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July
2

3 Things To Know In The Housing Market Today!

Daily News On Ipad with Coffee and NotepadA lot is happening in the world, and it's having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don't know yet.

The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.

1. Interest Rates

One of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. We recently posed the question, "Are Low Interest Rates Here To Stay?" The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates.

30 year fixed rate Mortgage rate

2. Building Materials

Talk of tariffs could also affect the housing market. The National Association of Home Builders reports that as much as $10 billion in goods imported from China are used in homebuilding. Depending on the outcome of the tariff and trade discussions between several countries, there could be as much as a 25% boost in the cost of building materials.

3. Economic Slowdown

At the beginning of the year, many economic leaders thought we could expect a recession in late 2019 or early 2020. As spring approached, we reported that economists had started to push that projection past 2020.  Now, three leading surveys indicate that it may begin in the next eighteen months.

Next Recession Beginning Chart

Bottom Line

We are in a strong housing market. Wages are increasing, home prices are appreciating, and mortgage rates are the lowest they have been in 21 months.  Whether you are thinking of buying or selling, it's a great time to be in the market.

SOURCE: Keeping Current Matters - Steve Harney

May
30

How to know if you're ready to buy a house

Buying a house should never be entered into lightly, and often many potential buyers may not realize just how much work it actually takes or the process involved. Doing as much research as possible can help determine exactly what is needed and required, to put a buyer in the best possible position to make a purchase.

Here are ten (10) great ways to help you identify the point at which making a home purchase becomes feasible for you:

1) Little to no credit card debt

When you're trying to get a mortgage, perhaps the most important aspect of doing so is getting your credit card debt reduced as close to zero as possible, according to Money Under 30. That's true for two reasons. First, the size of your credit card balances relative to your limits makes up a significant portion of your credit score. Second, lenders look at debt-to-income ratio. As long as you're carrying relatively small balances from one month to the next (or ideally, not carrying a balance at all), you'll be in good shape.

2) All other loans paid off

One of the biggest hurdles for the millennial generation when it comes to being financially capable of buying a home is student loans. It may not be wise to try to buy until your loan balances under control. That doesn't mean they have to be paid off in full, but they certainly need to be somewhat small relative to your income.

3) Tens of thousands of dollars in savings

Ready to buy?If you're trying to buy a home in today's market, you'll almost certainly need to make a sizable down payment. While it's possible to get mortgages with down payment requirements as low as 3 percent, the added long-term expense could end up costing you significantly over the life of the loan. Making as large a down payment as possible is going to keep your borrowing costs down.

4) A rainy day fund

In addition to the money that will go toward your down payment, it's vital to have some additional money saved just in case something goes wrong with the home, according to Mint. As a general rule, having about $1 per square foot - or 1 percent of the purchase price - in the bank will help cover some basic expenses you're likely to encounter after your home purchase.

5) A long-term plan

Whether you're buying a home for a whole family or as a single person, you need to know what your situation is going to look like two, five, 10 or even 20 years down the road. That will inform a lot of decisions about the kinds of homes you're looking to purchase - i.e. not buying a small one that you'll have to move out of in a few years when you have kids - and how much work you'll have to put in to make sure your finances are in good enough shape to do so.

6) Reliable income

Lenders also want to make sure you're going to be able to keep up with your mortgage payments in the long term, so a steady job is a must, according to Credit Sesame. While no one can predict their employers' future with 100 percent accuracy, it might not be a good idea to go house hunting at a time of turmoil. As long as you're fairly confident in your position, shopping should be no problem.

7) A comfortable cushion

One issue some homeowners encounter after buying a home is they've pushed themselves so far financially trying to get ready for the real estate sales process that they come out the other side in rough financial shape. Being "house poor" means people own a house but otherwise struggle financially because of the cost of that property. You'll need to make sure you're not buying too much house or else risk running into other financial problems even if you can technically afford the mortgage and other costs.

8) An understanding of what constitutes affordability

Along similar lines, it's vital to not only factor in the cost of the mortgage, taxes and so on themselves, but also other expenses. This may include higher electric and heating bills that come with living in a bigger space, more costly insurance coverage (especially if your new home is in an area prone to flooding) and so on. Sitting down and doing the math around the true cost of homeownership will help you avoid being house poor or running into expenses you might not have realized will crop up

9) A list of must-haves and nice-to-haves

When people actually start shopping for homes, it can be easy to fall in love with certain properties, according to Forbes. However, while it would be nice to have a state-of-the-art kitchen with stainless steel appliances, it's probably going to be expensive and not necessary to your happiness in the home. Having a list of things that you will absolutely need out of your new property - big backyard for the kids, finished basement for a home office, etc. - will inform your choices and help you get a better idea of what you can actually afford.

10) A talented and experienced agent

The key role of real estate professionals in every portion of the process cannot be overstated. They will be able to help first-time buyers as well as those who have previously been through the process get as prepared as possible so they can maximize their understanding and the value they get out of buying a home. Experienced agents have likely seen it all and can help shepherd any client through a sale - as either buyers or sellers - with ease.

 

Buying a home is usually going to be the biggest purchase anyone makes in their entire lives, so it's important to put in a lot of legwork - over a period of months or more - to ensure things go as smoothly as possible at each step of the shopping process. That, in turn, will help you feel more confident in your ability to make a purchase with confidence that you've done everything right. 

 

Brought to you by HMS Home Warranty.  HMS is an industry leader with over 30 years of creating success for clients and providing peace of mind for customers.  To learn more click

www.hmsnational.com

Disclaimer: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 08/20/2022. The listing information on this page last changed on 08/20/2022. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of CVRMLS (last updated Sat 08/20/2022 1:07:52 AM EST) or Bright MLS (last updated Sat 08/20/2022 12:54:02 AM EST). Real estate listings held by brokerage firms other than Joyner Fine Properties may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --

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Agency License Information: Joyner Fine Properties and its agents are licensed in the Commonwealth of Virginia.


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