Archive for the 'My Market Opinions' Category
Why Homeownership still pays
May 29th, 2009 categories: My Market Opinions
It would be an understatement for me to say many Americans have taken a hit to their home equity over the past two or three years, and some may wonder if owning a home is really the smartest financial decision. GOOD NEWS!-a recent analysis of Federal Reserve data by the National Association of Realtors (NAR) shows the answer is YES!
In comparison with renters, homeowners have much greater household wealth. Owner’s wealth exceeds that of renters by a factor of 50-to-1: a median of $205,200 versus a median of $4,200. The main wealth difference between the two is home equity, of course. Even for households who’ve owned their home only since 2003, home equity gains are the rule rather than the exception.
In all 150 markets tracked by NAR, including hard-hit markets, households who’ve owned their home for 10, 15 and 20 years have uniformly enjoyed strong equity gains depsite the recent downturn.
The data in this graph clearly shows that homeownership remains the biggest store of wealth for the typical household, even when markets are buffeted by some admittedly very rocky years.
And let’s not forget the incentive the government is giving 1st time home buyers, and $8,000 tax credit that does not have to be repaid if you live in the home at least three years, and you can now use it for a downpayment! BUT! You must purchase a home by December 1, 2009 to take advantage of this.
If you’re weighing all your options and considering buying this year, I hope the data here will settle any fears if homeownership still makes any sense.
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North Carolina Real Estate Rebound in sight?
December 11th, 2008 categories: My Market Opinions
OK my fence sitters, and you know who I’m talking about, yes you do! Here’s some news you’ve been waiting for: A prominant economist, John Connaughton of the University of North Carolina at Charlotte has stated in the Triangle Business Journal that North Carolina’s economy will continue to decline through this year and beginning of 2009 by 0.2%. He says this signals the end of the state’s expansion which began seven years ago. He goes on to say that he predicts in the 2nd quarter of 2009, growth should start again! He expects the gross state product to grow by 1.4% in the 2nd quarter on a annualized, inflation-adjusted basis.
What this says is that we’re at the bottom with a recovery in sight! Everyone talks about when we’ll hit bottom and the optimum time to buy, this statement from one of North Carolina’s top economists is a good indicator that YOU SHOULD BE BUYING!!! I’ve been advising my Asheville clients for the last several months that we were close to bottom. One of my favorites sayings is to never try to time the market, it doesn’t work in the stock market and it usually doesn’t work in real estate.  This is the closest I can come without flags, megaphone and jumping up and down to saying the bottom is coming.
There are so many fantastic deals out there, it makes a grown Realtor cry because she can’t buy them all herself. All I can say to all of you who have been waiting for the “right time” to start looking, NOW IS THE RIGHT TIME!Â
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All this and no gas too?
September 29th, 2008 categories: My Market Opinions
 
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Lordy, Lordy, what a week! Between all the financial meltdowns, the Presidential debate that almost didn’t happen and lack of gas reminiscent to the mid-70’s, my head is swirling in a popular term known as “shock and awe”. Actually, the gas situation is easing up now, I didn’t see any lines and gas prices were around $3.99. People who know that I’m a Realtor are asking me now more than ever “How’s the real estate market”? People just want to know, even if they’re not in the market to buy or sell, they want to know the answer from someone who’s close to it all. Afterall, the housing market is the “Big” story isn’t it?
I’ve been reporting detailed statistics here on my blogsite, and the numbers are definitely down in no uncertain terms. But the fact of the matter is this,  if you didn’t buy your home at the peak of the market, meaning in the last 2-3 years, you’re probably still ahead of the game in equity. I think it’s important to remember that there was a HUGE runup in house values over the last several years.  The market is finally settling down from that craziness, and I think we can all admit that it was crazy fun while it lasted, but it’s back to reality and the reality is the Asheville area is holding up pretty well in contrast to many other areas who also experienced the upward volatility.
As a buyer you’ve got to be wondering what to do and how to do it, meaning what kind of mortgages are out there? Rates have been low for quite awhile and since the takover of Fannie Mae and Freddie Mac there has been a decrease in rates, along with excellent inventory and deep reductions in asking prices, the buyer is King! There’s the First Time Buyer Tax Credit (which I’ll go into detail on one of my next posts), which helps the buyer with a $7500 federal tax credit. For those of you who want or need to refinance, FHA is coming out this week with the FHA Replacement Mortgage plan. If you’re home is your primary residence, you may qualify to refinance up to 90% of your mortgage at TODAYS CURRENT VALUE! So, for those owners who’s current value is LESS than when you first purchased, it will allow you to refinance to a lower payment. HERE’S THE CATCH – but it’s not a bad one. Once you sell the home, if you make a profit you’ll be splitting the profit with FHA. As far as I’m concerned, this is going to help a ton of people. Better to share a profit than be foreclosed on, right?
If you’re in the market to buy a home, you’ll be able to take advantage of some of the best home bargains in years!! And I have one of the best Mortgage men in the field here at Beverly-Hanks, Cameron Lewis! Call or email me anytime and I’ll pass his information on to you.
I hope you’re not sitting on the fence worrying if the market has bottomed out? Like I always say: try to time the market and the market will win every time! If Warren Buffet is buying, so should you . . .!!!
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