Check out this blog by Keeping Matters Current. Some Highlights If you’re on the fence about selling your house, now is a great time to take advantage of sky-high demand, low supply, and fierce buyer competition. With buyer demand rising and historically low inventory for sale, if you’re in a position to move, your house may really stand out from the crowd. Reach out to a local real estate professional today to get your listing process underway. The post Is Right Now the Right Time to Sell? [INFOGRAPHIC] appeared first on Keeping Current Matters.

EXIT Realty Corp. International is on the cutting edge of all things real estate. Please enjoy these blogs available exclusively from EXIT Realty Corp. International. By Maegan Carrasquillo, Staff Writer Diane Farr, Broker/Owner of EXIT Realty of the Smokies in Kodak, TN, didn’t always work in the real estate field. […] The post EXIT Realty of the Smokies, In It Together appeared first on Real Estate Industry Leaders.

Check out this blog by Keeping Matters Current. The real estate market is expected to do very well in 2021, with mortgage rates that are hovering at historic lows and forecasted by experts to remain favorable throughout the year. One challenge to the housing industry, however, is the lack of homes available for sale today. Last week, the National Association of Realtors (NAR) released their Existing Home Sales Report, which shows that the inventory of homes for sale is currently at an all-time low. The report explains: “Total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.” (See graph below): What Does This Mean for You? If You’re a Buyer: Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a bidding war. Calculate just how far you’re willing to go to secure a home and lean on your real estate professional as an expert guide along the way. The good news is, more inventory is likely headed to the market soon, Lawrence Yun, Chief Economist at NAR, notes: “To their credit, homebuilders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes…However, it will take vigorous new home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.” If You’re a Seller: Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate the best possible terms. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to request more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand. Bottom Line The housing market will remain strong throughout 2021. Know what that means for you, whether you’re buying, selling, or doing both. The post What Record-Low Housing Inventory Means for You appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. According to the latest report from Black Knight, Inc., a well-respected provider of data and analytics for mortgage companies, 6.48 million households have entered a forbearance plan as a result of financial concerns brought on by the COVID-19 pandemic. Here’s where these homeowners stand right now: 2,543,000 (39%) are current on their payments and have left the program 625,000 (9%) have paid off their mortgages 434,000 (7%) have negotiated a repayment plan and have left the program 2,254,000 (35%) have extended their original forbearance plan 512,000 (8%) are still in their original forbearance plan 116,000 (2%) have left the program and are still behind on payments This shows that of the almost 3.72 million homeowners who have left the program, only 116,000 (2%) exited while they were still behind on their payments. There are still 2.77 million borrowers in a forbearance program. No one knows for sure how many of those will become foreclosures. There are, however, three major reasons why most experts believe there will not be a tsunami of foreclosures as we saw during the housing crash over a decade ago: Almost 30% of borrowers in forbearance are still current on their mortgage payments. Banks likely don’t want to repeat the mistakes of 2008-2012 when they put large numbers of foreclosures on their books. This time, many will instead negotiate a modification plan with the borrower, which will enable households to maintain ownership of the home. With the significant equity homeowners have today, many will be able to sell instead of going into foreclosure. Will there be foreclosures coming to the market? Yes. There are hundreds of thousands of foreclosures in this country each year. People experience economic hardships, and in some cases, are not able to meet their mortgage obligations. Here’s the breakdown of new foreclosures over the last three years, prior to the pandemic: 2017: 314,220 2018: 279,040 2019: 277,520 Through the first three quarters of 2020 (the latest data available), there were only 114,780 new foreclosures. If 10% of those currently in forbearance go to foreclosure, 275,000 foreclosures would be added to the market in 2021. That would be an average year as the numbers above show. What happens if the number is more than 10%? If we do experience a higher foreclosure rate from those in forbearance, most experts believe the current housing market will easily absorb the excess inventory. We entered 2020 with 1,210,000 single-family homes available for purchase. At the time, that was low and problematic. The market was experiencing high buyer demand, and we needed more houses to meet that demand. We’re now entering 2021 with 320,000 fewer homes for sale, while buyer demand remains extremely strong. This means the housing market has the capacity to soak up a lot of inventory. Bottom Line There will be more foreclosures entering the market later this year, especially compared to the record-low numbers in 2020. However, the market will be able to handle the increase as buyer demand remains strong. The post What Happens When Homeowners Leave Their Forbearance Plans? appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. If you’re planning to buy a home, an appraisal is an important step in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of the home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying a home. Home Appraisal The National Association of Realtors (NAR) explains: “A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.” When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth. This is especially critical in today’s sellers’ market where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more. However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process. Home Inspection Here’s the key difference between an appraisal and an inspection. MSN explains: “In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home.” The home inspection is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process. Bottom Line The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Reach out to a local real estate professional today so you have the expert guidance you need to navigate through the entire homebuying process. The post What’s the Difference between an Appraisal and a Home Inspection? appeared first on Keeping Current Matters.

Check out this blog by 719Lending Many home buyers and sellers choose to work with a real estate professional, either an agent or a broker, when they purchase or sell a home. This professional knows the ins and outs of the real estate market in their area, has a broad network of contacts to help the transaction go smoothly and efficiently, and can help prepare all of the required paperwork. When the same agent works on behalf of both the buyer and the seller, they are called a dual agent. This is allowed in most states and circumstances, but there are a few things to know when you work with a dual agent. A dual agent must disclose to both parties that they are working as a dual agent. This is not only a legal requirement, but one of the most important aspects of working with a dual agent. As the buyer or seller, you must agree to this working relationship, knowing that the person representing you in the sale also has an obligation to work on behalf of the other party. Both buyer and seller must be okay with this arrangement and say so in writing. Working as a dual agent does not mean that that particular agent will always work that way. In fact, most agents only work as dual agents in special circumstances. Because they see many clients and homes on the market, it makes sense that the perfect home for a buyer client comes across their desk from a seller. In these cases, the agent may want to connect the two parties and work as a dual agent because they have a lot of knowledge about what each is looking for in a real estate transaction and believes that they can find an agreement. The post What to Expect When Your Real Estate Agent is a Dual Agent appeared first on 719 Lending.

Check out this blog by Keeping Matters Current. As we look back over the past year, we’ve certainly lived through one of the most stressful periods in recent history. After spending so much more time at home throughout the health crisis, some are wondering if they should move to improve their mental health and well-being. This is no surprise since the U.S. Census Bureau reported an increase in the percentage of adults with symptoms of anxiety and depression in a recent Household Pulse Survey. There’s logic behind the idea that making a move could improve someone’s quality of life. When people change their scenery, they often feel happier. Catherine Hartley, an Assistant Professor at New York University’s Department of Psychology and co-author of a study on how new experiences impact happiness, mentioned: “Our results suggest that people feel happier when they have more variety in their daily routines—when they go to novel places and have a wider array of experiences.” If you’re looking for a new experience, planning a move into a new home may be something you’ve started to consider more carefully. If so, you’re not alone. The 2020 Annual National Movers Study by United Van Lines shows: “For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.” So, if you’re thinking of moving this year to help boost your happiness factor, here are a few questions to ask yourself as you make your decision. How’s the Weather? Is the weather something that’s important to you? Does it have a tendency to impact your mood? The World Population Review shares: “What states have the best weather? When evaluating each state for temperature, rain, and sun, some states stand out. Although climate and weather preferences are personal and subjective, some criteria are considered to make up the best weather, according to Current Results: Comfortable temperatures from 63°F to 86°F for more than half of the year. Dry weather with no more than 60 inches of rain per year. Mostly clear skies with an average of sunshine for at least 60% of the year.” “Better weather” can mean different things to different people – some prefer the heat, others cooler temperatures, and some want to experience all four seasons. Think about what makes you feel happiest if you’re looking for a new location. Should I Choose the City, Suburbs, or Country? With the COVID-19 pandemic, some people are deciding to move to lower-density areas. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), mentions: “The third quarter Home Building Geography Index (HBGI) reveals that a suburban shift for consumer home buying preferences in the wake of the COVID-19 pandemic is accelerating as telecommuting is providing consumers more flexibility to live further out within large metros or even to relocate to more affordable, smaller metro areas.” Can you work from home? Are you open to a longer commute in the future? If so, a move to the suburbs or even a quieter rural area may be a win for you. Or, if you’ve always dreamed of life in the city, now may be your chance to move into town. Bottom Line As we look beyond the trials of the pandemic, many are hoping for a new beginning, and that may mean moving. Contact a local real estate advisor today to talk about your new goals and options in today’s market. The post Why Moving May Be Just the Boost You Need appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. Some Highlights When you’re thinking about buying a home, there are a few key steps to take before you even start to look at houses. From saving for your down payment to getting pre-approved for a mortgage, you’ll want to make sure you keep your financial plan on track from the beginning. Reach out to a local real estate professional and a trusted lender today to make sure you have the best possible guidance as you begin your homebuying process. The post Financial Fundamentals for Homebuyers [INFOGRAPHIC] appeared first on Keeping Current Matters.

EXIT Realty Corp. International is on the cutting edge of all things real estate. Please enjoy these blogs available exclusively from EXIT Realty Corp. International. by Tami Bonnell, CEO, EXIT Realty Corp. International Let’s talk CEO to CEO.  As the owner of your own real estate company, you’re a CEO […] The post CEO to CEO: Tami’s Top 10 Tips appeared first on Real Estate Industry Leaders.

Check out this blog by Keeping Matters Current. Earlier this month, the Bureau of Labor Statistics (BLS) released their most recent Jobs Report. The report revealed that the economy lost 140,000 jobs in December. That’s a devastating number and dramatically impacts those households that lost a source of income. However, we need to give it some context. Greg Ip, Chief Economics Commentator at the Wall Street Journal (WSJ), explains: “The economy is probably not slipping back into recession. The drop was induced by new restrictions on activity as the pandemic raged out of control. Leisure and hospitality, which includes restaurants, hotels, and amusement parks, tumbled 498,000.” In the same report, Michael Pearce, Senior U.S. Economist of Capital Economics, agreed: “The 140,000 drop in non-farm payrolls was entirely due to a massive plunge in leisure and hospitality employment, as bars and restaurants across the country have been forced to close in response to the surge in coronavirus infections. With employment in most other sectors rising strongly, the economy appears to be carrying more momentum into 2021 than we had thought.” Once the vaccine is distributed throughout the country and the pandemic is successfully under control, the vast majority of those 480,000 jobs will come back. Here are two additional comments from other experts, also reported by the WSJ that day: Nick Bunker, Head of Research in North America for Indeed: “These numbers are distressing, but they are reflective of the time when coronavirus vaccines were not rolled out and federal fiscal policy was still deadlocked. Hopefully, the recent legislation can help build a bridge to a time when vaccines are fully rolled out and the labor market can sustainably heal.” Michael Feroli, Chief U.S. Economist for JPMorgan Chase: “The good news in today’s report is that outside the hopefully temporary hit to the food service industry, the rest of the labor market appears to be holding in despite the latest public health challenges.” What impact will this have on the real estate market in 2021? Some are concerned that with millions of Americans unemployed, we may see distressed properties (foreclosures and short sales) dominate the housing market once again. Rick Sharga, Executive Vice President at RealtyTrac, along with most other experts, doesn’t believe that will be the case: “There are reasons to be cautiously optimistic despite massive unemployment levels and uncertainty about government policies under the new Administration. But while anything is possible, it’s highly unlikely that we’ll see another foreclosure tsunami or housing market crash.” Bottom Line For the households that lost a wage earner, these are extremely difficult times. Hopefully, the new stimulus package will lessen some of their pain. The health crisis, however, should vastly improve by mid-year with expectations that the jobs market will also progress significantly. The post What Experts Are Saying about the 2021 Job Market appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. If spending more time at home over the past year is making you really think hard about buying a home instead of renting one, you’re not alone. You may be wondering, however, if the dollars and cents add up in your favor as home prices continue to rise. According to the experts, in many cases, it’s still more affordable to buy a home than rent one. Here’s why. ATTOM Data Solutions recently released the 2021 Rental Affordability Report, which states: “Owning a median-priced three-bedroom home is more affordable than renting a three-bedroom property in 572, or 63 percent of the 915 U.S. counties analyzed for the report. That has happened even though median home prices have increased more than average rents over the past year in 83 percent of those counties and have risen more than wages in almost two-thirds of the nation.” How is this possible? The answer: historically low mortgage interest rates. Todd Teta, Chief Product Officer with ATTOM Data Solutions, explains: “Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check.” In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year. These low rates are a big factor in driving affordability. Teta also notes: “It’s startling to see that kind of trend. But it shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership. The coming year is totally uncertain, amid so many questions connected to the Coronavirus pandemic and the broader economy. But right now, owning a home still appears to be a financially-sound choice for those who can afford it.” Bottom Line If you’re considering buying a home this year, contact a local real estate professional today to learn more about the options that match your budget while affordability is in your favor. The post Owning a Home Is Still More Affordable Than Renting One appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. Historically low mortgage rates are a big motivator for homebuyers right now. In 2020 alone, rates hit new record-lows 16 times, and the trend continued into the early part of this year. Many hopeful homebuyers are now wondering if they should put their plans on hold and wait for the lowest rates imaginable. However, the reality is, acting sooner rather than later may be the actual win if you’re ready to buy a home. According to Greg McBride, Chief Financial Analyst for Bankrate: “As vaccines become more widely available and a return to normal starts to come into view, we’ll see mortgage rates bounce off the record lows.” While only a slight increase in mortgage rates is projected for 2021, some experts believe they will start to rise. Over the past week, for example, the average mortgage rate ticked up slightly, reaching 2.79%. This is still incredibly low compared to the trends we’ve seen over time. According to Freddie Mac: “Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.” Here’s why. As mortgage rates rise, the increase impacts the overall cost of purchasing a home. The higher the rate, the higher your monthly mortgage payment, especially as home prices rise too. Sam Khater, Chief Economist at Freddie Mac, says: “The forces behind the drop in rates have been shifting over the last few months and rates are poised to rise modestly this year. The combination of rising mortgage rates and increasing home prices will accelerate the decline in affordability and further squeeze potential homebuyers during the spring home sales season.” What does this mean for buyers? Right now, the inventory of houses for sale is also at a historic low, making it more challenging than normal to find a home to buy in many areas. As more buyers hit the market in the typically busy spring buying season, it may become even harder to find a home in the coming months. With this in mind, Len Keifer, Deputy Chief Economist for Freddie Mac, recommends taking advantage of both low mortgage rates and the opportunity to buy: “If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.” Bottom Line While today’s low mortgage rates provide great opportunities for homebuyers, we may not see them stick around forever. If you’re ready to buy a home, it’s time to chat with a real estate professional so you can take advantage of what today’s market has to offer. The post Should I Wait for Lower Mortgage Interest Rates? appeared first on Keeping Current Matters.

Check out this blog by 719Lending If you find yourself with extra money in your bank account courtesy of something like the government-issued COVID checks or tax return from the IRS, it may be tempting to use it to purchase a new gadget or go on a shopping spree. Here are a few ways you can use unexpected income to upgrade your home. Upgrade Your Space: Are there any improvements that you’ve been wanting to make? Things like adding a deck, putting in new tile or flooring, or replacing dated kitchen counters can offer a large resale value for your buck. New paint can be a less expensive way to give your home a facelift. Take Care of Maintenance: Ideally you will be keeping up with home maintenance as you go, but if there are items still left on your list, you may consider using some money to hire a pro. Cleaning out gutters, trimming trees, and inspecting/cleaning chimneys all required a bit of know-how or equipment. If you hire these things out, you can be sure that you’re keeping your home in tip-top shape and supporting a local business. Pay Down Your Mortgage: While not the most exciting of the options, paying extra toward the principal of your mortgage can mean big savings down the road. Not only will you be able to pay your mortgage off faster, cutting down on the time will also cut down on the overall interest that you pay. Enjoy your extra income by reinvesting it in your largest asset: your home. You’ll be glad that you did when you are lounging on your new deck, sleeping peacefully knowing your gutters are clear of debris, or you make your last mortgage payments months or even years earlier than originally planned. The post Using Unexpected Income for Your Home appeared first on 719 Lending.

Check out this blog by Keeping Matters Current. In 1963, Martin Luther King, Jr. inspired a powerful movement with his famous “I Have a Dream” speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where we can grow and flourish. If you’re dreaming of buying a home this year, start by connecting with a local real estate professional to understand what goes into the process. With a trusted advisor at your side, you can then begin to answer the questions below to set yourself up for homebuying success. 1. How Can I Better Understand the Process, and How Much Can I Afford? The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend. Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. If your financial situation has changed recently, be sure to discuss that with your lender as well. Most agents have loan officers they trust and will provide referrals for you. According to ConsumerReports.org: “Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.” 2. How Much Do I Need for a Down Payment? In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down. If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says: “Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.” Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process. 3. Saving Takes Time: Practice Living on a Budget As tempting as it is to pass the extra time you may be spending at home these days with a little retail therapy, putting that extra money toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score. A survey of millennial spending shows, “68% reported that shelter in place orders helped them save for their down payment.” Danielle Hale, Chief Economist at realtor.com, also notes: “If there is any silver lining to the current economic landscape, it’s that mortgage rates are hanging around record lows…Additionally, shelter-in-place orders helped many who were fortunate enough to keep their jobs save for a down payment — one of the largest hurdles of buying a home. The combination of low rates and the opportunity to save is enabling many millennials to move up their home buying timeline.” While you don’t need to cut all of the extras out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference. Bottom Line If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. To determine the steps you should take to start the process, connect with a local real estate professional today. The post How to Make the Dream of Homeownership a Reality This Year appeared first on Keeping Current Matters.

EXIT Realty Corp. International is on the cutting edge of all things real estate. Please enjoy these blogs available exclusively from EXIT Realty Corp. International. by Tami Bonnell, CEO, EXIT Realty Corp. International Salespeople – especially new ones – like scripts.  They believe that having the “right” words to say […] The post When scripts are not enough appeared first on Real Estate Industry Leaders.

Check out this blog by Keeping Matters Current. Some Highlights There are a few key things to make sure you avoid after applying for a mortgage to help make sure you still qualify for your loan at the closing table. Along the way, be sure to discuss any changes in income, assets, or credit with your lender, so you don’t unintentionally jeopardize your application. The best plan is to fully disclose your intentions with your lender before you do anything financial in nature. The post Things to Avoid after Applying for a Mortgage [INFOGRAPHIC] appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. The housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand. NAR also just reported that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago (1.64 million). Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today. What does this mean for buyers and sellers? Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few houses are available for sale. Sellers may not want to wait until spring to put their houses on the market, though. With such high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms. Bottom Line The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market. The post Why Right Now May Be the Time to Sell Your House appeared first on Keeping Current Matters.

Check out this blog by Keeping Matters Current. At the onset of the economic disruptions caused by the COVID pandemic, the government quickly put into place forbearance plans to allow homeowners to remain in their homes without making their monthly mortgage payments. Today, almost three million households are actively in a forbearance plan. Though 29.4% of those in forbearance have continued to stay current on their payments, many have not. Yanling Mayer, Principal Economist at CoreLogic, recently revealed: “A distributional analysis of forborne loans’ payment status reveals that more than one third (39.1%) of all forborne loans are now 150+ days behind payment, while as many as 1-in-4 (25.5%) are 180+ days past due.” These homeowners have been given permission to not make their payments, but the question now is: how many of them will be able to catch up after their forbearance program ends? There’s speculation that a forthcoming wave of foreclosures could be the result, and that could lead to another crash in home values like we saw a decade ago. However, today’s situation is different than the 2006-2008 housing crisis as many homeowners have tremendous amounts of equity in their homes. What are the experts saying? Over the last 30 days, several industry experts have weighed in on this subject. Michael Sklarz, President at Collateral Analytics: “We may very well see a meaningful increase in the number of homes listed for sale as these borrowers choose to sell at what is arguably an intermediate top in the market and downsize to more affordable homes rather than face foreclosure.” Odeta Kushi, Deputy Chief Economist at First American: “The foreclosure process is based on two steps. First, the homeowner suffers an adverse economic shock…leading to the homeowner becoming delinquent on their mortgage. However, delinquency by itself is not enough to send a mortgage into foreclosure. With enough equity, a homeowner has the option of selling their home, or tapping into their equity through a refinance, to help weather the economic shock. It is a lack of sufficient equity, the second component of the dual trigger, that causes a serious delinquency to become a foreclosure.” Don Layton, Senior Industry Fellow at the Joint Center for Housing Studies of Harvard University: “With a greater cushion of equity, troubled homeowners have dramatically improved options: a greater ability to access funding (e.g. home equity lines) to keep paying monthly expenses until family finances might recover, improved ability to qualify for and support a loan modification, and, if push comes to shove, the ability to sell the home and monetize their increased net worth while reducing monthly payment obligations. So, what should lenders and servicers expect: a large number of foreclosures or only a modest increase? I believe the latter.” With today’s positive equity situation, many homeowners will be able to use a loan modification or refinance to stay in their homes. If not, some will go to foreclosure, but most will be able to sell and walk away with their equity. Won’t the additional homes on the market impact prices? Distressed properties (foreclosures and short sales) sell at a significant discount. If homeowners sell instead of going into foreclosure, the impact on the housing market will be much less severe. We must also realize there is currently an unprecedented lack of inventory on the market. Just last week, realtor.com explained: “Nationally, the number of homes for sale was down 39.6%, amounting to 449,000 fewer homes for sale than last December.” It’s important to remember that there weren’t enough homes for sale even then, and inventory has only continued to decline. The market has the potential to absorb half a million homes this year without it causing home values to depreciate. Bottom Line The pandemic has led to both personal and economic hardships for many American households. The overall residential real estate market, however, has weathered the storm and will continue to do so in 2021. The post Will Forbearance Plans Lead to a Tsunami of Foreclosures? appeared first on Keeping Current Matters.

EXIT Realty Corp. International is on the cutting edge of all things real estate. Please enjoy these blogs available exclusively from EXIT Realty Corp. International. Real estate data services and research firm, T3 Sixty, announced its Swanepoel Power 200 (SP200) list ranking EXIT Realty Corp. International’s Founder and Chairman, Steve […] The post Steve Morris and Tami Bonnell Named Among the Industry’s Top Executives appeared first on Real Estate Industry Leaders.

Check out this blog by Keeping Matters Current. According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward. Here are 4 reasons people are reconsidering where they live and why they’re expecting to buy a home this year.  1. Record-Low Mortgage Interest Rates In 2020, the average interest rate for a 30-year fixed mortgage hit a record low 16 times, continuing to fall further below 3%. According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. Len Keifer, Deputy Chief Economist for Freddie Mac, advises: “If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.” This sense of urgency is driving many to buy this year. 2. Working from Home Remote work is a new normal for many businesses, and it’s lasting longer than most expected. Many in the workforce today are discovering they don’t need to live close to the office anymore and they can get more for their money by moving a little further outside of the city limits. David Mele, President at Homes.com, says:  “The surge in the work-from-home population has rewritten the playbook for many homebuying and rental decisions, from when and where to relocate, to what people are looking for in their next residence.” The reality is, for some people, working remotely in their current home is challenging, especially when there may be other options available. 3. More Outdoor Space Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. In addition, those living in apartments and townhomes are often looking for extra square footage, both inside and out. According to the State of Home Spending report by HomeAdvisor, of the households surveyed, almost half reported spending 27% more on outdoor living over the past year. This is a trend that’s expected to grow in 2021 and beyond. 4. Avoiding Renovations It’s recently come to light that many homeowners would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report from the National Association of Realtors (NAR), 44% of homebuyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.” Depending on what needs to be addressed, today’s high buyer demand may make it possible to skip some renovations before selling. Many of these homeowners have prioritized buying over renovating for convenience and potential cost savings. Bottom Line It’s clear that homeownership needs are changing. As a result, Americans are expected to move in record numbers this year. If you’re trying to decide if now is the right time to buy a home, contact a local real estate professional today to discuss your options.     Agents: Check out our LIVE webinar on the 4 Keys to Crush Your Listings Goals in 2021 to learn what you’ll need to crush your goals in this year’s housing market.   The post 4 Reasons People Are Buying Homes in 2021 appeared first on Keeping Current Matters.