If You Are Thinking of Selling, Now Is The Time

Getting an early startIf you thought about selling your house this year, now may be the time to do it. The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were still in high school when we learned the concept of supply and demand: the best time to sell something is when supply of that item is low and demand for that item is high. That defines today’s real estate market.

Jonathan Smoke, the Chief Economist of realtor.com, in a recent article revealed that:

“Would-be buyers face a dilemma: There will be more homes on the market over each week of the next three to four months, but there will also be even more prospective buyers. We are entering the busiest season of home buying with the lowest amount of inventory in three years. To be competitive, buyers should get pre-approved for a mortgage and be ready to act quickly if they find a home that meets their needs.”

Smoke goes on to say:

“Listings are growing as they normally do this time of the year, but because demand has been growing faster than supply, homes are selling faster. So the monthly trend is the normal seasonal pattern, but the year-over-year decline is reflective of demand being stronger than supply for more than a year, which is resulting in fewer homes available and faster-moving inventory.”

In this type of market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction including the inspection, appraisal and financing contingencies.

Bottom Line

As a potential seller, you are in the driver’s seat right now. It might be time to hit the gas.

To get started: Click here to find out how much your home is worth in today’s market.

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Rent? Buy? Either Way, You’re Paying a Mortgage!

There are some renters that have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s.

 

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

The graph below shows the widening gap in net worth between a homeowner and a renter:Increasing Gap in Family Wealth

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.

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Things to Consider when BUYING A HOME
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Your Home Purchasing Power, Visualized

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are near those of a few years ago but interest rates have stayed near historic lows.

Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. 

Here’s what I’m trying to say, look at this chart:2500_month_mortgage

I’m currently helping a move-up home owner; he was just pre-approved at a 3.5% interest rate on a 30 year loan! Just helped my sister-in-law buy her first home 2 months ago; she locked-in a 3.75% 30 year fixed mortgage! Folks, these are unbelievable low rates.

Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year. Now look at the chart above…if you wait that long, you’re purchase power gets cut by over 10%.

So, thinking about moving-up? Need to sell your current home in order to buy your next home? Contact me, and I’ll show you how we can make this a reality.
It’s a simple step-by-step process.

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Take a stroll with us through downtown Livermore

Join us, as we take stroll down First Street in downtown Livermore. Michael Koenig and Maureen Torretto discuss a few reasons why they love Livermore so much.

Did you know the city of Livermore was incorporated 140 years ago on April 1st, 1876? Now you know.

Places mentioned: First Street Ale House, Livermore Chamber of Commerce, The Last Word, Bankhead Theater, Sauced BBQ, Cream, Loard’s Ice Cream, Farmer’s Market, Carnegie Park, Heritage Guild, Livermore Water Fountains, Uncle Yu’s at the Vineyard, Livermore Rodeo (cowboys), Lawrence Livermore Laboratory, Sandia National Laboratory, Livermore Weather

Maureen Torretto, Loan Consultant with iMortgage.
Email: maureen.torretto@imortgage.com
Phone: 925-577-8706

Michael Koenig, Real Estate Broker
Email: SFBayRealtor@gmail.com
Phone: 510-681-3499

 

Check out these hot new Livermore Listings: 

  1. 4 beds, 3 full, 1 half baths
    Home size: 3,337 sq ft
    Lot size: 10,114 sqft
    Year built: 2004
    Parking spots: 3
    Days on market: 1
  2. 4 beds, 2 full baths
    Home size: 1,518 sq ft
    Lot size: 8,382 sqft
    Year built: 1962
    Parking spots: 2
    Days on market: 2
  3. 4 beds, 3 full baths
    Home size: 2,714 sq ft
    Lot size: 10,789 sqft
    Year built: 1994
    Parking spots: 3
    Days on market: 2
  4. 3 beds, 2 full, 1 half baths
    Home size: 1,274 sq ft
    Lot size: 1,140 sqft
    Year built: 1986
    Days on market: 2
  5. 3 beds, 2 full baths
    Home size: 1,335 sq ft
    Lot size: 5,000 sqft
    Year built: 1952
    Parking spots: 1
    Days on market: 2
  6. 5 beds, 2 full, 1 half baths
    Home size: 2,377 sq ft
    Lot size: 7,360 sqft
    Year built: 1998
    Parking spots: 3
    Days on market: 2
  7. 3 beds, 3 full, 1 half baths
    Year built: 2010
    Parking spots: 2
    Days on market: 2
  8. 3 beds, 2 full baths
    Home size: 1,328 sq ft
    Lot size: 6,914 sqft
    Year built: 1961
    Parking spots: 2
    Days on market: 2
  9. 4 beds, 2 full, 1 half baths
    Home size: 2,172 sq ft
    Lot size: 12,022 sqft
    Year built: 1972
    Parking spots: 3
    Days on market: 3
  10. 3 beds, 2 full baths
    Home size: 1,346 sq ft
    Lot size: 6,072 sqft
    Year built: 1960
    Parking spots: 2
    Days on market: 3

See all Real estate in the city of Livermore.
(all data current as of 5/1/2016)

Listing information deemed reliable but not guaranteed. Read full disclaimer.