Tag Archives: #realestatemarket

Why the Major Port Strike Could Be a Great Sign for Homebuyers

03 Thursday Oct 2024

Posted by in Home Ownership, Port Strike

≈ Leave a comment

Tags

, , , , ,

The recent major port strike might seem like bad news for the economy, but it could actually be a great sign for homebuyers. Especially those waiting for lower mortgage rates. While we may see delays in new construction materials like windows, cabinets, and flooring, much like during the COVID-19 pandemic. The economic impact could lead to a drop in mortgage rates. Presenting—an opportunity for buyers sitting on the sidelines to enter the market at just the right time.

The real estate market is no stranger to economic shifts. If you’re planning to purchase a new construction home, there’s a potential challenge on the horizon. The recent major port strike could have far-reaching implications. It may mirror some disruptions we saw during the COVID-19 pandemic. Shipping containers sat undelivered, causing a significant shortage of building materials.

If you’re buying a new construction home. Prepare for potential delays in the availability of essential materials like windows, cabinets, and flooring. Builders rely heavily on imported goods. Any significant disruption in port operations could lead to setbacks in getting these key items. Slowing down the completion of your new home.

Mortgage Rate Implications

One potential silver lining for homebuyers is the effect this could have on the economy. A major disruption like this could lead to an economic slowdown, which often causes mortgage rates to decline. If you have been hesitating to buy, now might be the perfect time. You can take advantage of the market if you were waiting for lower rates.

Lower mortgage rates are a great sign for homebuyers, offering potential savings over the life of your loan. That said, you’ll want to stay informed and prepared, as timing could be crucial.

Call to Action:

Don’t wait! If you’re planning on purchasing a new home, now is the time to act. If you’re eyeing the market for opportunities, now is also the time to act. Stay informed about these market shifts and how they impact your buying process. Whether you’re looking for advice, our team is here to help. If you’re ready to make your move, we will guide you to navigate the market with confidence. Contact the RMF Realty Team today and let’s get started on finding your dream home!

#RealEstateMarket, #HomebuyersTips, #NewConstructionDelays, #MortgageRates, #RMFRealtyTeam, #PortStrikeImpact,

What You Need To Know About Home Price News

17 Wednesday May 2023

Posted by in Buying Myths, Columbia housing market

≈ Leave a comment

Tags

, , , , ,

The National Association of Realtors (NAR) will release its latest Existing Home Sales Report tomorrow. The information it contains on home prices may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report repeat sales prices. The vast majority of the repeat sales indices show prices are starting to appreciate again. But the median price reported on Thursday may tell a different story. 

Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. According to the Center for Real Estate Studies at Wichita State University:

“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.

For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”

People buy homes based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense affordable. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value. 

Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR explains:

“Changes in the composition of sales can distort median price data.”

For clarification, here’s a simple explanation of median value:

  • You have three coins in your pocket. Line them up in ascending value (lowest to highest).
  • If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
  • If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
  • In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.

The same thing applies to today’s real estate market.

Bottom Line

Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, let’s connect.

Exploring the Factors Behind the Current Housing Market

26 Wednesday Apr 2023

Posted by in Buying Myths, Columbia housing market, Columbia tell me what you think?, Home buying, Home Ownership

≈ Leave a comment

Tags

, , , , , , ,

Why Aren’t Home Prices Crashing?

The COVID-19 pandemic has created significant disruptions in almost all aspects of our lives, including the housing market. With the ongoing economic uncertainty and rising unemployment rates, many experts expected home prices to plummet. However, to the surprise of many, home prices have not crashed. In fact, the housing market has remained strong, with prices continuing to rise. This begs the question: Why aren’t home prices crashing?

There are several factors behind the current housing market. One of the primary reasons is the low interest rates. The Federal Reserve has lowered interest rates to historic lows, making mortgages more affordable. This has incentivized many potential homebuyers to enter the market, driving up demand. However, the low interest rates have also encouraged existing homeowners to refinance their homes, reducing the supply of available homes.

Another factor contributing to the housing market’s resilience is the limited supply of available homes. Before the pandemic, the housing market was already facing a shortage of inventory. With the pandemic slowing down new home construction and many homeowners reluctant to sell their homes, the supply of available homes has further decreased. This has caused a bidding war among potential buyers, resulting in higher home prices.

The pandemic has also led to a change in consumer behavior. With remote work becoming more prevalent, many individuals are no longer tied to specific geographic locations. This has led to increased demand for larger homes with more outdoor space, particularly in suburban and rural areas. As a result, homes in these areas have seen a significant increase in demand and price.

Furthermore, the government’s stimulus packages and unemployment benefits have provided financial support to many households, enabling them to continue making mortgage payments. This has prevented a wave of foreclosures and forced sales that could have led to a crash in home prices.

In conclusion, while the pandemic has caused significant disruptions in almost all aspects of our lives, it has not led to a crash in home prices. The current housing market’s resilience can be attributed to several factors, including low interest rates, limited supply of available homes, changes in consumer behavior, and government support. As we continue to navigate the ongoing economic uncertainty, it will be interesting to see how these factors continue to shape the housing market.

#RealEstateMarket, #HomePrices, #HousingCrisis, #EconomicFactors, #SupplyandDemand, #RMFRealty, #SCRealtor,#SouthCarolina,

How to Navigate the 2023 Short Sales and Pre-Foreclosure Market

13 Thursday Apr 2023

Posted by in Avoiding Foreclosure, Buying Myths

≈ Leave a comment

Tags

, , , , , , ,

Tips for Homebuyers

The real estate market can be complex, and navigating the 2023 short sales and pre-foreclosure market can be especially challenging. Short sales and pre-foreclosures are often an attractive option for homebuyers seeking to purchase a property at a discounted price, but they come with their own unique set of challenges. In this article, we will provide tips and advice to help you successfully navigate the 2023 short sales and pre-foreclosure market.

ShortSales, #PreForeclosures, #RealEstateMarket, #Homebuyers, #RealEstateTips, SCShortsale, #ColumbiaForeclosureRelief, #ColumbiaForeclosureRelease.

Understanding Short Sales and Pre-Foreclosures

Before we dive into the tips for navigating the short sales and pre-foreclosure market, it’s important to understand what these terms mean. A short sale occurs when a homeowner is unable to pay their mortgage and sells their property for less than what they owe on their mortgage. Pre-foreclosure refers to the period of time before a property is foreclosed upon, during which the homeowner may be willing to sell the property to avoid foreclosure.

Tip #1: Work with a Real Estate Agent who Specializes in Short Sales and Pre-Foreclosures

When buying a property that is being sold as a short sale or pre-foreclosure, it’s essential to work with a real estate agent who has experience in these types of transactions. A specialized agent can guide you through the process, help you navigate any challenges, and ensure that you are making an informed decision.

Tip #2: Get Pre-Approved for a Mortgage

If you’re planning to purchase a property through a short sale or pre-foreclosure, it’s crucial to get pre-approved for a mortgage. Pre-approval will give you an idea of how much you can afford to spend and will make the buying process smoother and more efficient.

Tip #3: Do Your Due Diligence

When purchasing a property through a short sale or pre-foreclosure, it’s important to do your due diligence. This includes researching the property’s history, condition, and any liens or encumbrances. You may also want to consider hiring a home inspector to assess the property’s condition.

Tip #4: Be Prepared for a Lengthy Process

Buying a property through a short sale or pre-foreclosure can be a lengthy process. It can take several months or even years for the transaction to be completed, so it’s important to be patient and prepared for a potentially long process.

Tip #5: Be Flexible

When purchasing a property through a short sale or pre-foreclosure, it’s important to be flexible. The seller may be motivated to sell quickly, but there may be delays and unforeseen circumstances that can slow down the process. Being flexible and willing to work with the seller can help make the process smoother and less stressful.

In conclusion, navigating the 2023 short sales and pre-foreclosure market can be challenging, but with the right approach and guidance, it’s possible to successfully purchase a property at a discounted price. Working with a specialized real estate agent, getting pre-approved for a mortgage, doing your due diligence, being prepared for a lengthy process, and being flexible are all important factors to consider when buying a property through a short sale or pre-foreclosure.

Home Prices: What Happened in 2020? What Will Happen This Year?

02 Tuesday Mar 2021

Posted by in Buying Myths, Columbia tell me what you think?, SC Home Sellers, Selling your Columbia Home, South Carolina Living

≈ Leave a comment

Tags

, , , , , , , ,

Home Prices: What Happened in 2020? What Will Happen This Year? | MyKCM

The real estate market was on fire during the second half of 2020. Buyer demand was way up, and the supply of homes available for sale hit record lows. The price of anything is determined by the supply and demand ratio, so home prices skyrocketed last year. Dr. Lynn Fisher, Deputy Director of the Federal Housing Finance Agency (FHFA) Division of Research and Statistics, explains:

“House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA Home Price Index. Low mortgage rates, pent up demand from homebuyers, and a limited housing supply propelled every region of the country to experience faster growth in 2020 compared to a year ago despite the pandemic.”

Here are the year-end home price appreciation numbers from the FHFA and two other prominent pricing indexes:

The past year was truly a remarkable time for homeowners as prices appreciated substantially. Lawrence Yun, Senior Economist at the National Association of Realtors (NAR), reveals:

“A typical homeowner in 2020, just by being a homeowner, would have accumulated around $24,000 in housing wealth.”

What will happen with home prices this year?

Many experts believe buyer demand will soften somewhat as mortgage rates are poised to bump up slightly. Some also believe the inventory challenge will ease as more listings come to market this year.

Home Prices: What Happened in 2020? What Will Happen This Year? | MyKCM

Based on this, most forecasters anticipate we’ll see strong appreciation in 2021 – but not as strong as last year. Here are seven prominent groups and their projections:

Bottom Line

Home price appreciation will be strong this year, but it won’t reach the historic levels of 2020. Let’s connect if you’d like to find out what your house is currently worth in our local market.