Yesterday, we reported that according to CoreLogic’s latest Equity Report, nearly 268,000 homeowners regained equity and are no longer underwater on their mortgage in the first quarter. Homes with negative equity have decreased by 21.5% year-over-year.
A study by Fannie Mae suggests that many homeowners are not aware of how their equity position has changed as their home has increased in value.
For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 8% of homes are in that position.
The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%), when in actuality, 74% do!
This means that 37% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).
Fannie Mae spoke out on this issue in their report:
CoreLogic’s report also revealed that if homes were to appreciate by an additional 5%, over 800,000 US households would regain positive equity.
If you are one of the many homeowners who is unsure of your current equity situation, let's meet up to discuss your options.
You can call our team today at 208-501-8200 or you can learn the estimated value of your home instantly by clicking this link:
Yes, I want to check my home's value now.
CoreLogic’s latest Equity Report revealed that 92% of all mortgaged properties are now in a positive equity situation, while 74% now actually have significant equity (defined as more than 20%)! The report also revealed that 268,000 households regained equity in the first quarter of 2016 and are no longer under water.
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“In just the last four years, equity for homeowners with a mortgage has nearly doubled to $6.9 trillion. The rapid increase in home equity reflects the improvement in home prices, dwindling distressed borrowers and increased principal repayment. These are all positive factors that will provide support to both household balance sheets and the overall economy.”
Anand Nallathambi, President & CEO of CoreLogic, believes this is a great sign for the market in 2016 as well, as he had this to say:
Below is a map illustrating the percentage of households in each state with significant equity:
Many homeowners with more than 20% equity in their home would be able to use that equity as a down payment on either a larger home or even a retirement home.
If you are one of the many Americans who are unsure of how much equity you have in your home, don’t let that be the reason you fail to move on to your dream home this year!
Call our team today at 208-501-8200 to discuss your home's value and how it may have changed or you can use our INSTANT value check tool to learn the value of your home: Yes, I want to get my home's value now!
This is a pretty common question that a potential home buyer or seller may be asking themselves. Leading economists in real estate converged in New Orleans this past week as they presented their answer to this question at the 50th Annual Real Estate Journalism Conference for the National Association of Real Estate Editors.
Many of the conversations at the conference came back to the impact that Millennials and first-time home buyers will have on the market in the future. Jonathan Smoke, Chief Economist for realtor.com had this to say:
According to the National Association of Realtors (NAR), the median first-time home buyer age is 30 and many millennials are entering a prime age to drive the housing market into the future.
Lawrence Yun, Chief Economist for NAR shared that myths and affordability may be holding back potential buyers:
Ellie Mae’s Vice President, Jonas Moe encouraged buyers to know their options before assuming that they do not qualify for a mortgage:
The National Multifamily Housing Council (NMHC) revealed that Millennials and Baby Boomers are often competing for the same housing inventory, causing a challenge as these two groups are the largest generations by population.
Both groups are looking for affordable, convenient homes close to city centers and ‘what’s happening.’
The experts agree that homeownership is still desirable across all demographic groups, with Millennials and Baby Boomers having a great impact on available supply. If your dreams include owning your own home, let’s get together and evaluate your ability to buy now!
Call our team today to discuss your real estate goals at 208-501-8200 or click the link below to start your home search:
According to the National Association of Realtors’ (NAR) 2015 Profile of Home Buyers and Sellers, single women made up 18% of all first-time homebuyers last year, second only to married couples who made up 54% of total buyers.
Whether they are young, single and no longer want to rent, or newly divorced, the amount of single women becoming homeowners greatly outnumbers single males (11%). A survey of recent home buyers revealed some interesting trends about this rapidly growing group:
It appears that it is not marriage before mortgage any longer, for either gender. As we reported in the past, unmarried couples make up 13% of buyers, while single males account for 11%.
If owning a home of your own has always been your dream, let’s get together to determine if your dream could become a reality sooner than you think.
Call our team today to discuss your home buying goals at 208-501-8200.
How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is “an online resource for the most rigorous research and practical information on how a quality, stable, affordable home in a vibrant community contributes to individual and community success”.
A recent story they published, The First Rung on the Ladder to Economic Opportunity Is Housing, discussed the importance of having affordable housing available to as many families as possible because:
We have often posted that the net worth of a family owning a home is 45 times greater than that of a family that rents. That is not a coincidence.
Buying a home is a big step in right direction for anyone looking to build wealth. If you have been considering buying a house, we would love to talk with you.
Give us a call today at 208-501-8200 and or click the link below to start browsing for homes available for sale now: www.WestRealEstateGroup.com
A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.”
Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained:
The key indicators that have given Freddie Mac such a positive outlook are:
The key indicators that have given Freddie Mac such a positive outlook are2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying or selling, we should meet up to discuss the new opportunities that are arising in your market.
Give our team a call at 208.501.8200 or click the link below to start shopping for a new home!
There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home. As we have said before, mortgage interest rates are still near historic lows and rents continue to rise.
Housing Cost & Net Worth
Whether you rent or buy, you have a monthly housing cost.
As a buyer, you are contributing to YOUR net worth.
Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls“forced savings.”
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.
As a renter, you are contributing to YOUR LANDLORD’S net worth.
Below is an example of the home equity that would be accrued over the course of the next five years if you had purchased a home in January; based on the results of the Home Price Expectation Survey.
In this example, simply by paying your mortgage, you would have increased your net worth by over $44,000!
Use your monthly housing cost to your advantage! Let's meet up to discuss the opportunities available in your market. Call our real estate office at 208-501-8200 today!
You can also start browsing for a home by clicking here.
Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.
1. Price it a LITTLE LOW
This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).