Should you purchase your dream house first? – Chuck Barberini Real Estate

EXP Realty of California Inc. – Chuck Barberini Real Estate

Should you purchase your dream house first?

Gone are the days when a three-bedroom, two-bath starter home was the norm for first-time home buyers. Today, many buyers are skipping that stage altogether and going straight for their dream homes. They’re buying bigger, more expensive properties with upgraded features, and they plan to live there for the long haul.

Not sure which type of property you should look for? Here are a few things to consider:

Why are you buying?
Are you mainly looking for a way to lower your monthly living expenses, or do you want a place to raise your kids and put down roots? Do you want this to be your only purchase, or are you willing to go through the process again in a few years?

What’s your budget?
Can you buy your dream home with what you can currently afford, or would that stretch your budget too far? It’s crucial to consider how much you’ll need to save for a down payment and how large of a loan you can qualify for. Your credit score and the expected interest rate will also play a factor.

How long do you plan to stay? 
Do you plan to be in the area for a long time or is there a chance you’ll need to move for your career, family or another reason down the line?

Is the market favorable?
What is the current housing inventory, and will you be competing with other buyers? Favorable market conditions mean you’ll get more house for your money, making it an ideal time to purchase a forever home.

Get in touch today if you’re ready to buy a new home. If you’re unsure about a starter home or forever home for your family, we can discuss what options are available to meet your needs and long-term goals.

Thank you for reading my newsletter. I look forward to connecting with you soon.

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Chuck Barberini Real Estate – Tiny Houses

EXP Real Estate – BR Real Estate Group – Chuck Barberini Real Estate – Tiny Houses

Do you have the biggest housing trend of the year?

Could you use a detached living space?

Today’s homeowners and homebuyers love detached living spaces. These small stand-alone structures located on the property come with all sorts of benefits — from added room for storage and recreation to extra income.

They’re also easy and affordable to design and install. Starting at around $9,600, this additional square footage can deliver serious bang for your buck, as detached areas can serve as:

Private Rental Space: You can offer the unit on a vacation rental site or lease it to a full-time tenant to bring in some extra income year-round.

Individual Living Quarters: These separate units are perfect for multigenerational families. They can be used by college kids home for summer or elderly parents who need assistance but want privacy. They’re also ideal guest rooms for family and friends coming to visit.

Quiet Home Office: Private, quiet and separated from all the hustle and bustle of the main house, detached units make highly functional home offices for the self-employed entrepreneur or side hustler.

Creative or Leisure Room: Need somewhere to escape and relax? These units are your solution. Personalize them with an art studio, a cozy reading nook, a yoga space or whatever else helps you wind down.

Fun Kids’ Playroom: Give the kids a space of their own with a toy-filled playroom in the backyard. They’re perfect for late-night slumber parties and playing video games with friends.

If you’re interested in building a detached living space on your property, get in touch today for recommendations for local contractors and designers. Remember to also look into any municipal or HOA restrictions, as you may need permits before starting your build-out.

Want to learn more about the market’s latest real estate trends and how your house compares? Get in touch today.

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Chuck Barberini Real Estate – Staycation

Chuck Barberini | BR Real Estate Group | EXP Realty
REALTOR®

Planning an exciting trip? Maybe a relaxing staycation is more your style. Either way, find out how you could get $500 to put toward your plans.

Don’t delay — you only have two weeks.

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Chuck Barberini | BR Real Estate Group | EXP Realty
REALTOR®
chuck@chuckbarberini.com
1415 Oakland Blvd.
Suite 101
Walnut Creek, CA 94596
Phone: (925) 963-6606
CalBRE 01324660

 

 

 

 

The Ultimate Moving Check List – Chuck Barberini Real Estate

The Ultimate Moving Check List

4 Things to Put on Your Moving Checklist

Moving can be hectic. With dozens of to-dos, a tight timeline and a growing pile of boxes, it’s easy to get frazzled and let things fall through the cracks. But it doesn’t have to be that way.

Get organized now by making a checklist to work from. Set deadlines for the most critical tasks like hiring movers, renting a storage unit and turning on your new utilities. Aside from packing up room by room, make sure your list has these often forgotten items, too:

Forward Your Mail: The post office makes it very easy to ensure your mail gets routed to the right place, at least for the first year after your move. Just head to a local branch or go online to update your address with the date you’ll be moving, and your mail will automatically forward.

Measure and Decide: Take a measuring tape to your new home and jot down the measurements of each wall and nook. What furniture and decor will fit in your new space? What won’t? It’s better to make decisions about what to donate or sell before moving day.

Refill Prescriptions: It may take a bit to get your prescriptions forwarded to a new pharmacy and even longer for you to find the time to pick them up. If possible, get your prescriptions refilled ahead of time from your current pharmacy.

Back Up Your Electronics: Back up your computer and phone to the cloud, and make sure you’ve uploaded all your photos and documents somewhere safe. In the event something happens to your devices during the move, a backup will get you up and running faster.

Are you ready to make a move? Whether you’re considering selling your current home or thinking of finding a new one, get in touch today for help and resources to guide you through the process.

@ChuckBarberini

@EXP Realty

@Charlie_Barberini

@RealEstate4Life

Well In My Day – Chuck Barberini Real Estate

Chuck Barberini Real Estate – BR Real Estate Group

I follow a blog by Doug Giles called Clash Daily it is mostly political and most of it is conservative politics.

Doug has written several books, none of which I have read, the latest might be on my list to knock out soon “Pussification: The Effeminization of the American Male”. Just from reading some of Doug’s blogs and listening some of his pod casts, it occurs to me that Doug is a master of stating the obvious, making connections that we have been conditioned to overlook or ignore, or more importantly accept as the norm. Like cooking a frog, societal changes take place gradually over time, the heat slowly gets turned up, the frog gets comfortable, then sleepy then cooked. One of Doug’s most recent blogs is called 20+ ‘Dangerous Things’ Kids Used to Do – Before P*SSIFICATON Took Over. It is a fun article and insightful and something that we have all talked about, without sounding like an old fart “well in my day” … Check out this blog and let me know what you think and see if you can come up with a few of your own.

20+ ‘Dangerous Things’ Kids Used To Do – Before P*SSIFICATON Took Over

Safe spaces?
Aw, HELL no! Back in the day, that’s the LAST thing any of us wanted!

If you’re old enough to remember when being a kid meant riding your bike in the summer, with your curfew being ‘when it gets dark’, you will remember some of these awesome ‘dangerous pleasures’. (h/t ArtOfManliness)

How many of these are from YOUR list?

Play with fireworks:

Does anything quite compare with the anticipation of lighting, followed by the thrill of watching when it goes off?

(Also, you learn pretty quickly which mistakes you really, REALLY don’t want to make with combustible materials.)

Hammer a Nail

Do you know that not everything that gets put together comes out of a ‘flatpack’ from Ikea?

Knowing how to hit a nail, properly, without tapping it 200 times, bending it in half or flattening your thumb is an important life skill. Let kids learn how while they’re young, so they don’t have to embarrass themselves with ‘Hashtag Adulting’ the first time they need to hang a picture on the wall,

Stick Your Arm Out a Car Window

Because it’s fun. Fun that gives you a ‘hands-on’ physics lesson in aerodynamics, resistance, lift, drag. As long as you’re not trying to learn Braille at 55MPH, relax… your arm will be fine.

Jump Off a Cliff

(Preferably into water.)
If kids learn to manage risks early on, they won’t be paralyzed by the fear of them later.

Use a Bow and Arrow

(Or better still, build your own.) Marksmanship isn’t just about shooting. It’s about a steady hand, judging distance, and understanding variables like wind, and gravity well enough to compensate for them.


Cook a Meal

Because you’ll want options besides Ramen Noodle and take-out when you’re out on your own. The sooner they learn, the better they’ll get.

Climb a Tree

If we need to explain why this is awesome, you’ve been indoors too long. Just go and try it. You’ll thank us later.

Roughhouse

Lions do it. Wolves do it. We should too. It’s Science!

DeBenedet and Cohen boldly claim that roughhousing “makes kids smart, emotionally intelligent, lovable and likable, ethical, physically fit, and joyful.” In short, roughhousing makes your kid awesome.
Source: ArtOfManliness

Sledding
If you have snow where you are, don’t let it go to waste. And high-speed wipeouts just make it all the more awesome!

Drive a Car

I was 5 the first time dad put me on his lap and steer a moving vehicle. And most of my farm kid friends were driving the farm vehicles before they turned 10.

If you’ve got somewhere safe to let them learn, like my dad did and see what’s involved, go for it!

Then again, how about if you want a safe way to let them drive independently, even before they’re street legal?

There’s always the go-kart tracks, where some of those go-karts can hit speeds that can still make the grown-ups sweat.

Burn Things With a Magnifying Glass

A useful skill, and a lot of fun.
(Just make sure they’re not starting fires on school property. School officials get real twitchy about ‘insurance’ issues and such.)

Walk or Ride a Bike to School

Exercise is important for success in school. (Look what happened with the school that tripled their recess!)

What did the other ‘dangerous things’ on the list look like?

Shoot a Gun
Stand on the Roof (one of my personal favorites), Squash a Penny on a Railroad TrackSword Fight With SticksShoot a SlingshotExplore a Construction Site(another favorite, and demolished/burned down buildings were fun, too), Use a Pocket Knife (now in some places there’s a minimum age to even buy one!), and Ride Your Bike Off a Ramp.

(The number of times we all ‘should have died’ doing dumb stuff on our bike is past counting. But, somehow, we lived through it all!),

Don’t forget Climb a Rope (how many people can still do that?), explore a tunnel, or Make a Fire (that magnifying glass is only one way. It’s also important to know the basics of how to go from a single flame to a sustainable fire.)

The list keeps going and going chock-full of memories of what made childhood awesome!

Did our list miss any? Name them in the comments.

Better still, drop a picture in the comments to let the poor kids suffering under today’s ‘structured play’ programs what they’re missing out on.

Maybe they’ll get restless and demand change!

Effeminization Of The
American Male

by Doug Giles

Doug Giles, best-selling author of Raising Righteous And Rowdy Girls and Editor-In-Chief of the mega-blog,
ClashDaily.com, has just penned a book he guarantees will kick hipster males into the rarefied air of
masculinity. That is, if the man-child will put down his frappuccino; shut the hell up and listen and obey
everything he instructs them to do in his timely and tornadic tome. Buy Now:The Effeminization Of The American Male
Wear this to the gym and I guarantee you’ll get some comments.

 

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Chuck Barberini Real Estate – BR Real Estate Group

I follow a blog by Doug Giles called Clash Daily it is mostly political and most of it is conservative politics.

The Gratitude Fad – Chuck Barberini Real Estate

The Gratitude Fad – Chuck Barberini Real Estate – BR Real Estate Group

I have been following Jay Voorhees of JVM Lending’s blog for years, he always has something impactful to say. He deals with market conditions, interest rates trends and some of his best stuff is on life and human nature. Today’s blog, in honor of Thanksgiving week, he discusses gratitude and the “Gratitude Fad”. As a person that has relied on gratitude to pull myself out of dark times and has recently incorporated using the Best Self Journal into my daily routine, which emphasizes writing what you are grateful for at the beginning and end of each day, I really enjoyed what Jay had to say… Check out his blog below and then take a minute to reflect on how blessed we all are.

The new Prager University video “The Key to Unhappiness” also talks about being grateful for what we have and not focusing on what we don’t have.

I have been following Jay Voorhees of JVM Lending’s blog for years, he always has something impactful to say. He deals with market conditions, interest rates trends and some of his best stuff is on life and human nature. Today’s blog, in honor of Thanksgiving week, he discusses gratitude and “The Gratitude Fad”. As a person that has relied on gratitude to pull myself out of dark times and has recently incorporated using the Best Self Journal into my daily routine, which emphasizes writing what you are grateful for at the beginning and end of each day, I really enjoyed what Jay had to say… Check out his blog below and then take a minute to reflect on how blessed we all are.

The new Prager University video “The Key to Unhappiness” also talks about being grateful for what we have and not focusing on what we don’t have.

Thanksgiving and the “Gratitude Fad” – More Than Meets the Eye

Every Thanksgiving we are reminded ad infinitum to give thanks, to be grateful, to show gratitude…until it gets annoying. Equally annoying is the entire “gratitude fad” – the constant reminders all year long to show, think and express gratitude.

But, here’s the thing.

It works.

It not only makes the recipients of your gratitude feel great, studies show that it strengthens your immune system, helps you sleep better, reduces stress and depression, and opens the door to more relationships.  

So, I am piling onto the gratitude fad with this blog. 🙂 It is Thanksgiving week after all.

There was a wonderful article in the WSJ recently about a Jewish woman who was kept in hiding by total strangers during WWII in Greece. The strangers risked their lives and most definitely saved the woman’s life.

She has spent her recent years writing a book about her experiences, and just the act of writing sparked such strong feelings of gratitude that her well-being improved markedly.

The article quotes psychologists who remind us that we can’t just sit around and feel thankful to get the full benefits of gratitude. They suggest the following:

  1. Keep a gratitude journal with detailed entries.
  2. Write sincere thank you notes and emails.
  3. Verbally express and show gratitude – smile and say thank you more often, open doors for people, and just say “hi.”
  4. Avoid ingrates. If the people around you don’t feel gratitude, you probably won’t either. Gratitude is contagious, and so is the lack of it.
  5. Remember the bad.  Remembering difficult times helps you appreciate the good times.

As somebody who practices all of the above, I can say from experience that it really does work.

Thank you everyone for supporting JVM and for reading my blogs (about thanking everyone). 🙂

Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646 

Rates Hold

30 Year Fixed Rate Loan at a Cost of One Point: 3.875%* (APR = 4.105%)
Rates remain unchanged as we head into Thanksgiving week. Quick reminder that the market will be closed Thursday, with an early close Friday as well.

*The above rate quote has the following assumptions: $500,000 purchase; $400,000 loan amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; Estimated closing costs affecting the APR include $4,000 for Origination Fee; $995 for Lender Fees; $2,300 for Title Insurance (CLTA and ALTA), $800 for Escrow Fee; and $1,000 for Prepaid Interest.

JVM Lending
1850 Mt Diablo Blvd #140
Walnut Creek, CA 94596
United States

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 The Gratitude Fad – Chuck Barberini Real Estate – BR Real Estate Group

FHA vs Conventional loans – Chuck Barberini Real Estate

Chuck Barberini Real Estate – BR Real Estate Group

FHA vs Conventional loans – Thursday November 9th

I get asked this question a lot and for the most part I either defer to the lend or say that FHA offers 96.5% loan. There are different qualifications for the property in FHA appraisals that are much stricter. The subject property is not only appraised for value, it is also inspected for safety, soundness of construction and adherence to local code restrictions. I came across this article yesterday written by Hal Bundrick a staff writer at NerdWallet, it does a great job of explaining the benefits and disadvantages of FHA loans. Take a moment and read this article and share with anyone that is considering purchasing a home in the near future. If you have any questions, I work with quality lenders that can further explain what loan better fits your situation.

Tech Sec

I saw this article On Linkedin this morning, a couple of big names teaming up:

New Salesforce and Google Partnership Shakes Up the Cloud Race

FHA loan vs. conventional mortgage: Which is right for you?

Nerd Wallet

11:59 PM, Nov 7, 2017

When exploring mortgage options, it’s likely you’ll hear about Federal Housing Administration and conventional loans. Let’s see, FHA loans are for first-time home buyers and conventional mortgages are for more established buyers — is that it?

Not necessarily.

Actually, the differences between FHA loans and conventional mortgages have narrowed in the past few years. Since 1934, loans guaranteed by the FHA have been a go-to option for first-time home buyers because they feature low down payments and relaxed credit requirements.

But conventional loans — which are not insured by a government agency like the FHA, the Department of Veterans Affairs or the U.S. Department of Agriculture — have gotten more competitive lately.

Both types of loans have their advantages. Here are the factors to consider when deciding between an FHA and a conventional mortgage.

Property standards

What kind of property are you buying? You can use a conventional loan to buy a vacation home or an investment property, as well as a primary residence.

The same can’t be said about FHA loans.

An FHA loan must be for a property that is occupied by at least one owner, as a primary residence, within 60 days of closing. Investment properties and homes that are being flipped (sold within 90 days of a prior sale) aren’t eligible for FHA loans.

FHA appraisals are more stringent, as well. Not only is the property assessed for value, it is thoroughly vetted for safety, soundness of construction and adherence to local code restrictions.

Loan limits

Where you’re planning to buy your home can play a role in what kind of loan is best for you. FHA and conventional loan guidelines allow wide latitude for borrowers in expensive areas, but in some cases you may end up needing a jumbo loan, which is bigger than FHA or conventional limits.

FHA loans are subject to county-level limits based on a percentage of a county’s median home price. In certain high-cost areas, the limit in 2017 can be as high as $636,150 — and in Alaska, Guam, Hawaii and the Virgin Islands, limits can be much higher than that.

For loans guaranteed by Fannie Mae and Freddie Mac, the government-sponsored companies that help fund the conventional mortgage industry, single-family home loan limits are $424,100 in most of the country. Again, higher loan ceilings are available in pricier counties.

You can find your county’s loan limits for FHA (shown at the link as “FHA forward”) and conventional mortgages (“Fannie/Freddie”) on the Department of Housing and Urban Development website.

Down payment

This is where conventional loans have really improved. FHA loans used to be the low-down-payment leader, requiring just 3.5% down. But now, Fannie Mae and Freddie Mac both offer 97% loan-to-value products; that means a 3% down payment option — even lower than FHA — for qualified buyers.

From time to time, you can find lenders offering down payment options that are even lower on conventional loans. Quicken Loans, for instance, has offered a 1% down loan.

Foreclosures

Another instance where FHA and conventional standards have converged: how bad credit is accounted for. Over the past few years there have been numerous changes to the policies regarding bad-credit issues and how they are treated for FHA and conventional loans, with new standards implemented — and then expiring.

However, as it stands now, for a buyer to qualify for either an FHA or conventional loan, it typically must be two years since a bankruptcy was discharged and three years since a foreclosure or short sale.

There will definitely be hurdles to clear to prove to a lender that you have re-established your creditworthiness:

  • You’ll have to document that circumstances leading to the financial setback were beyond your control
  • You may have to attend a credit education course
  • Your loan will likely have to go through a manual loan approval process, which means approval and closing will likely take longer.

Mortgage insurance

With a down payment of less than 20%, both FHA and conventional loans require borrowers to pay mortgage insurance premiums. This insurance helps defray the lender’s costs if a loan defaults.

There are some differences between the two insurance programs.

With an FHA loan, if you put less than 10% down, you’ll pay 1.75% of the loan amount upfront and make monthly mortgage insurance payments for the life of the loan. With a down payment of 10% or more (that is, a loan-to-value of 90% or better), the premiums will end after 11 years.

Conventional loans with less than 20% down charge private mortgage insurance. It can be charged as an upfront expense payable at closing, or built into your monthly payment — or both. It all depends on the insurer the lender uses.

“The rates for PMI vary according to two factors: credit score and loan-to-value ratio,” Joe Parsons, a senior loan officer with PFS Funding in Dublin, California, says. He provides the following examples:

  • A borrower with a 620 score with a 97% loan-to-value will pay 2.37%
  • The same loan for a borrower with a 760 score will cost 0.69%
  • A borrower with a 620 score and a 90% loan-to-value will pay 1.10%
  • The same loan for a borrower with a 760 score will cost 0.31%

PMI generally can be canceled once your loan is paid down (and/or your property’s value appreciates) to 78% of your home’s value.

Mortgage insurance

FHA Conventional
Upfront premium cost 1.75% Depending on the insurer, there may or may not be an upfront premium. You can also opt to make a single-premium payment instead of monthly payments.
Monthly premium cost Cost varies. Based on loan term, amount and down payment. For purchase loans, the premium ranges from 0.45% to 1.05%, according to the FHA. Cost varies. Based on credit score and loan-to-value. For purchase loans, fees can range from 0.55% to 2.25%, according to Genworth and the Urban Institute.
Duration With down payments less than 10%, you’ll pay mortgage insurance for the life of the loan. With a loan-to-value equal to or greater than 90%, you’ll pay the premiums for 11 years. Usually can be canceled once your loan balance reaches 78% of your home’s value.

 

Credit score standards

Here is the primary distinction between the two types of loans: FHA loans are easier to qualify for. As far as a credit score, FHA sets a low bar: a FICO of 500 or above. Lenders can set “overlays” on top of that credit score requirement, hiking the minimum much higher.

But to qualify for the lowest FHA down payment of 3.5%, you’ll need a credit score of 580 or more, says Brian Sullivan, HUD public affairs specialist. With a credit score between 500 and 579, you’ll need to put down 10% on an FHA loan, he adds.

The average FICO score for FHA purchase loans closed in 2016 was 686, according to mortgage industry software provider Ellie Mae.

Conventional loans typically require a FICO credit score of 620 or better, Parsons says.

“A borrower with that score who can document income and assets will, in all likelihood, receive a loan approval,” he says. “They will pay a higher price for that loan because of ‘risk-based pricing’ from Fannie Mae and Freddie Mac, but it is unlikely that they will be declined because of their credit score.”

Risk-based pricing means compensating the lender for taking the additional risk on a borrower with a lower credit score (the average FICO score for a conventional loan was 753 in 2016, according to Ellie Mae). In other words, the lower your credit score, the higher your mortgage interest rate.

Debt-to-income ratios

HUD’s Sullivan says your debt-to-income ratio — including the new mortgage, credit cards, student loans or any other monthly obligations — must be 50% or less for an FHA loan. Ellie Mae reports the average debt ratio for borrowers closing FHA purchase loans in 2016 was 42%.

Conventional loans usually require a debt-to-income ratio no higher than 45%, Parsons says. In 2016, borrowers with conventional purchase loans averaged a 34% debt ratio, according to Ellie Mae.

Mortgage rates

Another distinction for FHA loans: generally lower mortgage interest rates. However, the difference between the two was incremental last year. The 30-year fixed rate for FHA purchase loans closed in 2016 averaged 3.95%, compared with a conventional mortgage rate on the same term of 4.06%, according to Ellie Mae.

Refinancing

As far as mortgage refinancing goes, the edge goes to FHA “streamline” refinancing. With no credit check, no income verification and likely no home appraisal, it’s about as easy a refi as you can get. But there are five requirements for an FHA streamline refinance.

So, which mortgage to choose?

Your decision may initially be based on your credit score. If it’s well below 620, an FHA loan may be your only choice. Above 620 and you’ll want to run the numbers on both to see what works best for you.

However, if you are serving in the military or are a veteran, a loan backed by the VA may be the way to go. VA loans usually require no down payment. And if you live in a suburban or rural area, a USDA loan could be a smart option, too.

FHA Loans vs. Conventional Loans

  FHA Conventional
Property type Financing for a primary residence only Financing for a primary residence, second home or investment property
Down payment  Down payments as low as 3.5% Some programs offer down payments as low as 3% or even lower
Mortgage insurance Mortgage insurance premiums required: 1.75% upfront and monthly premiums that vary with your loan term, loan amount and down payment, from 0.45% to 1.05% With a down payment lower than 20%, private mortgage insurance is usually required. Monthly fees vary according to credit score, loan-to-value and insurer, and range from 0.55% to 2.25%.
Credit score Credit score of 500 or better is usually required, though this depends on the lender. Average FICO score in 2016: 686. Credit score of 620 or higher is usually required, though this depends on the lender. Average FICO score in 2016: 753, according to Ellie Mae.
Debt ratio Average 2016 debt ratio: 42% Average 2016 debt ratio: 34%
Interest rates Interest rates for FHA loans tend to be slightly lower than for conventional loans Interest rates for conventional loans tend to be slightly higher than for FHA loans

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: hal@nerdwallet.com. Twitter: @halmbundrick.

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FHA loan vs. conventional mortgage: Which is right for you?

 FHA vs Conventional loans

Chuck Barberini Real Estate – BR Real Estate Group

 

Are Homes More Affordable – Chuck Barberini Real Estate

Chuck Barberini Real Estate – BR Real Estate Group

Check out this article from Realtor Magazine Online. It is a real unique look at the housing market and offers a very original point of view. It gives us some good insight into the rapid rise of house prices and how they compare to the prices prior to the pre-crash prices.

Homes Are More Affordable Than 20 Years Ago

DAILY REAL ESTATE NEWS | WEDNESDAY, NOVEMBER 08, 2017

Homes are actually more affordable now than they were in the late 1990s, according to the latest Mortgage Monitor Report by Black Knight Inc., a mortgage data and performance information provider.

A Closer Look: NAR’s Housing Affordability Index

Interest rates have plunged by 40 basis points over the past six months. However, the bulk of the potential savings is offset by the accelerating rate of home price appreciation across the country.

“Rising home prices continue to offset the majority of would-be savings from recent interest rate declines, which has kept affordability near a post recession low,” says Ben Graboske, executive vice president of data & analytics for Black Knight. “That being said, when viewing the market through a longer-term lens, affordability across most of the country still remains favorable to long-term benchmarks.”

As of September, 21.4 percent of the median income nationwide was required to purchase a median-priced home. From 1995 to 1999, that percentage was 24.2 percent, and from 2000 to 2003 it was 26.2 percent, according to Black Knight’s report.

While the monthly payment needed for a median-priced home is up $100 from a year ago, the national “payment-to-income” ratio remains 2.8 percent below averages from the late 1990s, according to the report.

“In looking at the affordability landscape across the country, we certainly see varying levels of affordability in each market compared to their own long-term benchmarks,” Graboske says. “But, by and large, the overall theme is that affordability in most areas, while tightening, remains favorable to long-term norms.”

Black Knight researchers note that 47 of 50 states’ payment-to-income ratios remain below their 1995–2003 averages. Hawaii, California, Oregon, and Washington, D.C., are the lone exceptions, where payment-to-income ratios are higher today than their long-term benchmarks.

Source: Black Knight Inc.

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Rents Rates Cooling as Inventory grows – Chuck Barberini Real Estate

San Francisco rent growth slows in August as inventory climbs

I found that this article by Kimberly Manning was very interesting the timing was perfect for me as I was just having this conversation with friends on Friday. I will put together some numbers later this week to send out, but I was shocked when I started searching the active properties in Martinez and the neighboring areas. Just as rents soared as inventory went down, now the opposite is happening, rental properties are sitting longer and rates are coming down. Check out this article and let me know what you think, click the link at the bottom to see current interest rates … Chuck

Yardi report finds rent growth cooling as inventory grows, most notably for lifestyle renters

by Kimberly Manning Staff Writer

Key Takeaways

  • US rents were up 5 percent annually in August, slowing from the 6-plus percent increases reported for the majority of the year.
  • San Francisco completions made up 4.3 percent of the total stock of homes in August.
  • San Francisco’s total rent growth in 2016 by year-end is forecasted at 6.5 percent.

The Yardi Matrix U.S. Multifamily Outlook for fall 2016 found that national rent growth has continued but slowed, while a couple bursts of job growth has helped propel the market forward.

Covering 110 markets throughout the nation, the Yardi Matrix report has detailed ownership, construction and loan data from 65,000 multifamily properties. Although forecasters predicted a more active year for economic growth, 2016 rents increased strongly in August, at 5 percent year-over-year. However, trends are slowing, as growth surpassed 6 percent for the majority of last year.

Construction was also strong, the report shows. In 2016 360,000 units are set to be delivered– a 45 percent increase over the previous year. The majority of markets are reporting quick absorption of new housing stock, but some, such as Houston, are struggling to keep up the pace.

This new stock could also be having an impact on the slowing of rent growth. Nationally, multifamily rents were down 50 basis points month-over-month in August and 170 basis points from the last peak, which was in October 2015.

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Some markets are still seeing growth in big figures. Sacramento saw year-over-year rent growth in August 2016 at 11.9 percent, and its 2016 rent forecast is 10.1 percent. And while Sacramento is leading in forecasted rent growth, Tacoma saw the biggest annual jump in August, at 12.7 percent.

Most markets are going to continue to trend in a positive direction, as millennials and baby boomers continue to fuel the rental economy. Occupancy rates reached near all-time highs of 95.9 percent in July, but this figure is expected to cool a bit as new supply continues to be delivered.

Surprisingly, San Francisco had one of the nation’s lowest rates of annual rent growth in August, at 1.6 percent. However, for the entire year, Yardi still sees 2016 as a solid one for the City by the Bay. The report forecasts rent growth at 6.5 percent by the end of the year.

San Francisco is also home to a large expected influx of inventory, according to a report. Ranking in the no. 4 spot nationally for total new completions, San Francisco is expected to see a total of 15,292 new completions this year, which is 4.3 percent of the total rental stock.

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New home construction in the U.S. is still chugging along with strong figures, the report shows. Housing starts reached an annualized rate of 1.2 million units in July. Of the forecasted 360,000 new multifamily units expected to be delivered in total this year, 162,000 units have been completed.

And while occupancy rates are expected to be impacted by this large delivery, rent rates may not budge much. Builders continue to lean toward high-end lifestyle renters, Yardi says, making it more challenging for the renter-by-necessity to find an affordable place.

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