Homeownership On The Minds Of The Millennials

It's expected that in 2013, the millennials will be helping grow the housing market. Those between the ages of 18-34 may be a large part of buyers purchasing homes. Experts point to a study by Trulia.com which found that of this age group, 43 percent are already homeowners.
The study also shows that 93 percent of the millennials currently renting plan to buy a home and 72 percent view owning a home as part of their personal American Dream.
However, some are still sitting on the fence, waiting for lower home prices and even lower mortgage rates. But experts caution that today's very low mortgage rates won't last forever and home prices in some areas are already increasing.
Whether you're a millennial or not, if you're planning to buy a home soon, here are a few tips to help you sail through your home sale.

Understand your mortgage options.A large part of why a home sale falls through has to do with the financing. Even if you have received pre-approval, that doesn't necessarily mean that the deal will close. Closing could be delayed or even rejected if you're not able to produce your required paper work in a timely fashion. Stay focused and on top of what you need by working very closely with mortgage experts. Make sure you know exactly how much cash you will need to have at the time of closing. This often is underestimated by the buyer.

Choose your home carefully.This sounds obvious but is particularly important. The way the housing market has been, many people will stay in their homes longer. So the home you buy today shouldn't be seen as an investment tool to flip quickly and make another move. Buying a home today may be the home you retire in one day. Or, at the very least, it may be a home you live in for many years. Therefore, you might consider housing that can grow with you. Never before have we seen developers offering homes that really encourage multi-generational living situations.
Today, in 21 markets throughout the country, the builder, Lennar, is offering NextGen designs to answer the demand for homes that can house more than one generation of adults. These types of properties are being marketed as a “home within a home” and they're designed to give everyone enjoyable together as well as private space.
Some of the plans that have about 3,500 square feet are already sold out in certain developments. The plans have separate front doors and mini kitchens, stackable washer and dryers, backyards that can be split or con-joined, plus a door that accesses the main home. The concept is becoming increasingly popular and for some multi-generational home buyers, it's a wonderful solution that allows them to get a larger home at an affordable price.

Know the markets.Some markets that were hit the hardest are now making a comeback. If you're not committed to a specific area and you have flexibility, then study various markets and understand that in certain areas you may be competing not only with other buyers seeking homes to live in but also investors. Investor interest is driving some markets more than others. Markets such as California, Nevada, Washington, and Washington D.C. are experiencing increased interest from investors seeking to buy and rent the properties. This is causing a decrease in inventory, (especially for the inexpensive houses) which drives up housing prices.The best advice when buying a home is to do your homework. Start early. Study the market. Get as much help as possible. Be flexible. Know all of your financial limitations. Finally, know what you must have and what you can live without.

Written by Phoebe Chongchua
December 21, 2012 

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Homeownership On The Minds Of The Millennials

It's expected that in 2013, the millennials will be helping grow the housing market. Those between the ages of 18-34 may be a large part of buyers purchasing homes. Experts point to a study by Trulia.com which found that of this age group, 43 percent are already homeowners. The study also shows that 93 percent of the millennials currently renting plan to buy a home and 72 percent view owning a home as part of their personal American Dream. However, some are still sitting on the fence, waiting for lower home prices and even lower mortgage rates. But experts caution that today's very low mortgage rates won't last forever and home prices in some areas are already increasing. Whether you're a millennial or not, if you're planning to buy a home soon, here are a few tips to help you sail through your home sale.

Understand your mortgage options. A large part of why a home sale falls through has to do with the financing. Even if you have received pre-approval, that doesn't necessarily mean that the deal will close. Closing could be delayed or even rejected if you're not able to produce your required paper work in a timely fashion. Stay focused and on top of what you need by working very closely with mortgage experts. Make sure you know exactly how much cash you will need to have at the time of closing. This often is underestimated by the buyer.

Choose your home carefully. This sounds obvious but is particularly important. The way the housing market has been, many people will stay in their homes longer. So the home you buy today shouldn't be seen as an investment tool to flip quickly and make another move. Buying a home today may be the home you retire in one day. Or, at the very least, it may be a home you live in for many years. Therefore, you might consider housing that can grow with you. Never before have we seen developers offering homes that really encourage multi-generational living situations. Today, in 21 markets throughout the country, the builder, Lennar, is offering NextGen designs to answer the demand for homes that can house more than one generation of adults. These types of properties are being marketed as a “home within a home” and they're designed to give everyone enjoyable together as well as private space. Some of the plans that have about 3,500 square feet are already sold out in certain developments. The plans have separate front doors and mini kitchens, stackable washer and dryers, backyards that can be split or con-joined, plus a door that accesses the main home. The concept is becoming increasingly popular and for some multi-generational home buyers, it's a wonderful solution that allows them to get a larger home at an affordable price.

Know the markets. Some markets that were hit the hardest are now making a comeback. If you're not committed to a specific area and you have flexibility, then study various markets and understand that in certain areas you may be competing not only with other buyers seeking homes to live in but also investors. Investor interest is driving some markets more than others. Markets such as California, Nevada, Washington, and Washington D.C. are experiencing increased interest from investors seeking to buy and rent the properties. This is causing a decrease in inventory, (especially for the inexpensive houses) which drives up housing prices. The best advice when buying a home is to do your homework. Start early. Study the market. Get as much help as possible. Be flexible. Know all of your financial limitations. Finally, know what you must have and what you can live without.

Written by Phoebe Chongchua
December 21, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Real Estate Outlook: The Fiscal Cliff

The strongest housing market since the peak of the housing boom is expected to pick up steam, but the so-called "fiscal cliff" could cause problems. Fiserv Case-Shiller's Home Price Index projects home prices nationwide will increase by an average of only 0.3 percent from the second quarter in 2012 to the second quarter of 2013. However, by the second quarter of 2017, home prices will be moving up at an annualized rate of 3.3 percent. Home prices in 37 of the 384 metro areas are projected to increase at more than twice the nationwide annualized rate of 3.3 percent over the next five years. More than half these markets are in three states: California, Florida and Oregon. The lackluster 0.3 percent home price growth is based on Congress failing to prevent the nation from falling off a fiscal cliff. The so-called fiscal cliff is a reference to recession-like economic conditions expected without the extension of tax cuts and Congressional action on other economic stimuli. If Congress can't come to an agreement, households stand to pay, on average, an additional $2,200 a year in extra taxes. Taxpayers will feel the squeeze in their first 2013 paycheck. With more money going to taxes, Americans will have less money to spend on housing and that could stall the housing recovery. Meanwhile, Fiserv's analysis of home price trends in more than 380 markets found that the average home price rose 1.2 percent for the year ending in the second quarter 2012. That increase marked the first year-over-year increase in home prices nationwide since 2006, excluding 2010. The 2010 market enjoyed the benefits of the federal home buyer's, tax credit. Prices were up in the majority of the metro areas tracked. Leading the way were home prices in Phoenix, Arizona, up 14.5 percent; Detroit, Michigan, up 11.6 percent; San Jose, California, up 9 percent and Miami, Florida, where prices rose 6.9 percent. Even if the nation avoids falling off a fiscal cliff, Fiserv expects a small "hiccup" to slow the housing recovery. David Stiff, Fiserv's chief economist said, "In some markets, investor demand for housing will start to fade before first-time and trade-up buyer demand has ramped up enough to take its place. This will be most evident in markets with large foreclosure inventories." "In some markets, investor demand for housing will start to fade before first-time and trade-up buyer demand has ramped up enough to take its place. This will be most evident in markets with large foreclosure inventories," Stiff also said. Fiserv also reported, of the 29 markets where home prices remain more than 50 percent below peak prices, 15 are in California and 11 in Florida. However, over the next five years, home prices in 24 of these 29 markets should increase at higher rate than the projected annualized rate for the nation as a whole.


Written by Broderick Perkins
December 10, 2012
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Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Mortgage Rates Calm, Near Record Lows

In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates showed little change and remained near their record lows helping to keep homebuyer affordability high and attractive to those looking to refinance.

30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending December 6, 2012, up from last week when it averaged 3.32 percent. Last year at this time, the 30-year FRM averaged 3.99 percent.

15-year FRM this week averaged 2.67 percent with an average 0.6 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.69 percent this week with an average 0.6 point, down from last week when it averaged 2.72 percent. A year ago, the 5-year ARM averaged 2.93 percent.

1-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, down from last week when it averaged 2.56. At this time last year, the 1-year ARM averaged 2.80 percent. According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Mortgage rates were little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation. Third quarter real GDP growth was revised from an initial report of 2.0 percent to 2.7 percent, nearly matching the market consensus forecast. Meanwhile, the 12-month growth rate of the core price index of consumer expenditures remained at 1.7 percent in October which is on the low end of the Federal Reserve's projection range for this year." "The housing market is aiding in this recovery. For instance, fixed residential investment added positive growth over the past six consecutive quarters and in the third quarter alone contributed 0.3 percentage points to real GDP growth. In addition, residential construction spending was up 3 percent between September and October. And, pending home sales saw a 5.2 percent increase in October to its highest reading since March 2007."

December 7, 2012, Published by Realty Times

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Call Alvin's Team Today! 877-651-7810
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Mortgage Rates Low, Tips To Qualify

Mortgage rates continue to remain low despite a recent slight increase. The 30-year fixed rate increased just a bit at the end of November but that comes on the heels of setting a record low of 3.31 percent. The 30-year fixed rate is still lower than it was this time last year, when it was at 4 percent. While many people are taking advantage of the low rates and either refinancing or shopping for a home, some are finding it difficult to qualify. The tightening of credit and the increased lending restrictions have made the effort to get a new mortgage a headache for some. The good news is there are tips to help you qualify for a mortgage. Here are a few that you should consider before you head to the bank or a mortgage company. Get your finances in order. Know your financial situation. That means not only your income, spending, debt, but also your credit status. In a downturned economy many crooks are looking for ways to make a buck and they're coming up with more scams that can negatively affect your credit. Debit and credit card skimming is one way that thieves are stealing credit card numbers and then charging up expenses on the stolen account. Even if you never lost your credit/debit card, that doesn't mean you're safe. It can happen when you use the card at a store, restaurant, or other retail outlet. If your bank is on the ball, it will alert you, maybe even before you realize your card has been compromised. This is why credit reports can offer valuable information before you apply for a mortgage. Getting your credit report and reviewing it carefully provides you with the opportunity to see if there are errors or problems that need correcting. Reduce your debt. This is a tough one. A lot of people are refinancing because they're hoping to get funds back to help them do this very thing, lower their expenses and reduce what they owe. However, if you carry a high debt, you'll have trouble refinancing or getting a mortgage to buy a home. The optimal thing to do is to start conserving and looking for ways to save. It's not about how much you make, but how much you save that can help you find ways to reduce your debt. Look for expenses to cut. Many people are opting to no longer use phone landlines or even cable. If you're working a lot and you don't watch much TV, cut the line. News and other features you watch on TV can also be accessed online on your computer. Keep only what's necessary. Sustainable living and conservation are becoming very popular. Check with your local utility company to see how you can reduce power usage in your home. Start by unplugging electrical appliances that aren't in use. These appliances, when plugged into an electrical outlet and even though not in use, use electricity which translates to you having to pay more on your utility bill for energy you're not even using. Get educated. The loan terms and restrictions change all the time. Meet with qualified expert professionals to help you through the process. Just because you don't qualify today doesn't mean it will always be that way. Find out what you need and can do and start moving toward your goal. Sometimes the best thing you can do is gain knowledge. The information that you get from real estate professionals will allow you to develop a plan to achieve success. Don't give up. The difficult economy has been discouraging but situations change and more opportunity will come. Be patient. Seek advice. Stay informed. Follow your plan, even if at first it seems like a long-shot before you'll get your goal.



Written by Phoebe Chongchua
December 7, 2012
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com