APRIL FOOLS!! Sorry to fool you, but we are still very much in a seller’s market. Inventory is up for sure, but buyers coming into the market at a faster rate than the listings are coming. So what does this mean? It means we are still very much in a seller’s market and bidding wars. I mentioned last month that most of the transactions that I have been involved with ended up in bidding wars and multiple offer scenarios. Well, this past month has been very similar with only 1 transaction that we were able to negotiate a great price on a home in Dublin that had been on the market for a while. All other deals, whether they were in the $400k range, under $100k and everything in between came to bidding wars. One reason that more buyers have come into play is the lowering of the interest rate. Late last year rates crept up to 5% which was quite the jump from rates just under 4% in early 2018. At the onset of 2019 we saw rates slightly drop and then continue to do so down to where they are today which is back right around 4%. This drop really stretches a Buyer’s dollar allowing them to afford a higher priced house for a lower monthly payment. This decrease in rates will also keep prices stable if not increase them as they have done in recent years. Given the current market conditions it is a great time to buy or sell so if you are considering either or both please don’t hesitate to call me at 614-431-1770 or email me at firstname.lastname@example.org and I’ll be more than happy to help!
See below for Keller Williams Market Research.
April 2019 Market Update (Video is for March but is current)
According to the National Association of REALTORS®, existing home sales experienced a significant uptick after three consecutive months of decline. With low mortgage rates and the supply of homes rising, more buyers are entering the market.
According to Freddie Mac, 30-year fixed rates decreased to 4.28 percent in February from 4.35 percent in January. This rate remains well below the historical average of 8.90 percent.
The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of 5.5 million in February, up 11.8 percent from January, and 1.8 percent below the 5.6 million sales pace from a year ago.
The median home price increased to $249,500 in February, up 0.1 percent from January. The median home price has increased by approximately $8,700 in the past year alone.
There was a 3.5-month supply of housing inventory in February 2019, down 10.3 percent from January. The total number of available homes for sale has increased by 2.9 percent compared to February of last year.
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
REAL ESTATE NEWS Brought to you by Erik Hiss
Down Payment Dilemma: How Do You Know How Much to Put Down On A Home?
For many prospective home buyers, the down payment is the most daunting hurdle in the race to buy a home. Even for people with decent credit and a healthy paycheck, the down payment can be the great homeownership killer.
The big question for all prospective buyers is: how much should my down payment be? Most lenders will tell you that 20 percent is the standard, but is that really necessary?
The short answer is no, but of course there are some caveats.
“It’s a myth that all homebuyers must have a 20 percent down payment to buy a home,” says Nancy Herrera-Siples, a Riverside, CA, branch manager at Primary Residential Mortgage. So why all the fuss over having 20 percent to put down? “Because if you don’t, it usually means you’ll have to shell out money for either private mortgage insurance (PMI) or government insurance, which is usually financed by the Federal Housing Administration,” according to Herrera-Siples.
Still, when a low down-payment is your only option to buy a home, PMI might literally be a small price to pay. Remember that PMI goes away eventually when your loan balance is 80 percent or less of the home’s value. If you’re in an area where homes are rising in value, this could happen sooner than you think.
Still confused about the ins and outs of down payments? Here are a few reasons to go high… or low.
When to make a substantial down payment:
When you’re looking to keep your monthly payment as low as possible and have cash to spare.
When you’re approaching retirement age and can envision a reverse mortgage sometime down the line.
When the interest rate is lower with a higher down payment. “The more you put down, the better position you are in for negotiating a lower interest rate,” says Credit.com.
If you’re worried about being underwater. If the market should drop in your area, you run the risk of owing more than your home is worth.
When to go low:
When you don’t have the funds for a higher down payment and can’t earn or borrow them quickly enough.
When the rate on your FHA or Fannie or Freddie loan is comparable to that you’d get with a higher down payment.
When you need to escape a high-rent situation and the monthly payment on a house is lower than what you’re currently paying, even with the PMI factored in.
When you’re confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly.
Should You Buy a Home Warranty?
“I’m buying a house. Should I buy a home warranty?” Seems like a relatively tame question, right? But post it on Facebook or Nextdoor and watch the impassioned responses roll in. You might as well ask, “What political party should I belong to?”
Everyone has their own experience, so expect to hear a few people call them “a scam” or at the very least a waste of money. Others will regale you with their tale of how having a warranty saved them from a freezing winter because they couldn’t afford to fix their furnace without it.
In the end, the decision is personal and largely based on how comfortable you are paying out of pocket if one of the more expensive items in your home, like the furnace or hot water heater, needs to be replaced. Here are some things to consider when making your decision.
Know the cost
“A basic home warranty costs about $350 to $500 a year or more,” says Money Talks News. A warranty typically covers plumbing, hot water heaters, and heating/electrical system components. More expensive, ‘enhanced’ plans can provide added coverage for things like your washer/dryer, air conditioning system, refrigerator, septic tank, and garage door openers.
You can typically break down the annual cost into more manageable monthly payments, but the cost of the warranty itself isn’t the only thing you’re responsible for paying. Most home warranties include either a service call fee or a deductible, so it’s important to consider those factors in addition to the home warranty plan itself.
Consider your peace of mind
Many homeowners opt for a home warranty for major “just-in-case” scenarios. Just in case the air conditioning unit crashes and burns. Just in case the hot water heater dies. With the cost of some of these items running into the thousands—the average cost for a new air conditioning unit and installation, per HomeAdvisor, is $5,413!—the peace of mind factor is huge.
“For a homeowner who doesn’t have an emergency fund, or who wants to protect their emergency fund, a home warranty can act as a buffer,” says Investopedia. Home warranties also make sense for people who aren’t handy or don’t want to deal with finding a contractor.
Understand that not everything is covered
There’s always a chance that the item you need repaired is not covered under your warranty for one reason or another. Some problems simply won’t be covered by a warranty, and most home warranties won’t cover components that haven’t been properly maintained.” The lesson here: Read the fine print, so you’re prepared.
Do you know of any homes that may be coming up that match the following criteria for my current buyer clients? Or do you own the specific home my buyers need? Call me at 614-431-1770 or email me today! Or visit my website for more info.
1) Up to $200k – 2-3 bedroom NW Columbus outside 270 2) Up to $50k – Linden Rental (rental) 3) Up to $20M – OSU Campus Rentals 20+ units 4) Up to $500k – 4 Unit Multi-family 5) Up to $500k – Dublin, Worthington, Powell, Arlington, Grandview 3-4 bedroom – updated 6) Up to $150k – 2-4 unit Rental on the west side of Columbus 7) Up to $425k – Clintonville Ranch 8) Up to $100k – land of at least an acre close to Hilliard and OSU 9) Up to $300k – 2-4 unit in a emerging neighborhood 10) Up to $200k – 1-2 bedroom near South Clintonville 11) Up to $135k – 3 bedroom near Westerville 12) Up to $200k – 2-3 bedroom condo near Clintonville/downtown 13) Up to $140k – 2-3 bedroom near Westerville, Columbus or Worthington 14) Up to $125k – 2-3 bedroom near Gahanna/Reynoldsburg 15) Up to $100k – 2-3 bedroom w/basement in up & coming neighborhood 16) Up to $225k – duplex near Southern Orchards
Central Ohio Home Sale Monthly Stats
Click HERE to get the the Columbus Board of Realtors stats and HERE to see how homes are selling in YOUR neighborhood.