Thursday, January 21, 2016

When Is It A Good Time To Rent? NOT Now!

When Is It A Good Time To Rent? NOT Now! | Keeping Current Matters
People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.
The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
Median Asking Rents | Keeping Current Matters
A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”
 The article also cited results from a recent Reis Inc report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually.

Where are rents headed?

Jonathan Smoke, Chief Economist at realtor.com recently warned that:
“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.” 

Bottom Line

According to the WSJ article:
“In general, the higher rents go, the more difficult it will be for young people to save for down payments, making them likely to rent even longer.”
One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, meet with a local real estate professional who can help determine if you are able to today!

















Debbie Mignogna, ABR, SRES
BHHS Fox & Roach Realtors
267-640-1120

PA-DreamHomes.com

Click Here For My FREE Home Seller's Guide

Click Here For My FREE Home Buyer's Guide

What Do You Actually Need to Get a Mortgage?

What Do You Actually Need to Get a Mortgage? What Do You Actually Need to Get a Mortgage? | Keeping Current Matters

Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home. Here are three takeaways:
  • 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary
  • 86% of Americans either don’t know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is
  • 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required
To help correct these misunderstandings, let’s take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans.

FICO SCORES

Average FICO Score | Keeping Current Matters

BACK END DTI

Average Back End DTI | Keeping Current Matters

DOWN PAYMENTS

What Do You Actually Need to Get a Mortgage?

Average Down Payments | Keeping Current Matters

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.
















Debbie Mignogna, ABR, SRES
BHHS Fox & Roach Realtors
267-640-1120

PA-DreamHomes.com

Click Here For My FREE Home Seller's Guide

Click Here For My FREE Home Buyer's Guide



Real Estate Shines as an Investment in 2015

Real Estate Shines As Investment in 2015 | Simplifying The Market

Real Estate Shines as an Investment in 2015

A survey by The Joint Center of Housing Studies at Harvard University reveals that when a family is buying a home they consider the financial benefits of homeownership along with the social benefits. The survey mentions things like:
  • Paying rent does not make sense
  • Homeownership provides a good financial opportunity
  • Owning a home helps you building family wealth
  • Buying a home is investing in your retirement
  • Home equity gives you something to borrow against
So how did homeownership match up against other investments in 2015? Here is a chart that compares its return on investment against precious metals and the stock market last year:
2015 Return on Investment | Simplifying The Market

Bottom Line

Not only did homeownership offer all its social benefits. It also was a great investment financially.













DebbieMignogna, ABR, SRES
BHHS Fox & Roach Realtors
267-640-1120

Resolve to Hire a Real Estate Professional in 2016

Resolve to Hire a Real Estate Professional in 2016

Resolve to Use a Real Estate Professional in 2016 [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • Happy New Year!
  • If you plan to buy your dream home or sell your house in 2016, resolve to use a real estate professional!
  • Real Estate Professionals are there for you through the entire process to help with paperwork, negotiations, pricing, and so much more!














Debbie Mignogna, ABR, SRES
BHHS Fox & Roach Realtors
267-640-1120

PA-DreamHomes.com

Click Here for My FREE Seller's Home Selling Guide

Click Here for My FREE Buyer's Home Buying Guide

Tuesday, January 19, 2016

Thinking of Buying? Selling? 5 Reasons You Need To Hire A Professional

Thinking of Buying? Selling? 5 Reasons You Need To Hire A Professional

Thinking of Buying? Selling? 5 Reasons You Need To Hire A Professsional | Keeping Current Matters
Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to 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 have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover.

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?

It is 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. You 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 $210,000 compared to $245,000 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 in order 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?
Dave Ramsey, the financial guru advises:
“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.”
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 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?

















Debbie Mignogna, ABR, SRES
BHHS Fox & Roach Realtors
267-640-1120

PA-DreamHomes.com

Click Here For My FREE Home Seller's Guide

Click Here For My FREE Home Buyer's Guide

Are You Wondering What It Takes To Buy Your First Home?

Are You Wondering What It Takes To Buy Your First Home?

Are You Wondering What It Takes To Buy Your First Home? | Keeping Current Matters













There are many people sitting on the sidelines trying to decide if they should purchase a home or sign


a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still others might think their current income would never enable them to qualify for a mortgage.
We want to share what the typical first time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first time buyer:
First-Time Homebuyer Statistics | Keeping Current Matters

Bottom Line

You may not be much different than many people who have already purchased their first home. Meet with a local real estate professional today who can help determine if your dream home is within your grasp.
















Debbie Mignogna, ABR, SRES
BHHS Fox & Roach Realtors
267-640-1120

PA-DreamHomes.com

Click Here For My FREE Home Buyer's Guide

Click Here For My FREE Home Seller's Guide



Friday, January 15, 2016

The Most Appealing Aspects of Homeownership


The Most Appealing Aspects of Homeownership

The Most Appealing Aspects of Homeownership | Simplifying The Market
The National Association of Realtors (NAR) just released their first issue of the Housing Opportunities & Market Experience Survey (HOME). In the report, NAR revealed what Americans believe to be the most appealing aspects of home ownership.

Here is a graph showing the results:

The Most Appealing Aspects of Homeownership | Simplifying The Market
It is interesting to see that the two most appealing aspects had nothing to do with money, but instead, addressed the non-financial benefits of homeownership.




Debbie Mignogna, ABR, SRES

BHHS Fox & Roach Realtor

267-640-1120


PA-DreamHomes.com

 

Click here for my FREE Home Buyer's Guide


Click here for my FREE Homes Seller's Guide

 

 

Lack of Listings Slowing Down the Housing Market


Lack of Listings Slowing Down the Housing Market



Lack-Of-InveLack of Listings Slowing Down the Housing Market | Keeping Current Matters
The housing crisis is finally in the rear view mirror as the real estate market moves down the road to a complete recovery. Home values are up. Home sales are up. Distressed sales (foreclosures and short sales) have fallen dramatically. It seems that 2016 will be the year that the housing market again races forward.
However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout this winter, supply is not keeping up.

Here are the thoughts of a few industry experts on the subject:

Calculated Risk:

“Low inventory is probably holding down sales in many areas.”

Capital Economics:

“A lack of housing inventory continues to drive developments in the market. As demand has slowly recovered, low inventory levels have weighed on home sales.”

Frank Nothaft, Chief Economist for CoreLogic:

“Many markets have experienced a low inventory of homes for sale along with strong buyer demand... These conditions are likely to persist as we enter 2016.”

Doug Duncan,Chief Economist at Fannie Mae:

“Several factors point to constrained housing affordability in 2016, particularly for first-time home buyers, including slow single-family supply response and limited inventory of starter homes on the market.”

Lawrence Yun, Chief Economist at NAR:

“Sparse inventory and affordability issues continue to impede a large pool of buyers’ ability to buy, which is holding back sales.”

Bottom Line

If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.








Debbie Mignogna
BHHS Fox & Roach Realtor
267-640-1120




 

Why Do Americans Consider Moving?


Why Do Americans Consider Moving? 




Why Do Americans Consider Moving? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • In a recent Harris Poll, Americans listed "change in climate/weather" as their top reason for wanting to relocate.
  • 41% would move for a better job opportunity.
  • Being closer to loved ones filled out 3 of the top 6 reasons why American's move.
















Debbie Mignogna, ABR
BHHS Fox & Roach Realtor
267-640-1120


PA-DreamHomes.com

Click here for my FREE Home Buyer's Guide

Click here for my FREE Home Seller's Guide

Friday, January 8, 2016

Homeownership Still Part of the American Dream


Homeownership Still Part of the American Dream


Homeownership Still Part of the American Dream | Keeping Current Matters
The National Association of Realtors (NAR) just released the first edition of their Housing Opportunities and Market Experience Survey (H.O.M.E.). NAR explained that the report covers:
“…core topics that will be tracked on a monthly basis such as views on housing as a good financial investment, whether homeownership is part of the American Dream…”
The current survey confirmed two long standing beliefs regarding homeownership:

1. Americans at every income level believe homeownership is part of the American Dream

Homeownership is a Part of the American Dream | Keeping Current Matters

2.)  Americans at every age believe that homeownership is a good financial decision

Homeownership is a Good Financial Decision | Keeping Current Matters

Bottom Line

Americans in all age groups and income levels believe in homeownership as a piece of their American Dream. If you are ready and willing to buy your dream home, meet with a local real estate professional who can help you determine if you are able to.







Debbie Mignogna
BHHS Fox & Roach Realtors
267-640-1120




Obstacles to Homeownership: Perceived or Real?


Obstacles to Homeownership: Perceived or Real?



Obstacles to Homeownership: Perceived or Real? | Keeping Current Matters
Yesterday, we discussed the belief Americans have in homeownership and their desire to partake in this piece of the American Dream. We also discussed some of the obstacles preventing them from attaining that goal. However, studies have shown that many of the obstacles mentioned are perceived, not real.
A recent study by Fannie MaeWhat Do Consumers Know About The Mortgage Qualification Criteria?, revealed that many consumers are either unsure or misinformed regarding the minimum requirements necessary to obtain a mortgage. Let’s break down three such challenges.

Down Payment

Perceptions

Many renters have mentioned that the lack of an adequate down payment is preventing them from moving forward with the purchase of a home. According to the Fannie Maereport:
  • 40% of all renters don’t know what down payment is required
  • 15% think you need at least 20% down
  • An additional 4% think you need at least 10% down

The Reality

There are programs offered by Fannie Mae, Freddie Mac and FHA that require as little as 3-3.5% down. VA and USDA loans offer 0% down programs. According to the National Association of Realtors, the typical down payment for a first time buyer is 6%.

Credit Score

Perceptions

Many renters have mentioned that the lack of an adequate credit score is preventing them from moving forward with the purchase of a home. According to the Fannie Maereport:
  • 54% of all renters don’t know what credit score is required
  • 5% think you need at least a 740 credit score

The Reality

Many mortgages are granted to purchasers with a credit score of less than 700. According to Ellie Mae, the average credit score on a closed FHA purchase is 687 and the average credit score on all loans is 722.

Back End Debt-to-Income Ratio (DTI)

Perceptions

Many renters have mentioned that they carry too much debt which is preventing them from moving forward with the purchase of a home. According to the Fannie Mae report:
  • 59% of all renters don’t know what DTI is acceptable
  • 25% think you need at under 25%
  • 7% think you need under 39%

The Reality

Lenders like to see a back-end ratio that does not exceed 36%. Fannie Mae’s maximum total DTI ratio is 36% of the borrower’s stable monthly income. The maximum can be exceeded up to 45% based on credit score and other requirements.

Bottom Line

Don't let a lack of knowledge or misinformation keep your family from buying a home this year. Meet with a local real estate professional who can evaluate your ability to buy now!









Debbie Mignogna
BHHS Fox & Roach Realtors
267-640-1120