Jan. 17, 2019

Buying a Home Young is the Key to Building Wealth

Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.

“Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.”

The full breakdown is in the chart below:

Buying a Home Young is the Key to Building Wealth | Simplifying The Market

The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes.

Buying a Home Young is the Key to Building Wealth | Simplifying The Market

Many housing experts are concerned that the homeownership rate amongst millennials, those 18-34, is much lower than previous generations in the same age range. The study results gave a great reason why this generation should consider buying instead of signing a renewal on their lease:

“As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.

While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.”

Bottom Line

If you are one of the many young people debating whether buying a home this year is right for you, let’s get together to discuss your options!

 

Posted in Buyers
Jan. 10, 2019

2018 Market Share in Brevard

RE/MAX Elite is the #1 Real Estate Company in Brevard!

The Real Estate Leaders of Brevard!!!  This was made possible by having some of the most dedicated Realtors on the Space Coast consistently delivering extraordinary results for our Elite Nation Fans! With our support personnel, lead generating systems, tools, technology coaching, business/accountability mentoring we will continue to inspire to achieve greatness tomorrow.
#weareELITE #remaxROCKS #remaxhustle #sellyeah

“In any operation, join up with the best. You will gain from the strengths from those around you”- Warren Buffett

Posted in Elite Rockstars
Dec. 30, 2018

What If I Wait A Year to Buy a Home?

National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Reporthome prices will appreciate by 4.8% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until 2019 To Buy A Home? | Simplifying The Market

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Posted in Buyers
Dec. 18, 2018

New Year's Resolutions

Home Selling Goals? 5 New Year’s Resolutions for a Successful Sale

If you are planning to say out with the old home and in to a new home in 2019 — it’s not too early to start prepping before you pack. You have one chance to make a good first impression — make it count. Before listing your home, We recommend these five New Year’s resolutions to help ensure the quickest sale for the highest price.

 

1. Set the Date

If you haven’t chosen a date, are you really that serious about your move? There is a lot of work to do before putting your house on the market and setting a date — what are you waiting for? The good news is that I’m here to help, along with other professionals like a lender, home inspector and movers to help you prepare. Reach out to us, We're ready to listen to your plans and start working for you.

2. Fix and Replace

If you’re selling your home it’s time to assess the repairs and replacements you need to make before showing. It can be tough to evaluate your own home — We can help! Let’s start with a tour of your home, add in some constructive criticism and decide on the renovations and fixes you can or should make to receive an offer that brings the best return on your investment.

3. Run the Comps

We’ll do all the leg work to compare other home listings in your neighborhood to set a solid sales price. There are so many factors that can affect your home’s value — including nearby schools, outdoor space, lot size, busy streets, or supply and demand in your housing market, but it’s okay — that’s our business!

4. Cut the Clutter

Downsize, downsize, downsize — get the picture? Especially if you have lived in a home for a long time, downsizing can be quite the task. I suggest that my clients take it one step at a time, room by room and stay organized to get through it. As you declutter, ask yourself if an item needs to move with you to your new home.

5. Designed to Sell

Staging your home is serious business. Let’s work together to set the scene around your home’s best features. When there is less clutter in your home, homebuyers can better visualize themselves living in the space — instead of focusing on your family photos or the miniature kitty-cat collection set up in your kitchen.

Thinking of buying or selling your home? Make sure to work with a professional who has done their homework — contact us today! RE/MAX Elite agents are more recommended because they recommend what’s right for you.

Posted in Homeowner Tips
Dec. 5, 2018

5 Tips for Building a New Home

5 Tips for Building a New Home

The current lack of existing inventory on the market has forced many homebuyers to begin looking at new construction. Seeing your home built before your eyes is a wonderful experience, but new construction purchases often come with unique hassles.

1. Hire your own Inspector

2. Look for incentives (upgrades, closing costs, etc)

3. Communicate regularly (don't wait for the builder to call).

4. Schedule extra time (some things are out of your control like the weather)

5. Visit the site often to avoid unwanted surprises

If you're ready to build your next home, let's get together so we can help ensure that your next home-buying experience is hassle-free!

Posted in Buyers
Dec. 5, 2018

5 Holiday Recycling Tips

5 Holiday Recycling Tips

After the holidays, your home can look a bit hung over, with piles of wrapping paper and fallen tinsel trailing under everyone’s feet. It all feels like a hazy eggnog memory. You may be wondering how you’ll possibly clear out all the trash. Well, maybe it doesn’t have to be trash. Here are five tips for keeping the planet in mind as you clean up this holiday season.

 

1. Wrapping Paper

Wrapping paper with glitter and foil is fun, but unfortunately can’t be recycled efficiently. Don’t just toss it in with your everyday recycling. Check with your sanitation department for seasonal recycling guidelines.

2. Christmas Trees

Many communities provide a service that will compost or chip your holiday tree into mulch for free or a low fee. Be sure to remove all tinsel, lights and wires before taking advantage of this opportunity.

3. Cardboard Boxes

If you don’t need them to store your new goodies, cardboard boxes can usually be recycled curbside.

4. Ribbon

Ribbon generally can’t be recycled, so save it! Curling ribbon can be “re-curled” for another special occasion by zipping it along a scissor blade.

5. Electronics

You’ve unwrapped this year’s latest gizmo, now what should you do with last year’s model? Many computer companies, like Apple and Dell, will recycle your machines, and box stores such as Best Buy accept phones and all sorts of gadgets for recycling.

 

If your home still seems too cramped after you complete your holiday recycling, it might be time for a bigger space. Contact us to explore your options!

Posted in For Fun, Homeowner Tips
Nov. 29, 2018

Will Home Prices Continue to Increase?

There are many unsubstantiated theories about what is happening with home prices. From those who are worried that prices are falling (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase. It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything greater than seven months will cause prices to depreciate (see chart below).

Will Home Prices Continue to Increase? | Simplifying The Market

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).

Will Home Prices Continue to Increase? | Simplifying The Market

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.

 

Posted in Buyers, Sellers
Nov. 27, 2018

Housing Is Still Affordable in the United States!

Lately, there have been many headlines circulating about whether or not there is an “affordability issue forming in the housing market.”

If you are considering selling your current house and moving up to the home of your dreams, but are unsure whether or not to believe what you’re seeing in the news, let’s look at the results of the latest Housing Affordability Report from the National Association of Realtors (NAR).

According to NAR:

“A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”

  • The national index results for August came in at 141.2.
  • This is up from 138.9 in July, but down 8.3% from last August’s value of 153.9.

One big factor in determining affordability each month is the interest rate available at the time of calculation. In August 2017, the 30-year fixed rate mortgage interest rate was 4.19%. This August, the rate rose to 4.78%!

With an index reading of 141.2, housing remains affordable in the U.S.

Regionally, affordability is up in three out of four regions. The Northeast had the biggest gain at 6.2%. The South had an increase of 2.4% followed by the West with a slight increase of 0.1%. The Midwest had the only dip in affordability at 4.8%.

Despite month-over-month changes, the most affordable region remains the Midwest, with an index value of 175.7. The West remains the least affordable region at 101.2. For comparison, the index was 146.7 in the South, and 151.2 in the Northeast.

Bottom Line

If you are thinking of selling your home, let’s get together to discuss the affordability conditions in our marketplace.

Posted in Buyers
Nov. 26, 2018

Brevard County Housing Statistics - October 2018

October 2018 MLS Statistics

A quick recap of the Brevard County Residential Report for October 2018:

Closed Sales are up 16.6% for October 2018 in which the number of units closed was 809 compared to 694 in October 2017, with an increase in cash sales of 31.9% compared to October 2017.

New Pending Sales are down -11.3% and New Listings are up 12%. The Median Sales Price for Brevard Single Family homes is up 17.9% to $230,000 compared to a year ago, which was $195,000.

Months Supply of Inventory is up 22.2% to 3.3 months, an increase from 2.7 months in 2017.

Traditional Sales are up 18.8%, with a median sales price of $234,000.

Foreclosure/REO Sales are down -23.7%, with a median sales price of $152,000.

Short Sale Closings are up 33.3%, with a median sales price of $141,025.

A quick recap of the Brevard County Townhouses/Condos for October 2018:

Closed Sales are up 21.2% for October 2018 in which the number of units closed was 234 compared to 193 in October 2017, with an increase in cash sales of 21% compared to October 2017.

New Pending Sales are up 3.7% and New Listings are up 10.6%. Median Sales Price for Townhomes/Condos is up 9.4% to $175,000 compared to a year ago, which was $160,000.

Months Supply of Inventory increased to 3.6 months in October 2018 from 3.4 months in October 2017. Traditional Sales are up 26.2%, with a median sales price of $175,000.

Foreclosure/REO Sales were down -62.5% with a median sales price of $60,000.

Short Sale Closings are down -100% with no short sales in October 2018.

Posted in Market Reports
Nov. 20, 2018

Still Think You Need 15-20% Down to Buy a Home? Think Again!

According to a new study from Urban Institute, there are over 19 million millennials in 31 cities who are not only ready and willing to become homeowners, but are able to as well!

Now that the largest generation since baby boomers has aged into prime homebuying age, there will no doubt be an uptick in the national homeownership rate. The study from Urban Institute revealed that nearly a quarter of this generation has the credit and income needed to purchase a home.

Surprisingly, the largest share of mortgage-ready millennials lives in expensive coastal cities. These cities often attract highly skilled workers who demand higher salaries for their expertise.

So, what’s holding these mortgage-ready millennials back from buying?

Myths About Down Payment Requirements! 

Most of the millennials surveyed for the study believe that they need at least a 15% down payment in order to buy a home when, in reality, the median down payment in the US in 2017 was just 5%, and many programs are available for even lower down payments!

The study goes on to point out that:

“Despite limited awareness, every state has programs that provide grants and loans to make homeownership more attainable, with average assistance in various states ranging from $2,436 to $21,171.”

Bottom Line

With so many young families now able to buy a home in today’s market, the demand for housing will continue for years to come. If you are one of the many millennials who have questions about their ability to buy in today’s market, let’s get together so we can assist you along your journey!

Posted in Buyers