Phil's Blog

• 58% of young-adult households have less than $10,000 in debt. An additional 18% have between $10,000 and $20,000
• 36% of households with people between the ages of 20 and 40 had education debt, up from 14% in 1989. Some of the increase stems from the good news that more people are going to college.
• Taking financial aid into account, the average tuition at private (nonprofit) colleges has not increased any faster than overall inflation over the last decade.
• Because the incomes of college graduates have grown since the early 1990s, the share of income that a typical student debtor has to devote to loan payments is only marginally higher than it was in the early 1990s — and somewhat lower than it was in late 1990s. It was 3.5% in 1992, 4.3% in 1998 and 4% in 2010.
• The burden for the people with the most debt is significantly lower today than two decades ago. Someone at the 90th percentile of debt had to devote 15% of their income to repayment in 2010, down from 20% in 1992.

1. Tell the truth about the price

2. Understand the timetable with which your family is dealing

3. Remove as many of the challenges as possible

4. FIND the right house!

Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT!

1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again
2. The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe heaven triple) check everything on the application.

Bottom Line

1. Demand is Strong

2. There Is Less Competition Now

3. The Process Will Be Quicker

4. There Will Never Be a Better Time to Move-Up

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

Buyers Are Searching the Internet for Homes in Record Numbers

Buyers Are Physically Out Shopping

Inventory Levels are BELOW Historic Norms

Bottom Line

BELIEF in the HOUSING MARKET

• 77% of consumers (and 85% of Millennials) have a favorable view of housing
• 79% of people (and 83% of Millennials) believe the housing market is on the right track
• 69% of consumers said they are committed to buying or selling a home now

CHALLENGES

• The main reason (45%) people waited to make a real estate transaction is they were waiting for spring weather to arrive
• 76% of consumers believe that pent-up demand will create even more competition for existing homes
• 74% of consumers are most concerned about higher than expected prices when buying a home this spring
• 83% of consumers are motivated to act sooner than later because they fear interest rates will increase

Other interesting findings from the survey (broken down by buyers and sellers):

Buyers

• 80% of real estate consumers are more committed to buying
• 78% of potential buyers said it will be easier to purchase a home this spring since “homeowners want to sell”
• 72% are encouraged because “the economy is improving”
• 46% of buyers said spring was a more favorable time to buy a home
• 28% of buyers said summer was a more favorable time to buy a home (an 8% increase over last summer)

Sellers

• 83% of real estate consumers are more committed to selling
• 63% of sellers are buoyed this spring by the improving economy and their perception that buyers are motivated following the difficult winter

Bottom Line