Wednesday, July 2, 2014
Tuesday, July 1, 2014
Buying a Home: The cost of Waiting
Whether you are a first time buyer or a move-up buyer, you should look at the projections housing experts are making in two major areas: home prices and mortgage rates.
PRICES
Over 100 economists, real estate experts and investment & market strategists were recently surveyed. They were asked to project where home prices were headed. The average value appreciation projected over the next twelve month period was approximately 4%.MORTGAGE INTEREST RATES
In their last Economic & Housing Market Outlook, Freddie Mac predicted that 30 year fixed mortgage rates would be 4.8% by this time next year. As of last week, the Freddie Mac rate was 4.14%.What does this mean to you?
If you are a first time buyer currently looking at a home priced at $250,000, this is what it could cost you on a monthly basis if you wait to buy next year:
If you are a move-up buyer currently looking at a home priced at $500,000, this is what it could cost you on a monthly basis if you wait to buy next year:
Bottom Line
With both home prices and interest rates projected to increase, buying now instead of later might make sense.______________________________
ATTENTION: If you are a real estate agent looking for more information to share with your buyers as to why now is a great time to purchase, sign up for a Free 14 Day Trial of KCM and download the Summer Edition of our 11-page eGuide,Things to Consider When Buying A Home. Friday, June 20, 2014
Thank You to Our Sponsors of the 2014 Remax Realty Center Golf Outing!
Larry Snyder from Frontier Title and Closing Services
Amber Castonguay of Remax
Jason Grubba of Inlanta Mortgage
Larry Stanul of Sandstorm Photography
Charlie and Dana Johnson of Guaranteed Rate
Cherie Jarchow and Chris Ireland of Specialized Payroll in Pewaukee
Stacey Guzanick of Remax
Reid Brueser of Remax
Jamie Ireland and Lisa Bear of Remax
Glenn Shong of Remax
Larry Stanul of Remax
Terry Bear of All Out Movers
Terry Bear of 1st Class Limo
Terry Bear of Terry Bear Painting and Maintenance
Thursday, June 12, 2014
Monday, June 2, 2014
2014 April Home Sales Report - Wisconsin REALTORS® Association
2014 April Home Sales Report - Wisconsin REALTORS® Association
Date: May 19, 2014
MADISON –
Wisconsin existing home sales fell in April even as median prices
continued to rise according to the most recent analysis of the state
housing market released by the Wisconsin REALTORS®
Association (WRA). Home sales declined 11.6 percent in April compared
to the same month last year due to a combination of higher home mortgage
rates, higher prices and harsh winter temperatures. Median prices rose
over that same period, increasing 1.4 percent to $139,900.
“As we enter the second quarter of the year, we have been expecting some
improvement in home sales, but it’s important to remember that April
sales are still impacted by the February weather given the 6 to 8 week
lag between the time an offer is accepted and a closing takes place,”
said Steve Lane, Chairman of the WRA Board of Directors. He also noted
that there were heavy snows in the northern part of the state as late as
mid-April 2014. Every region of the state experienced a decline in
April sales. The Central region fared the best, falling just 3.8
percent over the April 2013 to April 2014 period, followed by the
Northeast region which dropped 8.5 percent over the period. The South
central region fell 9.6 percent and the Southeast region saw a decline
of 10.1 percent. Finally, the North region dropped 17.4 percent and the
West fell 25.5 percent. Interestingly, home sales fell more
substantially in the metropolitan counties which averaged a 13 percent
reduction in sales in April compared to rural counties which declined 7
percent between April 2013 and April 2014. “This may be due in part to
much tighter inventories in the urban counties compared to rural
counties,” said Lane. Rural counties had just over 14 months of
available inventory in April compared to just 6.9 months for
metropolitan counties.
“The
national economy barely grew in thefirst quarter which under normal
circumstances might suggest an economic slowdown, but even that has been
partially blamed on the weather,” said
Michael Theo, WRA President and CEO. The advance estimate of first
quarter real GDP growth revealed that the economy grew at just 0.1
percent, and the combination of a harsh winter, lower trade and lower
inventory replacement kept the economy stagnate in the first quarter.
Countering that was a relatively strong consumption component of real
GDP, and a relatively strong April jobs report. The latter indicated a
stronger than anticipated 288,000 jobs created in the US in April which
is the largest monthly growth in more than 2 years. “The key to
sustained growth in the housing market is a growing economy we hope the
current employment trends continue,” said Theo.
For the second straight month, median home prices grew at a modest pace with April
prices up 1.4 percent over April 2013. “The relatively slower pace of
sales over the last four months has allowed our inventories to increase
this year although we are still below April 2013 levels,” said Mr. Theo.
The inventory of unsold homes stood at 8.9 months in April compared to
9.4 months this time last year. “We always expect our inventories to
expand in the winter since home sales cool off, and our inventories have
increased quite a bit this year, which has helped stabilize our
prices,” he said. Wisconsin median prices increased 7.2 percent in 2013
compared to 2012, and they were up 4.2 percent in the first quarter of
2014 relative to that quarter in 2013. In contrast, the price increases
the last two months have been less than 2 percent on an annual basis
which is more in line with general inflationary trends.
The Wisconsin Housing Affordability Index measures the percent of the median priced
home that the household with median family income can afford to buy at
current mortgage rates, assuming a 20 percent down payment. The index
currently stands at 231 compared to 252 in April last year. “Although
slipping slightly, Wisconsin still has very affordable housing, which is
an asset that continues to be a solid hedge against inflation,” he
added.
Date: May 19, 2014
MADISON –
Wisconsin existing home sales fell in April even as median prices
continued to rise according to the most recent analysis of the state
housing market released by the Wisconsin REALTORS®
Association (WRA). Home sales declined 11.6 percent in April compared
to the same month last year due to a combination of higher home mortgage
rates, higher prices and harsh winter temperatures. Median prices rose
over that same period, increasing 1.4 percent to $139,900.
“As we enter the second quarter of the year, we have been expecting some
improvement in home sales, but it’s important to remember that April
sales are still impacted by the February weather given the 6 to 8 week
lag between the time an offer is accepted and a closing takes place,”
said Steve Lane, Chairman of the WRA Board of Directors. He also noted
that there were heavy snows in the northern part of the state as late as
mid-April 2014. Every region of the state experienced a decline in
April sales. The Central region fared the best, falling just 3.8
percent over the April 2013 to April 2014 period, followed by the
Northeast region which dropped 8.5 percent over the period. The South
central region fell 9.6 percent and the Southeast region saw a decline
of 10.1 percent. Finally, the North region dropped 17.4 percent and the
West fell 25.5 percent. Interestingly, home sales fell more
substantially in the metropolitan counties which averaged a 13 percent
reduction in sales in April compared to rural counties which declined 7
percent between April 2013 and April 2014. “This may be due in part to
much tighter inventories in the urban counties compared to rural
counties,” said Lane. Rural counties had just over 14 months of
available inventory in April compared to just 6.9 months for
metropolitan counties.
“The
national economy barely grew in thefirst quarter which under normal
circumstances might suggest an economic slowdown, but even that has been
partially blamed on the weather,” said
Michael Theo, WRA President and CEO. The advance estimate of first
quarter real GDP growth revealed that the economy grew at just 0.1
percent, and the combination of a harsh winter, lower trade and lower
inventory replacement kept the economy stagnate in the first quarter.
Countering that was a relatively strong consumption component of real
GDP, and a relatively strong April jobs report. The latter indicated a
stronger than anticipated 288,000 jobs created in the US in April which
is the largest monthly growth in more than 2 years. “The key to
sustained growth in the housing market is a growing economy we hope the
current employment trends continue,” said Theo.
For the second straight month, median home prices grew at a modest pace with April
prices up 1.4 percent over April 2013. “The relatively slower pace of
sales over the last four months has allowed our inventories to increase
this year although we are still below April 2013 levels,” said Mr. Theo.
The inventory of unsold homes stood at 8.9 months in April compared to
9.4 months this time last year. “We always expect our inventories to
expand in the winter since home sales cool off, and our inventories have
increased quite a bit this year, which has helped stabilize our
prices,” he said. Wisconsin median prices increased 7.2 percent in 2013
compared to 2012, and they were up 4.2 percent in the first quarter of
2014 relative to that quarter in 2013. In contrast, the price increases
the last two months have been less than 2 percent on an annual basis
which is more in line with general inflationary trends.
The Wisconsin Housing Affordability Index measures the percent of the median priced
home that the household with median family income can afford to buy at
current mortgage rates, assuming a 20 percent down payment. The index
currently stands at 231 compared to 252 in April last year. “Although
slipping slightly, Wisconsin still has very affordable housing, which is
an asset that continues to be a solid hedge against inflation,” he
added.
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