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Homeownership Rate Remains on the Rise

Homeownership Rate Remains on the Rise | MyKCM

In the third quarter of 2019, the U.S. homeownership rate rose again, signaling another strong indicator of the current housing market.

The U.S. Census Bureau announced,

“The homeownership rate of 64.8 percent was not statistically different from the rate in the third quarter 2018 (64.4 percent), but was 0.7 percentage points higher than the rate in the second quarter 2019 (64.1 percent).”

Homeownership Rate Remains on the Rise | MyKCMToday there is still a lack of inventory, particularly at the entry and middle-level segments of the market, but that is not stopping buyers from making every effort to pursue homeownership. The many financial and non-financial benefits continue to drive the American Dream and will likely do so for generations to come.

Bottom Line

If you’re thinking of buying a home, let’s get together to make your dream a reality.

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Why Access Is One of the Most Important Factors in Getting Your House Sold!

Why Access Is One of the Most Important Factors in Getting Your House Sold! | MyKCM

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you through the entire process, and they have asked you what level of access you want to provide to your potential buyers.

There are four elements to a quality listing. At the top of the list is access, followed by condition, financing, and price. There are many levels of access that you can provide to your agent so that he or she can show your home.

Here are five levels of access that you can give to buyers, along with a brief description:

  1. Lockbox on the Door – this allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
  2. Providing a Key to the Home – although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
  3. Open Access with a Phone Call – the seller allows showings with just a phone call’s notice.
  4. By Appointment Only (example: 48-Hour Notice) – Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
  5. Limited Access (example: the home is only available on Mondays or Tuesdays at 2 pm or for only a couple of hours a day) – This is the most difficult way to be able to show your house to potential buyers.

With more competition coming to the market this spring, access can make or break your ability to get the price you are looking for, or even sell your house at all.

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How Quickly Can You Save Your Down Payment?

How Quickly Can You Save Your Down Payment? | MyKCM

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

How Quickly Can You Save Your Down Payment? | MyKCM

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

How Quickly Can You Save Your Down Payment? | MyKCM

Bottom Line

Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! Let’s get together to help you evaluate your ability to buy today.

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5 Reasons To Sell Your House This Spring!

5 Reasons To Sell Your House This Spring! | MyKCM

Here are five compelling reasons listing your home for sale this spring makes sense.

1. Demand Is Strong

The latest Buyer Traffic Index from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers.

Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners are granted the freedom to move.

Many homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you to decide to sell.

3. The Process Will Be Quicker

Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Buyers know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 47 days.

4. There Will Never Be a Better Time to Move Up

If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has created a buyer’s market. This means that if you are planning on selling a starter or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!

According to CoreLogic, prices are projected to appreciate by 4.6% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to these questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

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Homes For Sale Stay On The Market Longer

During the spring and summer, homes for sale were selling fast. So fast that the typical home was on the market less than a month. And while home buyers should still expect desirable homes to go quickly, there may be some relief in sight. That’s because, new numbers from the National Association of Realtors show that the majority of homes are now on the market more than a month. In fact, properties typically sold in 32 days in September, an improvement over August when homes moved in just 29 days. Lawrence Yun, NAR’s chief economist, says a trend may be developing. “There is a clear shift in the market with another month of rising inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory,” Yun said. “Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year.” At the current sales pace, there is a 4.4-month supply of available homes for sale. A 6-month supply is generally considered a healthy market. More here.

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Number Of Homes For Sale Sees Big Gain

Affordability is always a top concern for people thinking about buying a house. Of course, there are other factors that are important when deciding whether or not to move. But what you can or can’t afford may be the biggest. After all, if you don’t have enough for a down payment or couldn’t keep up with the mortgage on a new place, it doesn’t really matter how close to the office it is or in what school district. That’s why a new report from the National Association of Realtors’ consumer website is good news for prospective home buyers. The report shows that the number of homes for sale saw it’s largest year-over-year gain in five years. Why’s this important? Well, in today’s market, the rate of home price increases is being driven by the fact that there are too few homes for sale. In other words, since there are more buyers than homes, sellers can demand a higher price. But as more homes become available, buyers will have more choices and price increases will begin to slow. The fact that inventory is up 8 percent over the year before and showing signs of additional gains means there may be relief on the way for buyers worried that they won’t be able to find a home they like or one in their price range. More here.

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Inventory And Home Sales Flat In August

Sales of previously owned homes were unchanged from the month before in August, according to new data from the National Association of Realtors. The number of available homes for sale was also flat, with unsold inventory at a 4.3-month supply at the current sales pace. But, though there was little change in the numbers, Lawrence Yun, NAR’s chief economist, says buyers may be getting ready to move. “Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum,” Yun said. “With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.” In other words, though there hasn’t been a significant change in conditions, there is a sense that price increases and low inventory are beginning to move in the right direction. This can be seen in the regional results, which show that some areas are improving at a quicker pace than others. Another indicator that relief may be on the way is how long the typical property stayed on the market in August. That’s because, the number of days homes were available before selling moved up for the first time in months. But, despite the improvement, properties are still selling quickly. In fact, the typical home sold in just 29 days in August. More here.

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Number Of Sellers Reducing Their Price Increases

Naturally, potential home buyers become more concerned about affordability conditions as prices and mortgage rates rise. And since the past few years have seen both things happen, there’s been increasing concern about whether or not now is a good time to buy a house. That’s not to say there hasn’t been demand for homes. In fact, there are plenty of interested buyers and not enough homes to accommodate them, which is why prices have been rising in the first place. But recently, there’s been more data suggesting that home prices are beginning to soften. In fact, one recent report shows that 26.6 percent of homes listed for sale in September dropped their price, which is a nearly 5 percent increase from the same time last year. That’s good news for buyers, as is the fact that price drops have been showing year-over-year improvement since the end of March. Added to the fact that mortgage rates, while higher than last year, are still well below what is historically normal, the news about home prices means affordability may, once again, be moving in a more balanced direction and one that benefits buyers. More here.

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Financial Security Boosts Housing Sentiment

It’s said that there are two sides to every story. But there are also two sides to the calculations potential home buyers undergo when deciding whether or not it’s a good time for them to look for a new house. After all, buyers have to take into consideration the cost of homes in the areas they’re looking to live but also their own financial security. That’s why Fannie Mae’s most recent Home Purchase Sentiment Index is encouraging. Because, though Americans have concerns about housing affordability, they are feeling confident financially and secure in their jobs. In fact, the number of survey respondents who said they aren’t concerned about losing their job rose 15 percent over the month before and those reporting that their income is higher than it was 12 months earlier hit a new survey high. Doug Duncan, Fannie Mae’s chief economist, says Americans are feeling the effects of a stronger economy. “Consumers are attuned to the divergence between the slowing housing market and strong macro economy,” Duncan said. “Consumers were less optimistic this month about both home buying and home selling conditions, while perceptions of income growth and confidence about job security are at survey highs.” More here.

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HOW TO HURRICANE-PROOF YOUR HOME

Whether you are evacuating from the area or sheltering in place, performing a general assessment of your home and making it hurricane-ready is always the best plan. To prepare your home for hurricane season we suggest you perform an inspection of your property, get the supplies needed to strengthen your home, and talk with your insurance provider to ensure you have proper coverage.

The strong winds present during Hurricanes Matthew in 2016 lead to extensive property damage throughout Chatham County. Many of the ancient oak trees and tall Georgia pines found throughout the area were toppled over with their root system exposed. Before a hurricane strikes, be sure to remove or trim any dead or diseased tree limbs that are hanging over your house or garage. Ensure that trees that can reach your home are healthy and, if they are not, have them removed.

Take time now to do a quick home assessment for any outdoor hazards or repairs that need to be made. Make a list of any work that needs to be done outside as well as any openings to your home that could be penetrated by wind or rain. Check all outside entry doors to ensure they are securely fastened to their frame. If you have a garage door, ensure that you have a brace to help secure it against the strong winds seen during tropical storms and hurricanes. If strong winds are able to breach the garage door the only direction the wind can travel is up, which could remove the roof of your home.

By assessing your property, you could potentially save your home during a hurricane. The other benefit to assessing your home now is that it gives you the time you need to make repairs and purchase supplies. Before a storm hits, many stores sell out of essential items for protecting homes. Purchasing supplies early can save time, money, and ensure you have the products you need to secure your home

Did you know that most homeowner’s and renter’s insurance policies do not include flood insurance? This means that without a separate flood policy, you may be responsible for covering all hurricane-related flood damage out-of-pocket. This could leave you and your family in a tough situation. Given that flooding due to storm surge and heavy rain is one of the leading causes of damage during a hurricane, we urge you to do an insurance checkup. To do this, simply review your homeowner’s or renter’s insurance policy or call your insurance provider to ask if you have adequate coverage and a flood insurance policy. If you need coverage, CLICK HERE. FEMA provides the National Flood Insurance Program to help connect you to local flood insurance agents. Having flood insurance is a vital step in being prepared for hurricane season; act now- flood insurance policies require a 30 day waiting period. Also, it is important to note that flood zones for Chatham County are freshwater ratings, this means that they rate the risk of flooding from rain only and do not take into consideration the risk of rising saltwater flooding from storm surge. If you live in Chatham County you live in a storm surge zone and are at risk of saltwater flood damage. To see what evacuation zone you live in and what your storm surge risk is, CLICK HERE.

Lastly, when filing an insurance claim after a storm, insurance companies may ask for documentation of damages; this includes damage to your home, property, and belongings. One of the easiest things you can do to make this process smoother is to document your home on a regular basis. Documenting your home consists of taking photos and/or videos of your property, home, and belongings. This way you have proof of what you own and what condition your home was in prior to the storm.

By strengthening your home and checking in with your insurance provider now, you are helping to strengthen our community.