Bargains abound: What are buyers waiting for?
NEW YORK – Oct. 28, 2011 – With low home
prices and ultra-low interest rates, the housing market now offers
“perhaps the best deals of a generation,” notes a recent article by
Bloomberg Businessweek.
Since the housing boom of 2006, home prices have fallen about 31
percent. Also, mortgage rates have been hovering at record lows for the
past few weeks – in the 4 percent range or even lower on 30-year
fixed-rate mortgages, according to Freddie Mac’s mortgage market survey.
“It’s hard to see the possibility of losing on a home purchase right
now, with these mortgage rates,” says economist Dean Baker. “Prices may
go lower, but not by much.”
The article notes the following scenario: Buying a $300,000 home with a 4
percent mortgage rate and a 20 percent down payment would mean a $1,145
monthly payment. The Mortgage Bankers Association recently predicted
that home prices may fall another 3.5 percent by mid-2012, but mortgage
rates will increase by a half-point. Under that same loan scenario, a
home would sell for $289,000 while the monthly mortgage bill would be
$1,171 – only a $26 difference.
For those who can qualify for a mortgage, “playing the waiting game”
won’t result in much gain, Nariman Behravesh, chief economist at IHS in
Englewood, Colo., told Bloomberg Businessweek.
Source: “Crazy Home Deals Await the Creditworthy,” Bloomberg Businessweek (Oct. 24, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
MIAMI DOWNTOWN"S BEST VIEW
Friday, October 28, 2011
Tuesday, October 18, 2011
Top 10 Reasons To Own Rather Than Rent
Top 10 reasons to own rather than rent
WOODLAND HILLS, Calif. – Oct. 17, 2011 – In an era of foreclosures, buyers focus on financial reasons for purchasing, but ownership has emotional rewards too. A California condo developer, the Met Warner Center, put together the following list – but it applies from Florida to Alaska.
Top 10 reasons to own rather than rent
1. You own it: With no landlord, you make the decisions.
2. You deduct it: Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income taxes.
3. Interest rates: The cost to borrow mortgage money is at an all-time low. If you’re going to buy, this is the time to jump into the market.
4. You invest in it: Rent money is gone forever. Mortgage payments build home equity ownership interests.
5. You save for the future: Home equity is a ready-made savings plan. Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.
6. You can predict expenses: Unlike rent, a fixed-mortgage payment doesn’t get more expensive over time.
7. You pick it: Choose from different neighborhoods, styles and price ranges.
8. You create it: Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.
9. You live in a neighborhood: You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.
10. You spend money on yourself: When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building your equity at the same time.
© 2011 Florida Realtors®
WOODLAND HILLS, Calif. – Oct. 17, 2011 – In an era of foreclosures, buyers focus on financial reasons for purchasing, but ownership has emotional rewards too. A California condo developer, the Met Warner Center, put together the following list – but it applies from Florida to Alaska.
Top 10 reasons to own rather than rent
1. You own it: With no landlord, you make the decisions.
2. You deduct it: Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income taxes.
3. Interest rates: The cost to borrow mortgage money is at an all-time low. If you’re going to buy, this is the time to jump into the market.
4. You invest in it: Rent money is gone forever. Mortgage payments build home equity ownership interests.
5. You save for the future: Home equity is a ready-made savings plan. Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.
6. You can predict expenses: Unlike rent, a fixed-mortgage payment doesn’t get more expensive over time.
7. You pick it: Choose from different neighborhoods, styles and price ranges.
8. You create it: Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.
9. You live in a neighborhood: You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.
10. You spend money on yourself: When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building your equity at the same time.
© 2011 Florida Realtors®
Wednesday, October 12, 2011
Housing Market
National outlook impacts housing market
WASHINGTON – Oct. 12, 2011 – American consumers pay close attention to economic news and what policymakers say, and they continue to link their personal financial outlook to events occurring nationally. As a result, Fannie Mae’s September National Housing Survey finds most consumers still pessimistic about the economy, home prices and household finances.
“Despite a decline in negative economic headlines during September … consumers continue to demonstrate very negative attitudes,” says Doug Duncan, vice president and chief economist of Fannie Mae. “At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded. The lack of a sense of urgency to buy homes … coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”
Survey highlights
Homeownership and renting
• Only 33 percent of Americans say that mortgage rates will go up in the next 12 months (down 12 percentage points since August – the lowest number recorded in Fannie Mae’s monthly tracking).
• For the fourth month in a row, Americans expect home prices to decline over the next year. On average, Americans expect home prices to go down by 1.1 percent, the highest expected decline to date.
• Only 18 percent of respondents expect home prices to increase over the next 12 months, the lowest reported number to date in the National Housing Survey, while 25 percent say they expect home prices to decline (down by 2 percentage points since August).
• While 68 percent of Americans say it is a good time to buy a home (down 1 percentage point since last month), only 10 percent of those polled say it is a good time to sell one’s home (up by 1 percentage point since August).
• On average, Americans expect home rental prices to go up by 3.3 percent over the next year, down slightly from the expected increase of 3.5 percent observed in August.
• Despite continued consumer caution about taking on a large financial obligation to buy a home, 63 percent say they would buy their next home if they were going to move (up by 1 percentage point since August), while 32 percent of Americans say they would rent their next home (down 2 percentage points since last month).
The economy and household finances
• The number of Americans who expect their personal financial situation to worsen over the next year has decreased for the first time in four months (down from 22 percent in August to 19 percent in September).
• Seventy-seven percent say the economy is on the wrong track (down only 1 percentage point from last month), while only 16 percent think the economy is on the right track (the same as in August).
• Forty-three percent report significantly higher expenses compared to one year ago. This number has increased for five consecutive months, but the majority of respondents still say their household income has remained the same.
© 2011 Florida Realtors®
“Despite a decline in negative economic headlines during September … consumers continue to demonstrate very negative attitudes,” says Doug Duncan, vice president and chief economist of Fannie Mae. “At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded. The lack of a sense of urgency to buy homes … coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”
Survey highlights
Homeownership and renting
• Only 33 percent of Americans say that mortgage rates will go up in the next 12 months (down 12 percentage points since August – the lowest number recorded in Fannie Mae’s monthly tracking).
• For the fourth month in a row, Americans expect home prices to decline over the next year. On average, Americans expect home prices to go down by 1.1 percent, the highest expected decline to date.
• Only 18 percent of respondents expect home prices to increase over the next 12 months, the lowest reported number to date in the National Housing Survey, while 25 percent say they expect home prices to decline (down by 2 percentage points since August).
• While 68 percent of Americans say it is a good time to buy a home (down 1 percentage point since last month), only 10 percent of those polled say it is a good time to sell one’s home (up by 1 percentage point since August).
• On average, Americans expect home rental prices to go up by 3.3 percent over the next year, down slightly from the expected increase of 3.5 percent observed in August.
• Despite continued consumer caution about taking on a large financial obligation to buy a home, 63 percent say they would buy their next home if they were going to move (up by 1 percentage point since August), while 32 percent of Americans say they would rent their next home (down 2 percentage points since last month).
The economy and household finances
• The number of Americans who expect their personal financial situation to worsen over the next year has decreased for the first time in four months (down from 22 percent in August to 19 percent in September).
• Seventy-seven percent say the economy is on the wrong track (down only 1 percentage point from last month), while only 16 percent think the economy is on the right track (the same as in August).
• Forty-three percent report significantly higher expenses compared to one year ago. This number has increased for five consecutive months, but the majority of respondents still say their household income has remained the same.
© 2011 Florida Realtors®
Tuesday, October 4, 2011
WHO IS YOUR NEXT COSTUMER??
Who’s your next customer?
ORLANDO, Fla. – Oct. 4, 2011 – Growth in the real estate sector in the coming years will be driven from several different directions.
The 2010 Census indicates that the median age of residents climbed to 40 or older in seven states. The Rust Belt states in the Midwest have the largest population of older adults, but other areas are seeing increases in the 55-to-64 demographic as well.
Experts say Baby Boomers – the first of whom turn 65 this year – are staying in the labor market longer and aging in place, and they continue to prefer homeownership to renting.
The number of Millennials (age 20 to 34) is also rising, and this population segment makes household creation decisions based on jobs but will likely rent for the next several years due to tight lending standards.
Minorities account for about 33 percent of the U.S. population, and the Census shows that Hispanics and Asians no longer congregate mainly in coastal and border areas. The Hispanic population is on the rise in Nashville, Tenn.; Greenville, S.C.; and Charlotte, N.C., while the Asian population is increasing in Orlando; Riverside, Calif.; and Phoenix. Experts say minorities tend to favor renting.
Meanwhile, the Census indicates that demand for office space will rise in the coming years as the number of office workers expands; and declines in household income have put a focus on “value shopping,” suggesting there will be more discount retailers leasing space in mainstream malls.
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
The 2010 Census indicates that the median age of residents climbed to 40 or older in seven states. The Rust Belt states in the Midwest have the largest population of older adults, but other areas are seeing increases in the 55-to-64 demographic as well.
Experts say Baby Boomers – the first of whom turn 65 this year – are staying in the labor market longer and aging in place, and they continue to prefer homeownership to renting.
The number of Millennials (age 20 to 34) is also rising, and this population segment makes household creation decisions based on jobs but will likely rent for the next several years due to tight lending standards.
Minorities account for about 33 percent of the U.S. population, and the Census shows that Hispanics and Asians no longer congregate mainly in coastal and border areas. The Hispanic population is on the rise in Nashville, Tenn.; Greenville, S.C.; and Charlotte, N.C., while the Asian population is increasing in Orlando; Riverside, Calif.; and Phoenix. Experts say minorities tend to favor renting.
Meanwhile, the Census indicates that demand for office space will rise in the coming years as the number of office workers expands; and declines in household income have put a focus on “value shopping,” suggesting there will be more discount retailers leasing space in mainstream malls.
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
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