Mortgage Rates 2018

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

InterestRates-10-1024x768

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line 

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.

Real Estate Market is not Collapsing

There has been tremendous volatility in certain markets over the last few weeks (for example, the stock and currency markets). When this happens, some tend to lump all of their investments together and create an almost ‘Armageddon’ scenario where everything loses value quickly and dramatically. Real estate is an investment that can get caught up in this hysteria. Does the concern about the current housing market have merit?

Financial advisors have been warning us for months that the stock market was ripe for a “correction.”

Experts have been questioning the value of alternative currencies for over a year.

In contrast, here are the opinions of three major players in the residential housing market:

Ralph DeFranco, Chief Economist, Arch Capital Services Inc.

“It’s premature to worry about a housing bubble. The typical warning signs – excessive debt levels, poor quality loans, exponentially increasing home prices, rising vacancy rates and/or poor affordability compared to the past, and a high number of internet searches on house flipping – are not present.”

Liu-Down, Genworth Chief Economist

“My thoughts on many recent discussions of ‘housing bubble’ – the bar for a housing bubble is higher than just prices being above some fundamental value. There must be widespread behavior change as well such as higher levels of fraud and speculation.”

Fitch Report

“US home prices are on track for a 5% nominal gain for the 4th consecutive year, returning national prices to their highest level since 2007. The growth has been driven by historically low mortgage rates and unemployment plus solid population and personal income growth rates…a meaningful correction should only be triggered by an unexpected economic shock.”

Bottom Line

Speculation has driven certain markets over the last year. However, it has not been speculation, but instead people’s desire for homeownership, that has driven the real estate market.

Reasons to Hire Real Estate Professional

Whether you are buying or selling a home in Mariposa it can be quite the adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal. But in this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO.’

The 5 reasons you NEED a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best deals possible), to the home inspection companies, all the way to the appraisers, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to a study by Collateral Analytics, FSBOs achieve prices significantly lower than those from similar properties sold by real estate agents:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There is so much information out there on the news and on the internet about home sales, prices, and mortgage rates; how do you know what’s going on in Mariposa Real Estate or specifically in your area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

You wouldn’t replace the engine in your car without a trusted mechanic, so why would you make one of the most important financial decisions of your life without hiring a real estate professional?how-to-choose-a-realtor

OLD MEETS NEW TECH

tech

As our days become more app. this, app. that and tech cool, to tech savvy. Here are some home building trends that are starting to take the new with the old.

Solar panels

Recent improvements in solar technology have transitioned solar panels from an expensive, fancy technology to an actual reality for many homeowners. Solar panels are already making waves in home roofing. People often express interest when the time comes to redo their roof (that’s the perfect time consider adding panels).Here in Mariposa you can visit Offline Solar to learn more about how solar can help you.

Smart homes

Alexa. “Turn on the lights.” Could be the new phrase. Home automation is a growing trend. Each year, new companies roll out novel technologies to help people better manage their homes. These companies try to address needs that people never even knew they had. New devices are constantly entering the marketplace, and new homes are frequently equipped with these technologies.

 

Energy efficient windows

Energy efficiency will continue to be a powerful trend with windows in the future, as glass films and coatings make windows better at heat and cold insulation. Glazing giving windows a frosty appearance with the flick of a switch might be the next new development in windows, as more and more manufacturers experiment with this technology.

Barn and Pocket doors

Barn doors offer rustic charm to a home while also remaining functional, which is why people love them. From closet doors to room dividers, barn doors are quickly becoming a popular trend in new homes. Pocket Doors are ideal for the flexibility of interior planning, where a shining door or wall-mounted sliding door might lack clearance to move. A sliding pocket door much like a barn door are great for bedrooms, kitchens, bathrooms, offices, pantries, closets and areas where narrow hallways also restrict swing door movement.

SELLING IN THE WINTER MARIPOSA

Selling-Your-Home-in-the-Winter

Selling your home in the spring may still be a peak time to sell and buy real estate. Yet it can pay to list in the winter, buyers in the winter tend to have more urgency. Competitive price during the winter months is not out of the realm of possibility. According to a study by Redfin, found that average sellers net more above asking price during December through March than they do from June through November, even in cold-weather cities like Denver and Chicago.

Timing always depends on supply and demand. To understand your local climate, contact your local agent to check the number of days on the market for current and recently sold listings. Here in Mariposa if the homes are sitting for more than 90 days, it could be safer to wait until spring, when more buyers will emerge. However, if the properties are selling quicker, list.

5 Tips to sell your home in Mariposa County

how-to-sell-your-house-fast

It can be hard to put a price on your home, especial up here in the Mountains. Each home is unique and has its own story to tell. The best way to come up with a comfortable number is to look at active and sold listings of similar homes in your area. If you combine this research with a local real estate agent’s knowledge, you can confidently price your home to sell.

Things to consider when deciding on a price for your home.

1. Look at recent sales.

Markets change quickly, so find comparable sales within the past three months. If you go back too far, the prices and sales will be irrelevant to today’s market, however here in the mountains we use a broader spectrum for sales.

2. Renovations matter.

Buyers prefer renovated homes with neutral finishes. If your home isn’t updated, it’s not going to sell for as much or your home stays stale on the market.

3. Each home is unique.

Just because a home similar to yours sold for $300,000 doesn’t mean that your home will sell for $300,000. Layout and flow matter to buyers. If the other home’s kitchen was closed off from the living area, and your home has an open concept kitchen/living area, you’ll be able to price your home for more.

5. Visit open houses.

Today’s Real Estate selling consist of online and in person. In return this is a great way to increase your homes visibility online and in person.  An open house is a great way to increase its visibility and bring in people who might not have made an appointment for a personal visit. Stay informed.

5. Get info from your real estate agent.

Top notch real estate agents know their market inside and out. They can likely explain things that don’t make sense to you, and they can offer tips to help make your home more valuable.

Real Estate ECONOMIC MODEL

One of the four fundamental business models of The Millionaire Real Estate Agent is the Economic model. It’s a numbers game and aligning yourself with the professionals at Keller Williams Realty will allow you the best opportunities to stand out in your market. Learn more about The Millionaire Real Estate Agent business model and the benefits of choosing KW as your broker today!

 

Attached is the .xls file to help you track & budget your growth.

Economic Model

FSBO is it a Good Idea

The Home Selling Process Do you want to be a For Sale By Owner (FSBO)? Consider these facts: 9% of sellers in 2010 sold themselves. 42% of those sales were to family members or people they knew. Sellers using an agent had an average sale price of $215,000. Unrepresented sellers had an average sale price of $172,000

89 percent of sellers sold with the assistance of a real estate agent, up slightly from 88 percent the last three years, and only 8 percent (down from 9 percent) were FSBO sales. The share is the lowest since this data collection started in 1981. Among those who chose the FSBO route, 38 percent knew the buyer who bought their homes and 62 percent did not know the buyer. Where FSBO sellers knew the buyer, the time on market for the home was usually one to less than a week and sellers received 99 percent of the asking price. The median age for FSBO sellers is 56 years. Every home seller must eventually decide whether to hire a REALTOR® or to sell the home on their own.

http://economistsoutlook.blogs.realtor.org/2015/11/09/selling-your-home-solo-to-save-money-youll-actually-make-less-than-you-think/

My KW App

Finding the perfect home has never been easier with my free kw real estate app.

You’ll get the most accurate real estate information that you won’t find on any other app.

Simply target an area by drawing a circle or dropping a pinpoint.

Search for property types with ease and see inside your dream home with full screen photos and property details.

This app allows us to connect so I can provide you with great service faster.

You can also estimate your home loans with the mortgage calculator.

Just visit your app store today to download the free kw real estate app.

Then search my name and add me as your agent so you can easily stay up to date with any new announcements and listings.

Mariposa County Real Estate JUNE 2017

** Overview of Mariposa, CA Market Trends

Mariposa’s home resale inventories stayed the same 0 percent increase since April 2017. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May. The median listing price in Mariposa increased 10.68% from $290,000 April 2017 to $321,000 May 2017.

BALANCED MARKET

It is widely accepted in the Real Estate World that:
0-4 months of inventory is a “Seller’s Market”
5-7 months inventory is a “Balanced Market”
8-12 or more months of inventory is a “Buyer’s Market”

So with that as a guide, Mariposa County is at 5 months of inventory (June.has not been updated as of this print.) we are in a “BALANCED MARKET”.

Inventory from April to May stayed the same from 5 to 5 months of inventory. Zero Change.

Home sales have declined year-over-year. Down -6.6% since one year ago & up +7.69% since last month. Meanwhile Home prices have also decreased year-over-year. Down -2.7% since one year ago & up +10.68% since last month.

Find your home’s value

**percentages fluctuate with the market, Information was up to date at time of print. For more information contact Bryce Battershell bryce.battershell@kw.com