Buyer Demand Still Outpacing the Supply of Homes for Sale

by Builder Trade In Program Mar, 27

The price of any item is determined by the supply of that item, as well as market demand. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

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Freddie Mac: Rising Mortgage Rates DO NOT Lead to Falling Home Prices

by Builder Trade In Program Mar, 26

Recently, Freddie Mac published an Insight Report titled Nowhere to go but up? How increasing mortgage rates could affect housing. The report focused on the impact the projected rise in mortgage rates might have on the housing market this year.

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Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

by Builder Trade In Program Mar, 20

CoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.

 

“U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.”

 

Price Appreciation = Good News for Homeowners

 

Frank Nothaft, CoreLogic’s Chief Economist, explains:

 

“Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years.”

 

He also believes this is a great sign for the market in 2018, saying:

 

“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.” 

 

This is great news for homeowners! But, do they realize that their equity position has changed?

 

A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).

 

The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do!

 

The Cost of Waiting: Interest Rates Edition

by Builder Trade In Program Mar, 19

  • Interest rates are projected to increase steadily heading into 2019.
  • The higher your interest rate, the more money you end up paying for your home and the higher your monthly payment will be.
  • Rates are still low right now. Don’t wait until rates hit 5% to start searching for your dream home!

Mortgage Rates on FIRE! Home Prices Up in Smoke?

by Builder Trade In Program Mar, 14

Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year.

 

What impact will rising rates have on house values?

Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop.

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The Difference an Hour Will Make This Spring

by Builder Trade In Program Mar, 12

Every hour in the United States: 614 homes are sold, 81 homes regain equity (meaning they are no longer underwater on their mortgage), and the median home price rises $1.51!

Welcome to your Weekend!

by Builder Trade In Program Mar, 07

Scottsdale Arts Festival

The three-day Scottsdale Arts Festival features 170 awe-inspiring artists from throughout North America who display their work for sale on the beautiful grounds of the Scottsdale Civic Center Mall.

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Competition is Coming, Are You Thinking of Selling Your Home?

by Builder Trade In Program Mar, 06

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 7.4% over last year.

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