South Palm Beach County Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.heidifuchs.com/blog/Copyright HeidiFuchs.com2024-01-31T07:27:25-07:00tag:heidifuchs.com,2012-09-20:41326Mortgage Rates Drop! Unlock Your Dream Home Budget with This Savvy Strategy<img src="https://assets.site-static.com/userfiles/2076/image/Blog_01092024_-_Score_Big_with_Falling_Mortgage_Rates_HeidiFuchs_TheFuchsGroupRE_1.jpg" width="1680" height="945" />
Score Big with Falling Mortgage Rates: Your Dream Home Awaits!
Hey house hunters, have we got news for you! Buckle up, because falling mortgage rates are paving the way for your homeownership dreams to become reality.
Rates are at their lowest since October, dipping below the 7% mark for 30-year fixed mortgages, according to Freddie Mac. This is music to any buyer's ears, as Bankrate puts it: "The rate cool-off somewhat eases the housing affordability squeeze."
Excited yet? Edward Seiler, a bigwig at the Mortgage Bankers Association, is, saying: "MBA expects that affordability conditions will continue to improve as mortgage rates decline..." Translation: This is your chance to snag that perfect pad without breaking the bank!
Let's break down how this translates to your wallet:
Imagine you can comfortably swing a monthly payment between $2,400 and $2,500. Check out this nifty chart (feel free to imagine it's even prettier than it is here):
See that green zone? That's your sweet spot, where your desired payment meets (or beats!) what you can afford at different interest rates. As rates drop, that green zone expands, meaning you can snag a bigger house for the same payment, or keep your dream home and have more wiggle room in your budget. Boom!
Feeling empowered? Don't go it alone:
Buying a home is a marathon, not a sprint. Recruit your local real estate ace and a trusty lender to be your pit crew. They'll navigate the mortgage maze, explain the rate rollercoaster, and show you how to make the most of this golden opportunity.
By crunching the numbers together and tailoring your strategy to today's rates, you'll be lightyears ahead of the competition. So ditch the "maybe next year" blues and let's turn your vision board into a reality.
The bottom line? Falling rates are opening the door to homeownership, and you hold the key! Let's chat and make your move.
Remember, the housing market is a dynamic beast, so stay tuned for updates and expert insights. We'll be your mortgage rate sherpa every step of the way!
Now go forth and conquer, future homeowner!
P.S. Sharing this post with your fellow house-hunting heroes is highly encouraged. Spread the good word and let's get everyone into their dream homes!
Final Note:
If you have any questions or specific scenarios you'd like us to tackle, feel free to drop them in the comments below. We're here to help you make informed decisions and land the perfect place to call your own!
By incorporating visuals, a more conversational tone, and actionable steps, this blog transforms the dry content of the original article into an engaging and informative resource for potential homebuyers. The focus on the positive impact of falling rates and the call to action at the end make it even more persuasive.
I hope this is helpful! Let me know if you have any other questions.2024-01-08T13:25:45-07:002024-01-31T07:27:25-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:37010Navigating the 2023 Housing Market: To Buy or Rent? <img src="https://assets.site-static.com/userfiles/2076/image/Blog_06132023_-_Housing_Market_1.jpg" width="2240" height="1260" />
The dynamics of the housing market are constantly evolving, and as we enter the year 2023, prospective homebuyers face a critical decision: should they buy a property or continue renting? This decision is influenced by various factors, including the emergence of remote work, evolving lifestyles, rent hikes, and soaring mortgage rates. In this blog, we will explore these elements and their impact on the decision-making process, as they shape the future of buyers in terms of financial considerations, lifestyle preferences, and personalization for their future selves.
The Rise of Remote Work:
One of the significant shifts observed in recent years is the rise of remote work. The COVID-19 pandemic accelerated this trend, and many companies have embraced flexible work arrangements. As a result, individuals now have the freedom to work from anywhere, leading to a reevaluation of housing choices. Remote work allows for greater geographical flexibility, enabling individuals to consider new locations that align with their lifestyle preferences and affordability.
Evolving Lifestyles:
With the evolution of lifestyles, the concept of home has transformed. Today, people seek not just a place to live but also a space that caters to their specific needs and desires. Customization and personalization have become crucial factors in the decision-making process. Homebuyers are increasingly looking for properties that offer flexibility, such as extra rooms for home offices or dedicated spaces for hobbies and activities. Renting may provide some flexibility in terms of trying out different neighborhoods or living arrangements, but owning a property offers long-term stability and the ability to create a personalized living space.
Rent Hikes and Affordability Concerns:
Rent hikes have become a common occurrence in many cities, making renting less financially sustainable in the long run. Rising demand for rental properties, coupled with limited supply, has led to increased rents, often outpacing wage growth. In contrast, purchasing a property can provide a sense of financial security, especially when mortgage rates are relatively low. By buying a home, individuals can lock in a mortgage payment, protecting themselves from future rent increases.
Soaring Mortgage Rates:
In recent times, mortgage rates have been experiencing an upward trend. Higher interest rates can significantly impact affordability, making it more challenging for some individuals to enter the housing market. As rates increase, the cost of borrowing also rises, potentially reducing purchasing power. Buyers need to carefully consider their financial situation and assess whether they can comfortably manage a mortgage with the current and potential future rates.
Conclusion:
The decision to buy or rent in the 2023 housing market depends on a variety of factors. The emergence of remote work has opened up new possibilities for location and lifestyle choices. Evolving lifestyles highlight the importance of customization and personalization in housing decisions. Rent hikes and soaring mortgage rates impact the financial aspects of the decision-making process. Buyers must carefully weigh these factors based on their own financial goals, lifestyle preferences, and plans for the future.
Ultimately, there is no one-size-fits-all answer to the buy versus rent question. Each individual's circumstances are unique, and it is important to consider both short-term and long-term implications. A thorough assessment of financial stability, lifestyle aspirations, and the potential for personalization will empower individuals to make an informed decision that aligns with their goals and paves the way for a fulfilling future.2023-06-13T05:54:44-07:002023-06-15T09:30:58-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:33999The Best Places to Invest in Real Estate Properties at Delray Beach in 2023<img src="https://assets.site-static.com/userfiles/2076/image/Blog_01302023_Blog_Banner.jpg" width="1680" height="945" />
Delray Beach, Florida is a bustling city that is constantly evolving. With a thriving economy, gorgeous beaches, and a vibrant downtown area, it is no wonder that it is a popular place for real estate investment. However, with so many options available, it can be difficult to know where to invest your money. In this blog, we will discuss the best places to invest in real estate properties in Delray Beach in 2023 based on upcoming trends.
The Downtown Area The downtown area of Delray Beach is known for its bustling atmosphere and is home to many popular restaurants, bars, boutiuqes and much more. This area is expected to continue to grow in popularity over the next few years, making it a great place to invest in real estate. With so many people moving to this area from all over the US and internationally, it is a great place to invest in rental properties, as demand for housing in the area is only going to increase.
The Beachfront Properties Delray Beach is home to some of the most beautiful beaches in Florida, and beachfront properties are highly sought after by both residents and tourists alike. With the increasing popularity of Delray Beach, beachfront properties and those near the beach are expected to be in high demand in the coming years. Whether you are looking for a rental property or a place to call home, beachfront properties are a great option for those who want to enjoy the beautiful scenery and easy access to the beach.
Atlantic Avenue Area Atlantic Avenue, the main street in Delray Beach is home to many of the city's popular shops, restaurants, and attractions. With the increasing popularity of Delray Beach, the Atlantic Avenue area is expected to continue to grow and thrive over the next few years, making it a great place to invest. Whether you are looking for a rental property or a place to call home, the Atlantic Avenue area is a great option for those who want to be close to the action.
The Residential Neighborhoods Delray Beach is home to many residential neighborhoods, and these areas are expected to continue to grow in popularity over the next few years. With many new homes being built, these areas are a great place to invest in real estate, as demand for housing in these areas is only going to increase. Whether you are looking for a rental property or a place to call home, residential neighborhoods are a great option for those who want to live in a quiet, peaceful area while still being close to all of the action.
Delray Beach is a great place to invest in real estate, with many opportunities available in different areas of the city. Whether you are looking for a rental property or a place to call home, Delray Beach has something to offer everyone. With its upbeat atmosphere, beautiful beaches, and thriving economy, Delray Beach is expected to continue to grow and thrive in the coming years, making it a great investment.
2023-01-29T16:08:10-07:002023-02-28T12:46:30-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:30720Best Towns to Retire in Florida Part 3<img src="https://assets.site-static.com/userfiles/2076/image/Copy_of_Best_Places_to_retire_in_Florida_-_blog_1_1.png" width="2240" height="1260" />
Find out what retirement towns in Florida offers retirees. There are many small towns in Florida where retirees are enjoying the warm climate and the activities that are available.
Florida is a popular retirement destination for many Americans. Florida has a variety of small towns that are perfect for retirees. One of the most appealing features of Florida is its weather. The climate in Florida is warm and sunny, which makes it an ideal place to retire to. Also, the weather is perfect for outdoor activities and living a healthy lifestyle.
Here's Part III:
The Villages is a collection of quaint retirement neighborhoods located in the heart of Florida. Each neighborhood is unique in its charm and personality, and connected in ways where all the lifestyle here for you to enjoy is just a golf car ride away. The Villages offer a retirement lifestyle that is second to none. There are plenty of amusement and activities to keep you busy, whether you are looking for a relaxing day by the pool or an afternoon exploring one of the many golf courses.
If you are looking for a retirement community that has it all, look no further than The Villages. With its beautiful coastlines, ports of travel and theme parks all nearby, you will never find yourself bored or without something to do.
Vero Beach is quickly becoming one of the top spots in the state that suits the perfect retirement neighborhood. Known more for understated wealth and a cultured lifestyle, the small seaside hamlet is now being recognized as a great place to retire.
With a wide variety of amusement and activities, as well as a relatively low cost of living, Vero Beach is an attractive option for retirees. The town is also home to a number of clinics and hospitals, making it a great option for those who want to be close to medical care.
If you're looking for a retirement lifestyle that is a little more understated and cultured, Vero Beach is definitely worth considering.
Ocala is a vibrant city with a historic downtown, Victorian-era homes, and an active food scene. It's also a great place to retire, with a variety of amusement and activities available. Ocala, Florida is a great place to retire. There are plenty of golf, tennis and other activities to keep you busy, but the natural attractions are what make this town special.
Ocala, Florida is known for being the Horse Capital of the World. However, this metropolitan community has much more to offer retirees than just equestrian activities. The cost of living in Ocala is relatively low, and the weather is beautiful year-round, so you can enjoy all of the activities that Florida has to offer without having to deal with extreme heat or cold.
Whether you're looking for an active community with plenty of amenities or a more affordable option, Ocala is the perfect place for you.2022-08-09T13:23:00-07:002022-08-09T13:37:32-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:30505Best Towns to Retire in Florida Part 2<img src="https://assets.site-static.com/userfiles/2076/image/Best_Places_to_retire_in_Florida_-_blog_1_1.jpg" width="2240" height="1260" />
Find out what retirement towns in Florida offers retirees. There are many small towns in Florida where retirees are enjoying the warm climate and the activities that are available.
Florida is a popular retirement destination for many Americans. Florida has a variety of small towns that are perfect for retirees. One of the most appealing features of Florida is its weather. The climate in Florida is warm and sunny, which makes it an ideal place to retire to. Also, the weather is perfect for outdoor activities and living a healthy lifestyle.
Here's Part II: <br /><br />
Sarasota has long been a popular retirement destination for many people. The city has a small-town feel while still offering all the amenities that retirees need, including plenty of doctors, hospitals, and retirement communities. Sarasota also has the white-sand beaches and sparkling water that many people dream about in a retirement spot. The city is also home to a number of cultural attractions, including the Ringling Museum of Art and the Asolo Repertory Theatre.
Sarasota has the white-sand beaches and sparkling water that many people dream about in a retirement spot. Located on Florida's Gulf Coast, Sarasota is home to a number of pristine beaches, as well as a number of cultural and recreational attractions.
If you're looking for a retirement spot that has it all, Sarasota is definitely worth considering. In addition to its beautiful beaches, Sarasota has a number of golf courses, tennis courts, and other recreational facilities. It also has a thriving arts and culture scene, with a number of museums, theaters, and other cultural attractions.
Safety Harbor is a beautiful little town that sits right on Tampa Bay. It's a popular destination for tourists and locals alike, and there are plenty of things to do in the area. From swimming and sunbathing to fishing and kayaking, there's something for everyone in Safety Harbor.
If you're looking for a place to stay, there are plenty of hotels and vacation rentals in the area. And if you're looking for a place to eat, there are plenty of restaurants to choose from. Whether you're looking for a casual meal or a fine dining experience, you'll be able to find it in Safety Harbor.
Venice, Florida is a beautiful coastal city that is known for its sunny weather, sandy beaches, and peaceful surroundings. It's no wonder that this city is one of the most sought after retirement destinations in the Sunshine State. Venice offers retirees a chance to enjoy all that Florida has to offer without the hustle and bustle of a large city. There are plenty of activities and amenities to keep retirees busy, including golf, tennis, walking and biking trails, and a variety of shops and restaurants.
Venice is also home to a number of hospitals and medical facilities, which is important for retirees who want to be close to quality healthcare. If you're looking for a retirement destination that offers all the best that Florida has to offer, then Venice, Florida is the perfect place for you.2022-07-29T08:58:00-07:002022-07-29T10:23:28-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:30279Best Towns to Retire in Florida Part 1<img src="https://assets.site-static.com/userfiles/2076/image/Best_Places_to_retire_in_Florida_-_blog_1-resize.jpg" width="1930" height="1086" />
Find out what retirement towns in Florida offers retirees. There are many small towns in Florida where retirees are enjoying the warm climate and the activities that are available.
Florida is a popular retirement destination for many Americans. Florida has a variety of small towns that are perfect for retirees. One of the most appealing features of Florida is its weather. The climate in Florida is warm and sunny, which makes it an ideal place to retire to. Also, the weather is perfect for outdoor activities and living a healthy lifestyle.
<a href="https://www.heidifuchs.com/communities/">Palm Beach</a> is a county in Florida and is one of the wealthiest counties in the United States. It is the second-most populous county in Florida. The county seat is in West Palm Beach. It has a median household income of $106,688 and a population of 8,800. Palm Beach County is the largest county in Florida by area, has 47 miles of coastline on the Atlantic Ocean, and in my estimation has more 55+ communities than any other county in Florida.
Palm Beach County is known for its lavish lifestyle with many expensive estates and high-end shopping malls. The county offers an array of activities to keep residents entertained such as golfing, fishing, boating, horseback riding, pickleball & tennis courts, walking trails, resort-style pool & spa, resistance pool, dog park, event, and entertainment areas.<br />
Seniors living in Palm Beach County, Florida, enjoy sunny weather and plenty of opportunities for recreation. Palm Beach has a number of senior living communities for retirees who prefer to enjoy nearby beaches, country clubs, and cities offering outstanding dining and entertainment. Many of the surrounding communities here offer everything from nearby beaches, country clubs to arts and endless opportunities to pursue interests and enjoy life.
Naples, Florida is a city and a town in Collier County. It is situated on the Gulf of Mexico, on the western coast of Florida. The city has been named by many as the most desirable retirement destination in America. One of the major factors that draws people to Naples is its climate, which is considered one of the best in all of Florida. Another factor is safety, as the city has a low crime rate and there are many security features in place. The percentage of seniors living in Naples is also high, making it an ideal location for those who want to retire with their peers.
Like most cities in southwest Florida, the city of Naples offers easy access to exciting recreational opportunities, excellent shopping, and pristine sandy beaches. At a close second to Florida's famous Miami Beach, Naples boasts some of the best sunsets, restaurants, museums, and shopping malls in the entire world. When you visit this beach town, you will see why many retirees have chosen to make Naples a desirable and peaceful place to retire.
For many people, the idea of retirement evokes images of sunny beaches and golf courses, with days spent reading newspapers and dining on gourmet meals. Naples offers all of that...and much more!
Port Saint Lucie is a city in Florida, United States that is a well-known fact that retirees are looking for a place to spend their golden years. This is why many people choose to retire to Port Saint Lucie, Florida. With its beautiful beaches and sunny weather, the city seems like an ideal place for retirees to live out the rest of their lives.
The city offers plenty of activities that are both fun and engaging. It has an array of museums and theaters that will keep people entertained throughout the day. It also has several golf courses and marinas where people can enjoy themselves in all sorts of ways. With so much to do, it is no wonder that Port Saint Lucie has become such a popular retirement destination among those who have been fortunate enough to retire from their jobs.
2022-07-15T06:30:00-07:002022-07-15T14:29:17-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:29221Best Places To Invest In A Beach Vacation Home In The U.S.Best Places To Invest In A Beach Vacation Home In The US
<img src="https://assets.site-static.com/userfiles/2076/image/Blog_post.jpg" width="2000" height="1428" alt="Best Places to Invest in a Beach Vacation Home in the US" title="Best Places to Invest in a Beach Vacation Home in the US" />
Americans are no strangers to the beach vacation home. Many own a second home that they can use as a getaway spot, and in many cases, these properties offer solid returns on investment. The benefits of owning a beach vacation home are well-known. From the priceless memories you'll create with your loved ones to the tax deductions you can take advantage of, there are plenty of reasons to call a second home "your" paradise.
People have been buying beach vacation homes for centuries, but the market has changed in recent years. It is now easier than ever to purchase a beach vacation home, and there are more options than ever before. Before you invest in a beach vacation home, there are a few things you should consider. Location is key when it comes to beach vacation homes. You want to choose a location that is beautiful and has great beaches. You also want to make sure that the location is accessible and convenient.
Delray Beach, Florida is a great spot to live, work, and raise a family. The city is arranged on the Atlantic coast and is known for its sandy seashores, perfectly clear water, and loosened up tropical environment. Notwithstanding its normal conveniences, Delray Beach brags a noteworthy cluster of social and sporting attractions. There are various craftsmanship exhibitions, dramatic settings, eateries, and nightlife areas of interest to appreciate. The city additionally has a wide assortment of sports offices and parks which take care of occupants, everything being equal. A cozy oceanside town with a major city character, Delray Beach is a dynamic South Florida people group arranged between Boca Raton and West Palm Beach. With awards like Most Fun Small Town in the USA and one of America's Happiest Seaside Towns, it's nothing unexpected Delray is a particularly well-known objective.
<br /> Rockaway Beach, New York was a getaway destination before thruways were laid out, acquiring families from the 1920s to its far-reaching, sandy ocean side by means of train. With seven miles of sandy seashores, Rockaway Beach has forever been a well-known place to get away on the Oregon coast. The completely flawless cut of Oregon has figured out how to remain moderately inconspicuous, so guests — and second mortgage holders — are blessed to receive fewer groups. Crabbing, whale-watching, climbing, and kayaking are favored interest exercises during the day, and when the sun sets, many assemble around huge fires on the oceanfront to partake in the brilliant skies. A steam motor train actually ships inquisitive explorers along a course with perspectives on Tillamook Bay, tide pools, and the sea — all while saving a cut of Rockaway Beach history.
Hatteras Island, North Carolina is a beautiful barrier island that will captivate you with its expansive beaches, laid-back atmosphere, fresh seafood, and best known for its picturesque beachfront. The Cape Hatteras lighthouse drew more than three million visitors in 2021, so a vacation home here also offers excellent rental opportunities. The number of people moving to the Outer Banks, and relocating to North Carolina, in general, is staggering. This diverse collection of people leads to a close-knit community. This active local community is home to individuals with shared hobbies, interests, and passions.
Gulf Shores, Alabama is a dreamy corner of the Gulf of Mexico coast that used to attract travelers from the South. More second-home buyers from across the country especially from the West Coast are coming to Gulf Shores. With the location's popularity, the value of its real properties has increased 19% in February 2022 over the previous year. This coastal city is home to just over 10,000 full-time residents who live across its 28 square miles. While the local shoreline is overflowing with American history at nearby Historic Fort Morgan. Gulf Shores blends a unique combination of one of America's most award-winning coastlines and family-friendly communities with a local economy that is thriving like never before.
Kapalua, Hawaii is an exclusive and sophisticated premier location on Maui's northwest shore. Lined with stunning white-sand beaches and bays, historic Hawaiian cultural sites, premier resort areas, boutique shops, award-winning restaurants, and two world-class golf courses which host the Tournament of Champions PGA Tour yearly. The most pleasant months of the year are January, February, and March. Kapalua's climate is warm, muggy, windy, and mostly clear. Balancing work and play is one of the biggest considerations for people to get attracted to Maui and is home to all the best ocean activities like sailing, surfing, snorkeling, scuba diving, fishing, kiteboarding, windsurfing, and foiling (which has become the popular ocean sport in recent years).<br />
There are factors to consider when choosing your best places to invest in a beach home. Factors like monthly operating cost, mortgage rates, accessibility to the city, local schools, local community lifestyle, job security, and noise levels. It will all depend on every home investor's need and preference.<br />
2022-05-26T08:05:00-07:002022-05-26T08:59:09-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:28356Home Price Appreciation projections and what it means for you now!Many clients are questioning what is going to occur with domestic values over the following couple of years. A few are worried that the current run-up in home expenses will lead to a situation just like the housing crash 15 years ago.
But, experts say the marketplace is absolutely special these days. As an instance, Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1509948951918788608">tweeted </a>last week on this:
“. . . We do need price appreciation to slow today (it’s not sustainable over the long run) but high price growth today is supported by fundamentals- short supply, lower rates & demographic demand. And we are in a much different & safer space: better credit quality, low DTI [Debt-To-Income] & tons of equity. Hence, a crash in prices is very unlikely.”
Home prices appreciation will slow from the double-digit stages the marketplace has seen over the past two years. However, specialists believe domestic values will now not depreciate (in which a home might lose price).
To this point, Pulsenomics just delivered the most recent Home Price Expectation Survey - an overview of a public board of more than 100 financial analysts, land specialists, and speculation and market tacticians. It figures home costs will keep increasing in value throughout the following five years. The following are the normal year-over-year paces of home cost appreciation in view of 100+ projection:
2022: 9%<br />2023: 4.74%<br />2024: 3.67%<br />2025: 3.41%<br />2026: 3.57%
Those responding to the check believe home price appreciation will still be fairly high this time (though half of what it was last time), and also return to further normal situations over the coming four times.
What Does This Mean for You as a Buyer?
With a limited supply of houses to be had for sale and each prices and loan fees growing, it may be a tough marketplace to navigate as a customer. However shopping for a domestic quicker in preference to later does have its blessings. If you wait to shop for, you’ll pay extra inside the destiny. But, in case you buy now, you’ll virtually be in the role to make future charge increases be just right for you. After you buy, the ones growing domestic charges will help you build your own home’s price, and by extension, your own household wealth thru home equity.
For example, permit’s anticipate you bought a $360,000 domestic in january of this yr (the median price in keeping with the national association of realtors rounded as much as the closest $10k). In case you aspect inside the forecast for appreciation from the home price expectation survey, you could acquire over $ninety six,000 in family wealth over the subsequent five years (see graph below)
<img src="https://assets.site-static.com/userfiles/2076/image/Potential%20Growth%20Graph.png" width="1000" height="870" />
<br />Bottom Line
Assuming you're attempting to choose whether to purchase now or stand by, the key is realizing what's generally anticipated to occur with home costs. Specialists say costs will keep on moving in the years ahead, right at a more slow speed. In this way, assuming you're prepared to purchase, doing so presently might be your smartest choice for your wallet. It'll likewise allow you the opportunity to utilize the future home value appreciation to construct your own total assets through rising value. If you have any desire to begin, we should connect today.2022-04-07T11:36:00-07:002022-04-07T11:55:40-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:22448The Reason Mortgage Rates Change <a href="https://www.cnbc.com/2021/07/14/weekly-mortgage-refinances-spike-20percent-after-interest-rates-drop.html">Last week, the average 30-year mortgage interest rate dropped by 0.06%.</a> This lead to home loan refinancing applications to jump 20% from its prior week. This goes to show how even a small change in interest rate can be enough for people to take action. While the rates may have been down last week, they have slightly climbed this week. This goes to show that mortgage rates are always changing.
You may be wondering why mortgage interest rates change daily or even multiple times a day. Lenders will change the rate based off of what is occuring in the economy and market. Inflation, demand for real estate, the Federal Reserve and the bond market are a few factors that affect rates.
<a href="http://www.freddiemac.com/pmms/pmms30.html">According to research by Freddie Mac,</a> the average 30-year mortgage interest rate was 7.16% in June 2001 and 2.98% in June 2021. Why has it gone down so much? <a href="https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp">Jean Folger from Investopedia</a> explains that interest rates and inflation tend to be inversely correlated. Central banks manipulate short-term interest rates to affect the rate of inflation in the economy.
“In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend. This causes the economy to grow and inflation to increase” says Folger.
Folger continues. “The opposite holds true for <a href="https://www.investopedia.com/articles/markets/070115/rising-interest-rates-who-it-helps-who-it-hurts.asp">rising interest rates</a>. As interest rates are increased, consumers tend to save because returns from savings are higher. With less <a href="https://www.investopedia.com/terms/d/disposableincome.asp">disposable income</a> being spent, the economy slows and inflation decreases”
You can see how much inflation has risen by looking at the CPI. The CPI measures the change over time of the average cost of common consumer goods and services, therefore directly measuring inflation. The average CPI in July 2001 was 177.1, and the average CPI in 2021 is 263.7. This means that the cost of living in 2021 is about 1.49 times higher than it was in 2001. As inflation has increased over time, mortgage rates have gone down.2021-07-14T13:49:00-07:002021-07-14T13:54:00-07:00EJ Rodrigueztag:heidifuchs.com,2012-09-20:22239Why Are We in a Seller's Market?2021 is currently experiencing a seller’s market. A seller’s market, simply put, is when there are more home buyers than there are home sellers. This gives seller’s an advantage because houses have a high demand but a limited supply. Sellers are basically a rare find in this type of market.
As Demand Exceeds Supply, Prices Go Up
This seller’s market is highlighted by offers above a home’s asking price. Why? When demand exceeds supply, prices go up. Ten buyers may want the same home, so they will enter bidding wars in order to secure their rare find.
Why is Supply Low?
Supply is low for a reason, it didn’t just happen randomly. Much of this is due to the 2020 pandemic. Well, I know that the pandemic seems like it happened overnight, but the real estate market is bound to be affected by unforeseen circumstances. People stopped selling their homes in a time of economic uncertainty. Many people don’t know where they would go if they sold their home. “The pandemic really changed how people look at and prioritize their homes, and that mindset is not going to change anytime soon,” says Kris Lindahl, CEO and founder of Kris Lindahl Real Estate in Minneapolis.
The South Florida Boom
South Florida has become a target destination during the pandemic. Peter Lane Taylor from Forbes says that an open economy, relatively low COVID-19 case counts and no state income tax are just a few reasons for this boom. The demand for homes here is higher than usual, leading to an even more intense seller’s market.
What Can Buyers Do?
The possibility of bidding wars is stressful! Buyers can prepare and take a few prior steps beforehand. A mortgage pre-approval can always give you an advantage. You also should not look for home’s at the very top of your budget. This will provide you more financial flexibility when a home’s price rises during bidding.
A great real estate agent will understand how to negotiate. Here at The Fuchs Group, we will go the extra mile to help you as a buyer in this seller’s market!2021-06-30T11:46:00-07:002021-06-30T11:50:29-07:00EJ Rodrigueztag:heidifuchs.com,2012-09-20:22150Don't Skip Title Contingencies Many home buyers are waiving contingencies and inspections. You may know about the common inspection for mold, bugs, and a home’s interior and exterior, but a Title Contingency and title insurance is also important. Buyers can leave a sale if the home has problems with previous owners or unpaid debts.
<a href="https://www.wcpo.com/money/consumer/dont-waste-your-money/waiving-home-inspection-and-contingencies-beware">John Matarese with WCPO</a> reports that Scott and Lorrie Hill recently purchased a home “as is”. The Hills unexpectedly were involved in a decades-old property line dispute after signing their contract. “They have paid well over $100,000 in attorney fees so far” says Matarese. The Hills are now stuck with these fees and cannot sell the home until the dispute closes. Buyers can avoid these situations with a title contingency and get a record of any judgements made against the property.
The remaining question is why are people waiving contingencies? The reason is that many buyers are desperate to close and want to avoid being outbid. <a href="https://www.nerdwallet.com/article/mortgages/waiving-home-inspection">Redfin</a> reports that the number of contingencies waived in December 2020 was more than double the number in December 2019. You can see that waiving a continecy is not worth it with the Hills' situation.
2021-06-25T09:00:00-07:002021-06-25T08:49:07-07:00EJ Rodrigueztag:heidifuchs.com,2012-09-20:18402The Real Estate Market Isn’t in a Bubble – It Just Isn’t
Rising home prices and recession memories have convinced some buyers that a bubble will pop and prices will drop. But it’s just too much demand and too little supply.
NEW YORK – The U.S. housing market is on a hot streak with double-digit annual gains in home prices, bidding wars and surging buyer demand. That type of soaring housing market is prompting more “bubble” fears in some corners, but economists say the housing market isn’t getting overinflated. A bubble won’t pop, thousands of homes won’t slide into foreclosure, and buyers who wait likely won’t be better off.
“We have strong conviction that we are not experiencing a bubble in U.S. housing,” Vishwanath Tirupattur, a Morgan Stanley strategist, wrote in a note to clients this week.
Lawrence Yun, chief economist of the National Association of Realtors®, agrees. He told Axios last month: “This is not a bubble. It is simply lack of supply.”
The rapid rise in prices may be concerning to home shoppers, however. The median selling price for a home is up $35,000 compared to a year ago, which is the fastest-paced increase since 2006, Tirupattur says.
But this isn’t 2006. Housing inventories are low, credit remains tight, and lenders aren’t issuing risky loans like they did back then. Product risk – such as from mortgages with introductory periods, teaser rates or balloon payments – comprised about 40% of the mortgage market between 2004 to 2006. Those factors are now at only 2% of the mortgage market, according to Morgan Stanley.
Also, the housing market has a record low number of homes available for sale, in part likely caused by the pandemic. At the end of March, there were 1.07 million homes available for sale, according to NAR data. For comparison, during the housing bubble, in July 2007, there were more than four times that – 4 million homes available for sale.
Still, while home prices won’t keep climbing at the current pace, they aren’t expected to fall either, economists say.
“We are not at all suggesting that home price appreciation will maintain its current torrid pace,” Tirupattur writes. “Home prices will continue to rise, but more gradually.”
Source: “Why Morgan Stanley Is Convinced the Housing Market Isn’t in a Bubble,” Yahoo! Finance (May 5, 2021) and “The Dispiriting Housing Boom,” Axios (April 11, 2021)
2021-05-10T06:28:00-07:002021-05-10T06:31:21-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:16881The Fuchs Group Is Here to Help You Make the Smart InvestmentWhy our keeping up with real estate trends and best financial practices benefits you
Keeping your ear to the ground is not just a turn of phrase for <a href="https://www.heidifuchs.com/heidifuchs.com">The Fuchs Group</a><a href="https://www.heidifuchs.com/heidifuchs.com">.</a> If you are thinking about moving to (or within) Palm Beach, Broward, or Miami-Dade, you will want to partner with someone plugged into South Florida specifically and the national real estate market as a whole. Identifying trends and keeping tabs on important considerations after applying for a mortgage are just a couple of examples of why you can trust <a href="https://www.heidifuchs.com/heidifuchs.com">The Fuchs Group</a> to offer the correct guidance on a real estate decision in 2021.
For instance, did you know that mortgage rates have fallen more than a full percentage point, hitting a new historic low 15 times? More importantly, do you know what sort of benefits that means for you?
For one, if you have gained equity in your current home, you can put that toward a down payment on one that better suits your needs, whether it involves upgrading or downsizing. These rates make the decision as to whether buying makes more sense than renting an easy one Now is the perfect time for either buying or refinancing, there is no question.
If you have been waiting since last year, you should call us today to see how you might benefit from the current rates.
Then, once you have found the right home and <a href="https://plus.preapp1003.com/Edward-Kessner">applied for a mortgage</a>, <a href="https://www.heidifuchs.com/heidifuchs.com">The Fuchs Group</a> has a few suggestions regarding financial decisions that can impact your home loan.
Things like not depositing cash into your accounts without speaking with your bank or lender. When they are trying to source your money, you will want to know the proper way to document your transactions. You will also want to avoid making large purchases, like a new car or lots of new furniture. When you introduce new obligations, you make new qualifications, and your debt-to-income ratio is impacted.
When you partner with <a href="https://www.heidifuchs.com/heidifuchs.com">The Fuchs Group</a>, you will hear why co-signing for loans while going through the process is unadvised, and why changing bank accounts is such a questionable idea. Why applying for new credit impacts your FICO® score, which determines your interest rate, at least. And why closing credit accounts, while sounding like a good idea because it makes a borrower seems less risky, can actually negatively impact the length and depth of credit history considered when determining your credit score.
Inconsistencies in your income, assets, or credit can undermine a home loan, even after it has been approved. You will want to fully disclose all of it with your loan officer before you do anything financial in nature because, for us, it is not just about the volume of properties we sell. It is about putting the right clients in the right homes, as safely and securely as possible, for their long-term success…and ours.
If you are currently thinking of moving to Florida because the time is right, or if you live in the tri-county South Florida area and you want to take advantage of this incredible market, <a href="https://www.heidifuchs.com/heidifuchs.com">The Fuchs Group</a> would be honored to help you plan. Call us today at 954-415-8263 and let us make the most of this unprecedented time in the market together!2021-02-01T05:00:00-07:002021-01-27T15:31:53-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:14222Buying or Selling?Thinking about buying or selling? No matter where you live our network of agents are here to help you with all of your real estate needs.
2020-08-05T06:31:00-07:002020-08-10T11:38:07-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:10678Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/2076/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" /> Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family. Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues. What Has Happened to the Number of Mortgages? Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable. Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage. The Effect on the Economy The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2020-04-29T16:37:00-07:002020-04-29T16:38:18-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:10676Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/2076/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2020-04-29T16:37:00-07:002020-04-29T16:38:34-07:00Heidi Fuchstag:heidifuchs.com,2012-09-20:10675Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/2076/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2020-04-29T16:37:00-07:002020-04-29T16:38:25-07:00Heidi Fuchs