Buying Remains Cheaper Than Renting in 39 States!

Buying Remains Cheaper Than Renting in 39 States!

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

Waiting to Launch Central Mass Listings? Maybe Not…

This maybe be a year of upsets (ask me about the Red Sox), the rules for when Central

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Mass listings are best initiated might be primed to fly out the window.

The history has long demonstrated that the most opportune time of year to add your home to the Central Mass listings is during the peak spring and summer seasons. When you look at the volume of home sales through most years, those months do look inviting. There are exceptions, but for the most part, spring and summer regularly excel in sales volume.

This fall and winter, Sellers May Benefit current market conditions.” This reasoning is short and sweet using recent facts, then drawing a realistic conclusion. Here are the facts:

  1. Supply. It’s a fact that from one end of the country to the other, the residential inventory (supply) is starkly reduced. Thus, homeowners who list now “face very little competition.”
  2. Demand. Even though the late fall and winter months have traditionally shown weak demand, the threat of mortgage rate hikes­ may have been all that was needed to instill a growing sense of urgency among buyers. Early results reflect buyer demand that’s “abnormally strong” for this time of year.
  3. Optimism. With consumer confidence at a 15-year high, once the spring and summer buying season was over, Central Mass buyers may find themselves in a “buying competition” for the homes in certain price ranges, that are still available.

These trends are all well-documented. Yet there are those that seem to argue against listing your home now. After all, wouldn’t it still make sense to follow the traditional dictum,­ to hold off until that fierce competition takes hold? The answer that flips such a

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conclusion is found in the fourth fact:

  1. Sellers will be Buyers. Overwhelmingly, national surveys suggest that the homeowners behind most Central Mass listings will also become buyers once they have sold. In fact, an estimated 85% of American home sellers plan to buy another home! If that’s correct, it’s not surprising that they’ll be grateful if they are quick to sell into this winter’s market. That will not only help them get a jump on the crowd come springtime it will also lengthen the odds that they can cash in on mortgage rates before they rise substantially. All of a sudden, the net advantage to listing this fall could be substantial!

The short takeaway is that simply accepting the old common wisdom warrants a second look in 2017. If you are one of our Central Mass homeowners who automatically presumed the wisdom of waiting a while longer to join the Central Mass listings, it might pay to reassess. Give me a call if you’d like to discuss how your plans fit into today’s broader residential picture and how to take maximum advantage of this year’s market!…..Realty Ace LLC

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Net Worth of Homeowners 44X Greater than Renters

Net Worth of Homeowners 44X Greater than Renters | Simplifying The Market

Net Worth of Homeowners 44X Greater than Renters

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey data, covering 2013-2016 was released two weeks ago.

Builder Offering to Pay Off Student Loans for Buyers

Builder Offering to Pay Off Student Loans for Buyers | Simplifying The Market

Builder Offering to Pay Off Student Loans for Buyers

Millennials are on track to become the most educated generation in history. This means they are also the generation with the most student debt. Depending on the type of degree earned, as well as the prestige of the institution attended, there are some millennials who graduate college with what equates to a mortgage payment.

Millionaire to Millennials: Buy a Home Now!

Millionaire to Millennials: Buy a Home Now! | Simplifying The Market

Millionaire to Millennials: Buy a Home Now!

In a CNBC article, self-made millionaire David Bach explained that “the single biggest mistake millennials are making” is not purchasing a home because buying real estate is “an escalator to wealth.”

Thinking of Selling your Home? Competition is Coming

Thinking of Selling your Home? Competition is Coming | Simplifying The Market

Thinking of Selling your Home? Competition is Coming

The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of these permits were up 7.7% over last year.

14,904 Homes Sold Yesterday… Did Yours?

14,904 Homes Sold Yesterday… Did Yours? | Simplifying The Market

14,904 Homes Sold Yesterday… Did Yours?

There are some homeowners who are patiently waiting to get the price they hoped for when they originally listed their houses for sale. Something these homeowners might want to take into consideration is the fact that if their homes haven’t sold yet, maybe they’re not priced properly.

NAR Data Shows Now Is a Great Time to Sell!

NAR Data Shows Now Is a Great Time to Sell! | Simplifying The Market

NAR Data Shows Now Is a Great Time to Sell!

We all realize that the best time to sell anything is when demand is high and the supply of that item is limited. Two major reports issued by the National Association of Realtors (NAR) revealed information that suggests that now continues to be a great time to sell your house.

Central Mass Mortgage Rates and Fed Agree to Disagree…Perhaps

Last week, following the Fed’s hike in the rates they charge banks, you might expect a

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matching rise in mortgage rates for Central Mass home buyers and refi applicants. If the experts are right, that’s far from a done deal.

The Washington Post headline said it all:

Mortgage rates move slightly higher but could be headed back down again.”

Mortgage News Daily reported the same: a slight nudge upward, then back down:

By holding flat, rates remain very close to the best levels seen in more than 8 months.”

The consensus was all but unanimous, with even Freddie Mac predicting that “mortgage rates are likely to follow” Treasury yields; that is, downward.

When the Fed raises the rates banks must pay, it’s only logical to expect the move to echo through the money markets, finally reaching home loan lenders. After all, they must raise rates to maintain the same profit level. But following the Fed announcement, investors drove Treasury rates sharply lower. The reason for the market’s seemingly reverse reaction wasn’t due to the Fed’s move: rather, it was because of “a surprisingly weak” Consumer Price Index report (which the Fed had chosen to ignore). In other words, investors believed the CPI instead of the Fed.

The likely effect on Central Mass home buyers and sellers remains very good news. With Central Mass mortgage rates holding at the “best levels seen in more than 8 months,” more families’ budgets allow moves to bigger and better homes. And for those who read

Interest Rates cloud word with a blue sky
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the Fed rate news and feared it might be too late to take advantage of historically low interest rates, the Mortgage News Daily offered a further prediction about mortgage rates that even “stand a shot at going lower this summer.”

Central Mass mortgage rates do rise and fall daily and knowing for certain where they are headed is famously impossible. As Bloomberg.com noted by the end of the week, “it’s been an especially rough six months” for those charged with predicting trends. What needs no crystal ball to establish is that it now seems likely that this year’s spring-summer busy season will continue to produce real estate bargains that would have seemed almost inconceivable in earlier inflation-ridden decades.

With both sellers and buyers seeing Central Mass mortgage rates that translate into more house for lower monthly payments, it remains prime time to check out the market—and to give me a call!…..Realty Ace, LLC

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