Is It a Good Time to Buy or Sell a Home?

Is It a Good Time to Buy or Sell a Home?

A recent study from Fannie Mae shows that both buyers and sellers think it’s an increasingly good time to make a move. Let’s connect to take your plans forward this year.
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Guidance and Support Are Key When Buying Your First Home

In June, the number of first-time homebuyers accounted for 35% of the existing homes sold, a trend that’s been building steadily throughout the year. According to the National Association of Realtors (NAR):

“The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012.” (See graph below):

Guidance and Support Are Key When Buying Your First Home | MyKCM

Why the rise in first-time homebuying?

NAR continues to say:

“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher.”

Clearly, historically low mortgage rates are encouraging many to buy. With the average mortgage payment now estimated at a lower monthly cost than renting, it’s a great time for first-time homebuyers to enter the market. According to the Q2 2020 Housing Trends Report from the National Association of Homebuilders (NAHB):

“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over 60% of prospective buyers in the Northeast and South are buying a home for the first time. The share is above 55% in the Midwest and West.”

There are, however, challenges for first-time buyers. A recent survey conducted by NeighborWorks America also notes that understanding the homebuying process may be the most significant barrier for many hopeful homeowners:

“Homeownership is a particular challenge for many, despite high levels of interest. Americans believe there are many benefits to homeownership and half of non-owners will seek information about the process in the next few years…a large share of non-owners say the process is too challenging and only a minority know where to find advice if they wanted it. And although many would seek the guidance of community and non-profit programs, only one in three non-owners are aware of such services.”

Guidance and Support Are Key When Buying Your First Home | MyKCM

If you’re among the first-time homebuyers who feel the process is complicated and you need guidance, you’re not alone. If you’re not sure where to begin or you simply want help in figuring out how to save for a home, finding a trusted real estate advisor to work with is a critical step toward your success. A real estate professional can help you understand the process, review your current situation, and guide you with a plan to help you to feel confident when buying a home.

Bottom Line

If you’re interested in purchasing a home and need help getting started, let’s connect today so you can take advantage of the support available to guide you through each step of the way.

Confidence Is the Key to Success for Young Homebuyers

Buying your first home can seem overwhelming. Thankfully, there’s a lot of great information out there to help you feel more confident as you learn about the process. For those in younger generations who aspire to buy, here are three things to consider sooner rather than later in your journey:

1. Understand What it Takes to Purchase a Home

Overall, Millennials make up the largest group of homebuyers in today’s real estate market, and Gen Z is not too far behind. A recent study shared by Freddie Mac shows, however, that Generation Z isn’t as confident in the homebuying process as Millennials. The best thing potential young buyers can do is understand what it takes to buy a home. Learn as much as you can about the mortgage processdown payment options, and the overall steps to take along the way.

2. Realize Your Opportunity to Build Wealth

Homeownership allows you the chance to put a small portion of the home’s value down when you buy, and then watch your appreciation grow on the full value of the home – not just on the down payment. It’s one of the best investments you can make, and a form of forced savings working in your favor over time. The added bonus? You get to live there, too.

3. Find Someone You Trust to Help You Through the Process

Having someone you trust to guide you through this process is invaluable. Finding a local real estate expert to help you navigate through the transaction and feel more confident as you make important decisions could be the best choice you make.

For Millennials and Gen Z’ers thinking about buying, today’s historically low interest rates combined with the outlook for future home appreciation is a big win. This means whatever you buy today, you’ll be bragging about 10 years from now. You can feel confident about that!

Bottom Line

If you’re ready, buying your first home sooner rather than later is one of the best decisions you can make. But there are many things to consider before taking that step, so let’s work together to help you confidently navigate the full journey. Visit my home search website here.

Is It A Good Time To Purchase A Home?

There is a really good reason why a buyer would want to purchase a home right now. Because renting right now can be more expensive than buying. There is always a reason why someone might need to rent instead of buying, however if you can buy, now is the time. But an even better reason is because interest rates are historically low right now. What do you actually need in order to go shopping for that home? A Pre-Qualification or Pre-Approval letter. And only a mortgage lender can give you one of those. So why are these so important? Keep reading…

So, what’s the difference between a Pre-Qualification and a Pre-Approval? Quite a lot, actually. A Pre-Qualification is an “estimate” of what you could qualify for. It’s what the loan officer thinks they “might” be able to get you approved for during the Underwriting process. In a Pre-Qualification you submit your pay stubs, bank statements, W2’s and any thing else the loan officer asks for. They will also, with your permission, do a soft pull of your credit report at this time. After going over all the information they will let you know what you would qualify for if everything checks out in Underwriting. A Pre-Approval comes from the underwriter, after reviewing everything that you submitted. This Pre-Approval lets you know “exactly” what they will lend you.

What’s Your Buying Power?

But why get Pre-Qualified or Pre-Approved prior to looking for a home to purchase? Because if you find that dream home you have been wanting, you want to have a Pre-Qualification or a Pre-Approval to submit along with your offer to the seller. Seller’s are going to take your offer more seriously if they see that you have already begun the process of obtaining a loan. There is not one seller that I have ever encountered who wants to pull their home off the market for someone who may not be able to obtain financing.

Come back for my next blog. I will explain what NOT to do once you have that Pre-Qualification or Pre-Approval letter. You can mess up your approval by doing some normal everyday things without even knowing it. In the meantime, start looking for your next home on my home search website!

Later,

New Trends In Color Schemes For 2020 Homes

Trends in decorating are shifting from the gray and white to include some other great color mixes this summer. Colors are making a come back and this little agent is happy to see it! 2020 is opening up to blues, tans, yellows, greens, and whites. Don’t take that in a negative way, I still love the gray and white. It’s just refreshing to see the new pop of color that the summer and fall will be offering to home buyers and sellers. So, which one is your favorite? Asking for a friend…

See you later! In the meantime, check out my homesearch site!

What Is Home To You?

When I was a little girl home was my safe place. I came from a large family. There were seven siblings total. My youngest sister died at 6 weeks due to heart complications. But I remember growing up in that house full of noise and love. There is nothing better than the memories of home.

My older sister, myself, and my two younger brothers. My sister was only 1 year old in the cover photo with my parents and two older brothers!

My dad was a WWII veteran and he was a man of little words. In fact, if he spoke to anyone in our neighborhood he would have their undivided attention just because they were so shocked that he opened his mouth to speak. He was a wise man, though not from schooling. He became sick with tuberculosis when he was 8 years old and was schooled from home by my grandmother after that. He and my grandpa and my Mom’s brother built our first home themselves. It was destroyed in a tornado when I was five years old. When I was older it was not uncommon to find my dad sitting in his favorite chair, relaxing, and reading the encyclopedia. I once asked him why he always read the encyclopedia and his answer still resonates in my mind when I don’t want to take the time to learn something new.

“How will you know what others are telling you is true if you don’t learn about it for yourself?”

And that is what I ask you, future home buyers and home sellers. Have you learned everything you need to know before you embark on this journey of home ownership or the selling of your home?

Please come back to my blog to see if anything I have posted is relevant to what you need to know. If it’s not there, ask me if I can write about it and explain it.

http://tinamiller.work

See you later!

On my desk

Calendar Date July 25th, 2020:

My happy client will be going to their soon to be new home for their final walk through before closing. I am so beyond excited for her. My business partner and I worked hard securing this deal for her. There were two other offers besides hers. One was a cash offer and the other was for asking price with seller concessions.

Luckily, we are good at selling the positive aspects of our clients. Their Why is extremely important and we are great at verbalizing that for them to the seller’s agent. And that is exactly what happened for this client. She had a great Why. And now she has a great place to call home!

Two Reasons We Won’t See a Rush of Foreclosures This Fall

Two Reasons We Won’t See a Rush of Foreclosures This Fall | MyKCM

The health crisis we face as a country has led businesses all over the nation to reduce or discontinue their services altogether. This pause in the economy has greatly impacted the workforce and as a result, many people have been laid off or furloughed. Naturally, that would lead many to believe we might see a rush of foreclosures like we saw in 2008. The market today, however, is very different from 2008.

The concern of more foreclosures based on those that are out of work is one that we need to understand fully. There are two reasons we won’t see a rush of foreclosures this fall: forbearance extension options and strong homeowner equity.

1. Forbearance Extension

Forbearance, according to the Consumer Financial Protection Bureau (CFPB), is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage.” Thisis an option for those who need immediate relief. In today’s economy, the CFPB has given homeowners a way to extend their forbearance, which will greatly assist those families who need it at this critical time.

Under the CARES Act, the CFPB notes:

“If you experience financial hardship due to the coronavirus pandemic, you have a right to request and obtain a forbearance for up to 180 days. You also have the right to request and obtain an extension for up to another 180 days (for a total of up to 360 days).”

2. Strong Homeowner Equity

Equity is also working in favor of today’s homeowners. This savings is another reason why we won’t see substantial foreclosures in the near future. Today’s homeowners who are in forbearance actually have more equity in their homes than what the market experienced in 2008.

Two Reasons We Won’t See a Rush of Foreclosures This Fall | MyKCM

The Mortgage Monitor report from Black Knight indicates that of all active forbearances which are past due on their mortgage payment, 77% have at least 20% equity in their homes (See graph below):Black Knight notes:

“The high level of equity provides options for homeowners, policymakers, mortgage investors and servicers in helping to avoid downstream foreclosure activity and default-related losses.”

Bottom Line

Many think we may see a rush of foreclosures this fall, but the facts just don’t add up in this case. Today’s real estate market is very different from 2008 when we saw many homeowners walk away when they owed more than their homes were worth. This time, equity is stronger and plans are in place to help those affected weather the storm.

If you think selling your home is a better option for you at this time, visit my site to set up an meeting to talk.

Later,