March 12, 2014 10:03 am
released their Rent vs. Buy Report
last week. The report explained that homeownership remains cheaper than renting in all of the 100 largest metro areas by an average of 38%!
The other interesting findings in the report include:
- Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
- Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering.
- Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.
March 11, 2014 9:57 am
There has been a lot of chatter about the last few Existing Home Sales Reports
from the National Association of Realtors
(NAR). Year-over-year sales have been down four of the last five months. Experts are asking whether or not the housing recovery is beginning to stall. Let’s take a closer look at the data.
It is true that last month’s annualized sales rate of 4.62M was less than the 4.87M reported last January. However, after further scrutiny, the report reveals an interesting situation: sales of non-distressed properties are actually up. In January 2013, 23% of the 4.87M sales were distressed properties (foreclosures and short sales) meaning 3.75M non-distressed properties
were sold. In January 2014, 15% of the 4.62M sales were distressed properties. That means 3.93M non-distressed properties sold
- an increase of 180,000 sales.
When we dig deeper
into NAR’s research, we also see that homes at the higher price points are selling at greater increases than the lower price points.
March 10, 2014 9:48 am
Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
The results of their latest survey
The latest survey was released last week. Here are the results:
March 6, 2014 8:30 am
Today we are excited to welcome back Ashley Garner as our guest writer today. Ashley has been a broker for over 20 years in the Wilmington, NC area. - The KCM Crew
Location may have the most effect on value but Price is without question the most important factor controlling the sale of real estate. Anything will sell anytime, how long will it take depends on the price.
Think about it this way – you may really want to buy a car for your collection and your favorite happens to be a 1963 Corvette. So you hear about one for sale, in mint condition, across town but the only problem is the price, the owner is asking $150,000! Well, although you really, really want a mint condition 1963 Corvette, there is no way you will pay anywhere close to $150,000, in fact you know that the most a 1963 Corvette has ever sold for is about $200,000 and that was for a very rare model, which this one is not.
Because you are a bit obsessed with owning one of these cars you spend almost all of your free time, and some of the time you should be working, searching the internet for available cars. Through this exhaustive search you have become somewhat of an expert on the values of 1963 Corvettes, especially in your town. You happen to know that the particular model for sale across town is worth about $95,000…maybe $100,000. In fact, if the asking price was $100,000 or even $110,000 you would’ve driven over there today with your checkbook and driven home in a 1963 Corvette!
So why don’t you go make an offer?