My team and I are dedicated to making sure that our clients are taken care of. Whether you are looking to purchase your first home or sell your third flip property of the year I am happy to help. We know Real Estate inside and out one of our favorite things to do is take on a new challenge. Give us a call if you have any questions about Real Estate, we are here and happy to help.

July 12, 2018

House-Buying Power at Near-Historic Levels

 

House-Buying Power at Near-Historic Levels

House-Buying Power at Near-Historic Levels | MyKCM

We keep hearing that home affordability is approaching crisis levels. While this may be true in a few metros across the country, housing affordability is not a challenge in the clear majority of the country. In their most recent Real House Price Index, First American reported that consumer “house-buying power” is at “near-historic levels.”

Their index is based on three components:

  1. Median Household Income
  2. Mortgage Interest Rates
  3. Home Prices

The report explains:

“Changing incomes and interest rates either increase or decrease consumer house-buying power or affordability. When incomes rise and/or mortgage rates fall, consumer house-buying power increases.”

Combining these three crucial pieces of the home purchasing process, First American created an index delineating the actual home-buying power that consumers have had dating back to 1991.

Here is a graph comparing First American’s consumer house-buying power (blue area) to the actual median home price that year from the National Association of Realtors (yellow line).

House-Buying Power at Near-Historic Levels | MyKCM

Consumer house-buyer power has been greater than the actual price of a home since 1991. And, the spread is larger over the last decade.

Bottom Line

Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. As Chief Economist Mark Fleming explains in the report:

“Though unadjusted house prices have risen to record highs, consumer house-buying power stands at near-historic levels, as well, signaling that real house prices are not even close to their historical peak.”

Posted in Interest Rates
July 11, 2018

Have Rates Dampened Housing?

Rising Interest Rates Have Not Dampened Demand

Rising Interest Rates Have Not Dampened Demand | MyKCM

Since the beginning of the year, mortgage interest rates have risen over a half of a percentage point (from 3.95% to 4.52%), according to Freddie Mac. Even a small rise in interest rates can greatly impact a buyer’s monthly mortgage payment.

First American recently released the results of their quarterly Real Estate Sentiment Index (RESI), in which they surveyed title and real estate agents across the country about the impact of rising rates on first-time homebuyers.

Real estate professionals around the country have not noticed a slowdown in demand for housing among young buyers; nearly 93% of all first-time homebuyers last quarter were between the ages of 21-35, with the largest share of buyers (51%) coming from those ages 26-30.

First American’s Chief Economist Mark Fleming had this to say,

“On a national level, mortgage rates would need to hit 5.6%, 1 percentage point above the current rate, before first-time homebuyers withdraw from the market.”

So, what is slowing down sales?

According to the last Existing Home Sales Report from the National Association of Realtors, sales are now down 3.0% year-over-year and have fallen for the last three months. If rising interest rates aren’t to blame, then what is?

Fleming addressed the cause, saying that:

“The housing market is facing its greatest supply shortage in 60 years of record keeping, according to the Federal Reserve Bank of Kansas City. The ongoing housing supply shortage will make it difficult for first-time buyers to find a home to buy, even when they are financially ready.”

Bottom Line

First-time homebuyers know the importance of owning their own homes and a spike in interest rates is not going to keep them from buying this year! Their biggest challenge is finding a home to buy!

 

Posted in Interest Rates
July 9, 2018

The #1 Reason to List Your House for Sale NOW!

Why Sell Now?

The #1 Reason to List Your House for Sale NOW! | MyKCM

If you are debating whether or not to list your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes for Sale

The National Association of Realtors’ (NAR) Chief Economist Lawrence Yun recently commented on the current lack of inventory:

“Inventory coming onto the market during this year’s spring buying season – as evidenced again by last month’s weak reading – was not even close to being enough to satisfy demand. 

That is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

The latest Existing Home Sales Report shows that there is currently a 4.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market, and 6.1% lower than last year’s inventory level.

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

The #1 Reason to List Your House for Sale NOW! | MyKCM

Anything less than a six-month supply is considered a “seller’s market.”

Bottom Line

Let’s get together to discuss the supply conditions in our neighborhood so that I can assist you in gaining access to the buyers who are ready, willing, and able to buy right now!

July 3, 2018

Why Use A Pro?

Why Should You Use A Professional to Sell Your Home?

Why Should You Use A Professional to Sell Your Home? | MyKCM

When homeowners decide to sell their houses, they obviously want to get the best possible price for their home with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes sold.

In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed a buyer’s behavior during the home buying process. According to the National Association of Realtors’ 2018 Home Buyer & Seller Generational Trends Report, the first step that “42% of recent buyers took in the home buying process was to look online at properties for sale.”

However, the report also revealed that 94% of buyers who used the internet when searching for homes ultimately purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% of buyers purchased their homes directly from a seller whom they didn’t know.

Buyers search for a home online but then depend on an agent to find the home they will buy (52%), to negotiate the terms of the sale (47%) & price (38%), or to help understand the process (60%).

The plethora of information now available has resulted in an increase in the percentage of buyers who reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who have used agents to buy their homes has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.

July 2, 2018

What do you think about Prop 13

 

Prop 13 Tax TRansfer Initiative

If this passes it will give seniors in CA the ability to take there tax base with them from their primary residence to any county in CA. Additionally it will allow them to purchase a home that is a higher value and pay a percentage difference. Currently there are a handful of counties that will allow through prop 60 & 90. Happy to hear thoughts pro and contrary

California Proposition 13 Tax Transfer Initiative (2018) - Ballotpedia

BALLOTPEDIA.ORG

May 23, 2017

Old Orchard Area

Here is a video that we took of Sunnyvale specifically of the Old Orchard and Cherry Orchard areas. It is the first of a series of videos that I am planning to have done. While preparing in research for this I learned a lot more about Sunnyvale. For example in 1860 the San Francisco and San Jose Rail Road was allowed to lay tracks on Bay View and established Murphy Station. Also Fremont High School first served as a military base when it opened in 1923. It served as a military base before the school opened and through World War II. 

Posted in Area Videos
Feb. 2, 2017

Sample Listing Videos

Dec. 14, 2016

Will Higher Interest Rates Lower Housing Prices?!

Posted in Interest Rates
Dec. 13, 2016

What People Are Saying

Dec. 1, 2016

EveryVoiceEngaged.org

I had the privilege of sitting down with Luke Hohmann this week and discussing how his small business is making a big difference in our community. Please take a few minutes to watch our discussion. You can help support him by sharing this post with others who have a desire to bring the next level of communication to their workplace or in our community.