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Tag: New York City Real Estate

What To Do If You Live In A Competitive Market


These days, competition and affordability are two of home buyers’ main concerns. This isn’t surprising, as no one likes to pay more for less. Naturally, we prefer to find a bargain and we certainly don’t want to have to fight off other interested buyers to get it. That’s why recent research looking at the country’s most competitive markets is of interest. The results show the most competitive markets are located in the West, though in just about any desirable neighborhood you could find more buyers than available homes. That means, even if you aren’t living in San Francisco or Seattle, you should be ready for the possibility that you won’t be the only home buyer interested in the house you choose. So what’s the best way to increase your odds of beating the competition and getting the house you want? Preparation. Be prepared and get prequalified before you start shopping. Buyers with financing in place before they start looking at houses are more appealing to sellers. If you’ve got your financing in place and a firm idea of what your price range and budget are, you will be in better position should you find yourself in a bidding war. More here.

Sunlit residential street with palm trees and parked cars.

Builders Confident 2018 Will Be A Good Year


If anybody knows the new home market, it’s builders. After all, they are the ones supplying the homes and, if there’s no demand, they likely wouldn’t bother doing the work. So, when it comes to assessing the health of the market for newly built single-family homes, asking a builder is a pretty good place to start. For that reason, the National Association of Home Builders has been doing exactly that each month for the past 30 years. And, according to their most recent Housing Market Index – which measures builder confidence – builders are feeling excited about the year ahead. Randy Noel, NAHB’s chairman, says builders are particularly optimistic about the economy and the growing demand for new homes. “Builders are confident that changes to the tax code will promote the small business sector and boost broader economic growth,†Noel said. “Our members are excited about the year ahead, even as they continue to face building material price increases and shortages of labor and lots.†So what does this mean for home buyers? Well, it means more new homes will be built, which increases choices and also dampens price spikes. In other words, optimistic builders are a good sign for home buyers in 2018.

A partially built house under a blue sky with scattered clouds.

Mortgage Rates Rise, So Does Application Demand


According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week, reaching their highest level since March of last year. Rates were up across all loan categories – including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But, despite the rise, borrowers drove demand for mortgage applications higher than the week before. In fact, total mortgage application demand was up 4.1 percent from one week earlier. So what’s going on? Well, one theory, is that buyers are motivated because they feel conditions may be as good as they’re going to get. Joel Kan, an MBA economist, told CNBC borrowers are looking to take advantage of conditions while they’re good. “Despite the increase in rates, applications increased for both purchase and refinance,†Kan said. “These increases were partly due to an upswing following the holiday season lull and potentially more borrowers trying to refinance before mortgage rates increase further.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

The word 'MORTGAGE' over a background of scattered coins.

Buying More Affordable Than Rent In Most Markets


When it comes time to make a move, most of us are choosing between renting a place or buying a house. And making that calculation has a lot to do with where you are in your life and what your goals are. But it also has a lot to do with your financial situation. Because of this, ATTOM Data Solutions analyzes the average rent for a three-bedroom property, weekly wage data, and home price information in 540 counties nationwide in an effort to determine whether renting or buying is the more affordable choice. According to their most recent Rental Affordability Report, buying a home is still the more affordable choice in a majority of markets. However, the data is a bit more complicated than that. In fact, though buying is more affordable in the majority of markets, it isn’t in a lot of the country’s most populated counties. The data shows that many markets where the population is above 1 million have affordability challenges not seen in areas further from major metropolitan centers. More here.

A 'Home For Sale' sign with a red arrow pointing left in a residential area.

Mortgage Demand Jumps Following Holidays


According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates held steady again last week, with little change for 30-year fixed-rate mortgages with conforming loan balances. But, though not moved from the previous week, rates are lower than they were at the same time last year. That, and some pent-up demand from the holidays, led to a spike in mortgage application demand last week. In fact, total application volume was up 8.3 percent during the first week of 2018. Joel Kan, MBA economist, told CNBC mixed economic news kept rates steady. “For example, the ISM’s non-manufacturing index showed that growth in the services sector was down for the second month, and the BLS’ December jobs report was weaker than expected,†Kan said. “However, these were partially offset by slightly stronger factory orders for November and continued optimism of positive impacts from the tax reform plan.†In short, economic conditions have kept rates steady for the past several weeks and borrowers finally took advantage last week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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Luxury Home Listings Up 4% Year-Over-Year


The luxury home market didn’t suffer the effects of the housing crash as severely as the rest of the market. It also rebounded faster. But, according to new research, there are a growing number of luxury listings and the additional inventory is changing conditions for buyers and sellers. In fact, the number of luxury home listings rose 4 percent in 2017 over the year before. As a result, prices for luxury homes increased 5.1 percent last year, compared to the 6.9 percent increase the overall market experienced. Luxury properties also took longer to sell than they did the year before. Javier Vivas, director of economic research with the National Association of Realtors, says the market is strong but supply is beginning to outpace buyer demand. “Although 2017 was another strong year for the luxury housing market, it was once again outperformed by the US market overall,†Vivas said. “Age of inventory in the top 5 percent of the market slowed significantly over last year – a tell tale sign that the supply in the luxury sector continues to outpace demand.†In other words, home buyers interested in buying a luxury home, as either a primary or secondary residence, may find more choices, opportunities, and balance among the housing market’s most expensive homes. More here.

Architectural detail of a white building with a blue sky backdrop.

Americans More Optimistic About This Year’s Market


Americans feel better about the housing market than at the beginning of last year, according to the most recent Housing Purchase Sentiment Index from Fannie Mae. The index measures Americans’ perception of buying and selling a house, mortgage rates, prices, and their own financial stability. The most recent results show an increase in confidence since last year but a slight weakening from the month before. Doug Duncan, Fannie Mae’s chief economist, says affordability is still the main challenge. “Consumers remained cautious in their housing outlook at the end of 2017, as tax reform discussions continued,†Duncan said. “Entering 2018, housing affordability remains a persistent challenge, particularly in rental markets, where consumer expectations for price increases over the next 12 months reached a new survey high.†Still, according to most forecasts, this year’s real-estate market – though not that different from last year’s – should benefit from an increase in new home construction, which may help keep prices from climbing as quickly as they have been. More here.

Sunlit residential street with palm trees and parked cars.

Analyst Says Don’t Expect Big Changes In 2018


Housing market fundamentals have been relatively steady, for some time now. Mortgage rates have been low by historical standards, prices have been rising, and inventory has been down. All three of these factors, combined with a growing economy and stronger job market, have kept the real-estate market in a kind of limbo. While the economy and favorable mortgage rates have helped drive buyer demand, there have also been fewer homes for sale, which helps push prices upward. In other words, there are a lot of positives but there are also challenges. Freddie Mac economist, Leonard Kiefer, says this year’s market will likely continue along the same path – though he predicts some improvement. “Income growth should remain positive, but not enough to offset the other factors affecting home buyer affordability,†Kiefer wrote in a recent article. “We’re expecting that interest rates will remain low, but gradually move higher. Housing construction should gradually pick up, helping to supply more homes to inventory-starved markets. More housing supply and modestly higher rates will lead to a moderation in house price growth.†More here.

A charming house with a red-tiled roof under a clear blue sky.

Credit Score Data A Reminder To Keep Good Habits


Keeping good financial habits is important, especially if you’re expecting to buy a house any time soon. That’s because, your credit history and score will be among the tools your lender uses to determine whether or not you’re qualified for a mortgage. In other words, making sure your credit score is as good as it can be should be a top priority for prospective home buyers. But, though that’s true, last year saw a drop in average credit scores among borrowers. In fact, numbers from Ellie Mae show borrowers’ average FICO score dropped from 728 to 722 year-over-year in November. The good news is that that’s a significant improvement over where it was a few years ago. It’s also, however, a reminder to practice good financial habits, pay your bills on time, and check your credit history for any fixable errors. Joe Tyrell, Ellie Mae’s president of corporate strategy, says the news is encouraging, despite the drop. “With the average credit score dipping, lenders are extending credit to borrowers who may have had no previous access to the housing market,†Tyrell said. “While these scores are still significantly above levels seen a few years ago, it is encouraging to see increased accessibility especially as the millennial population continues to pursue home ownership.†More here.

A close-up of various credit card edges stacked together.

Mortgage Rates Mostly Steady To End The Year


According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were fairly steady at the end of 2017. In fact, 30-year fixed-rate loans with conforming balances were unchanged during the last week of the year – while jumbo loans, loans backed by the Federal Housing Administration, and 15-year mortgages all saw minor movement. All told, rates were fairly steady throughout the year, though they ended December at their highest point in months. Joel Kan, an MBA economist, told CNBC some of the bump was due to increased economic optimism. “With the passage of the tax reform bill, there were increased expectations of stronger economic growth, which pushed rates higher,†Kan said. But despite the week-to-week fluctuations, mortgage rates stayed within a narrow range throughout the year, and expectations are that they should stay relatively calm this year as well. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Miniature houses with 'mortgage' text in the background.

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