2018 Real Estate Market Forecast

2018 Real Estate Market Forecast

2017 was certainly an interesting year! We had more buyers, and looser mortgage guidelines, qualifying more people for a home loan. We still maintained incredibly low interest rates with noisy politics and uncertainty contributing a great deal to that. As supply and demand would have it, we saw an increase in demand for home ownership but a shortage of supply as low inventory was the only thing holding the housing market back from a sure explosion. That led to home values increasing and a shift from a buyers- market; to a sellers- market.

 

 

So here we are its 2018 and we are seeing incredible economic growth. The Dow Jones Industrial average is soaring to record levels, unemployment rates are at a 17-year low and job growth predictions are all leading to signs of a very healthy America in 2018; from an economic perspective.

So what does all of this mean to you? Well it’s always important to know what is going on in the real estate market because if you are a home owner, you should always know the current market value of your home. If you are considering selling, you of course want to know how much cash you can get out of your sale. And if you’re looking to own a home, you want to know what the interest rates are, what they are projecting to be and what the inventory situation looks like to make better, more informed decision.

It’s expected that historically low interest rates, still baffling to even the most seasoned analysts, will gradually rise to an average of 4.5% percent over the next 12 months. Inventory is expected to increase, but moderately; making 2018 thus far, a sellers- market.

“This will be the first of many years to come in which it’s all about the millennial first-time homebuyer,” said Mark Flemming, chief economist at First American Financial Corp, a title insurance company. “ Find ways to appeal to those buyers, and it’s likely to be a successful year.”

Millennials, first time home buyers and self-employed individuals finally have access to options they really didn’t have after the mortgage meltdown. Let’s face it, most rentals today aren’t as desirable and they are more expensive as sellers of nicer properties have opted to “cash out” and sell once the market recovered. What I have recommended to interested buyers in our community is define where you are at financially and what your credit score is; then learn what products exist today that will get you qualified. For my sellers or potential sellers, get a free market analysis and know the market value of your home; you might be pleasantly surprised.

Groundhog Day 2018-Will Phil See His Shadow?

Groundhog Day is celebrated on Feb. 2 — when people all over the country focus on a small furry animal and whether it will predict an early spring or another six weeks of cold winter weather.
If PUNXSUTAWNEY Phil comes out of its burrow at sunrise and sees its shadow, winter will be around for 6 weeks longer. However, if the groundhog doesn’t see its shadow, spring weather is on its way!
If meteorologists are right, spring is on its way and may be covered in a dusting of snow this year. Since Pennsylvania’s first official celebration of Groundhog Day in Punxsutawney on 1886, the little guy has only seen his shadow 18 times.
Groundhog Day celebrations span centuries, with the earliest mentions of the unique holiday in the United States in the 1700s when German settlers arrived in Pennsylvania and brought the tradition of Candlemas Day. Those who celebrated Candlemas, an early Christian holiday where candles were blessed and distributed, decided that clear skies on the holiday meant a longer winter.
Initially, Germans used a hedgehog to predict when winter would end, but the animal was quickly replaced by the groundhog in Pennsylvania due to its bustling population and likeness to the European hedgehog.

Millennial Homebuyers Are Looking For More Space

Millennials are growing up and moving to the suburbs!

56% of young adults aged 25-39 say buying a home with plenty of space is important, according to a recent Zillow survey. Space is less important to older homebuyers, with just 42% of Generation-X respondents and 35% of Baby Boomers saying a large home was important in their home search.

Until recently, young adults were more interested in living near the high paying jobs and cultural amenities found in California’s urban centers. But this shift is perfectly sensible, as Millennials — also called Generation Y — are finally beginning to settle down and form families, which requires more space than allowed by the typical urban apartments and condominiums this generation is used to.

As more young adults enter the homebuying market, this trend is accelerating in California. This demographic had a rough start to homeownership. Many were just starting their careers when the 2008 recession and financial crisis hit. During the long recovery, Millennials saw their incomes stunted, unable to save up for down payments as previous generations had done. All the while, home prices and rents continued to accelerate as the recovery heated up.

In 2018, ten years out from the recession, this generation is finally making a showing in the housing market. But now that they’re ready to buy, they are faced with low inventory and high prices in California’s urban cores. They are finding that competition is less fierce, and space is more abundant, in the suburbs.

ADU’s – May Be the Solution for You

ADU’s – May Be the Solution for You

 

I’m always looking for ways to improve the lives of my friends & clients.  So, with that in mind, I want to share with you my recent

experience at a seminar presented by Gayler Design Build for ADU’s. What is an ADU?   An ADU or accessory dwelling unit is

a really simple and old Idea.  You may have heard them called in-law units or pool houses.  People are building ADU’s for many

reasons. With California’s growing housing prices and limited inventory, Bay Area homeowners are building ADU’s in their

backyard to rent out for extra income or to family members, such as their adult children or their aging parents. For

young couples who cannot afford buy in the bay area and don’t want to move out of state, this is a great option!  Another popular

trend we are seeing is empty nesters renting out their large houses and moving into ADU’s. This may be an old concept, but

these units by Gayler are contemporary, spacious, and gorgeous! Each ADU is designed and built to compliment the main house

and backyard. If you are outgrowing your current home and need more space, or if you have more space than you currently need,

an ADU may be a great option for you! Visit Gayler Design Build at gaylerdesignbuild.com so you can see yourself

If you are interested in learning more or you have questions regarding financing for these little gems please give a call.

 

A Fresh Start for Credit Challenged Borrowers

As of late I have been getting requests from borrowers that have experienced either a bankruptcy, foreclosure or short sale.   There really haven’t been great options…… Until now!
This new program is called Fresh Start.   The Fresh Start product is just that – it’s designed to help borrowers buy or refinance a home after a bankruptcy or foreclosure, but have since rebuilt their credit.

Here a few bullet points this product offers:

  • Loan amounts up to $1M
  • Minimum credit score 580
  • 100% gift for down
  • Higher Debt to Income Ratios
  • No seasoning requirement for BK, foreclosure, short sale
  • Purchase or rate & term
  • cash-out refinance with a max cash back of $350,000
  • No pre-payment penalties

Please call me or fill out your information under my Resources tab, and we can discuss your loan scenarios to learn more about this program and others designed to fit your needs.

  • 925-785-4200