Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

July 21, 2019

The Cost of Waiting: Interest Rates Edition

Some Highlights:

·       Interest rates are projected to increase steadily heading into 2020.

·       The higher your interest rate, the more money you will end up paying for your home and the higher your monthly payment will be.

·       Rates are still low right now – don’t wait until they hit 5% to start searching for your dream home!

 

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Red Porch Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Red Porch Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

 

Posted in Home Buying
July 19, 2019

The Surprising Profile of the Real Estate Investor

Red Porch Real Estate Buyer Seller

Some Highlights:

Interest rates are projected to increase steadily heading into 2020.

 

The higher your interest rate, the more money you will end up paying for your home and the higher your monthly payment will be.

 

Rates are still low right now – don’t wait until they hit 5% to start searching for your dream home!

 

·       Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?

·       Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogicDon’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.

·       Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:

·       “Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…

·       What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”

·       Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:

As the graph shows, the percentage of “Mom & Pop” investors are currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors are falling.

Bottom Line

 

Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, let’s chat about the ways you can build or liquidate your current portfolio of properties.

 

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Red Porch Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Red Porch Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Posted in Home Buying
July 14, 2019

Now’s the Time to Move-Up and Upgrade Your Current Home!

Red Porch Real Estate Selling Your Home

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.

Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.

According to ILHM’s Luxury Reportthis mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.

“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”

The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.

“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

Bottom Line

If you are debating upgrading your current house to a premium or luxury home now is the time!

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Red Porch Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Red Porch Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Posted in Home Selling
July 12, 2019

Americans’ Powerful Belief in Homeownership as an Investment

Red Porch Real Estate Homeownershi

The Federal Reserve Bank (The Fed) recently released their 2019  Survey of Consumer Expectations Housing Survey. The survey reported that 65% of Americans believe homeownership is a good financial investment. Since 2014, the percentage has increased by over nine percent.

Red Porch Real Estate Graph

The Fed’s survey also showed that when the results are broken down by age, education, income, or region of the country, more than 55% of Americans in each category see homeownership as a good investment.

This coincides with a recent Gallup survey of Americans which revealed that real estate was their number one choice for the best long-term investment when compared to stocks, savings accounts or gold.

Bottom Line

Americans’ belief in residential real estate as a good financial investment continues to grow as the housing market returns to normalcy.

  

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Red Porch Real Estate, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Red Porch Real Estate, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Posted in Home Buying
June 24, 2019

Is Your First Home Now Within Your Grasp?

Red Porch First Home Buyer Reach

Some Highlights:

  • According to the US Census Bureau, “millennials” are defined as 18-36-year-olds.

  • According to NAR’s latest Profile of Home Buyers & Sellers, the median age of all first-time home buyers is 32.

  • More and more “old millennials” (25-36) are realizing that homeownership is within their grasp now!

Posted in Home Buying
June 21, 2019

Four Reasons to Sell Your House This Summer

Red Porch 4 Reasons to Sell This Summer

Posted in Home Selling
June 20, 2019

Young First-Time Buyers Are Saving for Their Dream Homes

Red Porch People

Young buyers (Millennials & Gen Z) have waited longer than previous generations to enter the housing market for their first home. However, this hasn’t stopped them from dreaming about the home they will eventually buy. Many spend hours searching listings and building Pinterest boards of their favorite home features.

According to a survey from Open Listings, 70% of single renters are more likely to spend their Sunday nights swiping through house listings than dating profiles.

All that time window shopping has led 45% of millennials to expect the first home they buy to be their “dream home”! They are willing to wait longer, save more for a larger down payment, and are pickier about the listings they want to tour and the features that they want to see in their first home.

Waiting a little longer to buy a home than their parents or grandparents did has also helped young buyers become more established in their careers prior to making such a large purchase. Lawrence Yun, NAR’s Chief Economist, recently commented,

“Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts.”

In some areas of the country, high competition in the starter home market forces young buyers to wait longer. The extra money they save during that time opens their search to bigger, more expensive homes.

If this trend continues, older millennials will skip the starter home altogether, going straight to a trade-up or premium home instead.

Bottom Line

If you are one of the many young renters planning on buying your first home soon, let’s get together to help determine what type of home will best suit your present and future needs.

Posted in Home Buying
June 19, 2019

What You Need to Know About Private Mortgage Insurance (PMI)

Red Porch PMI

Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).

What is PMI?

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:

“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.” 

According to the National Association of Realtors, the average down payment for all buyers last year was 13%. For first-time buyers, that number dropped to 7%, while repeat buyers put down 16% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.

Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:

Red Porch PMI

The larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Bottom Line

 

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and help you make the best decision for you and your family.

 

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice.

Posted in Home Buying
May 31, 2019

Curious About Local Real Estate?

Receive the Latest Local Market Stats

Curious about local real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

Get Local Market Reports Sent Directly to You

You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.

Posted in Market Updates