Quincy MA & South Shore Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.reddoor-re.com/blog/Copyright RedDoor-RE.com2020-01-03T10:18:18-07:00tag:reddoor-re.com,2012-09-20:1368Planning to Move in 2020? If you’re planning to move in 2020, we have some good news for you! <a href="https://www.reddoor-re.com/">Red Door Real Estate</a> has pulled data from some of the most trusted entities in the real estate industry when it comes to mortgage rates, home sales, and home prices to give you a better picture of what this could mean for us in Quincy, MA, Hanover MA and the South Shore Massachusetts. The results may surprise (and encourage) you!
Mortgage Rates
Projections from the experts at the National Association of Realtors (NAR), the Mortgage Bankers Association (MBA), Fannie Mae, and Freddie Mac all forecast mortgage rates remaining stable throughout 2020:<img alt="The 2020 Real Estate Projections That May Surprise You | MyKCM" src="https://lh6.googleusercontent.com/j-yZ8RvhydYKx1pUG-3GaHYFJR3ta6AWQsyeASm7QCX-uv5S9RT2gdMutv8cIHx23UykIvIqdEGDaZMJvV-R0D_o1SEWyJEsEzDdMPWU7T6Ui2pKlVddk6ELdXCUE0KFGg5HsKa1" width="600" height="451" />Rates have stayed under 5% for the last decade. This is an incredible opportunity that many have not fully appreciated. Take a look at the average mortgage interest rates over the last several decades:<br /><br />
1970s: 8.86%
1980s: 12.70%
1990s: 8.12%
2000s: 6.29%
Home Sales
The same expert groups noted above see an increase in home sales in 2020, and the fourth sees the number remaining stable:<img alt="The 2020 Real Estate Projections That May Surprise You | MyKCM" src="https://lh6.googleusercontent.com/21I3Ov2XnGsa-mOZncneXe9J4QopB1HhJbqCJWBbAWjMhFBFdGWwzYqG_f6dtIwYF7ScXyiRkqDCezggOh_V6xYEQQofsLIUXCWjBITeB2Fw2pIlhqeyMJthLf_3Sz-gT7RYtASs" width="600" height="451" />Keep in mind, the lack of available homes for sale, could moderate the increase in sales.
Home Prices
Below are the projections from six different expert entities that look closely at home values and home prices: CoreLogic, Fannie Mae, Ivy Zelman’s “Z Report”, the National Association of Realtors (NAR), Freddie Mac, and the Mortgage Bankers Association (MBA).<img alt="The 2020 Real Estate Projections That May Surprise You | MyKCM" src="https://lh6.googleusercontent.com/7zOXatxmPuDv3aSIjIeVEWvdGu7pISDa6LcaN3wWW4rj7NJ6gogVM3nnw920OehahCc-45_vxs3lVEkKc3EzEDpBx38odGyYpqheCie8D2PV4dhM9bThgBapNhNjeYwR3YzYD5dB" width="600" height="451" />Wow. Bet you didn’t see this one coming? Each group has home values continuing to improve through 2020, with four of them seeing price appreciation increasing even more rapidly than 2019.
Is a Recession Possible?
In early 2019, a large percentage of economists began predicting a recession may occur in 2020. 50% of home purchasers who were surveyed agreed it would occur this year. The economy, however, remained strong in the fourth quarter, and that has caused many to rethink the possibility.
Red Door Real Estate’s Final Take:
With mortgage rates projected to remain under 4%, a growing demand and a limited supply of inventory- prices will continue to appreciate. The threat of an impending recession seems to be softening. It looks like 2020 may be a solid year for the real estate market. If you want to buy or sell- do it NOW!
The Quincy, Ma real estate market continues to be strong, to view homes for sale in Quincy Ma<a href="https://www.reddoor-re.com/quincy/"> click here.</a>2020-01-03T10:04:00-07:002020-01-03T10:18:18-07:00Madelene Cheneytag:reddoor-re.com,2012-09-20:957Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/1051/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2018-08-27T13:28:00-07:002018-08-27T13:39:08-07:00Madelene Cheneytag:reddoor-re.com,2012-09-20:955Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/1051/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2018-08-27T13:28:00-07:002018-08-27T13:38:54-07:00Madelene Cheneytag:reddoor-re.com,2012-09-20:954Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/1051/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2018-08-27T13:28:00-07:002018-08-27T13:38:46-07:00Madelene Cheney