28 Jan

Gap Between Homeowners And Appraisers Narrows to Lowest Mark in 2 Years

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years. In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 4% or more over the next twelve months. One major challenge in such a market is the bank appraisal.

When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank.

Every month in their Home Price Perception Index (HPPI), Quicken Loans measures the disparity between what a homeowner who is seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

In the latest release, the disparity was the narrowest it has been in over two years, as the gap between appraisers and homeowners was only -0.5%. This is important for homeowners to note as even a .5% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home)

The chart below illustrates the changes in home price estimates over the last two years.

Bill Banfield, Executive VP of Capital Markets at Quicken Loans urges homeowners to find out how their local markets have been impacted by supply and demand:

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity.”

“With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

Find The Value Of Your Home

http://www.artdisegna.com/purl/cmareport

Bottom Line

Every house on the market must be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. If you are planning on entering the housing market this year, let’s get together to discuss this and any other obstacles that may arise.

Gap Between Homeowners & Appraisers Narrows to Lowest Mark in 2 Years

Was provided by Art Di Segna, a recognized leader in his field. Art can be contacted via email at Art@FineHomesOfTexas.com by phone at (281) 415-5888 or Contact Me. Art has helped hundreds of people move in and around many Houston towns for the last 14 years.

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

I specialize in working with buyers in the following areas: Houston, Spring, Cypress, Tomball, Magnolia, Conroe, Huntsville, Point Blank, Lake Livingston area, Onalaska, Cape Royale, Cold Spring, Blanchard, Trinity, Woodville Texas

16 Jan

Homeownership Is Important in Attaining the American Dream

Posted by A DiSegna

93% Believe Homeownership Is Important in Attaining the American Dream

Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:

“Owning a home remains a core element of the American Dream.”

When asked “How important a part of the American dream is owning a home?”

18% of those surveyed said it was the most important part
53% of those surveyed said it was very important
22% of those surveyed said it was somewhat important

Homeownership and Financial Stability

Homeownership Is Important in Attaining the American Dream. The survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron Terrazas who, in a recent press release, explained:

“After about a two-year slowdown, rent growth is starting to pick back up across the nation…Looking into 2018, rent is expected to continue gaining.

More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.” (emphasis added)

Bottom Line

Owning a home always has been, and always will be, a crucial part of attaining the American Dream.

Homeownership Is Important in Attaining the American Dream

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

6 Jan

The Housing Market Will Continue To Thrive In 2018

Posted by A DiSegna

The housing market will continue to thrive in 2018. As a student of history and the Real Estate market, I believe the industry is the healthiest it’s been in more than three decades. Although sales and home prices are close to where they were before the housing boom, there’s more economic stability.

Overall, I expect the housing market to remain solid, led by a slight uptick in sales, the national economy and interest rates, and a small decrease in first-time buyers. Millennials, many of whom are feeling the pinch of student loan debt and relatively low wages, may find it difficult to purchase a home.

Many areas may be experiencing a slight squeeze on inventory; however, the speed of the market is good, which acts as a stabilizing force. With the economy expected to grow 2.7 percent by the end of the year and interest rates ticking up slightly, I anticipate that we’ll continue to enjoy a healthy housing market in the year ahead.

The Housing Market Will Continue To Thrive In 2018

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

5 Jan

The Benefits of Homeownership Go Beyond the Financial

Posted by Art Di Segna

The Benefits of Homeownership Go Beyond the Financial. Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this.

Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors:

Consistent findings show that homeownership does make a significant positive impact on educational achievement.
Several researchers have found that homeowners tend to be more involved in their communities than renters.
Early studies of homeownership and health outcomes found that homeowners and children of homeowners are generally happier and healthier than non-owners, even after controlling for factors such as income and education levels that are also associated with positive health outcomes and positively correlated with homeownership.

Bottom Line

Homeownership means something more to people and their families than just the financial considerations.

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

28 Dec

Housing Starts Rose In A Surprise November

Posted by A DiSegna

Home-building Activity:

Housing starts rose in a surprise November. Home-building activity rose in a surprise November, with housing starts up 3.3 percent to a rate of 1,297,000, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). Single-family housing starts increased 5.3 percent to 930,000. Starts for units in buildings with five units or more came in at 359,000.

Permits:

Permits, however, decreased, 1.4 percent from October to 1,298,000, according to the data. Single-family permits, still, were up 1.4 percent to 862,000. Permits for units in buildings with five units or more came in at 395,000.

Completions totaled 1,116,000 in November, falling 6.1 percent. Single-family completions decreased 4.6 percent from October to 752,000. Completions for units in buildings with five units or more came in at 353,000.

“A welcoming trend is developing in the housing sector as builders are able to bring more supply to the market on a consistent basis,” said Lawrence Yun, chief economist of the National Association of REALTORS® (NAR), in a statement. “The latest monthly figure of near 1.3 million annualized housing starts is solid, and the growth is mostly coming both in the West and for single-family homes.”

“Single-family permits were up and housing starts reached a 10-year high in November, which points to continued economic strength since beginning of recovery,” said Joseph Kirchner, senior economist for realtor.com®, in a statement. “Conversely, housing completions were down last month, but this is a temporary phenomenon as the increase in permits and starts will lead to more home completions. While we are seeing continued movement in new construction, we still have a long way to go begin to meet the needs of homebuyers, especially in starter homes, where inventory levels have become significantly depleted.”

“There is still more room for improvement, as the latest figure is still not yet at the long-term 50-year average of producing 1.5 million units per year,” Yun said. “If this rising trend continues, the worst of the supply shortage could soon end, which would help slow price appreciation in 2018. That would be a huge, welcoming relief for renters seeking to become homeowners.”

Source: U.S. Census Bureau

Housing Starts Rose In A Surprise November

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

27 Dec

Americans ‘Concerned’ About Homeownership in Light of Tax Bill

Posted by A DiSegna

Americans ‘Concerned’ About Homeownership in Light of Tax Bill

Americans are concerned about homeownership in response to the Tax Cuts and Jobs Act, according to new realtor.com® research. The legislation, awaiting President Trump’s signature (at press time), passed on Wednesday this week.

More than one-third (36.2 percent) of respondents to a realtor.com survey, conducted Dec. 18-19 prior to the passage, were “concerned” about being a homeowner; 17.2 percent were “very concerned.” Just one-quarter of respondents, roughly, felt “positive” or “very positive” about the doubled standard deduction, and only about half that (12.4 percent) felt “very positive” about the elimination of the second-home mortgage interest deduction (MID). The bill doubles the standard deduction, from $13,000 to $24,000 for married taxpayers and from $6,500 to $12,000 for single taxpayers, and removes the MID on second homes.

Additionally, the bill is motivating some to move quicker—or not at all. Almost 14 percent of respondents to the survey said they will list their home sooner, while 7.6 percent said they will hold off on their plans to sell. Close to 30 percent of respondents, meanwhile, said they will buy faster; 14.2 percent will buy a cheaper home; 12 percent will delay their plans to purchase; and 2.3 percent will house-hunt in another location.

Notably, 57.1 percent of respondents to the survey believed the legislation will not impact their plans to sell, and 22.9 percent believed it will not impact their plans to purchase.

The bill caps the MID on new loans for primary residences at $750,000—a cut from the existing $1 million, but higher than the $500,000 originally proposed by House Republicans. The bill also:

Eliminates the MID for home equity loans, unless the funds go to home improvements;
Limits the state and local income, property and sales tax deduction to $10,000
Preserves the exclusion on capital gains on home sales

“The bill will have a significant impact on the housing market and overall economy, so it makes sense that people are wondering what it means to them,” says Joseph Kirchner, senior economist at realtor.com. “Some house hunters—particularly wealthy buyers—will see an increase in after-tax income, making an already tough housing market even more competitive. This increased demand could drive prices up even higher than they are already. And changes in the deductibility of mortgage interest and state and local taxes could cause challenges for many homeowners.”

Earlier this month, realtor.com Chief Economist Danielle Hale estimated homeowners in California, Maryland, New Jersey and New York would bear the brunt of the changes. California, especially—with its high prices—would be hard-hit.

“High housing costs in California [make] it the state with the third-highest average mortgage interest deduction, behind Hawaii and the District of Columbia,” said Hale. “…Lower-priced housing markets will also eventually be impacted.”

“While the impact of this bill may not be as harmful in many parts of the country, here in California, where the typical home costs two-and-a-half times the national home price, homeowners and would-be buyers will be hit especially hard,” said California Association of REALTORS® (C.A.R.) President Steve White following the passage.

The National Association of REALTORS® (NAR) acknowledged the positives in its own statement.

“The final tax reform bill is far from perfect, but it’s been greatly improved for homeowners over previous versions,” said NAR President Elizabeth Mendenhall in a statement. “REALTORS® should be proud of the good work they did to help get us here. We generated over 300,000 emails to members of Congress through two calls for action and held countless in-person meetings with legislators, all of which helped shape the final product.

“The results are mixed,” Mendenhall said. “We saved the exclusion for capital gains on the sale of a home and preserved the like-kind exchange for real property. Many agents and brokers who earn income as independent contractors or from pass-through businesses will also see a significant deduction on that business income. Despite these successes, we still have some hard work ahead of us. Significant legislative initiatives often require fixes to address unintended consequences, and this bill is no exception.

“The new tax regime will fundamentally alter the benefits of homeownership by nullifying incentives for individuals and families while keeping those incentives in place for large institutional investors,” Mendenhall said. “That should concern any middle-class family looking to claim their piece of the American Dream.”

More than 2,300 participated in the realtor.com survey.

For the latest real estate news and trends,

Americans ‘Concerned’ About Homeownership in Light of Tax Bill

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

10 Dec

3 Tips for Making Your Dream Home a Reality

Posted by Art Di Segna

Some Highlights:

Realtor.com shared their “5 Habits to Start Now If You Hope to Buy a Home.”
Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking a lot about it.
Living within a budget will not only help you save money for down payments but will help you pay down other debts that might be holding you back.

3 Tips for Making Your Dream Home a Reality

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

9 Nov

Five Reasons Homeownership Makes Cents

Posted by Art Di Segna

Five Reasons Homeownership Makes Cents

The American Dream of homeownership is alive and well. Recent reports show that the US homeownership rate has rebounded from recent lows and is headed in the right direction. The personal reasons to own differ for each buyer, but there are many basic similarities.

Today we want to talk about the top Five Reasons Homeownership Makes ‘Cents’ and why you should own your own home.

Homeownership is a form of forced savings – Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college. As a renter, you guarantee that your landlord is the person with that equity.
Homeownership provides tax savings – One way to save on taxes is to own your own home. You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to find out which tax advantages apply to you in your area.
Homeownership allows you to lock in your monthly housing cost – When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates have remained around 4% all year, marking some of the lowest rates in history. The value of your home will continue to rise with inflation, but your monthly costs will not.
Buying a home is cheaper than renting – According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the US. That number varies throughout the country but ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
No other investment lets you live inside of it – You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.

Bottom Line

Before you sign another lease, let’s get together to help you better understand all your options.

About the author:

“Five Reasons Homeownership Makes Cents” Was provided by Art Di Segna, a recognized leader in his field. Art can be contacted via email at Art@FineHomesOfTexas.com by phone at (281) 415-5888 or Contact Me. Art has helped hundreds of people move in and around many Houston towns for the last 14+ years.

Thinking of Selling or Buying A Home? I have a passion for Real Estate and love to share my marketing expertise! What is my home worth….

14 Sep

Homeownership Is a Precondition of the American Dream

Posted by Art Di Segna

Homeownership Is a Precondition of the American Dream

Hearth just released their 2017 State of the American Dream report which showed that Americans still see homeownership as an integral piece of the American Dream. The report confirmed that “all generations–including millennials–agree homeownership is very important to achieving the American Dream.”

Americans ranked “owning a home I love” higher than any other options (including “starting a family” and “finding a fulfilling career”) as an important part of the American Dream.

Despite some claims that homeownership’s importance to the American Dream is in decline, the report found that the dream of homeownership remains strong.

Of Americans who said they think achieving the American Dream is important, 70% think homeownership is important to the dream, and 41% think homeownership is very important to the dream.

What about Millennials?

Hearth addresses the desires of millennials by explaining:

“Contrary to popular opinion, millennials who want to achieve the American Dream are 5% more likely than Baby Boomers to think homeownership is important. And two-thirds of millennial renters view homeownership as important to the American Dream.

Although millennials are often portrayed as fickle and transient, they actually seek the stability of homeownership even more than their parents.”

Other Key Findings from the Report:

Homeowners are 126% more likely than non-homeowners to view homeownership as a way to build wealth. Nevertheless, homeowners still overwhelmingly associated homeownership with a family living space.
Homeowners are 24% more likely than non-homeowners to see homeownership as an achievement that reflects hard work.
Millennials are 77% more likely than baby boomers to see a home primarily as a way to build wealth.
Baby boomers are 98% more likely than millennials to see a home as a way to pass wealth down to children or family.
Millennials are 29% more likely than baby boomers to see a home as an achievement that reflects hard work–an outcome we expected given that many millennials are still working hard to afford their first homes.

Bottom Line

The report concluded:

“This survey revealed a powerful finding: Across demographic groups, homeownership remains a precondition of the American Dream.”