So what does this mean for homeowners and their equity position?

Bottom Line

The results of their latest survey:

Bottom Line

 “The powerful ‘wealth effects’ generated by the rapid rise in equities between 2009 and 2015 drove a large rise in the sales of homes that sold for $1 million or more. Historically, sales of homes priced $1 million or more averaged 1.2 percent of all home sales. The spread between high-end sales and equities widened during the housing bubble but then moved more closely in unison. By the time the equity markets had peaked in May 2015, the $1 million or more share of the market had nearly doubled, averaging 2.2 percent for the remainder of the year.”

 “The powerful ‘wealth effects’ generated by the rapid rise in equities between 2009 and 2015 drove a large rise in the sales of homes that sold for $1 million or more. Historically, sales of homes priced $1 million or more averaged 1.2 percent of all home sales. The spread between high-end sales and equities widened during the housing bubble but then moved more closely in unison. By the time the equity markets had peaked in May 2015, the $1 million or more share of the market had nearly doubled, averaging 2.2 percent for the remainder of the year.”

• the nation as a whole
• each of the 50 states
• 367 metropolitan statistical areas

• the nation as a whole
• each of the 50 states
• 367 metropolitan statistical areas

Here is the breakdown:

What does that mean to you if you are selling?

Here is the breakdown:

What does that mean to you if you are selling?

Some Highlights:

• Interest rates have come a long way in the last 30 years.
• The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget.
• Interest rates are at their lowest in years… RIGHT NOW!
• If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to act!

Some Highlights:

• Interest rates have come a long way in the last 30 years.
• The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget.
• Interest rates are at their lowest in years… RIGHT NOW!
• If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to act!

• Handle the liquidation of possibly the largest asset your family has
• Help set the market value of that asset (get the price right)
• Set the timetable for the liquidation of that asset
• Set a fair fee for the services required to liquidate that asset

• Handle the liquidation of possibly the largest asset your family has
• Help set the market value of that asset (get the price right)
• Set the timetable for the liquidation of that asset
• Set a fair fee for the services required to liquidate that asset

You Need an Expert Guide if You Are Traveling a Dangerous Path

You Need a Skilled Negotiator

Bottom Line

Some Highlights:

• Existing home sales have accelerated to the highest pace since February 2007 at an annual pace of 5.57 million.
• Inventory of homes for sale remains below the historically normal 6-month mark at a 4.6-month supply, down 5.8% year-over-year.
• Median home sales prices rose to $247,700, 4.8% higher than a year ago and replaced the previous peak in May of $238,900.

Some Highlights:

• Existing home sales have accelerated to the highest pace since February 2007 at an annual pace of 5.57 million.
• Inventory of homes for sale remains below the historically normal 6-month mark at a 4.6-month supply, down 5.8% year-over-year.
• Median home sales prices rose to $247,700, 4.8% higher than a year ago and replaced the previous peak in May of $238,900.

If your house hasn’t sold, it is probably because of the price.

Bottom Line

• There was a 3.7% increase in effective rents in the second quarter of 2016 as compared to the same period last year.
• That the effective rent growth this quarter compared to last quarter was 2.3%.
• Annual effective rent growth was positive in 49 of the top 50 markets, based on number of units. Only Houston was negative, at -1.4%, as the fallout from energy-industry job losses and excess construction continues.

Here is a graph to illustrate the rate of increase over the last several years:

Bottom Line

1. Why am I buying a home in the first place?

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of that space

2. Where are home values headed?

What does that mean to you?

3. Where are mortgage interest rates headed?

Bottom Line

Some Highlights:

• The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
• Freddie Mac predicts interest rates to rise to 4.6% by next year.
• CoreLogic predicts home prices to appreciate by 5.3% over the next 12 months.
• If you are ready and willing to buy your dream home, find out if you are able to!

Some Highlights:

• The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
• Freddie Mac predicts interest rates to rise to 4.6% by next year.
• CoreLogic predicts home prices to appreciate by 5.3% over the next 12 months.
• If you are ready and willing to buy your dream home, find out if you are able to!

“While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.”

What Does This Mean as a Buyer?

“While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.”

What Does This Mean as a Buyer?

“With last month’s decline, the index reading is still the third highest in the past year, but declined year-over-year for the first time since August 2014.”

“Total housing inventory at the end of each month has remarkably decreased year-over-year now for an entire year. There are simply not enough homes coming onto the market to catch up with demand.”

Bottom Line

1. Price it a LITTLE LOW

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

“The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900. However, homes that were sold with the assistance of an agent had a median selling price of $249,000 – nearly $40,000 more for the typical home sale.”

Bottom Line

1. Prices Will Continue to Rise

2. Mortgage Interest Rates Are Projected to Increase 

3. Either Way You are Paying a Mortgage

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

1. Prices Will Continue to Rise

2. Mortgage Interest Rates Are Projected to Increase 

3. Either Way You are Paying a Mortgage

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Some Highlights:

• Sales of existing homes reached the highest annual pace in over 9 years at 5.29 million.
• Inventory remains below the 6-month norm and prices are still on the rise.
• Interest rates are at a historic low of 3.48%.

Some Highlights:

• Sales of existing homes reached the highest annual pace in over 9 years at 5.29 million.
• Inventory remains below the 6-month norm and prices are still on the rise.
• Interest rates are at a historic low of 3.48%.

1. There are more homes from which to choose

2. Prices are becoming more reasonable

“The growing number of price cuts suggests luxury-home sellers are becoming more realistic about property values as sales have slowed, said several real-estate veterans.”

3. Mortgage rates are at historic lows

“While conforming fixed-rate mortgages eased a little this week, 30-year fixed-rate jumbos declined enough to break into new record low territory (3.66%), besting the previous low set in April by two basis points.”

Bottom Line

“The hot housing markets along the West Coast are growing quicker than owners realize, giving way to higher than expected prices for buyers and more home equity for existing owners.   On the other hand, the housing markets are more balanced in the East and Midwest, leading owners to be slightly over-enthusiastic about their home’s appreciation.”

Bottom Line 

1. Demand Is Strong

2. There Is Less Competition Now

3. The Process Will Be Quicker

4. There Will Never Be a Better Time to Move Up

5. It’s Time to Move On with Your Life

That is what is truly important.

1. Demand Is Strong

2. There Is Less Competition Now

3. The Process Will Be Quicker

4. There Will Never Be a Better Time to Move Up

5. It’s Time to Move On with Your Life

That is what is truly important.

“We had a triple crown of April home sales reports, so 2016 is in the pole position to earn best year of home sales in a decade.”

“Home sales typically rise in the spring and summer months, and we anticipate acceleration in home sales that will surpass 2007’s pace by late summer.”

Bottom Line

Price Appreciation = Good News for Homeowners

“In just the last four years, equity for homeowners with a mortgage has nearly doubled to $6.9 trillion. The rapid increase in home equity reflects the improvement in home prices, dwindling distressed borrowers and increased principal repayment.   These are all positive factors that will provide support to both household balance sheets and the overall economy.” 

“More than 1 million homeowners have escaped the negative equity trap over the past year. We expect this positive trend to continue over the balance of 2016 and into next year as home prices continue to rise.   Nationally, the CoreLogic Home Price Index was up 5.5% year over year through the first quarter. If home values rise another 5% uniformly across the U.S., the number of underwater borrowers will fall by another one million during the next year.” 

Bottom Line

1. There Are Too Many People to Negotiate With

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

3. Results Come from the Internet

• 44% on the internet
• 33% from a Real Estate Agent
• 9% from a yard sign
• 1% from newspapers

4. FSBOing Has Become More And More Difficult

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent

Bottom Line

Some Highlights:

• According to CoreLogic, the national foreclosure rate dropped to 1.1% of all homes with a mortgage. This is the lowest percentage experienced since October 2007.
• April marked the 54^th consecutive month of year-over-year declines in foreclosure inventory.
• Only 3% of homes in the United States are in serious delinquency. More and more homeowners are escaping negative equity as prices rise.

Some Highlights:

• According to CoreLogic, the national foreclosure rate dropped to 1.1% of all homes with a mortgage. This is the lowest percentage experienced since October 2007.
• April marked the 54^th consecutive month of year-over-year declines in foreclosure inventory.
• Only 3% of homes in the United States are in serious delinquency. More and more homeowners are escaping negative equity as prices rise.