Why a Real Estate EXPERT?

You need to work with someone who is an expert in the Real Estate field - you are making probably the largest investment you have ever made.  You need a person that understands the market, understandings how all the pieces it together, and can simply and effectively explain it to you so that you can make the best decision for yourself and your family.

I am ready to be that expert.  Carol Skees www.albuquerquenmhomesearch.com

Move Up Buyers - How to Save $100,000 over the Life of Your Loan

According to the Mortgage Bankers Association, interest rates that have been bumping against the bottom for awhile - are projected to rise to 4.4 percent by the end of the year, compared to 3.4 percent right now.

If the Buyer delays the purchase of the home until the end of the year, the price will be 3.1 percent higher.   Which along with the higher interest rate means that the buyer will be paying $262.09 more per month, or $3,384 more per year, or $101,520 over a 30 year mortgage.

Those a pretty massive savings for buying a home today verses waiting until the end of the year.

Financial Considerations for the Move-Up Buyers

Let's look at a scenario for Move-Up Buyers.  If we take a look at the 2006 price right here on the table - back in 2006, their house was worth 300,000.  They were thinking about moving to that house down the block - that really beautiful house with the built-in pool with the extra accrage.  But that house was $450,000 and they couldn't afford to buy it back in 2006.

They bought the $300,000 house instead.  Well now both of those house have dropped 20 percent. As the chart shows while their house dropped $60,000, the other dropped $90,000.  

So making your move now to the home of your dreams, you saved $30,000 by buying the house now and not in the crazyiness of 2006. Buyers know that prices have bottomed out, this is the time to move up.

Remember the recent Home Price Expectation Survey, 105 of the leading housing analysts call for a 3.1 percent increase in home values by the end of 2013.

Move Up Buyers

There are studies out there that Move-up buyers are entering the market, they are now saying "You know what? I have some equity in my house".  Negative equity is shrinking as prices are going up.  I feel a little bit more confident about housing right now.  They are thinking "Maybe I shouldn't wait to move up to that house of my dreams.

Why are these people moving forward? Well we can see that 49 perce say that they want a significently bigger house.  17 percent say they want the same size, they just want to live in a different neighborhood in the same town.  8 percent want the same size, but a nicer home.   Three percent are looking for a same size but more affordable.  Some of these sellers are moving across the country for a different job.

 Next we are going to the financial considerations of the move up buyer.

I appreciate any comments on this or my other blogs.

Finances - The Cost of Waiting to Purchase a Home.

We already know from the Home Price Expectation Survey that prices are going to go up 3.1 percent between December 2012 and January 2013   Looking at a house that costs $210,000 now, that means by year end that same house will cost $216,510. That is the 3.1 percent price increase.

We also know that the Mortgage Bankers Association projects that interest rates are going to inch up to 4.4 percent by the end of the year.

As the chart below shows, what that means to a buyer purchasing a $210,000 home today, that the purchase price of the house will be $216,510 by the end of the year.  And if they buy now their monthly principal & interest charge will be $931.31; but if they wait until the end of the year to purchase a home they will be paying $1,084.20  for their housing.

Buying now verses later is going to save them $153 a month; or a savings of $1,800 a year.  Over a 30-year mortgage, they will save over $55,000.  Yes that is right, the difference between buying now and buying a year year from now is $55,000 to the buyer.

Buyers - this is the impact on your pocketbook, and your financial future.

Tomorrow I am going to talk about MOVE-UP Buyers.

All comments are appreciated.

Do Generation X & Y Believe That Owning is Financial Better than Ranting

The  question is do the Generation X & Y believe they would be financially better off rent or buying.  For a answer to that question, I turned to the Joint  Center for Housing Studies at Harvard University.  According to their report, seventh-nine person of those under 25 years old believe owning a home is financially better than renting a home.  That number jumps to 86%  when they surveyed 25 to 34 year olds.

 

So  let's not get caught up in what people are talking about or what people are prophesying on.  Just look at the numbers.

Your comments are always appreciated on any of my blogs.

How Does Generation X and Generation Y Feel About Homeownership

Let's first talk about the Generation X and Generation Buyer and their belief in homeowners and whether or not they are going to jump in.  There has been way too much written about the fact that, well that generation doesn't believe in homeownership. That generation wants to be much more mobile.  That generation had too much student debt.  That generation likes living with their parents and theirs parents love have them living there.

There are all sorts of people writing beautiful essays on the fact that homeownership is dead in the country, because that Generation has decided that homeownership isn't important.

Well, let's look at the facts.  Let's not look at what people are thinking. The facts are number ONE - 43 percent of the X and Y generating are already homeowners.

Seventy-two percent say that homeownership is part of their personal American dream.  Not a part of the American dream, part of their personal American dream.

Ninety-three percent of those generations that are currently renting plan to purchase a home.  

So the people telling you that they don't plan to purchase a home, well the problem with this is every survey out there, including this one, shows that over 90 percent of the Generations X & Y plan to purchase a home sometime in the future.