March 25, 2014 11:27 am
The National Association of Realtors
(NAR) released their latest Existing Homes Sales Report
last Friday. The year-over-year comparison of overall sales did not paint a pretty picture. NAR itself called the sales numbers “subdued”. Other media sources used stronger terminology.
There is no doubt that home sales were lower this February (4.60 million) than last February (4.95 million). However, a closer look at the report gives us some evidence as to why that is. Last year, of the 4.95M homes sold, 25% were distressed properties (foreclosures and
short sales). This February, only 16% of
sales were made up of distressed properties.
WHY IS THIS IMPORTANT?
March 24, 2014 11:24 am
We have often suggested that potential home buyers consider rising interest rates when thinking about the true cost of a home. The longer they wait the higher the mortgage payment if rates continue to increase as is projected by Fannie Mae
, Freddie Mac
, the National Association of Realtors
and the Mortgage Bankers Association
In its latest issue, Money Magazine
warned their readership of the same ramification if they put off the purchase of a home. Here is what they said:
"BE MINDFUL OF RATES. The average interest rate on a 30-year fixed loan is predicted to climb from the current 4.4% to 5.3% by the 2015 spring buying season, according to Freddie Mac. For a $250,000 loan, that means that a borrower who waits would pay $136 more per month and an additional $49,090 in interest over the life of the loan. Will you need a big loan? Better to act soon before rates tick up."
March 20, 2014 10:54 am
“Real estate sales have changed more in the last year than the prior 100 years. I needed a real estate agent in 1997. I didn’t have the password to the MLS.”
- Daniel Pink, bestselling author of the book Drive
at a real estate conference February 2014
There was a time when both buyers and sellers were forced to connect with a real estate agent in order to get even the basic information required to make a good decision regarding their housing needs. That time has passed.
Buyers can now go on-line to find the homes that are for sale. Sellers can go on-line to find out which homes in their neighborhood sold over the last six months and at what price.
Consumers are no longer looking for just information from a real estate agent. They require professional advice based on the information that is available. Guy Kawasaki, Silicon Valley author, speaker, investor and business advisor explained it best:
March 19, 2014 10:48 am
Isn’t it cool when all the actions you have been taking begin to align and the dots connect in precisely the right way, leading you to the exact results you have been seeking?
I agree…it’s a wonderful feeling. And it’s how I felt when I read the KCM eGuide last week titled the Unlocking the Secrets of Real Estate’s New Market Reality
One of the things that has been on my mind lately is just how to get the word out to our members and students about the new market reality we are faced with in the real estate industry. With the ever increasing information available online to both buyers and sellers alike, how do we as real estate professionals stay relevant and necessary in the eyes of the consumer?
I have always been an avid learner and some would even call me a perpetual student or education junkie, especially now since I have gone back for a doctorate. But it’s not just the formal classroom studies that I love — it’s all learning. Actually that’s not true — what excites me most is learning those things which can then be applied directly to the achievement of my goals, both personal and professional.
A case for becoming a perpetual student of real estate