Phil's Blog

Housing Bubble? We Don’t Think So [INFOGRAPIC]

June 28, 2013
Housing Bubble? We Don’t Think So [INFOGRAPIC]
Posted: 28 Jun 2013 04:00 AM PDT
Bubble
InfoGraphic
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Buying a Home? How the Serenity Prayer May Help

June 25, 2013
Buying a Home? How the Serenity Prayer May Help
Posted: 25 Jun 2013 04:00 AM PDT
hands in prayerYou may be frustrated while attempting to buy a home in today’s market. You may feel powerless to the process. How could YOU possibly know whether the current good news about housing will continue? There is no doubt that today’s real estate market is extremely difficult to navigate. However, we want you to know that thousands of homes sold yesterday, thousands will sell today and thousands will sell each and every day from now until the end of the year.
It is totally within your power to decide whether it is the right time for you and your family to move. Even in the current market.
“How?” Let’s look at the simplicity of the famous Serenity Prayer and apply it to buying a home in today’s real estate market.
“God, grant me the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference.”

Accept the things you cannot change

The two main concerns many talk about when discussing the housing market are:
  1. the current economy
  2. the rapid rise in interest rates
As an individual, there is very little you can do to impact either of those two situations. The best think-tanks in the country are struggling to discover what impact each of these items have on real estate.

Have the courage to change the things you can

If you are a buyer and you believe now is the right time for your family to purchase a home – DO IT! Prices will only be higher later this year and though interest rates are rising they are still at historic lows. That means that your monthly housing expense will still be lower than almost any time in the last 50 years – and probably lower than your current rent payment.

The wisdom to know the difference

We all realize that the economic situation will take some time to correct. The question is whether or not it makes sense to delay moving on with your life until everything gets ‘better’. Should you not buy a house and enable your kids to attend the school you have already decided is best for them? Should you spend another winter up north even though your doctor recommends you move to a climate better suited to your current medical situation?
This is where your wisdom must kick in. You already know the answers to the questions we just asked. You have the power to take back control of the situation by moving forward. The time has come for you and your family to move on and start living the life you desire. That is what truly matters.
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Buying a House? 3 Reasons to Do it Now!

June 24, 2013
Buying a House? 3 Reasons to Do it Now!
Posted: 24 Jun 2013 04:00 AM PDT
AddressHere are three great reasons to consider buying a home today instead of waiting.

1.) Prices Will Continue to Rise

Standard & Poors recently upgraded their 2013 forecast for the S&P/Case-Shiller Home Price Index to an 11% year-over-year increase from their original 8% projection.
The Home Price Expectation Survey, which polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts, projects a 22.3% appreciation in home values over the next five years. The bottom in home prices has passed. Waiting no longer makes sense.

2.) Mortgage Interest Rates Are Increasing

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about 1/2 percentage point over the past several weeks.
The National Association of Realtors, the Mortgage Bankers Association and Fannie Mae are calling for interest rates to rise by approximately an additional ½ percentage point by this time next year. Some are trying to minimize the impact of higher rates. For example, Freddie Mac in their June U.S. Economic and Housing Market Outlook stated:
“At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”
However, an increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3.) It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your  family to be safer or you just want to have control over renovations, maybe it is time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
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Home Mortgage Rates Climbing

June 21, 2013
Home Mortgage Rates Climbing [INFOGRAPHIC]
Posted: 21 Jun 2013 04:00 AM PDT
Rates ClimbingInfoGraphic
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Selling a House? 5 Reasons You Should Do It Now

June 17, 2013
Selling a House? 5 Reasons You Should Do It Now
Posted: 17 Jun 2013 04:00 AM PDT
five fingersMany are talking about why now is a great time to buy a home. Today, we want to look at why it might also be an opportune time to sell your house. Here are the Top 5 Reasons we believe now may be a perfect time to put your house on the market.

1.) Demand Is High

Homes are selling at the fastest pace since November 2009 when the market spiked in response to the home buyer tax credit. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that monthly sales increased 9.7% over the same month last year. Total sales have been above year-ago levels for 22 consecutive months. There are buyers out there right now (buyer traffic is 31 percent stronger than a year ago) and they are serious about purchasing.

2.) Supply Is Beginning to Increase

Total housing inventory last month rose 11.9% to 2.16 million homes for sale. This represents a 5.2-month supply at the current sales pace, compared with 4.3 months in January. Many expect inventory to continue to rise as more sellers escape the shackles of negative equity. Selling now while demand is high and before supply increases may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative for many purchasers.

4.) Interest Rates Are Rising

According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year mortgage have shot up to 3.98% which represents a jump of more than ½ point since the beginning of the year. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:
“Rates are unlikely to keep going up so quickly and should remain below 5%.”
Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) It’s Time to Move On with Your Life

Look at the reason you are thinking about selling and decide whether it is worth waiting. Is the possibility of a few extra dollars more important than being with family; more important than your health; more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of your situation by putting the house on the market today. The time may have 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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Buying a House: Is Now the Time?

June 10, 2013
Buying a House: Is Now the Time?
Posted: 10 Jun 2013 04:00 AM PDT
boredThe real estate community is often criticized for always seeming to have a Pollyanna attitude about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing more than a scare tactic with the sole purpose of creating more commissions for the industry. Let’s take a look at whether or not that advice was good advice over the last year.
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home values have risen over 10% in the last year. If we look at Freddie Mac’s Weekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from 3.67% to 3.91% during that same period.
The table below compares the cost of the same exact house over the last twelve months:
difference
We can see that the advice to buy a year ago made complete financial sense.

What About Moving Forward?

Most experts are not only calling for prices to continue to rise but are also upgrading their projections as the housing market is showing strong signs of recovering.
Regarding interest rates, the 30 year mortgage rate has soared by over a half point already this year and many believe that the increases will continue. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:
“Rates are unlikely to keep going up so quickly and should remain below 5 percent.”

Bottom Line

The next time a real estate professional says that now is the time to buy they may not be giving you a ‘sales pitch’. They may be giving you nothing but excellent advice.
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Senior Housing: Silver Tsunami About to Hit

June 5, 2013
Senior Housing: Silver Tsunami About to Hit
Posted: 05 Jun 2013 04:00 AM PDT
tracksSome look at this photo and see empty railroad tracks with nothing in sight, so they may turn and walk away.
Au contraire, for the social caring and business opportunists among us.
Armed with in-depth research and enough data to mold an entire business plan, I set out to explore where the train was coming from and prepare to to assist every passenger by analyzing their individual needs, offer a multi tiered plan for their transition, regardless of their destination.
The largest demographic tsunami in the history of our nation is scheduled to arrive in the next 2+ decades and business executives and entrepreneurs are only beginning to become aware and will eventually scramble to find their place.
The industry term is “Silver Tsunami” and it is arriving in your neighborhood every day. You see, that train delivers 10,000 people that turn 65 daily in the United States. Today there are 34+ million Seniors (aged 65+) and by the year 2030 over 34 million will live in the U.S. The leading edge of the Baby Boomer generation (born between1946 and 1964) will gently wake us all up and make us aware of their life needs. At peak numbers, this demographic will reshape the economy of the United States.
Do you remember the first time you heard someone use the term “Short Sale”?
Most thought that it just couldn’t provide enough opportunity and left it for others to toil with. Well hindsight is indeed 20/20 and truth be told, those that focused on short sales prospered and those that didn’t worked through several years of a struggling real estate market.
The Real Estate success needle is pointing positive now and that may allow for a less anxious feeling for Realtors and they may just take comfort in their normal daily business building activities and leave working with Seniors for someone else to toil with.
We are used to “10 reasons to do this” or “10 reasons to do that”. In the next blog on Seniors, I will offer you $7 Trillion reasons to learn how to prosper by helping this great demographic with their life needs.
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