Where are mortgage rates going?
The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.
Click link for chart
Interest rates are projected to increase steadily over the course of the next 12 months.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
Dr. Frank Nothaft, the SVP & Chief Economist for CoreLogic, had this to say in their latest MarketPulse:
“If you are thinking of buying a home and have the financial means to do so, this could be a good time to take a look at the neighborhoods you are interested in. We expect home prices in our national index to be up about 4.3% in the next 12 months, and mortgage rates are also likely to increase over the next year.”
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.
Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.
Good Job Kim Koenen!
No matter what the groundhog says...you should sell before spring!
Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season.
Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.
Here are five reasons to sell now.
1. Demand is Strong
Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that there are currently more prospective purchasers looking at homes than at any other time in the last 12 months, which includes last spring’s buyers’ market. These buyers are ready, willing and able to purchase… and are in the market right now!
Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing supply just dropped to 4.4 months, which is under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.
There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.
Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).
The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.
3. The Process Will Be Quicker
One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 23.5% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to be a full point higher by the end of 2015.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.
That is what is truly important.
Five Reasons to Hire a Real Estate Professional
Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO.
The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened due to the projections of higher mortgage interest rates and home prices as the market continues to recover.
1. What do you do with all this paperwork?
Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.
2. Ok, so you found your dream house, now what?
According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?
3. Are you a good negotiator?
So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.
4. What is the home you’re buying/selling really worth?
It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $208,000 compared to $235,000 among agent-assisted home sales.”
Get the most out of your transaction by hiring a professional.
5. Do you know what’s really going on in the market?
There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?
Dave Ramsey, the financial guru advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”
Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.
You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?
Call Southern Breeze Real Estate at 870-425-8868 to ask how we can help YOU!
Even in cold-weather areas, winter is a good time to buy and sell a house...
So you’ve begun thinking about selling your house, and you figure: Let’s wait until the spring or early summer before listing. The yard will look its best and potential buyers will be out in force. And everybody knows that winter is dead time for real estate.
Right? Well, that’s the widely held belief. But national statistical studies suggest it’s not necessarily the case. Winter — officially Dec. 21 through March 20 for the upcoming season — can be a surprisingly advantageous time to list, shop, negotiate and buy. Consider some findings by researchers at Redfin, the online realty brokerage.
Last week, Redfin studied home listing, sales price and time-on-market data from 2010 through this past October from around the country, updating a two-year analysis it completed last year. It concluded that if you want to sell for more than your asking price, listing in December, January, February and March gives you a better chance, on average, than if you list any time after June through November. During the past three years, listing during these four months has produced higher percentages of above-asking price sales than any months other than April and May. In 2012, at the inception of the housing rebound, December listings produced the highest percentage of above-asking sales for the entire year: 17 percent. read more
Arkansas stuff you want to know but don't need to know before you move here...
- Arkansas has four seasons: Almost Summer, Summer, Still Summer and Football.
- Everything can be deep fried, even pickles.
- Tractors are street legal.
- Dinner is lunch and supper is dinner.
- The sound of a gunshot is usually nothing to worry about.
- School classes can be canceled because of cold, heat, just the threat of snow, and hunting season.
- Bib overalls are completely acceptable at funerals.
- Most people in Arkansas can't remember the last time they saw their house keys.
- Pork tenderloins are the size of your face!
- Chocolate Gravy. Nuff said.
- Directions are given in time not distance - and you're told to turn at landmarks...that aren't there anymore.
- Camouflage isn't just for hunting...but for recliners, purses, pillows and prom dresses.
- Hogs are treated like Royalty.
- There's not much better than sitting on your porch mid-summer watching a thunderstorm.
- People in Arkansas use buggies and sacks at the grocery store, not carts and bags.
- When the forecast calls for an inch of snow you can bet within the hour the stores will be out of bread and milk.
- There is a strange illness in Arkansas that afflicts most people the first day of hunting season.
- A "Coke" can mean any sugary, carbonated drink.
Thank you, Everyone for your votes!
Southern Breeze Real Estate began 5 years ago as an idea to overcome issues of a failing economy. It was started because Kim Koenen knew that even in a down market, buyers and sellers still wanted and needed their dreams realized and real estate agents had to change the way they conducted business. Selling homes in Mountain Home Arkansas and the surrounding areas had to be about the individuals whether they were the sellers or the buyers of the home. Something that really should have been happening all along.
Too many times and in too many companies the sale was about the commission and not about the people who needed us in the first place. Kim also realized that the homes were not being marketed in a creative enough way as to get those homes in front of as many prospective buyers as possible, no matter where those buyers were in the United States or even the world.
The success of Southern Breeze Real Estate has been mostly due to the fact that Kim is capable of thinking outside the box. Many thought starting a company during a down market, as bad as it was at the time, was ludicrous. Many REALTORs® sought work outside of real estate to supplement their income that they were not getting while representing the homes for sale in Mountain Home Arkansas. But Kim had a goal and those that believed she would not succeed obviously did not know Kim Koenen.
Kim was, and is, determined to make Southern Breeze a success by being what each individual buyer and seller needs her to be. I once asked her what are the buyers that she prefers to work with. Her answer…”I will work with any buyer. But my favorite buyers are the people that have obstacles to overcome. Those are the closings that are the most satisfying”.
Selling homes in Mountain Home and the surrounding areas is “sometimes” not an easy task. The properties are diverse and often hard to price, hard to market. And “sellers equity should be a part of the equation in the selling price”, says Kim. “It also helps when the agents remember how to actually work.”
The community has realized the hard work Kim is dedicated to giving each and every client by voting her “Best REALTOR®” in the Best of the Best in the Baxter Bulletin before Southern Breeze was even one year old and voting Southern Breeze Real Estate “Best Real Estate Company” at a mere three years old.
After umpteen awards Kim Koenen is now the first REALTOR® to hit Diamond Level (over 7 million in production) in the year 2014. Kim’s level of success in such a short amount of time is unprecedented. But her goals remain the same. Focus on customer service and be what you, the client, need us to be. “The best closings are the ones no one remembers. And don’t forget, REALTORS® work for YOU!”
Our future is in sales and our past performance proves it. We are the smart way to shop for properties, be it residential, land, commercial or investments. Let us help you find the right property.
So whether you're buying or selling, please feel free to contact us and we will be happy to help you with all your real estate needs.