Real Estate Information Archive

Home inventory is reaching its lowest point since 1999. This is stabilizing home prices in many markets, and since buyer traffic is continuing to pick up, multiple offers and bidding wars are going to become the common state of things. Many sellers still remain underwater while buyers are ready to buy, causing the housing inventory to continuously shrink. Currently, there is a 4.2-month supply of existing homes for sale, down from January’s 4.5-month supply, according to data from NAR.

“Buyer traffic is continuing to pick up, while seller traffic is holding steady," Lawrence Yun, the National Association of REALTORS®’ chief economist says. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."

Buyers and sellers alike are finding themselves in better positions then they found themselves at last year at this time. Price gains are being counter-balanced by low mortgage rates, and it is shifting to a seller’s market…. But it is not all good news.

Read More

Seller's Market Developing in Much of the U.S.
25 Quick, Cheap, and Easy Home Sale Tips

 Will housing market's revival last?

Housing heats up, but far from normal

 ATHOMEINBOZEMAN

Affording A Home

Balancing your budget against mortgage rates and lending costs

Market Recovery

Buying and Selling anywhere in the country—this allows you to visualize the state-by-state differences

Top 10 Cities To Rent Or Buy

Another look the country as a whole with the breakdown hinging on what cities present the top opportunities to rent and buy

History of Home Values

Dating back to the 1890’s, this is the chart that shows that real estate is a rising and falling market, but it always comes back

Renting Versus Buying

You can read only so many articles, but one look at this and the differences are all laid out before you

What a great resource! Read more: http://www.mlsmaps.com/mls-listings-info/index.php/5-cool-real-estate-infographics/

The Blackstone Group is now the largest investor in the US of single family rental homes. The private-equity firm has purchased more than 6,500 foreclosed homes this year in eight metro areas. Investors play a significant role in determining the prices and health of a real estate market. Investors have recently been taking advantage of lower home prices in the last few years raising $6-8 billion in purchasing single family homes alone.

“Of course, success is by no means assured for private-equity firms, especially given their high targets for investment returns in general and their lack of experience with this type of real estate,” a recent article at The Wall Street Journal notes. “Used to buying office buildings, shopping centers and other big properties, they may struggle to find economies of scale in managing thousands of individual homes in neighborhoods that were hard-hit by foreclosures, but are showing signs of price stabilization.”

Projection from this side of real estate is price appreciation at the low end of the market meaning lower cash yields.

Source: “Rental Market's Big Buyers,” The Wall Street Journal (Oct. 3, 2012)

The FHA has revised the rules around condos. In hopes of convincing condo associations to get certified or re-certified financing therefore opening the doors for a lower down payment for unit sellers, owners and buyers, the FHA insured mortgages once again.

This news is widely being taken with positive regard since it will “help spark home sales and help tens of thousands of condominium associations recover from the housing slump," according to the Community Associations Institute, the largest U.S. trade group in the field.

The new rules will eliminate legal liability headaches that hindered many condo boards to resist FHA certifications, raise the permissible investor-ownership limit, and increase the percentage of non-residential use allowed in an FHA certified project.

READ MORE ABOUT NEW FHA RULES HERE

“Distressed properties can have great appeal,” says Wendy Forsythe, executive vice president at Atlantic Pacific Real Estate. “Discounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain.” 

Typical discounts on foreclosures are at about 19% on average. That number gets brought up and buyers have a tendency to become blinded to other relevant details that are top priorities in real estate. Here is a convenient list to keep in mind if you are looking to save the big on the distressed property sales:

Know any prior claims on the property. “If a distressed home has been financed with two or more loans then the sales process can be far more complex,” according to an article for RISMedia written by Atlantic Pacific Real Estate.

Get Financing. How does a buyer hope to purchase the property? By preparing financing in advance, buyers are able to move more efficiently when a distressed property does come on the market.

Judge the Condition. Getting a deal my result in getting in over your head. Getting a thorough home inspection prior to committing financially to anything!

Foresee Delays In Advance. Ask your realtor to talk you through any potential delays.

Source: “Buying a Distressed Home: What You Need to Know,” RISMedia (July 15, 2012)

Yeah yeah, we have all heard the pros of buying a home versus renting, but when it comes down to it; do consumers act upon all that advice? Yes.

A new study has shown that in more than 75% of metro areas in the US, home owners would start saving money after only three years of home ownership as compared to renting. This figure includes down payments, closing costs, mortgage payments, property taxes, utilities, and even maintenance costs. Three years is just the average. In Miami, the turn-over to benefit only takes 1.6 years where as in California the same figure is 8.3!

"Historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year," says Stan Humphries, Zillow’s chief economist.

Source: “Buying Beats Renting in Most Cities,” CNNMoney (Aug. 2, 2012)

Read More

The Buy vs. Rent Debate: Why Buying Wins
Rents Keep Rising as Demand Soars

Before listing them all, I just want to comment on the importance of precedent. What you do in your life, financially and professionally, matters. Try to strive to improve in the areas you know you falter in.

Loan Approval Precedent

Disapproval of past loans stay on your history and will weigh into the decision of future loans. This does not mean if you were denied you will be again, but in the complex picture, it will play a role.

Lack of Full Documentation

Required documents are just that… required. The lender has a huge choice in their hands and little errors like forgetting documents will raise doubts about the honesty of the paperwork. Be transparent and fully disclose all needed documents.

Credit Score

One of the most important numerical decision factors is your credit score. Again, this number establishes precedent. How you have handled your monetary responsibilities in the past is a strong indication of how you will handle them in the future.

Employment History

Monthly income is used to evaluate your fiscal ability. Frequently shifting jobs, demotions, or a high incidence of being fired will paint the picture of an unstable candidate.   

Income:Purchase:Saving Ratio

We all have a baseline income. Where that money goes has a steady pattern. Expenditures and rate of saving develop a portfolio on what you prioritize. One common mistake made by those applying for a loan is the purchase of a large dollar item after applying for the loan. This instantly reduces you ability to quickly pay back the loan and to the lenders, the risk may seem too high.  

Dream Home

The listing you pick to be your home is evaluated just as the applicant is. The house must be legal by all standards for the investment to even be considered.

Avoid the possible mistakes and try to find solutions for the issues that might lead to disapproval. Devote good amount of time and take professional help to prepare your home loan application.

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406.570.5730-call me, Real Estate Professional Broker Tim Hart, if you have more questions or need assistance in purchasing  a home.

Source http://www.findbadcredithomeloan.com/top-9-reasons-that-lead-to-home-loan-application-rejection.html

Tim Hart