Increasing Home Values

October 26, 2012 at 9:41 AM | Posted in Buyers, Local Information, Real Estate News | Leave a comment
Tags: , , , ,

National home values in the third quarter experienced their biggest increase in more than half a decade, according to Zillow.

   Image

Home values in the United States rose 1.3 percent from the second to the third quarter, marking the fourth straight quarter of increases, Zillow reported. The quarterly rise is the biggest increase since March 2006, when home values rose 1.5 percent.

Advertisements

Cost of a Home: Impact of Interest Rates

October 22, 2012 at 3:04 PM | Posted in Buyers | Leave a comment

The buyer should always look at the COST of a home, not just the PRICE. The cost is determined by the price and the mortgage interest rate which is available at the time. Below is a list of the interest rates over the last ten years and the impact they have on a $100,000 mortgage payment.

The chart above shows that the overall COST of a home is important to keep in mind before you decided to buy.

Five Reasons Why You Should Buy a Home Now

October 18, 2012 at 2:09 PM | Posted in Buyers, Real Estate News | Leave a comment

 

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

Price Increases Are on the Horizon

Prices will bounce along the bottom this winter. However, projections call for appreciation after that. Several studies and surveys call for price increases over the next few years starting in 2013. One such survey shows that prices will increase over 10% by 2016.

Price appreciation/depreciation expected over the next five years:

2012:   -.4%

2013:   +1.3%

2014:   +2.6%

2015:   +3.2%

2016:   +3.5%

The average pre-bubble (1987-1999) annual appreciation was 3.6%

Rents Are Skyrocketing

Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported hat rents this year have actually shot up by 5.4%.

Interest Rates Are at Historic Lows

Federal Reserve Chairman Ben Bernanke has kept interest rates low in an effort to stimulate a lethargic economy. He understands that low rates will help housing and housing is a key to bringing back the economy. As the economy approves, the need to keep rates low will no longer exist. The 30-year-mortgage rate before the financial crisis was 6.57% (August 2007).

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy.

Blog at WordPress.com.
Entries and comments feeds.