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Home Prices | The McLeod Group Network - KW Capital City Blog

Monday, December 10, 2018   /   by Amy McLeod

Here’s What Mortgage ‘Rate Lock’ Looks Like, in One Chart

In 2017, MarketWatch documented many of the reasons there aren’t enough homes to buy. One of the most striking forces in the housing market right now is “rate lock,” the idea that homeowners with ultra-low mortgage rates can’t bear to give up those loans and, in buying a new home, get stuck with a mortgage with a much higher rate.
Real estate data provider Black Knight shared data that illustrated the phenomenon. Among all homes listed for sale at that time, those with a mortgage that had a “5-handle,” a rate between 5.00 and 5.99%, were far more likely to be listed for sale than those with a 3-handle.

?MarketWatch recently asked Black Knight for an update. The chart above shows the picture a year and a half later.
In its October Mortgage Monitor, Black Knight notes that homes purchased with the lowest interest rates in history, are also likely to have been bargains, since that was a particularly iffy moment just after the ...

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  amy mcleod, mcleod group network, homebuyers, buying a house, first time home buyers, home values, home prices, mortgages, home loans, mortgage ‘rate lock’

Monday, October 22, 2018   /   by Amy McLeod

Will Home Prices Continue To Increase?

There are many unsubstantiated theories about what is happening with home prices. From those who are worried that prices are falling (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.
However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase. It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything greater than seven months will cause prices to depreciate (see chart below).


According to the Existi ...

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  amy mcleod, mcleod group network, homebuyers, homeowners, buying a house, home sellers, home values, home prices

Wednesday, September 12, 2018   /   by Amy McLeod

7 Promising Signs the Home You're Buying Will Have Good Resale Value

While it might seem premature to think about selling a home before you even buy it, it's important to remember that a house is an investment. And in an ideal world, investments make money—not lose it.
That's why resale value should be an important consideration when house hunting. No, it shouldn't supersede your must-have requirements (if you demand 20 acres and lakefront access, prioritize that). But if you do your best to predict how the house you're buying—and the neighborhood it's in—will appeal to future buyers, then future-you will be a whole lot happier. And possibly richer.
Considering resale value "also saves the buyers a lot of money, as they will not need to spend big on renovations or updates," says real estate agent Lukasz Kukwa.
But one caveat: Good resale value is never a promise.
"It is almost impossible to guarantee that a home will retain its full resale value, as the local market and economic factors have a l ...

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  amy mcleod, mcleod group network, homebuyers, buying a house, home values, home prices, resale value

Monday, September 10, 2018   /   by Amy McLeod

4 Reasons Why Fall Is A Great Time to Buy A Home!

Here are four great reasons to consider buying a home today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insights report reveals that home prices have appreciated by 6.2% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.1% over the next year.
Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have already increased by half of a percentage point, to around 4.5% in 2018. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase by half a percentage point to around 5.1% by this time next year. ...

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  amy mcleod, mcleod group network, homebuyers, buying a house, first time home buyers, home prices, down payment

Wednesday, July 25, 2018   /   by Amy McLeod

You'll Never Guess How Far New Home Prices Have Dropped

If you've been hoping to buy a pristine, newly built home, but hesitating over the price, you may want to take the plunge now.
The median price of a new-construction home continued its slide, hitting $302,100 in June, according to a joint report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. That's the lowest it's been since February 2017, when the median was $298,000.
"It's just a couple months of price declines, so I don't want to read too much into it," says realtor.com® Chief Economist Danielle Hale. The median price has been declining each month since it peaked in March at $335,400. "But a shift toward lower prices could indicate a shift toward more affordable construction to come."
That's promising news for buyers who have been growing increasingly frustrated by the lack of homes on the market, along with high prices and rising mortgage rates. In fact, the price gap between existing homes (which have prev ...

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  amy mcleod, mcleod group network, homebuyers, buying a house, first time home buyers, home values, home prices

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