Like anything else, real estate has its urban legends, its stories that get told so often they seem like they must be true. But unlike urban legends about exploding Pop Rocks, housing market myths have the potential to cause panic, poor decisions, and substantial financial losses. The recent market upturn, coming on the heels of 6 years of near-depression, has given rise to a long list of real estate myths. Don’t get lost in the legends — find out what’s fact and what’s fiction.
Mortgage rates have risen sharply over the last month and Freddie Mac, in its monthly Economic and Housing Market Outlook for June, focuses on what happens to the housing market recovery if those increases continue. Recent movements have raised rates from the 3.5 percent range where they have been for most of 2013 to just over 4.0 percent.
While many market participants are concerned about the impact of higher rates on the economy and the chance that Fed tapering could take them higher, Freddie’s research suggests moderately higher rates are livable, even if they have some downside risks.
A recent study by mortgage giant Fannie Mae showed that 90 percent of renters aspire to be home owners one day, and the top reason behind that desire is for the sense of gaining greater control over their living arrangements.
The survey revealed the following top reasons why renters want to own…
Mortgage rates and home prices are on the rise, and some home buyers who were waiting around for the housing market to reach bottom are realizing now they may have missed the boat.
Mortgage rates are inching up, with the 30-year fixed-rate mortgage averaging 3.91 percent last week — up from 3.3 percent in early May, according to mortgage giant Freddie Mac.
Foreclosure filings—which include default notices, scheduled auctions, and bank repossessions—increased 2 percent in May, rising from a 75-month low in April, according to the latest foreclosure report from RealtyTrac. Still, foreclosure filings are down 28 percent from a year ago.
The May increase was largely attributed to an 11 percent increase in bank repossessions. Foreclosure starts also ticked up 4 percent in May over last month, with 26 states posting increases, according to the report.
NAR Chief Economist Lawrence Yun says mortgage rates will continue to rise.
Read his latest blog post to learn how that could impact home sales.
If you’re considering buying a home, you might want to know whether you’re in a buyers or sellers market.
Tight inventory favors sellers in the Southwest, while buyers have the upper hand in some Midwestern and Eastern cities.
Read the details here, and see where Seattle is on the list!
Americans’ confidence in their ability to buy and sell a home climbed sharply in May, likely due to reports of strong home price gains, according to results from Fannie Mae’s May 2013 National Housing Survey. The share of respondents who say now is a good time to sell a home reached a record high.
Mortgage interest rates have come up off their bottoms and more increases are bound to come.
Those who didn’t take advantage of record-low rates have missed the boat – at least for now.
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If you or someone you know is considering buying real estate in the Seattle area, call or email me! I’m happy to meet with buyers and provide complimentary consultations for successfully purchasing real estate in this market.
– Jennifer Gilbert-Smith
Everyone knows that numbers matter, so it’s no surprise that today’s home buyers are smart about basic market data and often take the lead in running their own personal finance spreadsheets. However, recent market trends present some unique challenges to buyers: multiple offers, super-short days on market (DOM), way-over-asking sales prices. Those challenges, in turn, give rise to the need for a unique set of “statistics.” Here are some of the insider stats that savvy house hunters need to know.
Managing The Real Estate Details 