Huge Mortgage Rate Biggest Drop in Decade May Drive More Home Purchases

A lot of people can’t afford to purchase a property such as a house in straight cash. That’s why they run into lending institutions such as banks to borrow money and pay the total amount called mortgage loan. The borrower and the lender then agree to pay the total amount with interest. The property being purchased will then become the collateral property in case the borrower fails to pay the mortgage loans.

So in a nutshell, home buyers and borrowers prefer low mortgage rates for them to pay off their debt easier. However, in the past few years, home prices and mortgage rates have been on the high, which keep first time home buyers away from the housing market for quite a while now. The good news at the start of 2019 is that home mortgage rates already have the largest one week drop in 10 years. The Mortgage Leader published this great news on their website, check it out below.

Mortgage Rates Have Largest One-Week Drop in a Decade

28March MMG Weekly Recap 28MAR19

That mortgage rates had their biggest one-week drop in a decade, and that coincided with that breakout. You know we’ve been talking about how the 10-year note has seen support at 260.

Goodness, when the yield finally punched through 260, we’ve seen to 230s in the middle of the week. Pretty remarkable. And it’s something we’ve seen over and over when these barriers are broken—how bonds can really take off.

So that’s what happened this past week, so really interesting. I think you know some of the fuel to this decline in rates, and raising prices, was this economic slowdown that’s not only a concern abroad. It’s well documented what’s going on in Europe and negative yields in Germany’s 10-year bonus is yielding you know beneath zero–which is just really remarkable.

But you know some of that slowdown was even kind of showing here in the U.S. And so what was the real catalyst was that in the middle of the week Steven Moore, who’s been nominated to the Federal Reserve. He said if he gets on the Fed they’re going to vote to cut rates by 50 basis points, which is pretty remarkable, and a real departure from where the Fed was just last year.  See full post here…

Mortgage dropping to a decade low is definitely good news to those who are planning to own a house through a mortgage loan. This means that more and more people now can afford to pay the loans and own the house of their dreams. Low mortgage rates in a strong economy will drive more home buyers and investors back into real estate and housing market soon.

According to KK Howley of Housing Wire, these low mortgage rates may drive more home purchase lending to a 14-year high. Economic hangover also helps a lot in lowering mortgage rates. Read more below to learn more.

Low Mortgage Rates may Drive Home Purchase Lending to 14-Year High

Image Source: Housing Wire

The recent drop in mortgage interest rates is already having an impact on overall mortgage demand as well as the demand for refinances, but just how much could the return of low interest rates impact the market?

Quite a bit, according to new data from iEmergent.

iEmergent, a mortgage forecasting and advisory firm, is projecting a 3.9% jump in total home-loan volume this year. That puts iEmergent at the head of the forecasting pack.

Freddie Mac is expecting a gain of 1.5% for total mortgage lending, according to its March mortgage finance forecast. The Mortgage Bankers Association pegs the increase at 1%, and Fannie Mae expects a drop of about half a percentage point.

Mark Watson, iEmergent’s director of forecasting, said the difference in outlooks is due to expectations about home sales.

In fact, he’s calling for $1.2 trillion in home purchase lending this year. That would make it the best year for that category since 2005. And the reason? Low interest rates.

“We think the lower mortgage rates will create a huge push, partly from Millennial buyers, that’s going to support strong growth in home sales over the next several years,” Watson said in an interview.

The decline in mortgage rates this year is due to two factors, said Watson. One is Brexit, Britain’s stalled efforts to leave the European Union. British government missteps have caused a “flight to safety” among international investors that increased demand for U.S. dollar-denominated bonds, which translated into lower rates for homebuyers, said Watson. Click here to read the rest of this post…

As mentioned earlier, low mortgage rates drive more home buyers as well as investors back into the housing market. Also, this recent drop in the mortgage rates also having a huge impact on the overall mortgage demand as well as the demand for refinancing. First-time home buyers also benefited well from this rate drop, and we do hope that this is sustainable and will last for the next couple of months and years.

If you’re subscribing to a mortgage loan for the first time and is looking to purchase a house, you can actually take advantage of this current market conditions. Gene Walden of Thrivent Mutual Funds gives us some of the best ways to take advantage of today’s low mortgage interest rates. Check them out below.

10 Ways to Take Advantage of Today’s Low Interest Rates

Image Source: Thrivent Mutual Funds

Earning a decent return on your savings may be particularly difficult in today’s low interest rate environment. However, it may be an ideal time for you to turn the tables and actually take advantage of the historically low rates by making some changes in your financial situation. (See: Where to Find Income in History’s Lowest-Yielding Bond Market)

Here are 10 steps consumers may wish to consider to save money on their loans, lower their monthly payment burden, refocus their investment strategy, or improve their lifestyle or their business:

1. Refinance your mortgage

If you bought a home several years ago while interest rates were higher, you may be able to cut back significantly on your monthly mortgage payment by obtaining a new mortgage with a lower rate.

The average 30-year fixed mortgage rate has been about 4.5% in recent months, according to the Federal Reserve1. Please keep in mind that the interest rate you qualify for may vary according to your credit rating. If your current mortgage is around 6% or higher, you may be able to gain significant savings by refinancing – particularly if you plan to stay in the home for many years to come.

While any monthly savings would seem welcome, it is important to point out that the comparison is not exactly apples to apples. Homeowners with a 30-year mortgage who have been in the home for a few years often refinance with a new 30-year mortgage. That may help reduce your monthly mortgage payment, but it would add back those years you’ve already paid, resetting your pay-off date back to 30 years again.

However, if you continue to make the same monthly payments as before – using your interest rate savings to go toward the principle – you should be able to pay off the mortgage years sooner than you would have with the original mortgage with the higher interest rate.

2. Buy a home

Although home prices have been rising in many parts of the country, the current environment may be a good time to buy your first home or upgrade to another home that better suits your needs.

3. Choose a fixed rate mortgage

If you are considering buying a home, you might consider choosing a fixed rate mortgage over a lower interest adjustable mortgage, particularly if you plan to live in the home for many years. According to Freddie Mac (the Federal Home Loan Mortgage Corporation), the average rate on 5-year adjustable mortgages was 3.61% as of April 2018.4 While an adjustable rate mortgage may save you some money on your mortgage payment in the short-term, if interest rates begin to move up in the future, your rate will rise along with the market and, possibly, balloon. But with a fixed rate mortgage, your rate is locked in for the entire pay-off period.

Browse the entire list here…

With mortgage interest rates on a 10-year low, it is indeed the time for home buyers as well as for investors to take advantage of this buying opportunity in the housing market. This is the perfect opportunity to get yourself into mortgage loan since the interest rates are much lower and these rates are also locked in for the entire pay-off period. No need to worry if the interest rates will increase later.

If you find this latest mortgage interest rates attractive and wanted to purchase a new house, we at Dependable Homebuyers can help you find houses according to your budget, especially in Baltimore and Nashville area. To learn more about us, visit https://www.dependablehomebuyers.com.

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House Flipping Tips For A Successful Real Estate Investing

There are lots of ways to make money in real estate like property rentals and leasing to tenants, to home selling. While these real estate investments are profitable and only require minimal supervision, first-time and seasoned real estate investors are gearing towards house flipping primarily because of its overflowing potential to earn money in a relatively short period – especially if you’re doing it the right way.

If this is your first time in house flipping, check out this article written by Margaret Heidenry in Realtor.com about doing house flipping the right way for both first-time and seasoned investors in the housing market. Read the article below to know more about house flipping.

Flipping a House? How to Flip a House the Right Way

Wondering how to flip a house? In real estate, flipping houses has become all the more popular thanks to TV shows such as HGTV’s “Flip or Flop” and “Masters of Flip.” The goal is to buy a run-down home, put money into renovations, list it on the real estate market—and profit, big-time! For real estate investors, flipping houses may have hit its peak in the bubble years leading up to the 2007 housing market crash, but this is one dream that definitely hasn’t died. Many investors are still making money. However, just because you’ve watched a lot of HGTV shows doesn’t mean that you know how to flip a house for a profit.

How to flip a house in real estate to make money

“Stick with the age-old adage of buying the cheapest property in the nicest neighborhood,” says Eric Workman, senior vice president of marketing at Chicago-based Renovo Financial, a private lender specializing in the real estate house-flipping space. But don’t pick just any old shack—look for a home with  “good bones,” Workman says.

Translation: Look for a property that’s structurally sound and has a decent roof, newer windows, and an HVAC system that’s less than 10 years old, as well as modern electrical and plumbing.

Next, an ideal flip should need only cosmetic changes such as new cabinets, countertops, flooring, and paint. Any other renovations will be more costly and cut into your profit on the property.

How much should you pay for a house you’ll flip?

Investors should set a goal of making a 10% to 20% return on their investment. So how do you crunch the numbers? For starters, find out what your fixer-upper will sell for once you’re done with it by looking at the sales price for similarly sized real estate in the same neighborhood that are move-in ready, says broker Bobby Curtis at Living Room Realty in Portland, OR.

As for financing a flip, it isn’t that different from buying a regular home. You’ll either pay cash or take out a mortgage—just consider going for a 10- or 15-year mortgage, which will offer a lower rate. If you’re right on the money, odds are you won’t own this house for long anyway. Read full article here…

House flipping is a type of real estate investment where the investor buys a house and then selling it again for a profit. In a nutshell, an investor applies renovations to certain parts of the house to increase its market value. However, while it is true that applying renovations or improvements do increase the house’s market value, the cost of renovation might end up higher than the estimated profit you could get from selling the house later. A rule of thumb in house flipping is that look for a property to flip that’s in good condition structurally with intact roofing with intact electrical and plumbing, etc.

Now that you know the basics of house flipping and wanted to do it as a career or as a primary money-making investment, you need to know not just the fundamental principles, but also the most essential toolkit you must have to become successful in house flipping business. To know more about these toolkits, check out this article written by Meredith Wood at Fundera.

How to Start a House-Flipping Business: Your Essential Toolkit

Shows including “Flip or Flop” and “Flipping Out” have a firm hold on U.S. television sets, and house-flipping is at a six-year high. There’s no wonder, then, that more people than ever are interested in how to start a house-flipping business. For enterprising investors who aren’t afraid of hard work, flipping a house is an exciting opportunity for short-term investment. But there’s a lot of research to be done, plus financing and resources you need before you start a house-flipping business yourself.

If you’re one of those enterprising investors who wants in, you’ll need to know more about how to start a house-flipping business. Follow this guide to help you develop a business strategy, plus determine and execute the optimal financing plan. To get started, watch this video for some tips from a pro real estate investor and house flipper:

Before You Start a House-Flipping Business

Before you can start a house-flipping business, of course, you need to learn as much as possible about the industry—and your own finances, too. Here’s where to begin:

Assess your skill level.

Identify the location for your short-term property investment, and what kind of renovations make sense with your available capital and knowledge. Depending on your experience, determine what kind of building and extent of renovation you’re equipped to oversee.

Get a pulse on the real estate market you want to flip in.

Scout property opportunities in your network or local market first. If you’re interested in investing in an unfamiliar area, talk to local homeowners and real estate investors to supplement your research.  Here, knowledge is everything.

Learn more here…

Starting a house flipping business is extremely difficult especially if you don’t have any idea what you are doing. You might end up losing money instead of earning profits from flipping houses. Apart from learning the real estate industry, you also need to learn your finances on how you are going to acquire the property; whether you pay it in cash or through a mortgage. You also need to assess your knowledge and skills for these will determine your flipping success. Lastly, you need to get to know the latest real estate market trends you want to flip in. Do advanced scouting, visit the area, etc. for you to know the current condition of the market.

Failing to have the toolkit and house flipping mindset will just lead you to lose money than earning, and there are lots of horror stories of those who lose huge amounts of money by simply not preparing. On the other side, there are stories from people who achieved huge success in flipping houses. Gabrielle Olya of Go Banking Rates shares real-life house-flipping success stories that can influence and inspire other aspiring investors.

Real Life House-Flipping Success Stories — and How To Do It Yourself

House flipping shows are all over HGTV, where you can see pros with entire teams flip homes using seemingly unlimited resources to turn huge profits. But you don’t need a TV crew and an on-camera personality to be a successful house flipper.

GOBankingRates spoke to four flippers, many of whom have turned six-figure profits on their investments. See their incredible before and after home transformations, and find out their best tips for how to start flipping houses yourself.

He Used Online Marketing To Find His Flip

Brian Rudderow, CEO and owner of HBR Colorado, has successfully flipped homes throughout Colorado.

“I use online marketing and search engine optimization to drive leads to my own personal website,” he said of how he finds his flips.

One of his most successful flips was a Colorado Springs home he purchased for $75,000.

“It was in a great neighborhood where the real estate values were skyrocketing,” said Rudderow.

How He Flipped It

Rudderow invested $60,000 to make a full renovation of the home that included new siding, a new roof, a new deck, new flooring and a new kitchen. He also finished the basement and remodeled the bathroom. Thanks to his improvements and an eye for finding a home with resale potential, Rudderow was able to sell the home for $249,900.

Profit made: $114,900

Read more house flipping success stories here…

Those are some of the success stories of real people who found huge success in housing flipping. However, their success did not come overnight. These people experienced lots of failures, losing money in the process. The most important thing is that they learned from these mistakes, turning them into motivation to learn how house flipping works and how the expert do it.

Becoming successful in this type of real estate investment starts with the right mindset and being eager to learn at the same time taking a huge risk of losing your capital. If you think you’re ready to become house flipper and looking for the first house to flip, Dependable Homebuyers can help you find the best home deals for house flipping. To know more, visit them at https://www.dependablehomebuyers.com and let them help with you in finding the best home deals on the market.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247

 

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Best Home Selling Tips For First-Time Sellers

Putting your hard-earned money into real estate investing is encouraging and tempting as a lot of people has earned huge of amount of profits from investing into properties. For those who are new to investing, it is actually the easiest to understand investment type as compared to stocks or bonds for its concept, in general, is relatively simple and straightforward: it only involves the exchange between the property owner and the buyer at an agreed price.

While it’s true that its flow is as simple as mentioned above, real estate investing is actually a complex concept. There are actually lots of investment types in real estate that require different knowledge and expertise. Well if you want to learn the basics of real estate investing, Joshua Kennon of The Balance wrote an article about real estate investing guide for new investors. He wants to help young investors to become knowledgeable on how real estate market works.

Real Estate Investing for Novices

Simply stated, when investing in real estate, the goal is to put money to work today and allow it to increase so that you have more money in the future. The profit, or “return,” you make on your real estate investments must be enough to cover the risk you take, taxes you pay, and the costs of owning the real estate investment such as utilities, regular maintenance, and insurance.

Real estate investing really can be as conceptually simple as playing monopoly when you understand the basic factors of the investment, economics, and risk. To win, you buy properties, avoid bankruptcy, and generate rent so that you can buy even more properties. However, keep in mind that “simple” doesn’t mean “easy.” If you make a mistake, consequences can range from minor inconveniences to major disasters. You could even find yourself broke or worse.

The 4 Ways Real Estate Investors Make Money

Image Source: The Balance

When you invest in real estate, there are several ways you can make money:

1. Real Estate Appreciation

It is when the property increases in value due to a change in the real estate market, the land around your property becoming scarcer or busier like when a major shopping center is built next door or upgrades you put into your real estate investment to make it more attractive to potential buyers or renters. Real estate appreciation is a tricky game. It is riskier than investing for cash flow income.

2. Cash Flow Income
This type of real estate investment focuses on buying a real estate property, such as an apartment building, and operating it, so you collect a stream of cash from rent, which is the money a tenant pays you to use your property for a specific amount of time. Cash flow income can be generated from well-run storage units, car washes, apartment buildings, office buildings, rental houses, and more.

3. Real Estate Related Income
It is income generated by “specialists” in the real estate industry such as real estate brokers, who make money through commissions from buying and selling a property, or real estate management companies who get to keep a percentage of rents in exchange for running the day-to-day operations of a property. This type of real estate related income is easy to understand. For example, a hotel management company gets to keep 5 percent of a hotel’s sales for taking care of the day-to-day operations such as hiring maids, running the front desk, mowing the lawn, and washing the towels.

4. Ancillary Real Estate Investment Income
For some real estate investments, this can be a huge source of profit. Ancillary real estate investment income includes things like vending machines in office buildings or laundry facilities in low-rent apartments. In effect, they serve as mini-businesses within a bigger real estate investment, letting you make money from a semi-captive collection of customers.

See full post here…

Knowing the basics of real estate investing is very important to minimize the risks, save time and earn profit from your investment. As a matter of fact, don’t start putting your hard-earned money into any property yet until you have completely learned enough the basics and advanced concepts of investing.

Over the years, there was a common misconception, a lot of people were actually thinking that real estate investing is only for the rich. Times has changed, real estate investing is no longer just for the rich. Whether you are rich, middle class or low-income earner, you are given equal opportunity to invest in real estate. But it is done? Erik Krattenstein wrote an article in AssetRover explaining that real estate investing is no longer just for the wealthy.

Real Estate Investing: No Longer Just for the Wealthy

Image Source: AssetRover

Real estate investing is on the rise. Middle class entrepreneurs are finding opportunities to boost their income by investing in fix and flip (or fix and hold) real estate investments at an exciting rate.

What exactly is a flip?

Thanks to the success of several primetime television shows and the rebound of the US housing market, house flipping is on the mind of new and experienced real estate investors alike. These savvy investors find a distressed property that can be purchased at a discount, 26% below market value on average, with the goal of renovating the property and selling it for a profit or holding it for rental income.

Smaller investors are making money…

According to RealtyTrac’s 2015 US Home Flipping Report, residential property flipping is the most popular it has been since 2007; counting over 110,000 active flippers. Out of those 110,000 flippers last year, the average number of flips per investor was just 1.6–the lowest it has been in 8 years–a strong indicator that smaller investors are entering the market.
[bctt tweet=”Residential property flipping is the most popular it has been since 2007.”]
Why the rise in new real estate investors? Quite simply, they are making money. According to the research, the average finished flip was appraised at 5% above market value and sold for an average gross profit of $55,000 if it wasn’t held long term for rental income.

But where do they get their money?

The name of the game here is leverage. By bringing in a lender or equity partner, investors are able to fund these investments with just a fraction of the cash coming out of their own pockets.

Conventional Financing

The first source of funding beginner investors try is their local neighborhood bank. Banks tend to offer lower interest rates than the alternatives, and some investors feel more comfortable using a federal institution. However, investors that are not exceptionally healthy with an outstanding profile have trouble getting the financing they need from banks for a few reasons.

First, institutional financing is almost impossible to obtain with a mediocre credit score and not a great deal of liquidity. Perhaps even more importantly, bank loans take time that investors usually do not have. Time is money when it comes to real estate investing, and a delay in funding almost always means the inability to snatch up that perfect listing and a missed opportunity.

Click here to read the rest of this post…

Now that everyone regardless of income status can venture into real estate investing, it all boils to down to the skills and decision making that will lead you to earn huge profits. As the saying goes, you have the edge if you have the right knowledge and skills. For starters, it’s actually not bad to mimic the habits of those who have been very successful private real estate investors.

Monevator has compiled the 7 habits of highly successful private investors in the real estate market that you can actually follow and serve as inspiration.

The Seven Habits of Highly Successful Private Investors

Image Source: The Balance

One of my favourite investing books is Free Capital. It profiles a dozen successful private investors, with insights into their lifestyles as well as their methods.

Free Capital is unusual in focussing on UK investors. Most investing books are about Americans. At a time when you’re more likely to meet someone in the pub who’d rather smash the system than buy shares in it, it’s nice to know you’re not the only optimistic nutter in the asylum.

All the investors profiled live off their money. They are free to invest their capital how they like, but they are also free to take the day off to go to the zoo and see the monkeys. They need never do another day in the office, unless they want to.

Given that many people live paycheque-to-paycheque, are wilfully ignorant about managing their money, shun shares, and save little towards their retirement, this drive to achieve financial freedom through the stock market is far less common than it might seem to the typical Monevator reader.

DIY private investors

What else do the private investors in Free Capital have in common?

Most obviously: They made it.

The book’s author didn’t interview a dozen people who failed to invest their way to millions. Survivorship bias looms large.1

This is especially important here, because all the ‘free capitalists’ profiled are active investors, and the academic evidence is clear. Most active share traders will fail to beat the market, and would do better in index funds.

Were the stock pickers in Free Capital skilful or lucky to end up on the right side of the bell curve of returns? Let’s leave that for another day.

In this post I want to focus on the lifestyle choices that enabled them to amass their wealth, which are equally important.

Earning returns of 20% a year makes achieving financial freedom quicker and likelier, no doubt. But without the habit of socking away cash and risking the market’s ups and downs, you’ve got no chance, whether you’re in passive funds or Bolivian small caps. Learn more here…

Those habits are very easy to master and follow if you have the dedication to learn from the most successful people in real estate investing. Regardless of where you are going to invest; like buying or selling a house in Baltimore, these habits, tips, and knowledge in investing real estate properties; whether it is residential, commercial or industrial properties – it applies. Through reading, researching and lots of practice, it is only a matter of time before you can earn money from your investment.

With the current trend of real estate investing in Baltimore currently bullish, there is a strong chance of earning by riding the trend. Now if you need money to start investing and want to sell your house fast in Baltimore, Dependable Homebuyers can help you in selling your property to the right buyer. Want to learn how? visit https://www.dependablehomebuyers.com and get started.

Dependable Homebuyers
1402 Belt St, Baltimore, MD 21230
(443) 266-6247

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Home-Price Gains In The Month of July Slows Down, Making It The Second-Smallest in 4 Years

The housing market has suffered huge blows in the entire 2019 characterized by slow-paced growth, high-interest rates, rising home prices, among others – and the month of July is not spared from it. The numbers are in for the real estate market, and the home-price gains for July do not look good as well, despite its rising few numbers.

Alcynna Lloyd of Housing Wire wrote an article on this latest housing market news, saying that the home-price gains for July were the second-smallest growth in the past 4 years. Read the article below to know more about the recent home-price gains.

FHFA: Home-price gains in July were second-smallest in 4 years

Single-family house prices rose 5% in July from a year earlier, according to the Federal Housing Finance Agency. It was the second-smallest annual gain in more than four years, following June’s 4.9% pace.

The FHFA’s House Price Index is calculated using data from mortgages backed by Fannie Mae and Freddie Mac. Because of this, it excludes high-end homes bought with jumbo loans or cash sales.

The 12-month price changes were all positive in the nation’s nine Census divisions, with the Middle Atlantic posting the smallest gain of 3.6%, and the Mountain region leading the way with a 7.6% increase.

Measured from a month earlier, the Mountain division saw the strongest growth, increasing 1.2%. The Middle Atlantic Division has the smallest gain, at 0.1%.

Read full article here

As mentioned,, it was the second-smallest annual gain specifically for single-family home prices, reaching 5% in the month of July, following the 4.9% pace in the month of June. While growth like this are good news in the short term, let’s not forget that the bigger picture dictates that annual gains for home-price is still very slow.

This latest development in the housing market was also affirmed by Jacob Passy in his article published in Market Watch, saying that despite home-price going up for the entire country, there was a certain US city where home-price actually fell. Read the article below to know what city it is.

Home-price growth slowed to a crawl in July, but prices actually fell in one U.S. city

The numbers: The pace of home-price appreciation across much of the U.S. continued to peter out in July, according to a major price barometer.

The S&P CoreLogic Case-Shiller 20-city price index remained the same in July on a monthly basis after seasonal adjustments.

On an annual basis, the index only increased 2% from July 2018, down from 2.1% the month prior. This represents the slowest rate of home-price appreciation since 2012.

What happened: Between June and July, home prices rose only in 14 of the 20 large cities that the Case-Shiller index tracks, and most of these increases were relatively small.

Phoenix and Las Vegas continued to experience the most pronounced home-price growth of these cities over the past year, with increases of 5.8% and 4.7% respectively. Charlotte sped past Tampa for the No. 3 spot, with home-price appreciation of 4.6%.

“The geographic flip-flop of home-price growth has cemented itself strongly across the country,” Ralph B. McLaughlin, deputy chief economist and executive of research and insights for CoreLogic said. “Pacific markets are now making up a majority of housing markets with the lowest price growth, while second-tier markets in the South and Midwest continue to lead the country. This is a result of years of unprecedented yet unsustainable growth along the West Coast combined with stubbornly solid economic growth that is benefitting areas initially left out of the recovery from the Great Recession.”

Seattle continued to be the only city where home prices have fallen over the past year, but the rate of home-price declines has slowed.

Read entire article here

As mentioned above, only the city of Seattle where home prices have fallen significantly over the past year. However, looking at the bigger picture, the rate of home-price decline of the city has slowed. In addition, the geographic flip-flop of home-price growth has cemented itself strongly across the country, which is actually a very good sign for the real estate market.

We all know that getting into real estate market requires timing. Now, given the data above, is it the right time to start buying a house? To help us in answering this very important question, let’s check out this article written by Andra Chantim Good Housekeeping about the best time to buy a house according to real estate experts. Read the article below to know the answer to our question.

This Is the Best Time to Buy a House, According to Real Estate Experts

No matter how many times you’ve done it, purchasing a new home can be intimidating, stressful, and of course, incredibly exciting. Before you jump online and start drooling over wraparound porches, come up with a game plan. In addition to the advantages you’ll gain from finding the right realtor and researching your local market, figuring out the best time to buy a house can really pay off, whether that’s in the form of savings or a property in your ideal neighborhood.

If you want the most choices, buy a house in the spring or summer.

February and March is when you’ll first start to see an uptick in new listings online, says Skylar Olsen, director of economic research for Zillow. Sellers of single-family homes tend to be parents, and they often put their homes on the market in the spring with the goal of moving out before school starts back up. Around the same time, potential buyers are house-hunting, as they prefer to be out and about when the weather is warm, says Nadia Evangelou, a research economist for the National Association of Realtors. The combination of these two factors results in a period of about five months — March through July — when a buyer will have the largest selection of new listings on the market, but the most competition. Olsen sees the largest amount of homes being sold at list price or above during March, April and May, while Evangelou identifies June as the peak month for home-selling activity.

If you’re looking for a deal, buy a house in the winter.

Since most prospective buyers would rather casually scroll through online listings in PJs than go open-house hopping in puffy coats, winter is considered the off-season in the real estate world. Sellers strategically wait to list their homes during a period when they will generate the most interest, which is a big reason why there’s less inventory on the market during the colder months. So while you may not be spoiled for choice, you’ll have less competition for the houses that are up for sale at this time, which were either left over from the spring/summer or newly listed for any number of unique reasons. “Owners who list their homes during the off-season may be dealing with a time-sensitive situation (like relocation for a new job) that requires them to sell their properties as soon as possible,” says Olsen. Read the entire article here…

As mentioned above, real estate experts think that buying a new house can be exciting at the same time intimidating experience, especially for first-time homebuyers. The experts also think that if you are looking for more choices, the best time to buy a house is during Spring (February or March) where you’ll see an increase in home listings online. On the other hand, if you’re the type who’s looking for the best deals, then the best time to enter the market is during the winter.

Now you have your ultimate guide as to whether to buy a house not, the decision is all yours now. If you’re finished weighing in your options and looking for some help with the experts in home buying or selling, Dependable Homebuyers can help you find your way in the housing market. To learn more, visit our website at https://www.dependablehomebuyers.com/

 

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Home Selling: Why You Must Do It In 2019?

Just like purchasing a home, home selling is as difficult, even many times as hard a decision to make. Homeowners sell their homes for a variety of reasons, some of them are on the negative side such as paying the debt, hospital bills and other important reasons – and they need to sell their house fast. Most of the time, they will end up selling it at a very discounted price since they don’t have a choice.

There a lot of things to consider when it comes to selling your house. But one of the most important factors is timing. You must know the answer to the question, is it the right time to sell my house? In case you don’t have any idea in knowing the right time to sell your house in 2019, then check out this article written by The Truth About Mortgage as they provide home selling tips in 2019.

12 Home Selling Tips for 2019

Photo Credits: The Truth About Mortgage

While the recent stock market rout will undoubtedly make prospective home buyers feel a little bit poorer, lower gas prices and cheaper interest rates may have the complete opposite effect.

Regardless of what happens to the economy, chances are that those who are planning to buy a home this year, will, assuming they can find one that suits their individual needs.

1. It’s Still a Seller’s Market for Most

Similar to talk of the low mortgage rates going away, which kind of finally did, only to return again, we’ve been told year after year that the seller’s market is coming to an end.

Sure, it will at some point, but my expectation is another solid year for home sellers, perhaps with some leveling of the playing field, as mentioned in my 2019 predictions post.

2. Know Your Buyer and Appeal to Them

Along those same lines, if you’re selling a home in 2019 you’ll want to ensure it is well-maintained and on point design-wise.

The types of homes you see sitting on the market these days are consistently not updated and often not priced to take that into account.

3. Photos and Staging Matter, More Than Ever

Real estate is very emotional. While economists talk numbers, home buyers and sellers lead with their hearts.

One of the most important things you can get right (or very wrong) is photographs. Ultimately, unless you or your real estate agent is a photographer by trade or serious hobby, you’ll need to hire a pro.

See full post here…

To some experts, the entire housing market right now is still favoring the home sellers, which means that the start of 2019 is actually a good time for sellers to put their homes into the various listing. Also before even thinking of selling your house, be sure to stage your house properly. Take some good pictures as well to get the attention of potential home buyers.

Now going back to the main topic, Devon Thorsby of US News wrote an article with the question, Why you should sell your home in 2019? Check out the article below to know the answer to this very important question.

Why You Should Sell Your Home in 2019

Photo Source: Getty Images

Housing markets may not be as hot as previous years, but selling now could be your best bet.

Few people are predicting that 2019 will be a record-breaking year for home prices.

But relatively speaking, 2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next, Nick Ron, CEO of House Buyers of America, recommends going with the devil you know rather than the devil you don’t.

“I think it’ll be better than 2020 and 2021 – who knows what’s going to happen in those years,” Ron says.

Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve. In 2019, consumers shouldn’t expect homebuyers to flood the market again and drive prices through the roof, but it’s also unlikely to be a crisis for home sellers.

If you bought your house in the last year or two, still love it and don’t want to part with it, go ahead and wait another five years before revisiting the thought of selling. But if you’re weighing your options to sell, considering selling this year or maybe the year after, don’t play the waiting game.

New Buyers Are Still Entering the Market

As interest rates rise, some buyers will hesitate to make an offer on a home or apply for a mortgage, so be ready to see occasional drops in buyer activity. And if your house is at the higher end of the price range in your market, you should expect less buyer interest than before. Ron notes the combination of rising mortgage rates and home prices exceeding buyers’ budgets are what has caused the slowing of homebuyer activity in recent months.

Interest Rates Are Still Low-ish

Mortgage interest rates have been on a bit of a bumpy road over the last few months. Interest rates for a 30-year, fixed-rate mortgage reached their highest level in over seven years in November 2018, when they hit 4.94 percent, according to Freddie Mac. As of the end of February 2019, however, interest rates are down slightly to 4.35 percent, according to the mortgage loan company. While it’s reasonable to expect mortgage rates to continue to climb gradually throughout the next year, they’ll remain much lower than the historic high of more than 18 percent in 1981. Click here to read the rest of this post…

With new home buyers entering the market, which means there is more demand. Most likely your house will soon find its buyer provided that you priced your house right and within their budget. Another important data is the low mortgage interest rates, which means more and more people can afford to purchase a house thru lending institutions like banks.

Catrina Sun-Tan of Homelight also wrote an article backing up the abovementioned claims by the experts about home selling in 2019, this time data-backed reasons to sell your house in 2019. Read more below.

Strike While the Market’s Still Hot! 10 Data-Backed Reasons to Sell Your House in 2019

Image Source: Rawpixel

As a homeowner headed into 2019, you may have noticed that real estate trends have been nothing but good for awhile now. In fact, we’re in the midst of the third-largest housing boom since 1913, with U.S. property values rising 53% on average since the start of the expansion in February 2012. That means a typical house worth $200,000 only 6 years ago is now worth $300,000. Cha-ching!

In case you needed another reason to put out the for-sale sign, here are 10 of them. All based on cold, hard data and the professional insights of housing experts.

1. Tick-tock: Existing-home sales already hit their peak in 2017

The National Association of Realtors’ (NAR) existing-home sales report measures completed transactions of existing (rather than newly built) single-family homes, condos, co-ops, and townhomes every month. The report pulls 40% of the data from multiple listing services across the country, offering inventory and price data while providing insight into regional real estate trends and homebuyer behavior.

2. Mortgage rates are going up, up, and away, making it more expensive to buy a house

The Federal Reserve implemented four interest rate hikes in 2018, the most recent of which was on December 19. In response to a rise in inflation rates and labor market expectations, the Committee voted to raise the federal funds rate to 2.25%-2.5%, the highest it’s been since 2008.

Long-term rates like mortgages aren’t directly controlled by Fed rate hikes, but rising interest rates do put pressure on mortgages, eventually softening demand for housing. A 1% increase on the 30-year fixed loan reduces the pool of eligible buyers by up to 20% in major cities.

3. Homebuyers are signing fewer contracts, so 2019 is the time to secure an offer

According to NAR’s pending home sales index, which measures signed real estate contracts for single-family homes and condos, real estate contract activity dropped 2.6% in October, highlighting the 6.7% decrease in pending home sales year-to-year.

A major contributor to this decrease is the rise in mortgage rates and drop in eligible homebuyers. Without the buying power that comes with lower interest rates, people are signing fewer contracts to buy a house.

Browse the entire list here…

Data shows good timing for sellers to put their house into for sale listings, with mortgage rates going up, among other reasons. It’s time to fix those areas in the house that need repairs for it increase home’s value.

If you need some help in selling your house fast, we at Dependable Homebuyers can help you sell your house fast, finding the right buyer for your beloved property. To know more, visit https://www.dependablehomebuyers.com and we’re ready to help.

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Rental Growth May See Modest Declines in 2019

Due to increasing home prices and less and fewer people are able to afford to purchase a home, forcing homeowners to rent a property or a house for a longer period of time that at some point, they are changing their minds preferring renting over buying a new house. With rising home prices amidst better US economy still prevailing in the housing market, it is very important to know the current status of rental growth, whether increasing or decreasing or remain resilient and supported by continued population growth.

According to an article written by Kathy Orton in The Washington Post, some of the experts were weighing in on what 2019 rental market will bring to the entire housing market. Read the article below to know more about the rental market.

Experts Weigh in on What the 2019 Rental Market Will Bring

Photo Credits: Justin T. Gellerson for The Washington Post

Last week, we looked at where the housing market is headed in 2019. This week, we’re taking a look at the rental market.

People are not only renting longer, but in some cases they prefer renting to buying a home. Developers are responding to this demand by building more units, which is holding down rents in some places. But supply continues to be a concern, especially at the lower end of the market, where high occupancy rates are pushing up rents.

The challenge when trying to discover how the rental market is faring is that the data can be contradictory. That’s because it depends on how each source gathers its numbers. Some restrict their data to large buildings. Others limit it to the listings on their site. Renters of single-family homes are usually excluded. As a result, the data can be confusing.

But while the numbers may not agree, the insights they offer can be useful. Below is a snapshot of what rental experts are predicting for 2019:
RealPage

A wave of new apartments has held down rent price growth in the D.C. region, according to RealPage, a tech company that provides software and analytics for the rental housing industry. Washington added around 11,000 units in 2018. Another 16,000 are expected to come online in 2019. The influx is well above historical norms of 7,000 to 8,000 units per year. But this cycle, which started in 2010, has brought an average of 10,000 to 12,000 new units per year.

National Apartment Association

The NAA predicts occupancy rates will continue to be around 94 to 95 percent in 2019, with rent growth averaging 2 to 3 percent. Concessions — breaks landlords offer to lure renters — are declining.

Paula Munger, NAA director of research, expects healthy demand for apartments in 2019, even as developers continue to bring more buildings online.

“I don’t think we’re caught up,” she said. “There’s still a gap. … There is not enough [apartments] at all price points.”

Investment in D.C.-area apartment buildings is also strong. Sales of apartment buildings were up 27 percent from 2017, with the most transactions in Georgetown, Southeast Washington and Fairfax. See full post here…

The more important data to look at is the fact that people right now are not only renting longer but now prefer renting than buying a new home. Also according to these experts, the rental occupancy rates will still be at a very high level at 94 to 95 %, with rent growth at around 2 to 3 percent on average. This is actually an awesome feat and very good news for landlords and real estate investors who are into property rentals.

On the other hand, in an article written by Shawn Knox in Global News, Regina is expecting to see modest housing gains for the year 2019. Learn more about this topic below.

Regina Expected to See Modest Housing Gains in 2019

Image Source: Global News

A modest recovery in housing is expected to start in Regina for 2019 and 2020 according to a report from the Canada Mortgage and Housing Corporation (CMHC).

The report says it’s expecting a significant decline in Regina’s housing market for 2018, saying weak employment growth and higher mortgage rates have combined to reduce consumer buying power, which has moderated demand for new housing units this year.

The report expects to see a modest recovery in residential construction for 2019, based on expected gains in employment and higher oil prices.

Housing prices in Regina are expected to further decline in 2018, but in 2019 and 2020 they are expected to get modest gains.

The rental market in Regina is expected to see declines throughout the forecasted period, but remain higher than historical norms. Learn more here…

Experts believe that the entire housing market in the US and Canada are expected to decline further in 2018, but in the next years, they are expected to bounce back a bit and get modest gains. The entire rental market is also expected declines throughout the forecasted period, but still higher than the historical data.

Caroline Basile of Housing Wire also published an article about Capital Economics’ forecast of rental growth’s modest declines in the next couple of months. Read the entire story below.

Capital Economics: Rental Growth May See Modest Declines

Image Source: Housing Market

Latest report says rental growth will fall back as earnings cool down

The latest housing outlook report from Capital Economics shows that as GDP growth cools, so will rental growth.

Economists at the firm say it expects that the gradual loosening in market conditions mean rental growth is set to cool off.

“From 3.5% y/y today, rental growth on the CPI [Consumer Price Index] measure will drop to 3.2% by early 2020, where it will remain for the next year or so,” Capital Economics writes. “Our profile for rental and house price growth implies that gross rental yields will rise slowly over the next three years, from 6% today to around 6.3% by the middle of 2021.”

Economists at the firm explained that the “pronounced slowdown in global economic growth” is now affecting exports and when paired with the fading fiscal stimulus and the lagged impact of past monetary tightening, that means growth will ease.

“We expect GDP growth to slow from 2.9% to 2% this year and only 1.4% in 2020, before cuts to interest rates help growth recover to 2% in 2021,” the report states.

Rental growth will also fall back as earnings growth slows, the experts write, but the decline should be modest, and gross yields are set to edge up over the next couple of years.

From the report:

The obvious driver for rising rents is the acceleration in earnings growth seen over the past year. As noted above the rise in average earnings growth, to a 10-year high of 3.4% y/y in February, has not yet brought down the share of rents in earnings. Accordingly, that implies landlords have been able to capture much of the rise in earnings from existing rental householdsRead more about the report here

According to Capital Economics that based on the recent housing market reports, the entire rental growth will fall back as earnings cool down in the first quarter of the year. However, these declines in the rental market are at most, modest and the gross yields are also set to edge up over the next few years. For the meantime, landlords will definitely feel the slow growth in the next couple of months, might even result into increase in rentals affecting the tenants. We do hope that this modest rental growth ends quickly in order for both landlords and tenants to benefit from the rising US economy.

However, if you’re tired of renting a home and decided to buy one for you and for your family, Dependable Homebuyers can help you find affordable homes that are right on your budget. To learn more, check us out on https://www.dependablehomebuyers.com and let’s get started.

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Planning To Renovate Your Home? Check Out These Cool Home Renovation Tips

Homeowners do home renovations at least once a year, even more, depending on how they view their respective homes. A home renovation project is costly, depending on the design, materials, and labor being utilized. Those who have the money have the luxury to do renovations as often as they want and those who are on a tight budget do it seldom, or not doing it at all. The most common misconception is that home renovation is a thing just for the rich, which is definitely not true. However, if you’re on a tight budget, you may focus first on the most important part of the house.

Starting on your living room first, check out these tips from Real Simple on how to design your home interiors the way professionals are doing them. Read below to learn how.

Interior Design Tips From a Pro

Photo Credits: Christopher Sturman

Want to elevate your home without taking on a complete overhaul? Interior decorator Nick Olsen—DIY whisperer and master of the cheap trick—reveals the little tweaks that make the biggest impact.

How did you get started in this field?
Right after getting my architecture degree, I read about the designer Miles Redd in a magazine. I was so blown away by his bold aesthetic and everything he’d accomplished by the age of 35 that I wrote him a letter asking for a meeting. Two weeks later, I had my first full-time job, as his assistant. It was fate!

What’s one quick change that will improve any room?
Lower the artwork. People tend to hang it too high; it should be at eye level. And don’t worry about having something on each wall. It’s better to cluster art in one or two spots than to spread it out.

Decorating a huge room can be intimidating. How do you deal with soaring spaces?
My philosophy is to fill them with large-scale furniture and art. If you’re a less-is-more type, go for one massive piece, like an amazing painting over the sofa.

Suppose you can’t afford art that big?
Buy a blank canvas and paint it yourself. Pick the most interesting color in the room (as long as it’s not already the dominant color) and just cover the canvas in that shade, using the same paint you’d use for walls. There’s no way to mess this up, and it costs next to nothing. Google [famed abstract artist] Ellsworth Kelly for inspiration. He has pieces like this hanging in the Whitney Museum.

Any tips for jazzing up a minuscule space?
Nearly every room has a door. Work it. Paint it a glossy black: It takes only two hours and gives a room instant sass but won’t eat up any valuable real estate.

Click here to read the rest of this post…

If you want to know more about home renovations, better learn it from the pros for they will give you with the most creative, effective and practical home interior design tips that suit your needs. Pros will consider room spaces and work on it as well as your budget. Those tips above are really helpful, especially for first-timers.

If you plan on changing your windows and don’t have any idea how to make it look awesome, check out these tips on finding the perfect windows for your home as published by Easy Home Improvement Blog.

How to find the perfect Windows for your Home?

Image Source: Easy Home Improvement Blog

Just as you’d take plenty of time when choosing new furniture or décor, selecting the ideal windows for your home is an important decision that requires plenty of consideration. With so many styles, finishes and openings to choose from, it’s essential that you choose glazing that will enhance the exterior of your house whilst ensuring your home remains insulated and secure.

Whilst the cheapest way of fitting windows to a new house is to use white PVCu windows, hardwood, composite and aluminium windows offer a lot for design options and a wealth of stunning finishes. With all this in mind, the team at Martindale Windows Northampton have taken a look through the world of windows to give you a deep insight into what each style of window will provide along with the pro’s, con’s and sots of each.

PVCu Windows

PVCu (plastic) windows have dominated the windows market since their original introduction in the 1990s as a they offer the simplest of all window solutions. Whilst his solution is no longer deemed to be environmentally friendly, at an average cost of between £4000 and £15000 per property, they do offer a relatively cost-effective solution and require little maintenance. However, they can look cheap and reduce the value of period homes and can be difficult to repair if broken.

Composite Windows

Formed around a timber window frame with a weather-proof capping, composite windows are generally used on houses that have harsher climates as they are extremely durable. Available with triple glazing and in range of modern designs, composite windows provide a very low maintenance solution that offers extraordinary insulation. However, at around £10,000 to £25,000 per home, composite windows are one of the most costlier solutions. See full post here…

Those are easy to follow tips in finding the right windows for your home. Remember the cost of installing windows depend on the type of windows you’re going to install. Knowing what each window style will provide, as well as the pros and cons of each type. Doing so will completely minimize the cost and avoid making errors in your renovation projects.

Another important area of the house that frequently needs renovation is the kitchen, and Callie Little of Zillow.com gives us tips in making the most of your limited kitchen space. These tips are really helpful to those who have small spaces to work with. Check out the tips below and wholeheartedly follow them for best results.

Small Kitchen? Try These 9 Tips for Making the Most of Your Limited Space

Transform your standard-issue rental kitchen with these tips.

Is there some kind of law that requires rental apartments to supply no more than a single square of kitchen counter space to each unit?

Between the white walls, scarce and often outdated cabinets, and a lack of amenities, it’s rare to find a solid kitchen in the world of yearlong leases.

Here’s where to begin.

Donate first

Before moving into your new space, make sure to get rid of all those things you don’t need anymore.

Have you actually used that discounted bundt pan in the past year or two? If not, donate to your favorite local charity shop. Someone else might get use out of it, and you’ll be saving yourself from more clutter in your new home.

Think vertically

Photo Credits: Zillow

Vertical storage is a tried-and-true method of using space, and the kitchen holds some unique opportunities for making the most of it.

Hanging pot racks, magnetic knife strips, mounted dish-drying racks installed above the sink, and rods with hooks for towels, aprons, small tools and oven mitts are all excellent ways to keep clutter in its place — and keep the surfaces and lower area of the room free.

Find beautiful cleaning tools

The ugly truth is that a lot of everyday items just make sense to keep out — but that doesn’t mean they have to be such an eyesore.

Skip the plastic and get yourself a classic wooden broom, natural fiber dish brush and a glass soap dispenser. These items don’t cost much, but they add a softer look while also getting the job done. Read the entire article here…

The kitchen is among the most important house areas where renovations are necessary in case a new cooking appliance has arrived, or you need to accommodate a bigger sink, etc. It is important for the kitchen to be organized all the time, and space must not be a hindrance to achieving the organization you would like.

It is important that we burst that myth of home renovations are just for the rich and for larger homes. There are cheaper and affordable ways to achieve your desired design without hurting your pocket. In addition, careful planning with the design will negate small spaces. Ask an expert if you need to. However, if you don’t have time to do the renovations and decides to sell your house fast, Dependable Homebuyers can help you find the right buyer for your home. To get started, visit us at https://www.dependablehomebuyers.com and let’s hear from you.

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