Housing Trends for 2017

27 Jan 2017 · by Virtual Results PubSub

Housing Trends for 2017

If you’re considering buying or selling a home in 2017, it’s advisable to know what to expect as you dive into the market. Here’s a look at what some experts are predicting for the coming year.

Mortgage rates are expected to rise

2016 saw record-low mortgage rates, but they started to climb after the election. Many experts predict that rates will continue to climb by up to half a percent over the course of 2017. If you’re looking to buy, now is the best time to pull the trigger to lock in the lowest rates you’ll see for awhile.

Home prices should see moderate gains

Home prices grew an estimated 4.9 percent in 2016, but that growth will likely slow in the coming year. Realtor.com predicts that home prices will slow in 2017, with gains of 3.9 percent year-over-year. They expect cities like Akron, Ohio; Greensboro-High Point, North Carolina; and Baltimore-Columbia-Towson, Maryland, to see some of the biggest gains.

Midwestern cities will attract more millennial buyers

Realtor.com also expects more millennials to buy their first homes in 2017. Midwestern cities will likely benefit the most from this uptick. Homes in the largest midwestern cities will attract these younger buyers due to their affordability. Some of the cities expected to get a boost from millennials include Des Moines, Iowa; Omaha, Nebraska; Minneapolis, Minnesota; Columbus, Ohio; and Madison, Wisconsin.

Inventory will likely drop

2017 will continue to be a seller’s market, with inventory predicted to drop even further than 2016 levels. The construction of single-family homes hasn’t fully recovered since the recession, contributing to dwindling inventory in many of the country’s largest markets.

New home prices will increase

Zillow anticipates that the cost of a new home could rise in 2017 due to higher labor costs. The country could see a shortage of construction labor due to tighter immigration policies under a Trump administration, which could force builders to raise wages for construction workers. These costs would likely be passed on to consumers in the price of the home.

“Surban” becomes the new mixed-use

Mixed-use developments have become more popular in recent years, but they’ll soon be displaced by the “surban” community. These are developments that blend the best of both urban and suburban lifestyles. The idea is that these communities allow their residents to walk to work and enjoy easy access to amenities like shopping and entertainment. They are designed to be inclusive and affordable and have strong public schools.

The west will see the biggest gains

While overall the country will see gains, western states are predicted to see the biggest increases in prices and sales. Home prices in western cities will likely increase to 5.8 percent, while homes sales are expected to increase 4.7 percent.

Growing families could benefit the most in 2017

For those buyers who want to trade-up into a larger home, 2017 may be your golden opportunity.  Prices for smaller homes have outpaced their larger counterparts, and more inventory is available on the higher end of the housing spectrum. When selling, choose the best offer over a speedy sale. That extra cash will stretch further on your new home.




Getting Ready to Sell

25 Jan 2017 · by Virtual Results PubSub

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As we head into 2017, you may be thinking that this is the year to finally put your Loft on the market. And when you do, you’ll want it to sell quickly for the best possible price. Here are our suggestions for what you need to do to get your home ready to sell.

Detach emotionally

Selling your home can be fraught with emotions, especially if you associate it with some of your cherished family memories. But if you want to be successful, you’ll need to detach. Consciously decide to let go of your emotional attachment to the home, and think of it as a business transaction. Take the time you need to say goodbye, but then imagine a new family moving in so that you can look forward without regret.

Rent a storage unit

In today’s market, most agents will tell you that staging is key for a quick sale and will help net you the best offers. In order to make your home look it’s best, you’re going to need to de-clutter and de-personalize every room. Now is the time to take down all your family photos, empty out the closets and remove bulky furniture. Renting a storage unit early gives you a place to keep all your belongings until your official move-out date. It also gives you a head start on packing, which is never a bad idea.

Make needed repairs

Do you have a door handle that keeps falling off? A window that just won’t budge? Have you been covering up a hole in the wall with a strategically placed framed photo? You need to tackle these types of repairs before putting your home on the market. Not sure which repairs to do? Walk through your Loft and imagine you are a buyer. What things would stick out to you as potential problems? You should also address any larger issues that may come to light during a home inspection, such as problems with the air conditioning or heating systems.

Do a deep clean

There isn’t a single buyer out there who will be turned on by pet odors or lingering cooking smells. Once you’ve moved your belongings to storage, do a deep clean of your entire home. Make sure to tackle any strong odors, and clean every nook and cranny. Remember, buyers will be opening every closet and cabinet door, so you can’t hide anything. If you can afford it, hire a professional cleaning service to get the job done right. It’s a small investment that could have a big payoff in the end.

 




The Loftway Report 2017

13 Jan 2017 · by ChrisSampaio

The Loftway Report is out again and there is a lot of good info there to educate buyers and sellers in Downtown LA. If you need help making sense of the report please call us.

DOWNLOAD THE FULL REPORT

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11 Common Real Estate Terms Explained

10 Jan 2017 · by Virtual Results PubSub

11 Common Real Estate Terms ExplainedIf you’re buying or selling a home, you’ll probably come across some terms that you’ve never heard before, or don’t completely understand. Being confused about the terminology can make an already complex process that much more stressful. By educating yourself before you dive into the market, you’ll gain peace of mind and might even save some money. Here are the most common real estate terms or concepts you should know.

Appraisal

If you’re purchasing a home with a loan, the lender will require an appraisal. This is an evaluation of all aspects of your home to determine its value, including its size and condition on both the interior and the exterior.

Adjustable Rate Mortgage

When shopping for a mortgage, you may decide to apply for an adjustable rate mortgage. These types of loans have a variable interest rate and are generally extended for 5, 7 or 10 years. They may also have a cap on how high the rate can grow.

Fixed Rate Mortgage

As opposed to an adjustable rate mortgage, a fixed rate mortgage has a predetermined interest rate. The life of the loan is typically 15 or 30 years.

Closing

Closing is the last step of a real estate transaction when paperwork is signed and the title is transferred from the seller to the buyer.

Contingency

When drawing up a contract for a real estate transaction, there may be certain provisions that need to be met in order for the sale to go through. These provisions are called contingencies, and a home may be listed as “contingent” until these requirements are met.

Down Payment

A down payment is the money a buyer pays upfront to secure the purchase of the home. In most cases, the down payment is 20 percent of the purchase price, though this can change depending on the type of mortgage you secure.

Earnest Money

Earnest money is the cash that is deposited when an offer is made on a home. If the sale goes through, the earnest money is often used towards the down payment. If the buyer backs out of the deal for reasons not stated in the contingency, the earnest money goes to the seller.

Escrow

A property is in escrow once the buyer and seller enter into an agreement and the earnest money is paid. A neutral third party then holds that money until all requirements are fulfilled.

Pre-approval

Before you begin looking for a home in earnest, you should secure a pre-approval from a lender for your mortgage. This is typically a letter from a bank stating how much they will lend to you.

Title

The title is the rights to a property, and often refers to the document that shows evidence of ownership. During the buying/selling process, a title company will conduct research to determine if the title is clear. If there are no outstanding claims on the title, it is then transferred during the closing process.

Underwriting

When a lender researches a borrower to determine whether or not to extend credit, this is called underwriting. This determination is made by examining the buyer’s credit scores, income, credit history and debt.