Doorbell Real Estate Archives - Page 38 of 40

What If I Waited Another Year To Buy A Home?

December 11, 2018 By Troy Stavros

What If I Wait A Year to Buy a Home? | MyKCM

National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Why is buying a home better than renting? It makes “CENTS!”

December 10, 2018 By Troy Stavros

The American Dream of homeownership is alive and well. Before you sign another lease, let’s get together to help you better understand all your options. Call Troy Stavros with CornerStone Realty Associates today at 865-999-0925 or 888-388-DOOR xt. 707.

5 Reasons The Holidays Are A Good Time To List Your Home

December 9, 2018 By Troy Stavros

Every year at this time there are many homeowners who decide to wait until after the holidays to list their homes. Here are 5 powerful reasons why waiting until after the holidays to sell your home probably doesn’t make sense. Let’s get together today to discuss how we can market your home this holiday season! Have questions or want to talk about getting your home on the market? Call Troy Stavros with CornerStone Realty Associates at 865-999-0925 or 888-388-DOOR xt.707 today.

2 Markets. 2 Different Directions. Luxury vs. Starter/Trade-Up

December 8, 2018 By Troy Stavros

The Tale of Two Markets [INFOGRAPHIC] | MyKCM

Some Highlights:

An emerging trend for some time now has been the difference between available inventory and demand in the premium and luxury markets and that in the starter and trade-up markets and what those differences are doing to prices!
Inventory continues to rise in the luxury and premium home markets which is causing prices to cool.
Demand continues to rise with lower-than-normal inventory levels in the starter and trade-up home markets, causing prices to rise on a year-over-year basis for 80 consecutive months.

Have questions about the market, the value of your home, or whether it’s a good time to buy or sell a home? Call or text Troy Stavros with CornerStone Realty Associates directly at 865-999-0925 or through our contact form.

Over the last six years, we have experienced strong price appreciation which has increased home equity levels dramatically. As the number of “cash-out” refinances begins to approach numbers last seen during the crash, some are afraid that we may be repeating last decade’s mistake.

However, a closer look at the numbers shows that homeowners are being much more responsible with their home equity this time around.

What happened then…

When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.

This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation (where the mortgage amount was greater than the value of the home). When some of these homeowners saw that there was no value left in their houses, they just stopped paying their mortgages altogether.

Banks eventually foreclosed on those homes and the foreclosures drove prices down even further and put more homes in the negative equity category. This cycle continued, leading to the worst housing crash in almost one hundred years.

What’s happening now…

Again, Americans are seeing their home equity grow. Today, over 48% of all single-family homes in the country have over 50% equity, and yes, some families are tapping into that equity. However, this time around, homeowners are not making irresponsible decisions. According to the latest information from Freddie Mac, the total equity being “cashed out” is a fraction of what it was leading up to the crash. Here are the numbers:

Bottom Line

The recklessness that accompanied the build-up in equity prior to the last crash does not exist today. That makes this housing market much more secure than the one we had heading into 2008.