sellers choose to list their homes. With additional inventory coming to market soon, meet with a professional in your local market to evaluate your best course of action.

When you are ready to see how this applies to your unique situation just call, text or email me.

Dream of Home Ownership is Alive and Well

Homeownership is the “American Dream” for a Reason

March 10 2015

There have been some who have voiced doubt as to whether or not the younger generations still consider buying a home as being part of the “American Dream”. A recent study by Merrill Lynch puts that doubt to rest. According to their research, every living generation still maintains that owning a home is in fact important. Here are the numbers:

This should not surprise us as many studies have revealed the benefits enjoyed by the families who own their own home. One such study was done by the Joint Center of Housing Studies at Harvard University that addressed a major financial benefit to owning your own home: forced savings. The report explains:

“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 Merrill Lynch study proves this point with the following data on home equity (a form of savings):

Bottom Line

There are many reasons that owning a home makes sense. The financial reasons are powerful. As one participant in the Merrill Lynch study put it:

“When I was younger, I always worried about that monthly mortgage payment. Now that I am retired, I have the peace of mind of knowing I own my home free and clear.”

When you are ready to pursue your piece of the dream just call text or email 

CONSUMER CONFIDENCE IN HOUSING

Is the Housing Market Back? Ask Lowes & Home Depot!

March 9 2015

A recent Bloomberg Business article reports that both Lowes & Home Depot experienced fourth quarter profits that beat revenue projections by the most in six quarters. So what does that mean to the housing market?

Consumer Confidence

Lowe’s Chief Executive Officer Robert Niblock said,

“Consumers are feeling better about their jobs, their wages and certainly feeling better about the value of their home, they are re-engaging in projects that they have put off.”

Sales to professional contractors have increased significantly as well, and were a driving factor in the quarter. Home Depot’s Chief Financial Officer Carol Tome calls this a “sign of health. If they are putting more items in their basket, it means they have work coming at them.”

Home Values Rising

In a quarterly consumer survey conducted by Lowe’s since 2007, the percentage of respondents who said that the value of their home is rising increased to its highest value ever, at 50%.

Whether Americans are finally adding that man-cave they’ve always wanted, or renovating a master suite, an increased confidence in the value of one’s home often sparks homeowners to invest in big-ticket projects.

The National Association of Realtors (NAR) reports that the median price of an existing home (for all housing types) rose year-over-year for the 35th consecutive month.

Not all who are renovating are planning on staying in their home. The Demand Institute reports that“nearly half of American households plan to move at some point in the future.”

For those who are planning on listing their home this spring, spending the time and money needed to update that 1950’s bathroom or kitchen can fetch higher prices in today’s market.

Bottom Line

Meeting with a local real estate professional can give you insight into the small (or big) improvements your home could use to draw the highest price and return on investment this spring.

Reminders for Homeowners

And when you're ready to change homes, just call text or email

Mortgage Confusion? Where to Start

Which are you? First time buyer who has never before gotten a mortgage, would like to buy but have heard mortgages are hard to get, have some dings in your credit which you think may make you unable to to get a mortgage.

STOP!!

You owe it to yourself and your family to find out where you really stand.  Don't rely on the news media or instant online.

Talk to a real live human being.  A loan officer with whom I (and more importantly my clients) have had excellent experience is Pam Hopper at HomeSale Mortgage.  

First time buyer? - Pam will walk you through the entire process

Hear horror stories about lenders not being ready to close on time? - ask about Pam's guarantee to close on time.

Credit issues?  Let Pam tell you if they are really so bad you can't get a mortgage now.  Even if they are Pam has a credit repair program that has a great track record so you can repair any issues in the correct way and in the right order. You don't have to go it alone.

New construction? Pam worked for builders for many years.

Second opinion?  It never hurts to get a second opinion even if you already think you have a good deal.

So now you want to know how to get in touch with Pam.

Call her at 717-649-8576

Visit her website.

Take the first step now.