Buyers Market Coming Soon

August 20, 2018 Posted by Andre Hemmersbach

Are we on the cusp of a change in the Real Estate market? The last 4 years have seen incredible increases in real estate values mainly due to an imbalance between supply and demand. Buyers (demand) have outstripped listing inventory (supply) month after month and year after year. In the last few weeks, I have had a number of conversations with Realtors who have told me that things seem to be slowing down. Multiple offers scenarios, while still happening, are being joined by less buyers and some properties that are not priced correctly are not getting any action. The truth will be revealed at the end of August and September (see chart below).

Price vs Listing Chart

Price vs Listing

 

The end of summer traditionally has a pretty sharp drop off in the number of properties for sale. If at the end of August and September that seasonal adjustment does not happen with its normal veracity, we could be seeing a future with buyers having a bit more room for negotiations.

I have been helping clients finance their real estate for the last 30 years. Call me for a free consultation.

Hot and Upcoming Real Estate Markets 2018

May 18, 2018 Posted by Andre Hemmersbach

A great way to find hot up and coming real estate markets is to see where people are moving and it’s as simple as supply and demand…remember Econ 101?

According to United Van Lines, which has been tracking moving statistics for 40 years, retirees left sand and sunny beaches for western mountains. See the “Annual National Movers Study” below.

Map of Migration

Migration Map 2017

Moving In Real Estate Markets

The top inbound states of 2017 were:
1. Vermont
2. Oregon
3. Idaho
4. Nevada
5. South Dakota
6. Washington
7. South Carolina
8. North Carolina
9. Colorado
10. Alabama

As a region, the Mountain West continues to increase in popularity with 54 percent of moves being inbound. The West is represented on the high-inbound list by Oregon (65 percent), Idaho (63 percent), Nevada (61 percent) Washington (59 percent), and Colorado (56 percent). Of moves to Oregon, the highest ranking western state, a new job or company transfer (49 percent) and proximity to family (24 percent) led the reasons for most inbound moves.

The southern states also saw a high number of people moving in with 52 percent of total moves being inbound. United Van Lines found the top reasons for moving south included company transfer/new job, retirement and proximity to family.

The Northeast continues to experience a moving deficit with New Jersey (63 percent outbound), New York (61 percent) and Connecticut (57 percent) making the list of top outbound states for the third consecutive year. Massachusetts (56 percent) also joined the top outbound list this year.

New to the 2017 top inbound list are Colorado at No. 9 and Alabama at No. 10 with 56 and 55 percent inbound moves, respectively

 

Moving Out Real Estate Markets

The top outbound states for 2017 were:
1. Illinois
2. New Jersey
3. New York
4. Connecticut
5. Kansas
6. Massachusetts
7. Ohio
8. Kentucky
9. Utah
10. Wisconsin

Illinois (63 percent) moved up one spot on the outbound list to No. 1, ranking in the top five for the past nine years. New Jersey previously held the top spot for 5 consecutive years. New additions to the 2017 top outbound list include Massachusetts (56 percent) and Wisconsin (55 percent)

Purchasing a rental property or a second home in a hot and up coming real estate markets is a good bet if you are looking for capital  appreciation. If you follow some basic real estate investment guidelines, do a little homework and work with professionals, it could pay off in a big way! Call me to discuss winning strategies for purchasing investment properties.

Good Economy is Bad For Mortgage Rates

January 30, 2018 Posted by Andre Hemmersbach

Higher Mortgage Rates In Our Future?

Higher mortgage rates? I thought the economy was doing well? It seems almost backwards but a good economy is bad for interest rates. As the economy picks up steam,

Mortgage money is going to cost more

Money

investors start to worry about inflation. How much will inflation diminish my investment returns? The answer is simple for them. They only buy investments that bring a higher return adjusted for a higher anticipated inflation. Mortgages with lower rates do not get purchased, so rates move up. Simple supply and demand. So while the good news is your retirement account is growing with every Dow increase, the bad news is that any credit you may have or acquire, like a car or home loan, will be at a higher rate.

What does that mean in dollars and cents?

A 0.25% rate rise on a $300,000 mortgage equates to a monthly payment increase of about $44.00 per month and while that may not seem like a lot, these little increases can add up. According to Samantha Sharf at Forbes, in an article for January 3, 2018, mortgage rates are anticipated to top out around 4.5% by the end of 2018.

Please call me for a free consultation. We can discuss if you are in the correct mortgage product or need help restructuring high credit card or soon to be higher Equity Line of Credit debt.

Political Uncertainty Was Good For Mortgage Rates

May 24, 2017 Posted by Andre Hemmersbach

Political Uncertainty

Growing political uncertainty was good for mortgage rates this last week. Recent economic data had little impact. Mortgage rates ended the week near the best levels since before the November Presidential election.

Following the election of Donald Trump, the stock market rallied and mortgage rates rose. They did so based on pro-growth policy changes planned by President Trump. On Wednesday, allegations of Trump’s interference in an FBI investigation gave investors reason to question the President’s ability to implement these changes. Investors reacted to the resulting political uncertainty by selling stocks and buying bonds, including mortgage-backed securities (MBS). This added demand for MBS was good for mortgage rates.

Housing Starts

Tuesday’s report on housing starts contained mixed news. Overall housing starts in April declined 3% from March, which was well below the expected levels. However, this was due to weakness in the volatile multi-family segment. Single-family housing starts increased slightly in April. Also, Monday’s NAHB housing index showed that home builder confidence surprised to the upside in May and remains at very high levels.

 

Hot Up-and-Coming Real Estate Markets

March 21, 2017 Posted by Andre Hemmersbach

A great way to find hot up and coming real estate markets is to see where people are moving and it’s as simple as supply and demand…remember Econ 101?

According to United Van Lines, which has been tracking moving statistics for 40 years, retirees left sand and sunny beaches for western mountains. See the “Annual National Movers Study” below.

US map of hot up and coming real estate markets

United Van Lines Movers Study

Moving In Real Estate Markets

The top inbound states of 2016 were:
1. South Dakota
2. Vermont
3. Oregon
4. Idaho
5. South Carolina
6. Washington
7. District of Columbia
8. North Carolina
9. Nevada
10. Arizona

 

South Dakota is the most popular moving destination of 2016 with nearly 68 percent of moves to and from the state being inbound, furthermore, the state has continued to climb the ranks, increasing inbound migration by 23 percent over the past five years. New to the 2016 top inbound list are South Dakota at No. 1 and Arizona at No. 10 with 68 and 57 percent inbound moves, respectively.

 

Moving Out Real Estate Markets

The top outbound states for 2016 were:
1. New Jersey
2. Illinois
3. New York
4. Connecticut
5. Kansas
6. Kentucky
7. West Virginia
8. Ohio
9. Utah
10. Pennsylvania

In addition to the Northeast, Illinois (63 percent) moved up one spot on the outbound list, to no. 2, ranking in the top five for the last eight years. New additions to the 2016 top outbound list include Kentucky (58 percent), Utah (56 percent) and Pennsylvania (56 percent).

Purchasing a rental property or a second home in a hot and up coming real estate markets is a good bet if you are looking for capital  appreciation. If you follow some basic real estate investment guidelines, do a little homework and work with professionals, it could pay off in a big way! Call me to discuss winning strategies for purchasing investment properties.