John Harris, Mortgage Lender

The Right Price Matters

There are several factors that go into pricing your house, and balancing them is the key. That’s why it’s important to lean on an expert real estate advisor when you’re ready to move. A local real estate advisor is knowledgeable about:

• The value of homes in your neighborhood

• The current demand for houses in today’s market

• The condition of your house and how it affects the value

A real estate professional will balance these factors to make sure the price of your house makes the best first impression and gives you the greatest return on your investment in the end.

Housing bubble❓👇

𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝟯 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 𝘁𝗵𝗼𝘂𝗴𝗵 𝘁𝗵𝗮𝘁 𝘁𝗵𝗶𝘀 𝗺𝗮𝗿𝗸𝗲𝘁 𝗶𝘀 𝘁𝗼𝘁𝗮𝗹𝗹𝘆 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝘁𝗵𝗮𝗻 𝘁𝗵𝗲 𝗵𝗼𝘂𝘀𝗶𝗻𝗴 𝗯𝘂𝗯𝗯𝗹𝗲 𝘄𝗲 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲𝗱 𝗮 𝗹𝗶𝘁𝘁𝗹𝗲 𝗼𝘃𝗲𝗿 𝗮 𝗱𝗲𝗰𝗮𝗱𝗲 𝗮𝗴𝗼...

✅ 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝘀𝘂𝗽𝗽𝗹𝘆 𝗶𝘀 𝗲𝘅𝘁𝗿𝗲𝗺𝗲𝗹𝘆 𝗹𝗶𝗺𝗶𝘁𝗲𝗱 🏡

Despite mortgage rates much higher than a year ago, demand remains strong. Inventory of homes for sale is currently running at less than 2 months, a historic low. A healthy inventory is about 6 months, and in 2008 we were actually up to as high as 11 months inventory.

✅ 𝗛𝗼𝗺𝗲𝗯𝘂𝘆𝗲𝗿𝘀 𝗮𝗿𝗲 𝗺𝗼𝗿𝗲 𝗰𝗿𝗲𝗱𝗶𝘁𝘄𝗼𝗿𝘁𝗵𝘆 👍

In 2008, when the housing market crashed, mortgage standards were at an all time low for credit scores and down payment requirements, as well as proving income and assets to purchase. Current guidelines are much stricter, making the borrowers more financially secure.

✅ 𝗛𝗼𝗺𝗲𝘀 𝗵𝗮𝘃𝗲 𝗲𝗾𝘂𝗶𝘁𝘆 📈

Homeowners were pulling out equity back in 2008, causing many to be upside down. This time around equity levels are extremely high, meaning that homeowners could see values decline slightly without concern.

𝗜'𝗺 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲 𝘁𝗼 𝘀𝗵𝗮𝗿𝗲 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂 𝗵𝗼𝘄 𝘁𝗼𝗱𝗮𝘆'𝘀 𝗹𝗼𝘄 𝗿𝗮𝘁𝗲𝘀 𝗺𝗮𝗸𝗲 𝘁𝗵𝗶𝘀 𝗮 𝗴𝗿𝗲𝗮𝘁 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗯𝘂𝘆𝗶𝗻𝗴 𝗮 𝗵𝗼𝗺𝗲, 𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝗮𝘀 𝘃𝗮𝗹𝘂𝗲𝘀 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲 𝘁𝗼 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲. 𝗥𝗲𝗮𝗰𝗵 𝗼𝘂𝘁 𝗮𝗻𝘆𝘁𝗶𝗺𝗲!

HOUSING STARTS

Housing Starts increased 0.3% in March at an annualized rate of 1.79M units.

Year over year, Starts are now up 3.9%.

Single family, which is most important, decreased by 1.7% are now down 4.4% from last year.

Permits rose by 0.4% last month and are up 6.7% on a year over year basis.

Single family permits fell 4.8% and are down 3.9% year over year.

Speaking to the builder backlog, single family Units authorized, but not yet started, are up almost 15% year over year, while single family completions were down 6.4% last month and 3.3% year over year.

Clearly the single family figures are not what we had hoped for to alleviate some of the inventory issues, but it's important to remember that their are two sides to the coin.

From an economic growth standpoint, tight inventory and less home sales is a negative, but when looking at housing as an investment, tight inventory is supportive of home prices.

Who doesn't want to read about credit⁉️

None of us, but it's important and necessary 😁

Construction Boom Coming❓

We know that inventory is a big issue, so the increase in Starts is a welcome sign and should help future inventory levels.

Housing Starts increased 6.8% in February at an annualized rate of 1.77M, which was almost double expectations and the highest in 16 years.

Year over year, Starts are now up 22%. Single family, which is most important, increased by 5.7%.

They are now up almost 14% year over year. Permits fell by 1.9% last month, but are up 7.7% on a year over year basis.

Single family permits fell 0.5%, but are up 5.4% year over year.

What You Can Expect from the Spring Housing Market

As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to buying or selling a house. While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation, and the first rate increase from the Federal Reserve in over three years — the housing market seems to be relatively immune. Here’s a look at what experts say you can expect this spring.

>>Mortgage Rates Will Climb
Freddie Mac reports the 30-year fixed mortgage rate has increased by more than a full point in the past six months. And despite some mild fluctuation in recent weeks, experts believe rates will continue to edge up over the next 90 days.

>>Housing Inventory Will Increase
There may be some relief coming for buyers searching for a home to purchase. Realtor.com recently reported that the number...

What You Can Expect from the Spring Housing Market As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to buying or selling a house. While there are multiple factors causing some uncertainty, including the conflict overseas, rising inflation, and the first rate increase from the Federal Reser...

In today’s housing market, sellers are in the driver’s seat. That’s because the supply of homes for sale is low, and that means eager buyers will be competing for your house.
This increases your potential for multiple offers, bidding wars, and a fast sale. DM me today so we can discuss all the benefits of selling your house now.

If you have student loans, know that homeownership may not be out of reach. According to NAR, 37% of first-time homebuyers achieved their goals and made their purchase even though they had student loan debt. If you want expert advice for your specific situation, DM me so we can start the conversation.

Buying a home can seem intimidating if you’re not familiar with these key terms. Here are some definitions to help you understand the language used throughout the process. If you’re ready to learn more, DM me so you have an expert guide and advice for any questions that may come up.

Spring Cleaning Checklist for Sellers [INFOGRAPHIC]

If you’re thinking about selling your house this spring, here are some things you’ll want to tackle before you list. Spend your time on tasks that make it feel inviting, show it’s cared for, and boost your curb appeal. To determine the full list of things you’ll want to tackle for your home, you need the opinion of a trusted expert. DM me to help make sure your house shows well this season.

Spring Cleaning Checklist for Sellers Some Highlights If you’re thinking about selling your house this spring, here are some things you’ll want to tackle before you list. Spend your time on tasks that make it feel inviting, show it’s cared for, and boost your curb appeal. To determine the full list of things you’ll want to tackl...

It takes more than luck to find your dream home. Real estate agents are experts at navigating each step of the homebuying process, and that’s the key to making magic happen when you buy. DM me today and we can partner together so you can strike gold in today’s real estate market.

According to CoreLogic, the average homeowner gained $55,300 in equity over the last year. That much equity can open so many doors for you, including the door to your dream home. DM me to learn how much equity you have in your house and to find out how it can power your next move.

Are You Wondering if This Is the Year To Buy a Home?

Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home? If you’re a renter, chances are you’ve asked yourself that question at least once, and it’s likely because you’ve faced an increase in your monthly housing costs over time. After all, according to Census data, rents have risen consistently for decades.

To make an informed and powerful decision, the first step is understanding what’s happening in today’s housing market so you can determine which option is the better long-term financial decision for you.

Rents are skyrocketing right now. Data from realtor.com shows just how much rental prices are surging throughout the country. If you’re a renter and plan on signing a new lease, your monthly costs are likely to go up when you do. Those rising costs can have a big impact on your...

Are You Wondering if This Is the Year To Buy a Home? Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home? If you’re a renter, chances are you’ve asked yourself that question at least once, and it’s likely because you’ve faced an increase in your monthly housing costs over time. Afte...

With all the craziness of our economy and the world, it's good to remember... 90% of your results come from your attitude.

Eat, Drink, and Enjoy your time... Enjoy what you do. The sun will rise and set regardless!

Don’t Get Caught Off Guard by Closing Costs

As a homebuyer, it’s important to plan and budget for the expenses you’ll encounter when you purchase a home. Here’s some information to help you get started so you’re not caught off guard when it’s time to close on your home.

>>What Are Closing Costs?
One possible reason some people are surprised by closing costs may be because they don’t know what they are or what they cover. According to U.S. News and World Report:

“Closing costs encompass a variety of expenses above your property's purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments and homeowners insurance.”

In other words, your closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction.

>>How Much Will You Need To Budget for Closing...

Don’t Get Caught Off Guard by Closing Costs As a homebuyer, it’s important to plan and budget for the expenses you’ll encounter when you purchase a home. While most people understand the need to save for a down payment, a recent survey found 41% of homebuyers were surprised by their closing costs. Here’s some information to help you get...

This Spring Presents Sellers with a Golden Opportunity

If you’re thinking of selling your house this year, timing is crucial. After all, you’ll want to balance getting the most out of the sale of your current home and making the best investment when you buy your next one. If that’s the case, you should know – you may be able to get the best of both worlds today.

>>1. The Number of Homes on the Market Is Still Low
There are far more buyers in the market today than there are homes available. Listing your house now makes it the center of attention.

>>2. Your Equity Is Growing in Record Amounts
Homeowners are sitting on record amounts of equity thanks to recent home price appreciation. That much equity can open doors for you to make a move. It may be just what you need to cover a large portion – if not all – of the down payment on your next home.

>>3. Mortgage Rates Are Increasing
While recent...

This Spring Presents Sellers with a Golden Opportunity If you’re thinking of selling your house this year, timing is crucial. After all, you’ll want to balance getting the most out of the sale of your current home and making the best investment when you buy your next one.

Key Factors That Impact Affordability Today

You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There’s no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable. There are three measures used to establish home affordability. Let’s look closely at each of these components.

>>Home Prices
The most recent Home Price Insights report by CoreLogic shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.

>>Mortgage Rates
While the current global uncertainty makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. That increase in the mortgage rate also contributes to homes being less...

Key Factors That Impact Affordability Today You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There’s no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable.

How To Navigate a Market Where Multiple Offers Is the New Normal

If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. Realtor.com has this to say:

“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”

In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers.

Here are three tips to keep in mind that will help you make the best offer possible.

>>1. Know Your Numbers
Knowing your budget and what you can afford is critical to your success as a homebuyer. The...

How To Navigate a Market Where Multiple Offers Is the New Normal If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing supply coupled with high buyer demand means you should be prepared to navigate a highly competitive market where homes sel...

Key Terms for Homebuyers [INFOGRAPHIC]

Knowing key housing terms and how they relate to today’s market is important. For example, when mortgage rates and home prices rise, it impacts how much home you can afford. Terms like appraisal (what lenders rely on to validate a home’s value) and the inspection contingency (which gives buyers essential information on a home’s condition) directly impact the transaction. Buying a home can be intimidating if you’re not familiar with the terms used throughout the process. Let’s connect so you have an expert guide and advice for any questions that may come up.

Key Terms for Homebuyers Some Highlights Knowing key housing terms and how they relate to today’s market is important. For example, when mortgage rates and home prices rise, it impacts how much home you can afford. Terms like appraisal (what lenders rely on to validate a home’s value) and the inspection contingency (whi...

Buyer demand continues to outpace seller traffic in much of the country. That means if you’re planning to sell, now may be the time. DM me today so we can talk about the supply and demand trends in our local market and how you can benefit from listing your home today.

If it makes you feel any better the current mortgage rate in Russia is 15.3% and refinances have been abolished as they cannot do them.

The typical response to Geopolitical Events in the past have always reduced the FED rate in order to bring normality back to the markets.

In 1991 during Desert Storm Fed Funds Rate went down 300 bps from 7% to 3%.

After 9/11 the Fed Funds rate went down 200 bps from 3.75% to 1.75%.

During the Russia/Ukraine war we are currently are at 0% with unprecedented stimulus due to Covid and have to raise Fed Fund Rate in order to control inflation.

This is the reason you are seeing them not raise it as fast as expected. Typically in times like this they lower it and here they are having to raise it.