Sep 22, 2015 | Home Buyer Tips
When making the decision to purchase a home, there can be an array of questions to ask regarding location, size, style and additional features that will complicate things. If one of the considerations among these is whether to buy new or old, though, you may want to be aware of new home warranties. While buying new can seem like a risk, this type of warranty may help make at least one decision easy when it comes to your home purchase.
It’s A New Home Benefit That’s Often Guaranteed
Currently, there are a number of places in North America where a third-party warranty or a builder’s warranty are now required so the quality of a builder’s work can be assured. While some builder’s may offer a warranty when you purchase a home through them, a third-party warranty that is guaranteed in many regions will mean that you don’t have to worry about paying out of your own pocket when a problem occurs with your new home.
The Coverage Included In New Home Warranty
Generally, a new home warranty will include insurance on your deposit and a guarantee against flaws with the work, the materials or the structure that may appear down the road. While this type of warranty will commonly cover standard issues that can occur with a new home, there’s often the option for more extensive warranty coverage that will safeguard you in the event that issues beyond the basic appear.
What You Can Expect From Your Builder
If you’ve decided on a new home, you will want to research your builder and choose one that is reliable, up-front and will follow-up on any issues you may have with your new home. Once your house is close to completion, you’ll have the opportunity to do a home inspection with the builder to take notes of any issues with your house – like a sticky drawer or a chipped cabinet – that may be present. The builder should be able to offer a completion date for these issues, and also provide you with information you need to keep your new house in tip-top shape.
There are no assurances when it comes to buying a house, but new home warranties are a good guarantee that you’ll be covered in the event that a problem occurs. If you’re interested in learning more about making a new home purchase or this type of warranty, you will want to contact your local real estate professional for more information.
Sep 21, 2015 | Market Outlook
Last week’s economic releases included several reports related to housing. The Wells Fargo/NAHB Housing Market Index achieved its highest reading in nearly 10 years. Housing Starts dipped in August and Building Permits issued in August exceeded July expectations. The week’s big news was actually no news. The Fed’s Federal Open Market Committee decided not to raise interest rates. Fed Chair Janet Yellen followed up on the FOMC statement with a press conference and said that the Fed is not yet ready to raise rates, but that a majority of FOMC members are prepared to raise rates before year-end.
Inflation Rate Remains Well Below Fed Benchmark
The Federal Reserve has set a goal of reaching an inflation rate of 2.00 percent as one of several considerations for raising the target federal funds rate that currently stands at 0.00 percent to 0.250 percent. The Consumer Price Index for August fell from July’s reading of 0.10 percent to -0.10 percent in August. Lower prices were driven by lower fuel costs. The dip in consumer costs was the first since January.
The Core Consumer Price Index, which excludes volatile food and energy sectors, was unchanged at 0.10 percent in August, which matches analyst expectations and July’s reading.
NAHB: Home Builder Confidence Hits Highest Level in Nearly 10 Years
The Wells Fargo/NAHB Housing Market Index reached its highest reading since November 2005 with a one-point increase to a reading of 62 in September. Readings over 50 indicate that a majority of builders are confident about housing market conditions. September’s reading was the highest since November 2005, when the NAHB Housing Market Index achieved a reading of 68.
Housing Starts Lower, But Building Permits Rise
The Commerce Department reported that August housing starts fell to a seasonally-adjusted annual reading of 1.13 million starts against projections of 1.16 million starts and 1.16 million housing starts in July. Residential building permits were higher in August with a reading of 1.17 permits issued for residential construction and 1/13 million permits issued in July.
Mortgage Rates Rise
Freddie Mac reported that mortgage rates rose across the board last week. The rate for a 30-year fixed rate mortgage rose by one basis point to 3.91 percent. The average rate for a 15-year mortgage also rose by one basis point to 3.11 percent and the average rate for a 5/1 adjustable rate mortgage also rose by one basis point to 2.92 percent. Discount points averaged 0.60 got 30-year fixed rate mortgages, 0.70 percent for 15-year mortgages and 0.50 percent for a 5/1 adjustable rate mortgage.
What’s Ahead
Next week’s scheduled economic news includes reports on new and existing home sales, FHFA’s House Price Index, along with regularly scheduled weekly reports on new jobless claims and mortgage rates.
Sep 20, 2015 | Home Buyer Tips
It might seem like selling a home and moving to a new place is enough pressure on its own, but buyer’s remorse is a well-known phrase for a reason. If you’re currently considering a home and are concerned about taking the plunge into purchasing, here are three strategies you will want to utilize before making a final decision.
Choose A Reliable Real Estate Agent
If you’re venturing into purchasing a new home, making sure that you have the right person by your side to help you with all of the aspects of your home purchase. The agent you’ll want to work with should be someone who is knowledgeable and experienced in your area, and whom you will feel comfortable trusting with the questions you can’t answer yourself. When it comes to making this choice, trusting your instincts is a must.
Make Sure It’s The Home You Really Need
It can be easy, once you get into the spirit of looking for homes, to veer off and start considering things beyond your price range that you don’t really need, but get back to square one. If you find a home that you’re seriously considering, make sure that it possesses most of the features you were originally looking for whether it’s location, size or style. Before making the final decision, look over the list of things you’re looking for and make sure any potential cons of your purchase are things that won’t be a deal breaker after.
Consider Cost And Resale Value
It’s not only important to make sure you’re paying a price that you can afford for your new home, you’ll also want to ensure that the resale value is something you can be happy with down the road. It may be hard to discern what a home’s value will be in five or ten years, but thinking about what kind of renovations you want to do should determine if upgrading an outdated bathroom or kitchen will be worth it. While you’ll want to be in a home you can enjoy in the present, ensure it’s something that should have good market value in the future.
Buying a new home can be stressful enough without realizing that you didn’t get what you really wanted after the fact, so it’s important to think twice about what you’re looking for. If you’re wondering about more strategies for a purchase you can be happy with, you may want to contact your local real estate professional for advice and expertise.
Sep 20, 2015 | Home Seller Tips
Selling a home is more than real estate listings and making the home appealing to potential buyers. One factor to take into account when buying a home is its location, meaning the community surrounds the home.
For sellers as well as buyers, it’s important to highlight the benefits of living in a particular community. After all, neighborhoods will have an enormous impact on the future buyer’s living experience.
It’s All About Walkable Neighborhoods
According to a Portland, Oregon-based company, City Observatory, there’s a growing demand for homes located in walkable neighborhoods. A decades-long love affair with commuting from suburban areas to work in the city has greatly lost its appeal.
Also, the growing demand for walkable neighborhoods is fueled by people desiring convenient access good schools as well as to entertainment options like movies, restaurants, and shopping. There’s also an appeal for easy access through reliable public transportation.
This trend has been around for a while now. In 2013, the National Association of Realtors found that 57 percent of study participants wanted smaller homes and shorter work commutes.
Fifty-five percent of participants said they would gladly get a small house with a small yard if it meant easy access to stores, schools, and restaurants. Plus, a walkable neighborhood also significantly increases property values. So play up the nearby community benefits that would entice potential buyers.
Great Neighborhood Amenities
Other favorable community amenities bicycle paths and libraries, parks. These are great bonuses for neighborhoods to attract fitness-minded individuals and promote a family-friendly atmosphere for buyers with kids. Speaking of kids, living in an excellent school district usually yields higher home values.
According to a survey conducted by the Demand Institute, almost half of participants wanted a pet-friendly neighborhood. In fact, this factor ranked higher than easy access to public transportation and even public schooling.
Neighborhood Safety
Safety is a top concern for most homebuyers. Although, there’s little one can do to quell neighborhood violence there are things an owner can do to make their home safer. They may want to consider studying security features on homes in their neighborhoods and adopt what they can, within reason.
What Potential Home Buyers Don’t Want In A Neighborhood
According to the National Association of Home Builders (NAHB), fewer home buyers were least impressed with communities with golf courses, a high population, gated communities, and mixed-use communities.
Homeowners, when listing a home, seek the help of a professional real estate agent experienced in listing the best features of both the home and the community surrounding it.
Sep 18, 2015 | Market Outlook
The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index reported that home builder confidence rose by one point to a reading of 62 for September. This was the highest reading since November 2005, when the NAHB reported a reading of 68 for home builder confidence. Any reading above 50 indicates that more builders are confident about housing market conditions than those who are not.
NAHB notes that builder confidence has been growing at a moderate pace since July 2014; this is in line with economic conditions in general. Relatively low mortgage rates and stronger labor markets are helping would-be buyers with their decisions to buy homes now.
FOMC Statement and Fed Chair Press Conference: No Rate Hikes Yet
The minutes of the Federal Open Market Committee of the Federal Reserve revealed that Fed policymakers have decided to wait on raising the target federal funds rate, which is currently set at 0.00 to 0.25 percent. While the FOMC statement indicated that policy makers acknowledge moderate progress in economic growth, a majority did not feel that the economy is ready to withstand a rate hike. When the Fed does raise rates, consumers can expect to see higher mortgage rates as well as increases in lending rates for credit cards and loans.
FOMC members said that housing markets were growing at a steady but moderate pace, but that inflation was lagging below the Fed’s benchmark 2.00 percent level due to transitory effects of lower energy and import prices. The Fed expects that inflation will reach its 2.00 percent goal over the medium term and will not likely raise rates until FOMC members are confident that inflation will rise as expected.
FOMC members continued to assert that any decision to raise rates will be based on close review of domestic and global financial and economic trends and will not be based on meeting the Fed’s dual mandate of achieving maximum employment and an inflation rate of 2.00 percent.
Committee members also said that economic conditions could continue to warrant keeping the target federal funds rate below normal levels for the longer term.
Fed Chair Janet Yellen gave a press conference after the FOMC statement concluded. She addressed questions about the Fed’s decision not to raise rates and said that concerns over global developments contributed to Fed policy makers’ decision not to raise rates. Ms. Yellen explained that a stronger U.S. dollar has caused deflationary pressures and increased competition for U.S. exports. The Fed isn’t overly concerned about global conditions at present, but changing circumstances could change the Fed’s likely intention to raise rates before year end.
