by The KCM Crew on February 28, 2017 in First Time Home Buyers, For Buyers, Housing Market Updates, Move-Up Buyers
The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%. Why the dramatic increase? The reasons for this change are plentiful! The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative . . .

by The KCM Crew on February 20, 2017 in First Time Home Buyers, For Buyers, Move-Up Buyers
According to the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment. The BH&J Index is a quarterly report that attempts to answer the question: In today’s housing market, is it better to rent or buy a home? The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.”  While most of the metropolitan markets examined . . .

by The KCM Crew on February 6, 2017 in For Buyers, For Sellers, Housing Market Updates
The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up. Home sales are up. Distressed sales (foreclosures and short sales) have fallen dramatically. It seems that 2017 will be the year that the housing market races forward again. However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the winter, supply is not keeping up. Here are the thoughts of a few industry experts on the subject: National Association of Realtors “Total housing inventory at the end of December dropped 10.8%...which is the lowest level since NAR began tracking the supply of all housing . . .

by The KCM Crew on January 27, 2017 in First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers Highlights: 5.45 million existing homes were sold in 2016! This is the highest mark set since 2006.Inventory of existing homes for sale dropped to a 3.6-month supply, the lowest level since NAR began tracking in 1999.The median price of homes sold in December was $232,200. This is the 58th consecutive month of year-over-year price gains. . . .

by The KCM Crew on December 30, 2016 in First Time Home Buyers, For Buyers, For Sellers, Infographics, Move-Up Buyers                    Some Highlights: As we usher in the new year, one thing is for certain… if you plan to buy or sell a house this year, you need a real estate professional on your team! There are many benefits to using a local professional! Pick a pro who knows your local market and can help you navigate the housing . . .

by The KCM Crew on December 16, 2016 in First Time Home Buyers, For Buyers, Infographics, Interest Rates, Move-Up Buyers
Some Highlights: Your monthly housing cost is directly tied to the price of the home you purchase and the interest rate you secure for your mortgage.Over the last 30 years, interest rates have fluctuated greatly with rates in the double digits in the 1980s, all the way down to the near 4% we are experiencing now.Your purchasing power is greatly impacted by the interest rate you secure. Act now before rates go up! . . .

Is Getting a Home Mortgage Still Too Difficult?by The KCM Crew on November 30, 2016 in First Time Home Buyers, For Buyers, Move-Up Buyers!
511 341 56 70 35 9There is no doubt that mortgage credit availability is expanding, meaning it is easier to finance a home today than it was last year. However, the mortgage market is still much tighter than it was prior to the housing boom and bust experienced between 2003 - 2006.The Housing Financing Policy Center at the Urban Institute just released data revealing two reasons for the current exceptionally high credit standards:Additional restrictions lenders put on borrowing because of concerns that they will be forced to repurchase failed loans from the government-sponsored enterprises or Federal Housing Administration (FHA).The concern about potential litigation . . .

There are some experts questioning whether the current pace of residential home sales is sustainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market. Why the concern? Some are looking at the last three years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking. However, if we go further back in history, we can see the real picture. After taking out the “boom & bust” years, the pace of sales is growing at a quite natural pace. And new home sales are way below historic numbers. Trulia’s Chief Economist Ralph McLaughlin explains: “Adjusted for population, [new home sales] are at about 63% of their fifty-year . . .

by The KCM Crew on August 31, 2016 in First Time Homebuyers, For Buyers, For Sellers, Housing Market Update, Move-Up Buyers, Pricing
There are some industry pundits claiming that residential home values have risen too quickly and that current levels are on the verge of another housing bubble. It is easy to see how this thinking has taken form if we look at a graph of home prices from 2000 to today. The graph definitely looks like a rollercoaster ride. And, as prices begin to reach 2006 levels again, it “seems logical” that the next part of the ride would be downhill. However, this graph includes the anomaly of the price bubble and the correction (the housing crash). What if the bubble & bust didn’t occur? Let’s assume that instead of the rise and fall in home prices that we saw last decade, we just had normal historic . . .

by The KCM Crew on June 7, 2016 in First Time Homebuyers, For Buyers Agents, did you know you can share a personalized version of this post? Learn more!
There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they are married and have a family. Others may think they are too young. And still others might think their current income would never enable them to qualify for a mortgage. We want to share what the typical first-time homebuyer actually looks like based on the National Association of REALTORS most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first time buyer: Bottom Line You may not be much different than many people who . . .