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Housing bubble? What housing bubble? Beware of what "everyone knows".
By Michael
August 17, 2017

58% of Homeowners See a Drop in Home Values Coming | Simplifying The Market

58% of Homeowners See a Drop in Home Values Coming

According to the recently released Modern Homebuyer Survey from ValueInsured58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

The two major causes of the housing crash were:

  1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
  2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

Bottom Line

If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.  Keller, Saginaw, Fort Worth, Southlake, Roanoke, Haslet, Watauga and all of North Tarrant County as well as Denton and Colin counties continue to post inventories BELOW buyer demand..  With interest rates still low, home affordability is still good, even with the appreciation of existing houses.  That meand it's time to act while you can get a terrific price for your existing home.   But it takes a strategy that lets you avoid being squeezed as you sell one home and buy another.   I've helped several clients do this in recent months.  Call me or contact me on the website to discusss your home's potential market price and how we can make the process work for you!

How Long Do Most Families Stay in Their Home?
By Michael
August 7, 2017

How Long Do Most Families Stay in Their Home?

The National Association of Realtors (NAR) keeps historical data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home, meaning how long a family stays in a home prior to moving. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.

How Long Do Most Families Stay in Their Home? | Simplifying The Market

Why the dramatic increase?

The reasons for this change are plentiful!

The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

With home prices rising dramatically over the last several years, 93.9% of homes with a mortgage are now in a positive equity situation with 78.8% of them having at least 20% equity, accordingto CoreLogic.

With the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

One other reason for the increase was brought to light by NAR in their 2017 Home Buyer and Seller Generational Trends Report. According to the report,

Sellers 36 years and younger stayed in their home for six years…”

These homeowners who are either looking for more space to accommodate their growing families or for better school districts are more likely to move more often (compared to 10 years for typical sellers in 2016). The homeownership rate among young families, however, has still not caught up to previous generations, resulting in the jump we have seen in median tenure!

What does this mean for housing?

Many believe that a large portion of homeowners are not in a house that is best for their current family circumstance; They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple living in a one-bedroom condo planning to start a family.

These homeowners are ready to make a move, and since a lack of housing inventory is still a major challenge in the current housing market, this could be great news.  

What does this mean for you?

With the average tenure of people staying in their homes going up, this is important for BOTH buyers and sellers. Buyers will find fewer homes on the market, driving up price' but the longer average, if it holds, means your long-term dollar appreciation on your home should increase. Sellers benefit from the higher price for their home NOW, but this could be short term if prices hit affordability issues for buyers. If you have a home in Tarrant Count, particularly Keller, Fort Worth, Saginaw, Watauga, North Richland Hills, Hurst, or Roanoke, it's time to get a comparative market analysis to help you decide whether this is the time to sell. Contact me for your free analysis.

Down Payment Resource
By Michael
August 6, 2017

I'm very excited about a brand new service I'm providing for buyers!   Check out the DOWN PAYMENT RESOURCE TOOL!  There are programs that can save you THOUSANDS of dollars in down payments and closing costs.   And there are additional programs that give tax credits that help reduce the costs of home ownership for years to com!

Check for down payment assitance programs and whether you qualify!Click on the image here and fill out a short form.   This tool has been designed so you can use it whether you have found the specific home you want to buy or you are just starting to investigate different neighborhoods.

Some programs limit the income your family may earn to qualify.  Others are open to any home buyer.   Take a moment and check it out.  

Here's an examply of what you may find.  If you are a first time buyer, or if you are buying a home and have not owned one in the last three years, you may be able to get up to $15,000 in funds you never have to repay for a home in Fort Worth, TX, provided you stay in the home for five years!!   That scales back your down payment, gives you instant equity in the home and saves you money on your monthly mortgage payment.   And even with that help for down payment and closing costs, you can still qualify for a tax credit that could take and additional $2.000 a year off your federal income tax each yea!

Even if you're not a first time buyer, use this valuable tool!   Most tax credit porgrams are open to anyone, but may require you apply for it BEFORE you sign the mortgage papers at closing!   Don't miss out on thousands of dollars in savings.

And, as always, I'm here to help with any question you may have.

I am proud to offer this free tool.  It's just one of the services I provide as your REALTOR®.  Call me at 817-692-5026 or contact me here on the website.  It's my goal to provide service that exceeds your expectation.

 P.S.:   PLEASE SHARE THIS LINK WITH A FRIEND!!!!  THEY'LL THANK YOU FOR IT!

Twenty Ways to Make Your Home Appeal To Buyers
By Michael
August 4, 2017

20 Tips for Preparing Your House for Sale [INFOGRAPHIC]

20 Tips for Preparing Your House for Sale [INFOGRAPHIC] | Simplifying The Market

 

Some Highlights:

  • When listing your house for sale your top goal will be to get the home sold for the best price possible!
  • There are many small projects that you can do to ensure this happens!
  • Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local contractors who can help!

Quick Market Estimate

You can always check an estimate of your homes rough market price at http://www.remax.com/realestateagentoffice/keller-tx-76248-michaeldryden-id28754334.html.  Just click on Home Value.  That will give a rough dollar estimate.  I'm glad to provide a free custom Comparative Market Analysis!   Just give me a call or contact me here!

Afraid to Pull The Trigger? Ready, Aim, Sell!
By Michael
August 2, 2017

Do Your Future Plans Include a Move? What's Stopping You from Listing Now? | Simplifying The Market

Do Your Future Plans Include a Move? What’s Stopping You from Listing Now?

Are you an empty-nester? Do you want to retire where you are, or does a vacation destination sound more your style? Are you close to retirement and not ready to move yet, but living in a home that is too big in size and maintenance needs?

How can you line up your current needs with your goals and dreams for the future? The answer for many might be the equity you have in your house.

According to the latest Equity Report from CoreLogic, the average homeowner in the United States gained $14,000 in equity over the course of the last year. On the West Coast, homeowners gained twice that amount, with homeowners in Washington gaining an average of $38,000!

Do you know how much your home has appreciated over the last year?

Many homeowners would be able to easily sell their current house and use the profits from that sale to purchase a condo nearby in order to continue working while eliminating some of the daily maintenance of owning a house (ex. lawn care, snow removal).

With the additional cash gained from the sale of the home, you could put down a sizeable down payment on a vacation/retirement home in the location that you would like to eventually retire to. While you will not yet be able to live there full-time, you can rent out your property during peak vacation times and pay off your mortgage faster.

Purchasing your retirement home now will allow you to take full advantage of today’s seller’s market, allow you to cash in on the equity you have already built, and take comfort in knowing that a plan is in place for a smooth transition into retirement.

Bottom Line

There are many reasons to relocate in retirement, including a change in climate, proximity to family & grandchildren, and so much more. What are the reasons you want to move? Are the reasons to stay more important? Let’s get together to discuss your current equity situation and the options available for you, today!

What's Holdin You Back?

I'm always looking for ways to improve my service to clients.   Won't you help me out by sharing your concerns about selling your home now?  It will help me plan out solutions to help more families benefit from the excellent opportunities available in the market today?  Who knows?  I might even have the solution you've been trying to find!