Found a great article which I am quoting below on RIS Media below. They do a great job of gathering information and putting it out there. There are some interesting statistics below, but the main message is low inventory, rising prices, historically low interest rates, good time to buy:
February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of REALTORD®. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February, 2012.
February sales were at the highest level since the tax credit period of November 2009.
Lawrence Yun, NAR chief economist says that conditions for continued housing improvement are at play. "Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise. Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable," he says. "The only headwinds are limited housing inventory which varies greatly around the country and credit conditions that remain too restrictive.
Total housing inventory at the end of February rose 9.6% to 1.94 million existing homes avialable for sale, which represents a 4.7 month supply at the current sales pace, up from 4.3 months in January, which was the lowest supply since May, 2005. Listed inventory is 19.2 % below a year ago when there was a 6.4 month supply.
The national median existing home price for all housing types was $173,600 in February, up 11.6% from Febraury, 2012. The last time there were 12 consecutive months of year-over-year price increases was from June, 2005, to May, 2006. The February gain is the strongest since November, 2005, when it was 12.9% above a year earlier.
"A strong rise in home values is contributing to housing wealth recovery, which has risen by $1.4 trillion in the past year and looks to top that increase this year." Yun said. "The extra consumer spending arising from growth in housing wealth is expected to be $70 billion to $110 billion this year.
Distressed homes-foreclosures and short sales--acounted for 25% of February sales, up from 23% in January but down from 34% in February, 2012. Fifteen percent of February sales were foreclosures, and 10% were short sales. Foreclosures sold for an average discount of 18% below market value in February, while short sales were discounted 15%.
Accoding to Freddie Mac, the national average commitment rate for a 30-year, conventional fixed-rate mortgage rose to 3.53% in Feburary from 3.41% in January; it was 3.89% in Feburary 2012.
NAR President Gary Thomas, says interest rates remain extraordinarily low. "In the history of mortgage interest rates since 1971, the 30-year fixed rate has been below 4% in only 15 months, and they have all been in the past 15 months," he sayd. "Even with rising home prices, affordability remains historically favorable because home prices over-corrected during the downturn. This means there is still great value for buyers in the current market."
The median time on market for all homes was 74 days in February, which is 24% below 97 days in February, 2012. Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed home took 77 days. One out of three homes sold in February was on the market for less than a month.
First-time buyers account for 30% of puchases in February, unchagned from January; they were 32% in February 2012.
All-cash sales were at 32% of transactions in February, up from 28% in January; they were 33% in February 2012. investors, who account for most cash sales, pruchased 22% of homes in February, up from 19% in January; they were 23% in February 2012.
Showing posts with label interest rates. Show all posts
Showing posts with label interest rates. Show all posts
Tuesday, March 26, 2013
Friday, February 1, 2013
Rentals in the Heartland
Destination Heartland!!! That is where savvy investors should be heading according to the latest rankings for best real estate markets for investing in single family homes as rental properites.
Many of the smaller cities have low unemployment rates, well below the national averag,e and they also have strong job growth. Here in Amarillo we have high rental numbers because of Bell Helicopter bringing in new graduates, so almost all rentals rent quickly. I have a realtor friend who has over 220 rental houses and he says he rarely has to advertise for more than a week. Another landlord told me she didn't want to send me her "empties" because she usually fills them the week she gets the 30-day notice they will empty, so why bother sending them to a realtor. In other words, it is easy sneezy to get rentals rented in Amarillo, Texas.
Housing prices have bottomed out, also in some areas. Here in Amarillo, actually our house prices increased last year, but compared to other parts of the country, our prices remain low, with the average being in the $150,000's.
The smaller markets are great places to rent out single-family homes because strong economic growth can quickly absorb the existing housing options. Here in Amarillo there is a shortage of lots for new homes, so there are fewer homes to buy, so rentals are really hot!!
The lower the risk premiums of the smaller markets make them a saffer investment. I'm not sure what this means exactly, but it was in an article I just read.
The interest rates are low, demand is high, so investing in rentals in Amarillo, Texas, just makes sense.
Many of the smaller cities have low unemployment rates, well below the national averag,e and they also have strong job growth. Here in Amarillo we have high rental numbers because of Bell Helicopter bringing in new graduates, so almost all rentals rent quickly. I have a realtor friend who has over 220 rental houses and he says he rarely has to advertise for more than a week. Another landlord told me she didn't want to send me her "empties" because she usually fills them the week she gets the 30-day notice they will empty, so why bother sending them to a realtor. In other words, it is easy sneezy to get rentals rented in Amarillo, Texas.
Housing prices have bottomed out, also in some areas. Here in Amarillo, actually our house prices increased last year, but compared to other parts of the country, our prices remain low, with the average being in the $150,000's.
The smaller markets are great places to rent out single-family homes because strong economic growth can quickly absorb the existing housing options. Here in Amarillo there is a shortage of lots for new homes, so there are fewer homes to buy, so rentals are really hot!!
The lower the risk premiums of the smaller markets make them a saffer investment. I'm not sure what this means exactly, but it was in an article I just read.
The interest rates are low, demand is high, so investing in rentals in Amarillo, Texas, just makes sense.
Saturday, January 26, 2013
My 9 reasons for Buying a Home Rather Than Renting
Just received an email from a lender that most have gone up to 3.5% on 30 year conventional loans due to the weekly unemployment numbers. He is keeping his at 3.375%. If you need his name, email me at westwinds4jc@aol.com.
I'm glad to see unemployment go DOWN, as more people can now afford houses, if they have a job. I want people to have the American dream so that they aren't throwing away rent money. If you have a house you:
1. get to pay property taxes and take them off your income; when renting you get to pay the landlord's property tax with increased rent, and he gets to take it off his taxes.
2. get to paint any room any color you want, such as my son did a eggplant purple dining room. If you rent, the landlord chooses the color, and it's usually white.
3. You can hang anything from the walls and ceilings you want. If you rent, the landlord probably has rules about that too.
4. You can add a chandelier with pink flamingoes. Not if you rent, unless you want to give it to the landlord when you move.
5. Plant trees and flowers and have a dog and cat. If you rent most like no CATS as their odor is hard to get rid of. My daughter was told by her landlord that they are to maintain the trees and yard as they found it, and even though a tree died, they aren't allowed to plant one to take its place, and they had to get landlord to remove it when it started tilting toward the house. Boys weren't allowed to go outside and play until landlord found the time to cut it down. He also forbade a dog in the backyard.
6. Pay interest on a loan and take it off taxes. If you rent, you pay the interest on any loan the landlord has on the property through increased rent.
7. A steady payment. Get it set for 30 years. With rent, it usually goes up every year or so. No way to budget in advance.
8. Feel the pride of ownership. Nothing like knowing this is my house (along with the banks) rather than feeling like you are borrowing your living space from someone else.
9. changing that ugly linoleum in the bathroom that's curling for some nice ceramic tile. My daughter's bathroom linoleum is gross!! But her landlord is in love with it.
My daughter, a realtor, knows all this, and now that their student loans are all paid, their credit score will go up, and they plan to buy asap. 9 years of renting and they are finally going to be able to buy and get rid of the white walls, the nasty carpet, the ugly lineoleum, get a dog, plant some trees, and get some tax write-offs. Life is good for the homeowner.
I'm glad to see unemployment go DOWN, as more people can now afford houses, if they have a job. I want people to have the American dream so that they aren't throwing away rent money. If you have a house you:
1. get to pay property taxes and take them off your income; when renting you get to pay the landlord's property tax with increased rent, and he gets to take it off his taxes.
2. get to paint any room any color you want, such as my son did a eggplant purple dining room. If you rent, the landlord chooses the color, and it's usually white.
3. You can hang anything from the walls and ceilings you want. If you rent, the landlord probably has rules about that too.
4. You can add a chandelier with pink flamingoes. Not if you rent, unless you want to give it to the landlord when you move.
5. Plant trees and flowers and have a dog and cat. If you rent most like no CATS as their odor is hard to get rid of. My daughter was told by her landlord that they are to maintain the trees and yard as they found it, and even though a tree died, they aren't allowed to plant one to take its place, and they had to get landlord to remove it when it started tilting toward the house. Boys weren't allowed to go outside and play until landlord found the time to cut it down. He also forbade a dog in the backyard.
6. Pay interest on a loan and take it off taxes. If you rent, you pay the interest on any loan the landlord has on the property through increased rent.
7. A steady payment. Get it set for 30 years. With rent, it usually goes up every year or so. No way to budget in advance.
8. Feel the pride of ownership. Nothing like knowing this is my house (along with the banks) rather than feeling like you are borrowing your living space from someone else.
9. changing that ugly linoleum in the bathroom that's curling for some nice ceramic tile. My daughter's bathroom linoleum is gross!! But her landlord is in love with it.
My daughter, a realtor, knows all this, and now that their student loans are all paid, their credit score will go up, and they plan to buy asap. 9 years of renting and they are finally going to be able to buy and get rid of the white walls, the nasty carpet, the ugly lineoleum, get a dog, plant some trees, and get some tax write-offs. Life is good for the homeowner.
Friday, January 25, 2013
A Little About A Lot of Things.
Interest rates are staying low but inching...no millimetering upward. 30 year conventional is 3.375%.
I learned from my kids that you can't refinance unless you have paid down 5% of your original note; doesn't matter if you had a good equity. Their house is about $145,000 value, and they paid $100,000 in foreclosure sale for it in July. We figure they've paid it down to about $97,000 as they just got a 15 year note. So they have to pay down $2,000 more in principal before they can refinance at a lower interest rate and get a home equity loan for fixing a few things they want to do. Not bad for 23 year old kids, huh!! So proud of them.
I listed a huge 4400+ home this week. Originally 6 bedrooms, now 5, as they took down a wall and opened up a large living/dining area. It has 2 living areas downstairs and a huge sunporch which would be great for a pool table or hot tub. It has 3 bedrooms downstairs and 2 baths, and upstairs another full house of 2 br, office, landing that is huge enough for another office, large open la/dining and another kitchen. Perfect home for 2 families, and that's what lived here. Two families, and one was a quadriplegic so downstairs are the mechanism for lifting a disabled person and a shower that's about 5 x 5 to accomodate a wheelchair. This house has a large covered patio, wheelchair accessible, and two extra lots; one on each side of the house. Build a shop and a pool, or another house on the north, as that lot is about 88 x 115. All for $174,000, as we need to sell it fast before it is foreclosed due to medical bills. Aren't banks totally without heart!! These people tried to make payments and they wouldn't take partial payments and said they wouldn't talk about refinancing until they were 3 months in arrears, so they paid medical bills with their money for 3 months and then tried to refinance and the bank said no, because now they had no closing cost money. This is THE national bank we all hear about not having a heart, and I'm afraid it is so, even though my mortgage is with them and I bank there. I may change all the banking part to a local bank after this.
I want to share a devotion and comments I posted today on facebook and on my momsdementia.com blog where I cover things about my mom's Vascular Dementia. This is about God and his love for us. So if you are not interested in hearing about how God wants to hear from you, then stop reading right NOW.
"Sue Lawrence gave me a devotion book that I am really enjoying. Today's was about Psalm 145:18. "The Lord is nigh unto all them who call upon him." The writer said he had just finished reading a book explaining prayer, and how the Lord is always waiting to hear from us, longing to hear from us, ready to listen to us. He was cynical and thought, "Oh, yay, the creator of the universe wants to hear from a nobody like me. That day was a particularly busy day for him at work, lots of deadlines and projects. The phone interrupted his schedule and he picked up the phone and answered in a tone that said, "Get on with it and let me get back to work." Then he heard his son's voice . Attitude changed. His son was on his way to work in his car and was telling his dad about his newest project, about his friends, etc. They visited for over 10 minutes and when the phone call ended, the dad realized that he had been longing to hear from his son, just as God longs for us, his children, to call him and visit, and spend time talking. He knew then what the verse meant, and he understood more about prayer.
I've had the busiest 5 days in real estate this past week I've ever had. One day I didn't even eat until 6 p.m. That day my son DJ and his wife offered to go with me to eat as Jerry was already at church, and I so enjoyed the 'down time' to just listen to them and tell them about my life. It was special. Yesterday I decided I was NOT going to miss my pickleball so I quit at 4 and went to play for 2 hours. Just before we started a new game, the phone rang for the second time, I jerked it to my ear and said "This is Judy, what can I do for you." in a tone that was not very welcoming. My son, Jeff, answered, "Well, for one thing, don't yell at me." Oops. Then he invited Jerry and me to go bowling, which later was cancelled and changed to supper at Mr Gattis. Jerry knows I don't ever put my kids off if they want to spend time with me. So we went, and had the added surprise of having Cierra, Brandon, Charli, and Derek all together for a meal and visit. I so enjoyed listening to Jeff's exercise stories, DJ's comments about bump, set, spike being the way to play volleyball, but sometimes you see an opening and it's right to just hit it on over; to watch Cierra care for and love on that baby girl, Charli, and to see Brandon being his usual -in his words - not cute but handsome self. To hear Jerry share the story of his near fall at PD Canyon, and just share in everyone's lives. So this devotion today was right on for me. God too wants those kind of phone calls, those special sharing times with his children. Have you given him a call today? He's waiting . . and hoping . . ready to listen as long as you want."
I learned from my kids that you can't refinance unless you have paid down 5% of your original note; doesn't matter if you had a good equity. Their house is about $145,000 value, and they paid $100,000 in foreclosure sale for it in July. We figure they've paid it down to about $97,000 as they just got a 15 year note. So they have to pay down $2,000 more in principal before they can refinance at a lower interest rate and get a home equity loan for fixing a few things they want to do. Not bad for 23 year old kids, huh!! So proud of them.
I listed a huge 4400+ home this week. Originally 6 bedrooms, now 5, as they took down a wall and opened up a large living/dining area. It has 2 living areas downstairs and a huge sunporch which would be great for a pool table or hot tub. It has 3 bedrooms downstairs and 2 baths, and upstairs another full house of 2 br, office, landing that is huge enough for another office, large open la/dining and another kitchen. Perfect home for 2 families, and that's what lived here. Two families, and one was a quadriplegic so downstairs are the mechanism for lifting a disabled person and a shower that's about 5 x 5 to accomodate a wheelchair. This house has a large covered patio, wheelchair accessible, and two extra lots; one on each side of the house. Build a shop and a pool, or another house on the north, as that lot is about 88 x 115. All for $174,000, as we need to sell it fast before it is foreclosed due to medical bills. Aren't banks totally without heart!! These people tried to make payments and they wouldn't take partial payments and said they wouldn't talk about refinancing until they were 3 months in arrears, so they paid medical bills with their money for 3 months and then tried to refinance and the bank said no, because now they had no closing cost money. This is THE national bank we all hear about not having a heart, and I'm afraid it is so, even though my mortgage is with them and I bank there. I may change all the banking part to a local bank after this.
I want to share a devotion and comments I posted today on facebook and on my momsdementia.com blog where I cover things about my mom's Vascular Dementia. This is about God and his love for us. So if you are not interested in hearing about how God wants to hear from you, then stop reading right NOW.
"Sue Lawrence gave me a devotion book that I am really enjoying. Today's was about Psalm 145:18. "The Lord is nigh unto all them who call upon him." The writer said he had just finished reading a book explaining prayer, and how the Lord is always waiting to hear from us, longing to hear from us, ready to listen to us. He was cynical and thought, "Oh, yay, the creator of the universe wants to hear from a nobody like me. That day was a particularly busy day for him at work, lots of deadlines and projects. The phone interrupted his schedule and he picked up the phone and answered in a tone that said, "Get on with it and let me get back to work." Then he heard his son's voice . Attitude changed. His son was on his way to work in his car and was telling his dad about his newest project, about his friends, etc. They visited for over 10 minutes and when the phone call ended, the dad realized that he had been longing to hear from his son, just as God longs for us, his children, to call him and visit, and spend time talking. He knew then what the verse meant, and he understood more about prayer.
I've had the busiest 5 days in real estate this past week I've ever had. One day I didn't even eat until 6 p.m. That day my son DJ and his wife offered to go with me to eat as Jerry was already at church, and I so enjoyed the 'down time' to just listen to them and tell them about my life. It was special. Yesterday I decided I was NOT going to miss my pickleball so I quit at 4 and went to play for 2 hours. Just before we started a new game, the phone rang for the second time, I jerked it to my ear and said "This is Judy, what can I do for you." in a tone that was not very welcoming. My son, Jeff, answered, "Well, for one thing, don't yell at me." Oops. Then he invited Jerry and me to go bowling, which later was cancelled and changed to supper at Mr Gattis. Jerry knows I don't ever put my kids off if they want to spend time with me. So we went, and had the added surprise of having Cierra, Brandon, Charli, and Derek all together for a meal and visit. I so enjoyed listening to Jeff's exercise stories, DJ's comments about bump, set, spike being the way to play volleyball, but sometimes you see an opening and it's right to just hit it on over; to watch Cierra care for and love on that baby girl, Charli, and to see Brandon being his usual -in his words - not cute but handsome self. To hear Jerry share the story of his near fall at PD Canyon, and just share in everyone's lives. So this devotion today was right on for me. God too wants those kind of phone calls, those special sharing times with his children. Have you given him a call today? He's waiting . . and hoping . . ready to listen as long as you want."
Wednesday, January 2, 2013
Generation X and Y Survey About Home Ownership
There are 105 million Generation X and Y adults out there, and they are educating themselves about home ownership. They want to make sure they can get a loan, what it will cost them, what is the best neighborhood and what are the prices there, and also what are the interest rates. They are willing to do their homework before making a purchase. Then if they see there is a need, they are willing to work two jobs, eat out less or move in with parents to save for the closing costs and down payments. They are NOT the me generation. They do NOT believe home ownership is their right, but a privilege.
Here are some findings from a recent survey of this age group.
. 75% believe home ownership is the new BLING, that it is the sign of success over great vacations, fancy new cars or wearing designer clothing.
. 69% believe the right time to buy is when you can afford the house and not change your lifestyle.
. 61% believe the right time to buy is when they land a great job. (Unfortunately, banking requirements require you to have that "great" job 2 years before giving you a loan.)
. 69% believe that they are alot more knowledgeable about buying a home than their parents were at the same age. They feel the 2008 housing downturn caused more information to be available and "out there" in front of them, so they study to find the best interest rates, the best neighborhoods, the best loans, so they are prepared when they call a Realtor.
It is good to know that these are responsible adults, not the "me" generation. I find it also interesting that they like to go see homes with other people, that they wants mom and dad's approval, and their friends' approval, and they are interested in realtors giving as much information as they can. The previous generation wanted to look at homes with no one there to give an opinion or information, they were the latch key generation, but Generations X and Y want the approval of their peers and elders, and they respect authority.
Personally, as a realtor with Prudential Ada Realtors in Amarillo, Texas, I love working with this age group. They actually listen to me when I explain the process, and they are a joy to have as clients.
Here are some findings from a recent survey of this age group.
. 75% believe home ownership is the new BLING, that it is the sign of success over great vacations, fancy new cars or wearing designer clothing.
. 69% believe the right time to buy is when you can afford the house and not change your lifestyle.
. 61% believe the right time to buy is when they land a great job. (Unfortunately, banking requirements require you to have that "great" job 2 years before giving you a loan.)
. 69% believe that they are alot more knowledgeable about buying a home than their parents were at the same age. They feel the 2008 housing downturn caused more information to be available and "out there" in front of them, so they study to find the best interest rates, the best neighborhoods, the best loans, so they are prepared when they call a Realtor.
It is good to know that these are responsible adults, not the "me" generation. I find it also interesting that they like to go see homes with other people, that they wants mom and dad's approval, and their friends' approval, and they are interested in realtors giving as much information as they can. The previous generation wanted to look at homes with no one there to give an opinion or information, they were the latch key generation, but Generations X and Y want the approval of their peers and elders, and they respect authority.
Personally, as a realtor with Prudential Ada Realtors in Amarillo, Texas, I love working with this age group. They actually listen to me when I explain the process, and they are a joy to have as clients.
Thursday, December 27, 2012
The Young Expect to Buy Within 2 Years
I saw a Trulia article today that said the new generation of buyers, 18-34 expect to own a home in their lifetime, and hopefully within 2 years.
The majority of people surveyed expected home prices to go up in the next few years.
Right now the interest rate for 30 years is 3.25%, and at today's prices that is a great buy. So I would advise that if you have a down payment of 3.5% or more, if you have a credit rating of 620 or more, and you have had a job for 2 years, that you'd be "not so smart" to put off buying, because if the prices alone go up, that means more money in monthly payments, and should the interest rates also go up, that would mean even higher payments, which is great outlay of $$$ over the 30 years.
My advice, buy now!!
The majority of people surveyed expected home prices to go up in the next few years.
Right now the interest rate for 30 years is 3.25%, and at today's prices that is a great buy. So I would advise that if you have a down payment of 3.5% or more, if you have a credit rating of 620 or more, and you have had a job for 2 years, that you'd be "not so smart" to put off buying, because if the prices alone go up, that means more money in monthly payments, and should the interest rates also go up, that would mean even higher payments, which is great outlay of $$$ over the 30 years.
My advice, buy now!!
Monday, April 23, 2012
Tidbits on Real Estate and Stuff
Reading articles this morning, came up with these tidbits.
32% of all sales in March were cash.
27% of all sales in March were investors.
33% of all sales in March were first time home buyers.
Home inventories are low, buyers are out, interest rates are low, and it appears now is the time to buy and buyers have decided that too. Realtors have reported more people out seriously looking.
Average price in the south of a home was $146,500. That's about the same in Amarillo, Texas of $146,301.
Amarillo had 510 single family homes sold in the first quarter and 19 condo/townhomes. The average price of a condo/townhome that sold was $132,108. Single family homes sold in March in Amarillo were on the market 102 days, and townhomes/condos 114 days.
Wildhorse Lake area of Amarillo had the cheapest sales with an average of $23.44 per sq. ft but a low days on the market of 56 (only 1 sale; not a very telling tidbit).
My home subdivision of Olsen had an average sale of $77.12 per sq. with and average day on the market of 113, with 7 sales, and the average home price was $200,986. 106 days on the market $585,625 average price with 4 sales.
Colonies won as most expensive at $146.11 with 4 sales averaging $585,625, and 106 days on the market. Christy (where is that?) had the next most expensive per sq ft average at $129.24, 115 days and one sale at $255,000.
Here's a surprise River Road West had second highest at $129.08, 40 days on the market sale of $95,000. Again not very telling. Lake Tanglewod was next at $128.68, 82 days, 5 sales, averaging $309.320. Not a surprise there, as this is a great place to buy with a great atmosphere, golf, etc.
More tidbits after lunch.
32% of all sales in March were cash.
27% of all sales in March were investors.
33% of all sales in March were first time home buyers.
Home inventories are low, buyers are out, interest rates are low, and it appears now is the time to buy and buyers have decided that too. Realtors have reported more people out seriously looking.
Average price in the south of a home was $146,500. That's about the same in Amarillo, Texas of $146,301.
Amarillo had 510 single family homes sold in the first quarter and 19 condo/townhomes. The average price of a condo/townhome that sold was $132,108. Single family homes sold in March in Amarillo were on the market 102 days, and townhomes/condos 114 days.
Wildhorse Lake area of Amarillo had the cheapest sales with an average of $23.44 per sq. ft but a low days on the market of 56 (only 1 sale; not a very telling tidbit).
My home subdivision of Olsen had an average sale of $77.12 per sq. with and average day on the market of 113, with 7 sales, and the average home price was $200,986. 106 days on the market $585,625 average price with 4 sales.
Colonies won as most expensive at $146.11 with 4 sales averaging $585,625, and 106 days on the market. Christy (where is that?) had the next most expensive per sq ft average at $129.24, 115 days and one sale at $255,000.
Here's a surprise River Road West had second highest at $129.08, 40 days on the market sale of $95,000. Again not very telling. Lake Tanglewod was next at $128.68, 82 days, 5 sales, averaging $309.320. Not a surprise there, as this is a great place to buy with a great atmosphere, golf, etc.
More tidbits after lunch.
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