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Will Surging Unemployment Crush Home Sales?

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Will Surging Unemployment Crush Home Sales?

Ten million Americans lost their jobs over the last two weeks. The next announced unemployment rate on May 8th is expected to be in the double digits. Because the health crisis brought the economy to a screeching halt, many are feeling a personal financial crisis. James Bullard, President of the Federal Reserve Bank of St. Louis, explained that the government is trying to find ways to assist those who have lost their jobs and the companies which were forced to close (think: your neighborhood restaurant). In a recent interview he said: “This is a planned, organized partial shutdown of the U.S. economy in the second quarter. The overall goal is to keep everyone, households and businesses, whole.” That’s promising, but we’re still uncertain as to when the recently unemployed will be able to return to work. Another concern: how badly will the U.S. economy be damaged if people can’t buy homes? A new concern is whether the high number of unemployed…

How Technology Is Enabling the Real Estate Process

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How Technology Is Enabling the Real Estate Process

Today’s everyday reality is pretty different than it looked just a few weeks ago. We’re learning how to do a lot of things in new ways, from how we work remotely to how we engage with our friends and neighbors. Almost everything right now is shifting to a virtual format. One of the big changes we’re adapting to is the revisions to the common real estate transaction, which all vary by state and locality. Technology, however, is making it possible for many of us to continue on the quest for homeownership, an essential need for all. Here’s a look at some of the elements of the process that are changing (at least in the near-term), due to stay-at-home orders and social distancing, and what you may need to know about each one if you’re thinking of buying or selling a home sooner rather than later. 1. Virtual Consultations – Instead of heading into an office, you can meet with real estate and lending professionals through video chat. Whethe…

5 Simple Graphs Proving This Is NOT Like the Last Time

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5 Simple Graphs Proving This Is NOT Like the Last Time

With all of the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another housing crash like the one we experienced from 2006-2008. The feeling is understandable. Ali Wolf, Director of Economic Research at the real estate consulting firm Meyers Research, addressed this point in a recent interview: “With people having PTSD from the last time, they’re still afraid of buying at the wrong time.” There are many reasons, however, indicating this real estate market is nothing like 2008. Here are five visuals to show the dramatic differences. 1. Mortgage standards are nothing like they were back then. During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. The Mortgage Bankers’ Association releases a Mortgage Credit Availability Index which is “a summary measure which indicates the availability of mortgage credit at a point in t…

Real Estate Is Soaring, But Not Like 2008

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Real Estate Is Soaring, But Not Like 2008

Unlike last year, the residential real estate market kicked off 2020 with a bang! In their latest Monthly Mortgage MonitorBlack Knight proclaimed: “The housing market is heating entering 2020 and recent rate declines could continue that trend, a sharp contrast to the strong cooling that was seen at this same time last year.” Zillowrevealed they’re also seeing a robust beginning to the year. Jeff Tucker, Zillow Economist, said: "Our first look at 2020 data suggests that we could see the most competitive home shopping season in years, as buyers are already competing over…homes for sale.” Buying demand is very strong. The latest Showing Index from ShowingTime reported a 20.2% year-over-year increase in purchaser traffic across the country, the sixth consecutive month of nationwide growth, and the largest increase in the history of the index. The even better news is that buyers are not just looking. The latest Existing Home Sales Report from …

Impact of the Coronavirus on the U.S. Housing Market

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Impact of the Coronavirus on the U.S. Housing Market

The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming. While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world. With all this uncertainty, how do you make powerful and confident decisions in regard to your real estate plans? The National Association of Realtors (NAR) anticipates: “At the very least, the coronavirus could cause some people to put home sales on hold."
While this is an understandable approach, it is important to balance that with how it may end up costing you in the long run. If you’re considering buying or selling a home, it is key to educate yourself so that you can take thoughtful and intentional next steps for your future. For example, when there’s fear in the world, we see lower mortgage interest rates as investors fl…

The Overlooked Financial Advantages of Homeownership

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The Overlooked Financial Advantages of Homeownership

There are many clear financial benefits to owning a home: increasing equity, building net worth, growing appreciation, and more. If you’re a renter, it’s never too early to make a plan for how homeownership can propel you toward a stronger future. Here’s a dive into three often-overlooked financial benefits of homeownership and how preparing for them now can steer you in the direction of greater stability, savings, and predictability. 1. You Won’t Always Have a Monthly Housing Payment According to a recent article by the National Association of Realtors (NAR): “If you’ve been a lifelong renter, this may sound like a foreign concept, but believe it or not, one day you won’t have a monthly housing payment. Unlike renting, you will eventually pay off your mortgage and your monthly payments will be funding other (possibly more fun) things.” As a homeowner, someday you can eliminate the monthly payment you make on your house. That’s a hug…

Why Did A Similar House Sell But Mine Hasn't?

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Why Did A Similar House Sell But not Mine?

So in a Facebook post last week I asked you all to send me a question or two that you have been burning to ask someone in the real estate industry. I had a ton of responses but one stood out from all the rest. Here it is... "Why did a home almost exactly like mine sell but my house has barely gotten any showings?" WOW! What a great question, so I'm going to deviate from my usual blog posts and try to answer this one. Just a note though, probably not every agent will agree with me on what I'm about to say but here is my honest and humble opinion on the subject.... So, really there are 4 factors that come into play when we talk about selling a house. These factors are the same regardless of what kind of market we are in. Those factors are Location, Condition, Price, and Exposure. Some of these we have control of and some we do not so let's dive in! #1. Location - We have zero control of the location of our house. No matte…