Why the Median Home Price Is Meaningless in Today’s Market

Written by Melbourne FL Mortgage Syndicated User on June 21, 2023. Posted in For Buyers, For Sellers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Pricing.

The National Association of Realtors (NAR) will release its latest Existing Home Sales (EHS) report later this week. This monthly report provides information on the sales volume and price trend for previously owned homes. In the upcoming release, it’ll likely say home prices are down. This may feel a bit confusing, especially if you’ve been following along and seeing the blogs saying that home prices have bottomed out and turned a corner.So, why will this likely say home prices are falling when so many other price reports say they’re going back up? It all depends on the methodology of each report....

A Drop in Equity Doesn’t Mean Low Equity

Written by Melbourne FL Mortgage Syndicated User on June 15, 2023. Posted in For Buyers, For Sellers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Move-Up Buyers, Pricing.

You may see media coverage talking about a drop in homeowner equity. What’s important to understand is that equity is tied closely to home values. So, when home prices appreciate, you can expect equity to grow. And when home prices decline, equity does too. Here’s how this has played out recently. Home prices rose rapidly during the ‘unicorn’ years. That gave homeowners a considerable equity boost. But those ‘unicorn’ years couldn’t last forever. The market had to moderate at some point, and that’s what we saw last fall and winter. As home prices dropped slightly in the back half of 2022, equity...

Are Home Prices Going Up or Down? That Depends…

Written by Melbourne FL Mortgage Syndicated User on June 13, 2023. Posted in First Time Home Buyers, For Buyers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Move-Up Buyers, Pricing.

Media coverage about what’s happening with home prices can be confusing. A large part of that is due to the type of data being used and what they’re choosing to draw attention to. For home prices, there are two different methods used to compare home prices over different time periods: year-over-year (Y-O-Y) and month-over-month (M-O-M). Here’s an explanation of each. Year-over-Year (Y-O-Y):This comparison measures the change in home prices from the same month or quarter in the previous year. For example, if you’re comparing Y-O-Y home prices for April 2023, you would compare them...

Why You Can’t Compare Now to the ‘Unicorn’ Years of the Housing Market [INFOGRAPHIC]

Written by Melbourne FL Mortgage Syndicated User on June 10, 2023. Posted in For Buyers, For Sellers, Foreclosures, Housing Market Updates, Infographics, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Pricing.

Some HighlightsComparing housing market metrics from one year to another can be challenging in a normal housing market – and the last few years have been anything but normal. In a way, they were ‘unicorn’ years.Expect unsettling housing market headlines this year, mostly due to unfair comparisons with the ‘unicorn’ years.Connect with a local real estate professional who can share the data that puts those headlines in the proper perspective.

This Real Estate Market Is the Strongest of Our Lifetime

Written by Melbourne FL Mortgage Syndicated User on June 9, 2023. Posted in For Buyers, For Sellers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates.

When you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime – if not the strongest housing market of our lifetime. Here are two fundamentals that prove this point. 1. The Current Mortgage Rate on Existing MortgagesFirst, let’s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency (FHFA), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That’s significant. And, to take that one...

Real Estate Is Still Considered the Best Long-Term Investment

Written by Melbourne FL Mortgage Syndicated User on June 7, 2023. Posted in First Time Home Buyers, For Buyers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Move-Up Buyers.

With all the headlines circulating about home prices and rising mortgage rates, you may wonder if it still makes sense to invest in homeownership right now. A recent poll from Gallup shows the answer is yes. In fact, real estate was voted the best long-term investment for the 11th consecutive year, consistently beating other investment types like gold, stocks, and bonds (see graph below):If you’re thinking about purchasing a home, let this poll reassure you. Even with everything happening today, Americans recognize owning a home is a powerful financial decision.Why Do Americans Still Feel So...

Oops! Home Prices Didn’t Crash After All

Written by Melbourne FL Mortgage Syndicated User on June 6, 2023. Posted in For Buyers, For Sellers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Pricing.

During the fourth quarter of last year, many housing experts predicted home prices were going to crash this year. Here are a few of those forecasts:Jeremy Siegel, Russell E. Palmer Professor Emeritus of Finance at the Wharton School of Business:“I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the downside.”Mark Zandi, Chief Economist at Moody’s Analytics:“Buckle in. Assuming rates remain near their current 6.5% and the economy skirts recession, then national house prices will fall almost 10% peak-to-trough. Most of those declines will happen sooner rather...

Today’s Real Estate Market: The ‘Unicorns’ Have Galloped Off

Written by Melbourne FL Mortgage Syndicated User on May 31, 2023. Posted in For Buyers, For Sellers, Foreclosures, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates, Pricing.

Comparing real estate metrics from one year to another can be challenging in a normal housing market. That’s due to possible variability in the market making the comparison less meaningful or accurate. Unpredictable events can have a significant impact on the circumstances and outcomes being compared. Comparing this year’s numbers to the two ‘unicorn’ years we just experienced is almost worthless. By ‘unicorn,’ this is the less common definition of the word:“Something that is greatly desired but difficult or impossible to find.” The pandemic profoundly changed real estate over the last few years....

The Benefits of Selling Now, According to Experts

Written by Melbourne FL Mortgage Syndicated User on May 26, 2023. Posted in For Sellers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates.

If you’re trying to decide if now’s the time to sell your house, here’s what you should know. The limited number of homes available right now gives you a big advantage. That’s because there are more buyers out there than there are homes for sale. And, with so few homes on the market, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house.Here’s what industry experts are saying about why selling now has its benefits:Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):“Inventory levels are still at historic lows. Consequently,...

Powerful Job Market Fuels Homebuyer Demand

Written by Melbourne FL Mortgage Syndicated User on May 19, 2023. Posted in For Sellers, Housing Market Updates, Melbourne FL Condo Financing, Melbourne FL Mortgage, Melbourne FL Mortgage Rates.

The spring housing market has been surprisingly active this year. Even with affordability challenges and a limited number of homes for sale, buyer demand is strong, and getting stronger.One way we know there are interested buyers right now is because showing traffic is up. Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, makes it clear more people are out looking at homes than there were prior to the pandemic (see graph below):And though there’s less traffic than the buyer frenzy of the past couple of years, we’re not far off that pace. There...

Category: Housing Market Updates