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Monday, March 31, 2014
The Plight of First-Time Buyers
It’s not a $64,000 question, but rather a $41,000 one. “Where are the first-time buyers?” It’s important because $41,000 is the amount renters have missed out on by not buying three years ago when prices were at a low point. The annual median home price was $166,100 in 2011 and $197,100 in 2013. The median national home price this year is expected to hit $207,000. Money left on the table.
Unfortunately, our most recent data show first-time buyers are a shrinking share of the market, only about 27 percent of buyers, compared to 40 percent in a more normal market. It’s not that young households don’t want to buy. It’s that desire is not matching up with their ability. Many young households are saddled with student loan debt while job creation and wages have been heading up only slowly. And the qualified mortgage rule that took effect this year to ensure lenders don’t make bad loans won’t help, since it tightens how much student loan and other debt loan applicants can carry.
This situation is worrisome, because all of the recent growth in household formation has been among renters. Unless a healthy portion of today’s 40 million renter households become home owners, the housing market cannot grow much.
There are two fronts to be tackled if first-time buyers are to get back to more normal levels. First, we must monitor the impact of the QM rule on otherwise qualified buyers to see if lenders are being too risk averse. There’s reason to think they are, because mortgage default rates have been at historic lows in the last few years. That suggests lenders have restricted underwriting too much in anticipation of QM. Second, builders need to step up home building, bringing construction levels closer to historical norms. More inventory helps tame price growth, and it gives buyers something they don’t have much of now: selection.
The bottom line: Housing is under performing. In 2000, when the market was boring, with no bubble and no crash, there were 5.2 million existing-home sales and 1.6 million housing starts. Today, home sales are struggling to reach 5 million annually and new starts total only about 1 million, yet the country has 34 million more people and mortgage rates remain historically low. Those on the sidelines are missing out.
MARCH 2014 | BY LAWRENCE YUN http://realtormag.realtor.org/news-and-commentary/economy/article/2014/03/plight-first-time-buyers
Wednesday, March 26, 2014
What Drives Mortgage Rates? Here are the 6 Main Factors
For more details about these 6 main factors, contact:
Doug Mielitz, Vice President Mortgage Production
Seattle Mortgage Company
206.436.3448 Direct
DMielitz@seattlemortgage.com
NMLS# 518802
www.seattlemortgage.com/DougMielitz
Tuesday, March 18, 2014
Spring Cleaning: Whether Your Listing For Sale or Not
Spring is in the air in the Pacific Northwest. Our plants are blooming, the air is fresh and while we also have a bit of rain this time of year, this season is just one step away from one of the most beautiful times of year. This is the time of year when thoughts turn to spring cleaning; whether or not you’re selling your home. Of course, if you are listing anytime soon, you’ll want to be even more meticulous.
The busy spring market is here, so below are some tips for getting the exterior of your home shipshape:
1. Remove glass from light fixtures and take out any little critters that may have found a home over the winter. Be sure to use glass cleaner on the panes before replacing them in your fixtures.
2. Clean your mailbox. If it hasn’t weathered well over the winter, it’s probably time to replace it.
3. Clean and polish, if necessary, your front door’s hardware. Replace it as well if necessary.
4. Check your house numbers. Are they still in good shape and visible from the street? If not, replace them.
5. Wash down your front door and garage door. If you find that the previous summer’s sun has faded the paint, consider repainting. (Your garage door should be painted a color that blends in with the brick or siding on your home.) Before painting, check with the paint manufacturer to see what the optimal outdoor temperature should be. You don’t want to paint when it’s still too cold outside.
6. Wash the windows. If this isn’t your strong suit, hire a professional.
7. Hose down the porch and driveway to remove any excess salt left over from de-icing or better yet, break out the pressure-washer.
8. Sweep the porch, driveway and patio to get rid of any rogue leaves etc. left over from the fall.
9. Check your porch, driveway, and patio for any cracking or lifting of patio stones that may have taken place during a deep freeze.
10. Check your roof to make sure no shingles are missing or were damaged during the winter.
11. Remove debris from your gutters and drain spouts. De-moss the roof while you're up there.
12. Rake the lawn. However, before doing that it’s very important to check with your local garden center first to be sure it’s not too early. If raked too soon before the ground thoroughly dries, you could potentially damage your lawn.
13. Remove winter displays from your urns. For a burst of color, plant spring flowers as soon as weather permits.
14. Tidy up your gardens in preparation for planting season.
15. Organize the garage. Put away shovels, snow blowers, toboggans, and any other items that made their way into your garage over the winter.
16. If you don’t use your barbeque year round, it’s time to bring it out. If it’s a built-in unit that will be staying with the house, be sure to clean the grills and wash down the lid. If you have a cover for it, replace it if it’s worn.
17. Bring out your patio furniture and set it up. Although it may be too cold to sit outside just yet, you want potential buyers to see your outdoor living space’s potential.
These are some suggestions to get your started. What else am I missing? I'm happy to add any items if you see some, just let me know. And if you'd like to get your home on the market, call me today!
Monday, March 10, 2014
10 Cities Where Luxury Homes Sell the Most
Where do luxury homes tend to sell the most? Coldwell Banker’s Luxury Market Report recently revealed the top U.S. cities with the highest number of luxury home sales in the $1 million-plus category. The cities in the top 10, along with the number of sales in the $1 million-plus tier for 2012 :
- New York City (Manhattan): 2,382
- Los Angeles: 1,533
- San Francisco: 1,507
- Hamptons, N.Y.: 963
- Miami: 790
- Chicago: 713
- Naples, Fla.: 651
- Washington, D.C.: 646
- San Jose, Calif.: 589
- Newport Beach, Calif.: 561
Thursday, March 6, 2014
Wednesday, March 5, 2014
New RE/MAX Widget Changes the Game in Global Property Search
The aptly named GPS widget is located in the top dropdown menu of the “Property Search” tab, as well as at the bottom of the global.remax.com home page. It takes just seconds to use, and gives consumers an instant look at RE/MAX listings for sale or rent around the world that match their desired price range.
So whether it’s Australia or Spain, Singapore or Costa Rica, buyers can find properties anywhere in the world that meet their specific budget and needs. How cool is that?
Listing data on global.remax.com is accessible in nearly 40 languages and 45 currencies – and on every inhabitable continent. It continues to set the standard for connecting consumers to global real estate by making it easy to give and receive referrals, appeal to a worldwide market, and keep RE/MAX one of the most recognized real estate brands around the world.
Nearly 3,500 leads are emailed directly to listing agents at the request of global.remax.com visitors each month. And with page views topping 137 million in 2013 – and the number of unique visitors totaling more than 4 million last year alone – that lead volume shows no sign of shrinking.
Check out global.remax.com, and give the new GPS widget a try!
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