Lorie’s Market Snapshot
May 2015 May 2015
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Too Late!
Home Financing and Cash Out RefinancingObtaining a loan is getting a little easier!
Since the real estate crash of 2007, we have seen tight lending guidelines go into affect taking us from one extreme to another. It went from no doc-tell us what your income is to full docnow you have to provide document after document to prove that what you say is true regardless of credit score. To consumers, it felt as if it went from fog a mirror you can get a loan to you cannot get a loan until you open your veins up and give us your blood. Well, the tight guidelines backfired. When potential buyers cannot get loans, housing inventory cannot move. Guidelines have been improving, and once again obtaining a loan just got easier! That’s right, due to changes in March 2015, some of those guidelines have been removed. It is absolutely the time to consult a mortgage professional to determine your buying ability. Knowledge is power! One of our preferred lenders is ready, willing, and able to give you all the information you need to make a well- informed decision. Not ready to buy? Let Jenny at Acoipia Home Loans create a road map to homeownership for you! You can reach Jenny at 678-209-2113. There are truly many facts that make our current market an ideal market for both sellers and buyers to making a move and take advantage of super low interest rates!
Why 2015 may be the perfect time to make a move... In 2014, Metro Atlanta reflected an increase in listing inventory and a decrease in sales consistently when comparing each month to the same month in 2013. We are very aware of what happens to housing prices when inventory increases and sales decrease, right? The rule of supply and demand. We did feel a chill in the market come August and September; however, activity returned and the year finished on a slightly positive note with a 2% increase in closings for single family homes when compared to December 2013. January was a spoiler alert! January 2015 listing data shows a 7% decrease in closings for January 2015 in comparison to January 2014 for single family homes; however, February 2015 listing data shows we had an increase of 4% when compared to February 2014. March continues to show improvement with a 13% increase in closings when compared to March 2014. Listing inventory continues to increase; however, at a slower pace than it was increasing in 2014. Why is now such a great time for both sellers and buyers to make a move? There are many reasons and here are just a few: 1. Housing is still overall very affordable and in most areas prices have still not returned to the high sale prices marked before the crash of 2007 to 2012. 2. More importantly, interest rates are still being “held” down making housing that much more affordable. Let’s talk for specifics about how this information benefits a buyer and a seller.
For BUYERS the increase in listing inventory could cause a false sense of hope another bottom is in the wake causing them to pause on buying a home. Another correction is expected to clean up the not so natural appreciation we have been experiencing; however, this does not necessarily equate into more affordability due to the expected increase in interest rates! Rates WILL increase and just a 1% increase in rate impacts purchase price by 10% to provide the same affordability. A buyer would likely be waiting for prices to come down again only to pay a higher interest rate that could in turn actually put them at a higher monthly payment versus negotiating the best possible price now and closing at a fabulous low rate, fixed for 30 years! SELLERS have a lot to celebrate! A seller looking to sell a home to buy another home needs to be alert on how the predicted market could impact them negatively on both ends! That’s righton both the selling side and the buying side! For sellers, right now the market represents a win- win. Sellers have regained a lot of the value lost at a time when interest rates are very low giving a once in a lifetime opportunity. There are three very important questions a seller should be asking right now. 1. What happens to housing pricing when inventory increases? 2. What happens to housing prices when interest rates increase? Remember 1% in rate equals 10% in housing value so a $250,000 house would need to reduce $25,000 to keep affordability the same for buyers. 3. What happens when inventory and interest rates increase? We will continue to watch the market closely so you have the most accurate information. If you would like an analysis of your immediate area, please send a request to Lorie@HomesByLorie.com with subject line My Homes Value.
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Have you thought about selling your home? You can’t afford to make a mistake! You owe it to yourself to get competitive bids from several Realtors so you are not jeopardizing your hard earned equity! The RIGHT AGENT makes all the difference! Call us about our exclusive Hassle Free Listing Program. You’ll see Flexible Fees, No Upfront Costs, and you can Cancel Anytime! FACT: We sell 10 TIMES as many homes as the average agent with an average of 20 DAYS ON MARKET... and we put MORE MONEY in YOUR pocket! Find out why so many homeowners choose to sell with The Homes By Lorie Team! Call us anytime at 678-428-5841!
www.HomesByLorieBlog.com Proudly Affiliated With: Christopher B. Little, Attorney at Law 678.436.5536 chris@parkwaytitle.com
Jenny Keenan Mortgage Loan Originator 678-209-2113 jkeenan@acopiahomeloans.com
Cal Couch Owner, Operator 770-614-6534 cal@trademarkps.com
If your property is listed with a real estate broker, please disregard. If is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Equal Housing Opportunity.