May National Housing Report

May National Housing Report: What the Numbers Mean for You

The home-buying season was just starting in April, with a 7.5% sales increase over March and 3.2% increase over April of 2015, according to the May National Housing Report from RE/MAX. The Median Sales Price in April was $215,000, which was 5.4% higher than one year ago.

Buyers should note: While warmer months are traditionally known as the “home-buying season,” an average monthly year-over-year sales increase of 4.3% so far in 2016 means the market may remain competitive long after the kids are back in school. Work with an experienced agent to develop a buying strategy for the neighborhoods you’re interested in.

Sellers should note: The inventory of homes for sale remains very tight in many markets across the country, with April 2016 inventory 15.2% lower than April 2015. This may mean your house sells for a competitive price, but also that a competitive offer may be needed to buy your next place. Work with your Realtor to figure out a move-out, move-in timeline that doesn’t leave you in limbo.

Learn more about the current state of the market in the infographic below.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

6 Lessons Monopoly Can Teach You About Home Buying

6 Lessons Monopoly Can Teach You About Home Buying

1. Patience
MONOPOLY: So your family has decided to play Monopoly? Refill your beverage, grab a snack and change into comfortable clothes. You’re going to be there a while.

LESSON: Buying real estate is a process. There’s pre-approval for a loan, interviewing agents, searching for homes, submitting an offer, maybe submitting another offer, the home inspection, the appraisal, and final loan processing before you get the keys. Needless to say, buying a home can take some time. Instead of getting frustrated, focus on all of the great reasons you decided buying a home was right for you. Staying in close communication with your agent throughout the process will help, too.

2. Neighborhood matters
MONOPOLY: Everyone starts the game with one corner in mind: Boardwalk and Park Place. The highly priced properties have the best returns on investments, and the players who snag them first tend to do well in the game.

LESSON: Location is often a major consideration in real life as well. Home values, your lifestyle and so much more are factors in your neighborhood choice. Work with your agent to learn all you can about the neighborhoods that pique your interest.

3. Keep an open mind
MONOPOLY: Baltic and Mediterranean Avenue have a bad reputation because they’re the cheapest properties on the board, but they also present opportunity. Add a few houses and hotels and your return could be bigger than the one on nearby Connecticut Avenue.

LESSON: Keep an open mind when shopping for a home. An up-and-coming neighborhood may have appeal you didn’t see before, and more value for your budget.

4. Be prepared
MONOPOLY: You’re a Monopoly mogul! You have a handful of desirable properties and a steady stream of income from your houses and hotels. Then comes the Chance card: “Make general repairs on your property – for each house pay $25, for each hotel pay $100.”

LESSON: You never know what card you’re going to draw. But unlike Monopoly, the real world has home insurance available to help you prepare for unexpected repairs and disasters. A variety of plans, customizable to any budget, are available. Some homebuyers also opt for warranties covering potential appliance issues after move-in.

5. How to win a bidding war
MONOPOLY: Trading properties keeps Monopoly exciting. And there are no strict rules as to how a seller determines to accept an offer. Sibling rivalry, bribes involving candy or even business sense can play into a player’s decision.

LESSON: Sellers don’t always accept the highest offer. Writing a letter about why you fell in love with their home can sometimes sway their decision in your favor.

6. The importance of strategy
MONOPOLY: Monopoly is a game of strategy, but few players are inclined to study ways to win. What if you had a coach sitting next to you, advising how much to bid for a property, where to look next, and whether or not mortgaging a utility to buy Boardwalk is a smart idea? You would be unstoppable!

LESSON: Buying a home is an infrequent occurrence; for some it happens only once in a lifetime. Wouldn’t it be helpful to have someone on your side who was up-to-speed on laws for your state, knew which neighborhoods would best fit your lifestyle and offered to help you navigate a bidding war? That’s the value an experienced agent provides.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Social Media and Real Estate

Real Estate Advisor: May 2016
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Social Media and Real Estate
Social media has become a way of life in our country over the past decade. With more and more people using sites like Facebook, and applications like Twitter, Pinterest and Instagram, having a presence on social media is almost an absolute must. But what is social media? We hear that term a lot, especially on the news and in public places. Social media is those websites and applications that give users the opportunity to create and share content for the sole purpose of social networking, or communicating with others. Social media allows people and communities to connect in ways they were unable to in the past, paving the way for new or renewed connections.

While many think social media is only an option for those looking to share family photos or cat videos, social media has opened the door to new marketing opportunities, especially when it comes to real estate. Whether a buyer, seller, or real estate agent, social media is an excellent tool to get the word out about properties, and should you be considering a real estate search soon, don’t forget to look to social media for more ways to market your property or find your dream home.

Popular Social Media Sites

Facebook

What is Facebook? Facebook is probably the most popular social networking site on the Internet. Used by people around the world, Facebook allows users to make posts, share pictures and videos, and overall connect with friends, family and communities via the Internet. Facebook allows users to get direct access to information via posts by people in their groups. If you’re utilizing Facebook for real estate marketing, you have the ability to post listings, property pictures and other information that users will find immediately helpful. Not only that, but with the fact that Facebook users are all somehow connected via friends and groups, your listing can be shared beyond your immediate group of contacts, making Facebook a great word-of-mouth marketing tool.The most common age group of Facebook users is 25 to 34; many people who use Facebook will be interested in real estate or know someone who is. Facebook also allows users to share information about their communities and neighborhoods that might not be found on a website (because it comes directly from the people living in the community), so the amount of info that can be accessed via Facebook is almost limitless.

Twitter

What is Twitter? Twitter is an online social networking site that is also used by people around the world. The draw of Twitter is that it’s a rolling conversation: it’s fast-paced and posts are limited to 140 characters or less. Users have the ability to post pictures, videos and links to other media or websites that can be readily accessed by their followers. Twitter is also an excellent marketing medium because it has a great search function: if you’re looking for information about a certain city, community or neighborhood, it’s likely you’ll be able to find Twitter conversations (or ‘tweets’) with relevant information and responses.Marketing with Twitter requires a lot of engagement on both sides of the coin. Because Twitter conversations are constant, the more effort that’s put forth on Twitter means the greater the reach of your posts and the people who will receive your information. Twitter is a great tool in that users have the ability to attach hashtags, or #, to apply keywords or phrases to a post. This allows for greater reach, as anyone can search for a keyword or phrase, meaning the number of people that can find your post is only limited to the total number of Twitter users.

Instagram and Pinterest

Instagram and Pinterest are both online social networking services that rely heavily on images. Instagram users share photos and videos, either their own or those of others, and Pinterest is an application that allows users to share those pictures or compile them together into “pin boards.” The benefit in both of these social media sites is the ability for users to share media – whether it is pictures or videos. People in general crave visuals – we are visual beings, especially when it comes to homes and properties. Visuals have been found to create and boost user engagement, and both Instagram and Pinterest are an excellent way to showcase a listing’s pictures and information. Both are also great tools for anyone looking for ideas on curb appeal, ways to stage a home, or even those looking for ideas on updating a property to get it ready to sell.Social media has become a way of life in our ever changing, technological world. Real estate is a competitive market for both buyers and sellers, and social media is a great, readily available tool for anyone interested in real estate to utilize to their benefit. Check out some of these sites and see the endless possibilities of social media and real estate.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Real Estate Tips for Buyers and Sellers

 

Real Estate Advisor: March 2016
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Real Estate Tips for Buyers and Sellers
Thinking about starting a home search or selling your home soon? The 2016 real estate season is upon us, and if you are anticipating a home search, or selling a property, here are some top tips to help you navigate the real estate market in your area this spring and summer.

For Buyers

Don’t go overboard with an offer

While you might be inclined to get into a bidding war over your dream home (the market is pretty competitive), don’t overspend to the point where if the market stabilizes your home will have an overly inflated price and make it difficult to resell in the future. If you plan on living in the property for a long time, paying a high price isn’t a bad thing, but it’s a good idea to set a limit on how high you’re willing to bid for a home.

Start your search ready

If you’re already looking into purchasing a home or property, and you know you’ll need a mortgage, you should already be shopping for a loan. Buyers with a mortgage pre-approval are a step above those that haven’t even looked into loans. You can also help your purchase game by having fewer contingencies or conditions that affect the purchase. If you can start your home search with some of your bases covered, and the ability to be flexible, you’ll already be far ahead of those just entering the real estate race.

New doesn’t mean pristine

While we all dream of buying a brand new home, complete with absolutely no projects, it’s quite common for brand new construction to have issues. The reality is that builders can and do cut corners, and the last thing you want is to invest your money into a brand new home only to find out that certain things were not completed 100 percent. If you’re looking to buy new construction, it’s not a bad idea to hire an independent inspector to make sure your new home is up to all current building codes and standards.

Beware of hidden costs

While you might find a home that is the perfect price for your budget, beware of the hidden costs that come along with buying a property. You may or may not have a mortgage, but you will have yearly property taxes that will either be monthly payments or a large payment once a year. If you do need a mortgage, you can expect an origination fee, and depending on the amount of your down payment or you credit rating, you can also expect to pay private mortgage insurance. You can also expect fees by way of the home inspection, appraisal, and in some communities there will be monthly HOA fees.

Don’t be afraid to go outside your comfort zone

Many buyers have a specific neighborhood, town or city picked out before they begin their property search. With the U.S. real estate market being as competitive as it is for buyers, don’t be afraid to look into areas that are developing when you look for your new home or property. Homes and property prices might likely be lower in developing areas, and if you can find an area where new businesses are being introduced and other amenities will be available, home values may significantly increase over the coming years.

For Sellers

Play to your advantages

The U.S real estate market is being called a seller’s market, meaning there are more people trying to buy houses and properties than there are actual properties to buy. Because of this, as a seller, you can play to your advantages: you can likely get away with not paying closing costs; you can dictate the terms of the sale and any contingencies a buyer might have; you can entertain multiple offers and choose the best one for you. But in all of this, don’t try to price your property outside of your area — you want to sell your home, not keep it on the market forever.

Know the best areas of your property

If you’re considering selling your property, there are two room updates almost every buyer appreciates: kitchens and bathrooms. If you have the time and money to invest in updating these two areas of your home, try a basic face lift (you don’t need to go overboard!). Add some fresh paint, clean up the cabinets, and install new lighting or hardware. Make the kitchen and bathrooms pop: buyers always react best to a fresh, clean and clutter free kitchen and bathroom.

Do you have a replacement property picked?

You might be considering selling your home or property — have you started your property search yet? With the market being as competitive as it is, it’s a good idea to start your property search when you put your own property on the market, and sometimes even before. You don’t want your home to sell before you have a place picked out. If you do find yourself in a bind, you can always work with your agent to make the closing period longer. Whatever you decide to do, make sure you start your property search as soon as possible.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Colorado Springs Weekly Real Estate Report

Colorado Springs Weekly Real Estate Report

weekly report 04262016

 

 

 

The weekly report shows that the market is doing well, we are increasing our active houses on the market slowly. This is the right direction, but we still need houses on the market. Houses are going under contract super fast so it is a struggle to get the number of active houses to increase. Like I keep saying, if you are even thinking of selling now or in the future, give me a call.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

Colorado Springs Real Estate Weekly Report

The Colorado Springs Real Estate Weekly Report

April-17-2016-Colorado-Springs-Weekly-Real-Estate-Market-Report

 

The weekly report shows that the market is still doing well. Houses are not lasting long at all and our inventory is still on the low side. I know I am sounding like a broken record, but if you or someone you know is even thinking of selling, give me a call.

Jeremy Wynia

RE/MAX Properties, Inc.
719-213-0893 Cell/Text
719-570-9000 Office Main
wyniarealty@gmail.com
www.wyniarealty.com

http://wyniarealty.smarthomeprice.com

Please give me a call or email me if you know of anyone that might want to buy or sell ANYWHERE in the world. I will take great care of them or find a top agent in another part of the country or world to help them. Thank you in advance for your referral!

The Benefits of Gardens

Real Estate Advisor: March 2016
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The Benefits of Gardens
It seems as though in the past few years gardening and backyard farms have become more and more popular throughout the United States. With spring quickly approaching in the northern hemisphere, many homeowners throughout the U.S. will take to the outdoors with the intention of sprucing up winter-wrecked yards. While many homeowners will concentrate on their yard, many others will focus on their backyard gardens. Traditionally, a garden is assumed to be a place to grow fruits and vegetables, but gardens can take on a many different looks and styles. Whether mainly for food, or for the beauty and aroma only flowers can produce, home gardens have a number of benefits for homeowners, and should you consider giving your yard a revamp this spring, consider adding a garden or a small garden area to your outdoor space.

Benefits of Home Gardens

Gardens, whether for the joy of flowers or for fruits and vegetables, come in a number of shapes and sizes. While providing a great sensory experience and a way to reconnect to the natural world around us, gardens also help to keep the body limber and improve overall mood. A study done in the Netherlands suggests that the relaxing nature of gardening can help fight stress, and a study in Norway found that people who suffered from depression and other mood disorders showed measurable improvements in their symptoms after three months of gardening (where six hours per week were spent in the garden). If you’re not interested in the potential health benefits of gardening, adding plants and flowers to your yard is a great way of updating a meager outdoor space and makes a backyard more enticing to potential buyers from additional textures, scents and organization. Also, adding touches of color by way of plants and flowers is an excellent way of improving curb appeal should you consider putting your home on the market in the coming months.

Community Gardens

Don’t have time for an outdoor garden, or are you lacking a space large enough for a garden? There are a number of alternatives to bring the joy of gardening into your home or life. A very popular option that has popped up around the U.S. is community gardens. Located throughout communities from the east to the west, community gardens have helped provide a place of retreat from urban areas plagued by noise, or for those individuals who want a relaxing place to go to when they have free time. Community gardens provide a number of benefits, from a place for recreation and exercise, to providing health benefits by easing stress and helping to improve overall mood. Studies have also shown that those who participate in a community garden generally eat healthier, more nutrient dense diets, and a community garden helps to create and foster relationships throughout a community.

Container Gardens

Another option for those who don’t have a yard or outdoor area large enough for a traditional garden is a container garden. Another trend gaining popularity throughout the U.S., container gardens allow homeowners to have small gardens in tight spaces. Plants (which can be anything from traditional flowers and shrubs to fruits, vegetables and herbs) are placed in containers, usually one plant per container, and allow the gardener the ability to choose specific plants for their needs and wants. Only interested in succulents, or just interested in plants that require little water and maintenance? A container garden is a great option. Container gardens can range from small to robust, and they provide an excellent alternative to a traditional garden. Other popular options for ‘alternative’ gardens are hanging gardens and indoor gardens. These gardens can be fully indoors and very much take on a container garden feel. Container gardens can also help add pops of color to porches and patios, and they are a great way of adding appeal to drab areas for potential home viewings.

Backyard Farm

Do you feel particularly adventurous when it comes to adding a garden or outdoor feature? If you have the time, resources and space, consider a backyard farm. Chickens have become a popular backyard feature throughout the U.S., in both urban and rural communities. Chickens can provide a number of benefits to a yard or outdoor area: they act as natural pest control; they produce eggs; they will eat table scraps as well as weeds and garden clippings, and chicken manure is also considered one of the best fertilizers for gardens due to its high nitrogen, potassium and phosphorous content. While not for every homeowner, backyard chickens can be fun for every member of a household.

 

 

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Building Your Real Estate Portfolio: Part 1 Getting the Home Purchased!

So you have read some of my previous blogs and you feel like you want to get started in real estate.  Well, there are a couple of ways to get started.  In my experience the way most people get started has very little to do with a “free seminar” where seating is “extremely limited”.  Most of these “seminars” I would compare to the traveling snake oil salesman of old.  What they have will cure everything and solve any problem. You can make tons of money without using any of your own and its risk free!!!! Yeah, not likely!

The real way that many start to get involved and often the easiest way to gain entry into the world of real estate is to purchase your first house. If you are looking to buy a house and you also know that you want to fix and flip or get a portfolio of rental properties, you may as well start with your personal, owner occupant house.  You see banks have no problem lending you money to buy a house you are going to live in.  It is in most circumstances the easiest loan you will ever get and you have the most options, VA, FHA, FHA 203K, conventional, or any number of “first time home buyer” type products. The one you choose is the one that best suits your plan and personal situation. Even better is that you will get a lower interest rate on an owner occupant purchase than an investment purchase and most lenders will allow between 6 and 10 owner occupant loans.

VA, FHA and most “first time home buyer” loans (which almost all run through FHA underwriting) are great products but if you are handy and want a property that needs a great deal of work, then an FHA or VA loan is likely not going to get you the property you want.  Those loan programs will not allow you to purchase a house that needs a ton of work. They will however get you in with the least amount of money down and sometimes that is what you need. You need a place to live and that is the first home investment step in what can be a life long process.  The one sort of loophole to this is to buy a house that is very dated and priced accordingly.  The FHA and VA loans don’t care that the house is dated, they do care that everything is there and that the house is livable at the time of purchase. You will want to make sure that you have a VERY knowledgeable realtor if you are thinking about going this rout. If they do not know tons about the process and about houses and maintenance you could be risking your earnest money, not to mention the cost of an inspection and an appraisal!

You will have a great deal more flexibility with an FHA 203K. FHA 203K allows  you to purchase a house that needs lots of work but the work has to be done rapidly right after the purchase and the money for the repairs are rolled right into the loan and earmarked for the repairs. This process has some pluses and some minuses.  The plus is that the home can be in pretty tough shape and you can still get it bough and fixed.  One draw back is that often you will likely need to hire a contractor to do the work and this can eat up a lot of the potential profits.  The loan itself also has quite a bit of extra work involved in the process. Lastly you will need to qualify for the entire loan amount of the purchase price and repairs. This can be restrictive if you have a high income to dept ratio, or need to max out your loan amount just to get into the market.

A conventional loan will be your best bet for purchasing a home that needs plenty of work and has lots of sweat equity. Be aware that the house still can not be in terrible condition unless you are putting TONS of money down, and even then you may find road blocks.  Lenders want you to purchase a home that they can sell if you do not make your payments. A burned out hole is hard to sell!  Again you should find a real estate pro that knows the process and can make sure that your loan will go through and reduce the risk if you loosing your earnest money.

The last and highest risk way to purchase a property is with a Hard Money Loan.  These are loans that are generally not based on the credit worthiness of the borrower but on the value of the asset. They vary a great deal from institution to institution or lender to lender.  Often times these are a group of investors or a single person that want to make a large return on their money and are willing to take bigger risks than most standard investment vehicles. Often you will need to put down a large chunk of funds up front, pay multiple points up front, carry very high interest rates and they are short term (often not longer than 6 months).  If you are buying the home to live in this is probably a bad option.

More on this subject to come!

 

Buy vs Rent a Different Perspective.

Buy vs Rent a Different Perspective

Being in the business of real estate I often see news reel clips from the different cable news outlets extolling the virtues of home ownership or of renting.  These are diverse topics covering lots of ground but here is a quick little take on the subject.

The most blatantly obvious reason for home ownership is Net Worth!  For many years now the net worth of a renter as stated by the Federal Reserve hovers just above $5,000. In contrast the net worth of homeowners, according to the same data source, has increased to a projected $220,000 in 2016.  This is a HUGE difference.

So the biggest reason to own a home could be that you are VERY likely to increase your net worth by leaps and bounds!  What are the reasons to rent? One reason swam across my Facebook feed just this morning.  One “friend” was sad because their furnace had stopped working and they were going to have to spend money to have it replaced.  A comment from one of their “friends” was “that’s why I rent, I let the landlord take care of all of that stuff”.  Well that is certainly true. The landlord (if they are a good and upstanding person) will have to take care of that for the renter.

So the renter saves money. Well not really, at least not in my market.  Renting a house, generally costs much more then owning that same house.  This is not true for all price points and all houses but is generally the case.  I see again and again where a renter pays at least a couple hundred dollars per month more to rent than the principal, interest, taxes and insurance are likely to be for the mortgage (HOA’s and PMI can eat up some of the savings of home ownership but that is information for a blog all on its own).

So let’s do some math again…  If you save $200/month owning you would have the money for a new furnace in about 3 years, roof may take 6-8 years to recoup the cost if you had to pay for it out of your pocket, a water heater, about 1 year. So as long as the home is in OK shape when you buy it you will hopefully not come out on the loosing side of this equation.  Even if things do seem to be breaking faster than you had hoped, your mortgage payment will stay relatively the same for 30 years (only taxes and insurance are likely to change).  Rent as a rule is always headed up, up, up! So again, you will probably come out ahead even if lots of stuff breaks.

Another advantage of ownership is that under the current IRS rules you get to write of the interest you pay on your mortgages.  This can really be a substantial savings, especially early on when you are paying nearly all of the monthly payment towards interest! In many cases this can easily be $100-$200/month in “savings”.

The other big point renters use to make themselves feel good about the decision is that they can move at any point they like. They are not tied down like an owner.  Not really true. Most landlords make you sign a year lease and you are on the hook for all that money.  Even if you have a great landlord or are on a month-to-month lease, well that’s still a month.  In a normal, healthy real estate market you can list, close and move out of your house in 2-3 months. Or, you can always rent out your house and be gone in a month just like your renter friends! So yah, not as foot loose and fancy free, but pretty dang close.

So your landlord will fix your broken furnace and you will likely be BROKE compared to your home owning friends even though they are spending money to fix thing and you are not. All this, and we did not even get into the paying of principle or owning a generally appreciating asset.

List NOW! Buy NOW!

List NOW! Buy NOW!

Many may not know that right now we have the lowest inventory of real estate listing most professionals in the business have ever seen! Even at the December sales rate, which is usually relatively low, we have less than two month of inventory!  To place that into perspective, a normal balanced market is considered to have 5-6 months of inventory at whatever the most recent months sales rate. If this seems complicated, call me and I will explain it to you, because this information is not the main reason for my writing of this post.

What everyone needs to understand is the our real estate market needs listing and it needs them right now.  If you or anyone you know is thinking of selling their house, they should put it on the market as soon as possible.  Normal wisdom is to wait until summer buying season to get listed but right now is likely as good or possibly better than the summer season will be for sellers.  Since the inventory is so low, homes that are priced right sell very easily and quickly occasionally for over list price (just like they do in the summer)!

Sure you say, “but if I wait until summer time the prices will be up and I will get even more for my house!”  That is likely, and you will pay more for the house that you want to buy after you sell yours, so where is the advantage there? This is one point I debate with people from time to time.  If you are staying in the same general market, it does not matter all that much if prices are up or down. You will get about the same ratio of return no mater what.  When prices are up you make more you pay more, when prices are down, you make less you pay less, simple.

The last reason to list now is a bit different. I believe that we need as many listing as possible to create a more balanced market.  If inventory stays low and demand continues to out pace it we run the risk of creating a bubble. Many of you may have heard how crazy the Denver market has been over the past couple of years.  We are not Denver and we will likely not see that scale of growth here. And that is good. We don’t want that level of growth. Slow and steady wins the race.  We need more listing to slow down the price growth.  Over the long term this will help us sustain growth in our community and lessen the chance of economic problems in the future.

So why then do I say buy now, if it is a seller’s market?  My main rational is that many projections expect 4-5 years of steady, or better than steady growth in real estate.  So basically the sooner you get in the better! You may as well take advantage of the great gains.  You also should take advantage of the still very low interest rates! The Federal Reserve has made a liar out of me for six years straight, (they say they will raise rates and then they don’t) so I am no longer predicting that rates are going to go up, even though they really are going to have to go up some day (the Federal Reserve did raise rates 1/4% but it had little affect on mortgages so far). And when they do…  I know that sounds like the beginning of and old man about to give you advice, but seriously, when rates finally clime LOTS AND LOTS of people will be kicking themselves for not getting in at the bottom.  Just the way that some of you reading this wish you would have purchased a house when prices where at or near the bottom, so it will be with interest rates.

I could write an entire small blog  post on how interest rate affects buying power, and maybe I will but not today.

If you buy a house in the near future for $200,000, and it appreciates at an average of 6% per year for the next 4 years, a pretty easy task if things keep moving on their current trajectory, that home will have an estimated value of about $254,000.  $54,000 of new wealth in only four years for living life indoors. Let’s now assume that this 6% appreciation is not sustainable nor is the growth cycle and home values fall. The bubble bursts, oh dear lord the horror!  Historically, when the bubble bursts prices drop about 10% or less.  Obviously the Great Recession that we just lived through was greater than 10% price drop but actually it is an anomaly. The growth was so huge that the bubble was much larger than “normal”. So if you take a 10% hit on the value of your home you have a value of approximately $225,000. That is not nearly as good but you are not upside down and could certainly get out from under it if you needed to sell.

This does not take into account all the other advantages that one gets from home ownership. Which, by the way, is what my next blog post will cover.

Don’t wait! Get in the market! Get a piece of these LOW interest rates! Help increase inventory! 

OK, love you, bye bye! Or buy buy if you can!

*** Please note, this is just meant to be informative, all facts and figures are assumed to be true and accurate but there can be differences in all values stated depending on the source material used.