Housing Inventory | Homes Sold By Jessica Harless

Why Today’s Housing Inventory Proves the Market Isn’t Headed for a Crash

Whether or not you owned a home in 2008, you likely remember the housing crash that took place back then. And news about an economic slowdown happening today may bring all those concerns back to the surface. While those feelings are understandable, data can help reassure you the situation today is nothing like it was in 2008.

One of the key reasons why the market won’t crash this time is the current undersupply of inventory. Housing supply comes from three key places:

  • Current homeowners putting their homes up for sale
  • Newly built homes coming onto the market
  • Distressed properties (short sales or foreclosures)

For the market to crash, you’d have to make a case for an oversupply of inventory headed to the market, and the numbers just don’t support that. So, here’s a deeper look at where inventory is coming from today to help prove why the housing market isn’t headed for a crash.

Current Homeowners Putting Their Homes Up for Sale

Even though housing supply is increasing this year, there’s still a limited number of existing homes available. The graph below helps illustrate this point. Based on the latest weekly data, inventory is up 27.8% compared to the same week last year (shown in blue). But compared to the same week in 2019 (shown in the larger red bar), it’s still down by 42.6%.

Why Today’s Housing Inventory Proves the Market Isn’t Headed for a Crash | MyKCM

So, what does this mean? Inventory is still historically low. There simply aren’t enough homes on the market to cause prices to crash. There would need to be a flood of people getting ready to sell their houses in order to tip the scales toward a buyers’ market. And that level of activity simply isn’t there.

Newly Built Homes Coming onto the Market

There’s also a lot of talk about what’s happening with newly built homes today, and that may make you wonder if we’re overbuilding. But home builders are actually slowing down their production right now. Ali Wolf, Chief Economist at Zonda, notes:

“It has become a very competitive market for builders where they are trying to offload any standing inventory.”

To avoid repeating the overbuilding that happened leading up to the housing crisis, builders are reacting to higher mortgage rates and softening buyer demand by slowing down their work. It’s a sign they’re being intentional about not overbuilding homes like they did during the bubble.

And according to the latest data from the U.S. Census, at today’s current pace, we’re headed to build a seasonally adjusted annual rate of about 1.4 million homes this year. While this will add more inventory to the market, it’s not on pace to create an oversupply because builders today are more cautious than the last time when they built more homes than the market could absorb.

Distressed Properties (Short Sales or Foreclosures)

The last place inventory can come from is distressed properties, including short sales and foreclosures. Back in the housing crisis, there was a flood of foreclosures due to lending standards that allowed many people to secure a home loan they couldn’t truly afford. Today, lending standards are much tighter, resulting in more qualified buyers and far fewer foreclosures. The graph below uses data from ATTOM Data Solutions on properties with foreclosure filings to help paint the picture of how things have changed since the crash:

Why Today’s Housing Inventory Proves the Market Isn’t Headed for a Crash | MyKCM

This graph shows how in the time around the housing crash there were over one million foreclosure filings per year. As lending standards tightened since then, the activity started to decline. And in 2020 and 2021, the forbearance program was a further aid to help prevent a repeat of the wave of foreclosures we saw back around 2008.

That program was a game changer, giving homeowners options for things like loan deferrals and modifications they didn’t have before. And data on the success of that program shows four out of every five homeowners coming out of forbearance are either paid in full or have worked out a repayment plan to avoid foreclosure. These are a few of the biggest reasons there won’t be a wave of foreclosures coming to the market.

Bottom Line

Although housing supply is growing this year, the market certainly isn’t anywhere near the inventory levels that would cause prices to drop significantly. That’s why inventory tells us the housing market won’t crash.

Republished from Keeping Current Matters
What is a real estate market shift?

Just What Is A Market Shift?

There’s a lot of talk, media chatter, and press going around about the current real estate market. The best way to describe it is “the market is shifting.”
𝙅𝙪𝙨𝙩 𝙬𝙝𝙖𝙩 𝙞𝙨 𝙖 𝙢𝙖𝙧𝙠𝙚𝙩 𝙨𝙝𝙞𝙛𝙩?
When the supply of listed property is more than the demand it’s a buyers’ market. Sometimes this can cause prices to decline.
 
A sellers’ market is when there is a higher demand for properties than the active available properties. This often results in bidding wars and higher sale prices.
 
𝙎𝙞𝙜𝙣𝙨 𝙤𝙛 𝙖 𝙎𝙝𝙞𝙛𝙩𝙞𝙣𝙜 𝙈𝙖𝙧𝙠𝙚𝙩
• A lot of Expiring Listings – an increase shows signs of a shift to a buyers’ market.
• Change in the Number of Offers – a decrease shows signs of a shift to a buyers’ market.
• Absorption Rate – when it takes more than 6 months for all the listed homes to sell it’s a shift to a buyers’ market.
• Days on Market – A longer selling period for listings often indicates a shift to a buyers’ market.
 
There’s a lot of talk and press about the current real estate market. The best way to describe it is “A Shift.” d to price realistically and buyers should see less competition when they submit an offer. Thinking about buying or selling? Let’s talk about marketing your home as the market shifts. Thinking of buying? Let’s start with a local lender…then begin your home search.
Real Estate | Prices for the rest of 2022

What Does the Rest of the Year Hold for Home Prices?

Whether you’re a potential homebuyerseller, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your homeownership goals.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was:

Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Moderates Today

This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):

What Does the Rest of the Year Hold for Home Prices? | MyKCM

Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, let’s connect so you have a local market expert on your side each step of the way.

As published By Keeping Matters Current
Older Home | Jessica Harless Next Home Realty Center

Pros & Cons of Buying an Older Home

Here are the pros of buying an older home (one built 15+ years ago):
• Higher quality or more detailed construction
• Bigger yards with mature landscaping
• Often have character and charm
• Located in established neighborhoods
• Attractive price

The downsides:
• Smaller rooms, garages, and closets
• Lack of storage
• Likely to require more maintenance

HVAC systems are less efficient
Older appliances, water heater, and roof

• Cost of upgrades

If you are thinking about making a move – let’s talk about your options…

Housing Market - Sold By Jessica Harless | NextHome Realty Center

Is the Housing Market Correcting?

If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.

The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.

This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com says:

The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”

Home Showings Then and Now

The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):

Is the Housing Market Correcting? | Simplifying The Market

The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.

And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.

Existing Home Sales Then and Now

Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):

Is the Housing Market Correcting? | Simplifying The Market

Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.

It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this:

“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”

Bottom Line

If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.

from Keeping Matters Current
First-Time Homebuyers | Homes Sold by Jessica Harless NextHome Realty Center

What Are the Best Options for Today’s First-Time Homebuyers?

If you’re looking to buy your first home, you’re likely balancing several factors. Because both mortgage rates and home prices have risen this year, it costs more to buy a home than it did even just a few months ago. But that doesn’t mean you have to put your plans on hold.

If you partner with a trusted real estate advisor and hone your strategy, you can navigate today’s market and find the home you’re looking for. Here are two tips to help you get started.

Work with a Professional To Prioritize Your Wish List

If you’re having trouble finding a home in your budget that checks all the boxes, it may be worth taking another look at your lists of what you want and what you really need. According to the latest First-Time Homebuyer Metro Affordability Report from NerdWallet, your wish list can have as much impact on your search as your finances:

“Your budget isn’t all that you need to be concerned about; your wish list and desired location may carry just as much weight.”

It’s all about prioritization. If you’re serious about purchasing your first home soon, be flexible in what you’re looking for to open up your pool of options. Partner with a local real estate professional to better understand what’s available in today’s market and reprioritize your wish list. Remember, making a concession now doesn’t mean you’ll never have everything on your list. After you’ve moved in, you can always add certain features to make the home your own.

Increase Your Search Radius To Consider More Locations

Some areas may have more homes within your target price range than others, but it may require you to be flexible on your location. For example, if you’re a remote worker, you may be able to expand your search radius. As Fannie Mae explains:

“. . . continued remote work flexibility is likely giving many the ability to live farther away in more affordable areas.”

The decision to search in places with a lower cost of living could help you find a home that fits your budget and checks the most boxes off your wish list.

Bottom Line

If you’re serious about purchasing your first home this year, revisiting your wish list and desired location can help. Let’s connect to explore all the options in our local market – and beyond – so you can achieve your homeownership dreams.

courtesy of Simplifying The Market (KCM)
1

𝗖𝘆𝗽𝗿𝗲𝘀𝘀, 𝗧𝗫 𝗥𝗲𝗮𝗹 𝗘𝘀𝘁𝗮𝘁𝗲 𝗦𝘁𝗮𝘁𝘀 𝗳𝗼𝗿 𝗠𝗮𝘆 𝟮𝟬𝟮𝟮 (𝟳𝟳𝟰𝟯𝟯 & 𝟳𝟳𝟰𝟮𝟵)

Number of Sold Properties, Days to Sell, Average Sale Price, and Active Listings of re-sale homes as reported by HAR.com.

 These statistics include the following communities in 77433:2

 Ashton Woods Barker Lake
Blackhorse Ranch Bridge Creek
Bridgeland Canyon Lakes West
Cypress Creek Lakes Dunham Pointe
Fairfield Lakes of Fairhaven
Marvida Miramesa
Park Creek Towne Lake
 Westgate

And, these communities in 77429:3

Coles Crossing Cypress Mill
Cypress Point Bridge Creek
Bridgeland Canyon Lakes West
Cypress Creek Lakes Hidden Arbor
Lakes of Rosehill Lakes on Eldridge
Lakewood Forest Longwood Village
Park At Arbordale Ravensway
Rock Creek Stablegate
Stablewood Farms Sydney Harbour
Villages of Cypress Lakes

Want more detailed information? Let’s talk…

#cypressrealestate #jessicaharlessrealtor

Real Estate Recession | Homes Sold By Jessica Harless | NextHome Realty Center

The One Thing Every Homeowner Needs To Know About a Recession 

A recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.

The National Bureau of Economic Research (NBER) defines a recession this way:

“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”

To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.

The One Thing Every Homeowner Needs To Know About a Recession | Simplifying The Market

The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.

Bottom Line

We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.

Keeping Current Matters  Thursday May 19th, 2022   s

Homes Sold By Jessica Harless | NextHome Realty Center

Down Payment Assistance Programs Can Help You Achieve Homeownership

For many homebuyers, the thought of saving for a down payment can feel daunting, especially in today’s market. That’s why, when asked what they find most difficult in the homebuying process, some buyers say it’s one of the hardest steps on the path to homeownership. Data from the National Association of Realtors (NAR) shows:

“For first-time home buyers, 29 percent said saving for a downpayment [sic] was the most difficult step in the process.

If you’re finding that your down payment is your biggest hurdle, the good news is there are many down payment assistance programs available that can help you achieve your goals. The key is understanding where to look and learning what options are available. Here’s some information that can help.

First-Time and Repeat Buyers Are Often Eligible

According to downpaymentresource.comthere are thousands of financial assistance programs available for homebuyers, like affordable mortgage options for first-time buyers. But, of the many programs that are available, down payment assistance options make up the large majority. They say 73% of the assistance available to homebuyers is there to help you with your down payment.

And it’s not just first-time homebuyers that are eligible for these programs. Downpaymentresource.com notes:

“You don’t have to be a first-time buyer. Over 38% of all programs are for repeat homebuyers who have owned a home in the last 3 years.”

That means no matter where you are in your homeownership journey, there could be an option available for you.

There Are Local Programs and Specialized Programs for Public Servants

There are also multiple down payment assistance resources designed to help those who serve our communities. Teacher Next Door is one of those programs:

“The Teacher Next Door Program was designed to increase home ownership among teachers and other public servants, support community development and increase access to affordable housing free from discrimination.”

Teacher Next Door is just one program that seeks to help teachers, first responders, health providers, government employees, active-duty military personnel, and veterans reach their down payment goals.

And, most importantly, even if you don’t qualify for these types of specialized programs, there are many federal, state, and local programs available for you to explore. And the best way to do that is to connect with a local real estate professional to learn more about what’s available in your area.

Bottom Line

If saving for a down payment seems daunting, there are programs available that can help. And if you work to serve our community, there may be even more opportunities available to you. To learn more about your options, let’s connect so you can start your homebuying journey today.

Courtesy of KCM

Homes Sold By Jessica Harless | NextHome Realty Center

Real Estate Voted the Best Investment Eight Years in a Row

Real Estate Voted the Best Investment Eight Years in a Row

In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):

Real Estate Voted the Best Investment Eight Years in a Row | MyKCMIf you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrateexplains it like this:

A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

If you’re a renter, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbesnotes:

Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.

Bottom Line

Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.

Courtesy of KCM

Homes sold by Jessica Harless | FHA Limits

FHA Loan Maximum Increase for 2022

Good news, the maximum loan amounts for FHA and Conventional Conforming is going up about 18% in 2022, and are effective 1-1-2022

New FHA loan limit for Harris and surrounding counties will be $420,680 – up from $356,362

New Conventional Conforming limit will be $647,200 –up from $548,250.

This is great news for FHA buyers that can now borrow over $64,000 more in 2022 using the more flexible FHA loan

This is really great news for conventional buyers, who can borrow almost $99,000 more, without having to use the more stringent NON conforming loan products 

If you are thinking about a move in 2022, now is the time to reach out to your local lender. If you don’t have a lender you know and trust. I can provide you with a list of several who have helped my past clients.  When you are ready to start your home search or list your home- let’s talk!

Together we’ll make your dream home your NextHome!

courtesy of:
Amal Boulos
Sr. Loan Officer | Network Funding, LP
Homes Sold By Jessica Harless | NextHome Realty Center

Have You Ever Seen a Housing Market Like This?

Have You Ever Seen a Housing Market Like This? [INFOGRAPHIC] | Simplifying The Market

Some Highlights

  • Whether you’re buying or selling – today’s housing market has plenty of good news to go around.
  • Buyers can take advantage of today’s mortgage rates to escape rising rents and keep monthly payments affordable. Sellers can reap the benefits of multiple offers and a fast sale.
  • If this sounds like good news to you, let’s connect today so you can capitalize on the unique opportunity you have in today’s market.
Homes Sold By Jessica Harless | NextHome Realty Center

What Does Being in a Sellers’ Market Mean?

Whether or not you’ve been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious sellers’ market. But what does that really mean? And why are conditions today so good for people who want to list their house?

 

It starts with the number of houses available for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):What Does Being in a Sellers’ Market Mean? | Simplifying The MarketWhen the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which leads to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer. As this happens, home prices rise, and sellers are in the best position to negotiate deals that meet their ideal terms.

Right now, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and the ongoing rise in remote work have prompted buyers to think differently about where they live – and they’re taking action. If you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.

Bottom Line

Today’s ultimate sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious buyers who will actively compete against each other to purchase it. Let’s connect to discuss how to jumpstart the selling process.

courtesy of Keeping Current Matters

Homes Sold by Jessica Harless | NextHome Realty Center

Key Questions To Ask Yourself Before Buying a Home

Courtesy of Keeping Current Matters

Sometimes it can feel like everyone has advice when it comes to buying a home. While your friends and loved ones may have your best interests in mind, they may also be missing crucial information about today’s housing market that you need to make your best decision.

Before you decide whether you’re ready to buy a home, you should know how to answer these three questions.

1. What’s Going on with Home Prices?

Home prices are one factor that directly impacts how much it will cost to buy a home and how much you stand to gain as a homeowner when prices appreciate.

The graph below shows just how much experts are forecasting prices to rise this year:Key Questions To Ask Yourself Before Buying a Home | Simplifying The MarketContinued price appreciation is great news for existing homeowners but can pose a significant challenge if you wait to buyUsing these forecasts, you can determine just how much waiting could cost you. If prices increase based on the average of all forecasts (12.46%), a median-priced home that costs $350,000 in January of 2021 will cost an additional $43,610 by the end of the year. What does this mean for you? Put simply, with home prices increasing, the longer you wait, the more it could cost you.

2. Are Today’s Low Mortgage Rates Going To Last?

Another significant factor that should inform your decision is mortgage interest rates. Today’s average rates remain close to record-lows. Much like prices, though, experts forecast rates will rise over the coming months, as the chart below shows:Key Questions To Ask Yourself Before Buying a Home | Simplifying The MarketYour monthly mortgage payment can be significantly impacted by even the slightest increase in mortgage rates, which makes the overall cost of the home greater over time when you wait.

3. Why Is Homeownership Important to You?

The final question is a personal one. Before deciding, you’ll need to understand your motivation to buy a home and why homeownership is an important goal for you. The financial benefits of owning a home are often easier to account for than the many emotional ones.

The 2021 National Homeownership Market Survey shows that six of the nine reasons Americans value homeownership are because of how it impacts them on a personal, aspirational level. The survey says homeownership provides:

  • Stability
  • Safety
  • A Sense of Accomplishment
  • A Life Milestone
  • A Stake in the Community
  • Personal Pride

The National Housing & Financial Capability Survey from NeighborWorks America also highlights the emotional benefits of homeownership:Key Questions To Ask Yourself Before Buying a Home | Simplifying The MarketClearly, there’s a value to homeownership beyond the many great financial opportunities it provides. It gives homeowners a sense of pride, safety, security, and accomplishment – which impacts their lives and how they feel daily.

Bottom Line

Homeownership is life-changing, and buying a home can positively impact you in so many ways. With any decision this big, it helps to have a trusted advisor by your side each step of the way. If you’re ready to begin your journey toward homeownership, let’s connect to discuss your options and begin your journey.

20210722-KCM-Share-549x300

Today’s Real Estate Market Explained Through 4 Key Trends

As we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping this unprecedented market.

A Shortage of Homes for Sale

Earlier this year, the number of homes available for sale fell to an all-time low. In recent months, however, inventory levels are starting to trend up. The latest Monthly Housing Market Trends Report from realtor.com says:

“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”

This is good news for buyers who crave more options. But even though we’re experiencing small gains in the number of available homes for sale, inventory remains a challenge in most states. That’s why it’s still a sellers’ market, giving homeowners immense leverage when they decide to make a move.

Buyer Competition and Bidding Wars

Today’s ongoing low supply, coupled with high demand, creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving some contingencies. The number of offers on the average house for sale broke records this year – and that’s great news for sellers.

The latest Confidence Index from the National Association of Realtors (NAR) says the average home for sale receives five offers (see graph below):Today’s Real Estate Market Explained Through 4 Key Trends | Simplifying The MarketFor buyers, the best way to put a compelling offer together is by working with a local real estate professional. That agent can act as your trusted advisor on what terms are best for you and what’s most appealing to the seller.

Home Price Appreciation

The competition among buyers is driving prices up. Over the past year, we’ve seen home price appreciation rise across the country. According to the most recent Home Price Index (HPI) from CoreLogic, national home prices increased 15.4% year-over-year in May:

“The May 2021 HPI gain was up from the May 2020 gain of 4.2% and was the highest year-over-year gain since November 2005. Low mortgage rates and low for-sale inventory drove the increase in home prices.”

Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For potential sellers, it also means it’s a great time to list your house to maximize the return on your investment.

A Rise in Home Values and Equity

The equity in a home doesn’t just grow when a homeowner pays their mortgage – it also grows as the home’s value appreciates. Thanks to the jump in price appreciation, homeowners across the country are seeing record-breaking gains in home equity. CoreLogic recently reported:

“…homeowners with mortgages (which account for roughly 62% of all properties) have seen their equity increase by 19.6% year over year, representing a collective equity gain of over $1.9 trillion, and an average gain of $33,400 per borrower, since the first quarter of 2020.”

That’s a major perk for households to leverage. Homeowners can use that equity to accomplish major life goals or move into their dream homes.

Bottom Line

If you’re thinking about buying or selling, there’s no time like the present. Let’s connect to talk about how you can take advantage of the conditions we’re seeing today to meet your homeownership goals.

From Keeping Current Matters…
Selling you home in a sellers market | Jessica Harless

What It Means To Be in a Sellers’ Market

Monday, March 29th, 2021

If you’ve given even a casual thought to selling your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is available for buyers who are looking for homes to purchase.

The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace.

Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):What It Means To Be in a Sellers’ Market | Simplifying The MarketWhen the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.

As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers.

Today, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.

Bottom Line

Home prices are appreciating in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it.

Home Buying | House and Keys | Photo by Tierra Mallorca on Unsplash

Tips for Buying a Home in a Seller’s Housing Market

Here’s some sound advice for home buyers from HousingWire | February 4, 2021, 8:00 am By Aly J. Yale

Should you buy a home in a seller’s market?

1. Qualify for the lowest mortgage rate you can
Home prices have been on a tear in recent months, and according to Realtor.com, they’ll rise another 5.7% just this year. Fortunately, record-low mortgage rates can help offset those rising prices — that is, if you can snag them.

To make sure you’re getting the best rate possible, take time to boost your credit score first. Pay down debts, settle any overdue accounts and alert credit bureaus of any errors on your credit report. Saving up a larger-sized down payment can also help your case.

2. Get pre-approved before beginning your home search
A mortgage pre-approval is non-negotiable in this environment. Not only can it give you a good price range to work with, but it can also make sellers more likely to choose your offer.

When faced with multiple bids, pre-approved ones are typically stand-outs, indicating a buyer is prepared, ready to buy and a safe bet to follow through with the deal.

3. Work with an experienced agent
Having a great real estate agent can give you the upper hand in a seller’s market. For one, they can speed up the search for you. They can alert you ASAP when a suitable property hits the market, they can schedule day-of tours (or even tour homes for you) and they might even know of up-and-coming listings that aren’t quite public yet.

Thanks to their experience and expert negotiation skills, agents can also help you submit a more competitive offer when you do find that dream house.

4. Consider buying when it’s not a seller’s housing market
Most experts predict things will get easier toward the end of the year — particularly when vaccines are more widely spread. This will likely spur more on-the-fence sellers to list their homes, boosting inventory and tamping down price growth.

Here’s how Dannielle Hale, chief economist for Realtor.com, put it in her recent 2021 forecast: “The housing market in 2021 will be much more hospitable for buyers as an increased number of existing sellers and ramp-up in new construction restore some bargaining power for buyers, especially in the second half of the year.”

The long and short of it? If you can wait a few months to buy that home, you probably should.

The bottom line
It might be a seller’s market, but finding an affordable home is still possible. If you take time to prep your credit and finances, get pre-approved for your mortgage and enlist a great agent, achieving the American Dream may be easier than it seems.

Sellers Market (2)

Buying In A Sellers Market

Winning Strategies for Buyers in a Sellers’ Market

  • Expect the Sellers’ Market to continue for at least the first months of 2021
  • Buying a home in today’s sellers’ market doesn’t have to feel like an uphill battle.
  • Here are four ways to make sure you’re positioned for success when making a home purchase, even when the scale tips toward sellers.
  • Let’s connect to make sure you’re armed for victory in the housing market this season.

Homes Sold By Jessica Harless | NextHome Realty Center

Infographic Courtesy of Keeping Current Matters
Home Prices | Jessica Harless Next Home Realty Center

Home Values Projected to Keep Rising

As we enter the final months of 2020 and continue to work through the challenges this year has brought, some of us wonder what impact continued economic uncertainty could have on home prices. Looking at the big picture, the rules of supply and demand will give us the clearest idea of what is to come.</p

Due to the undersupply of homes on the market today, there’s upward pressure on prices. Consider simple economics: when there is high demand for an item and a low supply of it, consumers are willing to pay more for that item. That’s what’s happening in today’s real estate market. The housing supply shortage is also resulting in bidding wars, which will also drive price points higher in the home sale process.

There’s no evidence that buyer demand will wane. As a result, experts project price appreciation will continue over the next twelve months. Here’s a graph of the major forecasts released in the last 60 days:Home Values Projected to Keep Rising | Simplifying The Market

I hear many foreclosures might be coming to the market soon. Won’t that drive prices down?

Some are concerned that homeowners who entered a mortgage forbearance plan might face foreclosure once their plan ends. However, when you analyze the data on those in forbearance, it’s clear the actual level of risk is quite low.

Ivy Zelman, CEO of Zelman & Associates and a highly-regarded expert in housing and housing-related industries, was very firm in a podcast last week:

“The likelihood of us having a foreclosure crisis again is about zero percent.”

With demand high, supply low, and little risk of a foreclosure crisis, home prices will continue to appreciate.

Bottom Line

Originally, many thought home prices would depreciate in 2020 due to the economic slowdown from the coronavirus. Instead, prices appreciated substantially. Over the next year, we will likely see home values rise even higher given the continued lack of inventory of homes for sale.

Shared from Keeping Current Matters

The Casan Collection | Jessica Harless NextHome Realty Center

Announcing The Casan Collection

Exciting News: NextHome announces its luxury collection and I am now a Casan Certified Agent!The Casan Collection by NextHome | Jessica Harless NextHome Realty Center

NextHome members are innovators, passionate about redefining the real estate experience in ways that prioritize the value of the human relationship. We understand that people looking to buy or sell their home are looking to do so with the greatest ease, placing their trust in us to expertly guide them through the process.

Luxury clients share these same qualities, plus an innate desire for something exclusive, someone who recognizes their unique wants and needs. The Casan Collection was specially designed to meet the standards of the top 10% of the market and set a new benchmark in luxury real estate.

 

NextHome’s commitment to elevating the highly specialized sale of luxury homes translates to the Casan Collection being available only to NextHome members who have completed a thorough training and certification course through the Institute for Luxury Home Marketing. As a Casan Certified professional, you’ve experienced firsthand the Institute’s deep understanding of the affluent clientele that makes up the top 10% of their market. I can create the Casan Collection visual identity and marketing suite for my clients.

When the Inspection report is not good...

What to do When the Inspection report isn’t good

BY AMERICAN HOME SHIELD |OCTOBER 15, 2020

Whether you’re representing the buyer or the seller, the home inspection can be a critical time in the real estate transaction process. When the home inspection report is good, a collective sigh of relief can often be detected from agents and clients alike. When the home inspection report isn’t good, it’s time for agents to swing into action. Here are some steps to consider:

Know your market.

To some extent, reaction to a less-than-stellar inspection report may be tempered by whether you’re dealing with a buyers’ or a sellers’ market. If it’s a buyers’ market, sellers may be on the line to fix most of the deficient items noted in the report before the deal can continue. In a sellers’ market, buyers may not have as much negotiating power. It’s important to understand the current real estate climate and explain to your clients how the market conditions factor into home inspection expectations.

Work with the other agent.

As soon as possible, contact the other agent in the transaction to discuss the inspection report findings. Acknowledge that the report contains bad news and start the conversation about next steps. As much as possible, try to get a sense of their reaction and willingness to make concessions.

Ask for more time.

The real estate contract often specifies a date or timeframe for removing the home inspection contingency. Requesting an extension of that date may give you and your clients the chance to consider the report, gather additional information or estimates, negotiate repairs, fix deficient items, or decide your next steps. If you think some extra time would help keep the deal on track, request it.

Get multiple estimates.

If the cost of repair work noted in the report concerns the buyer or the seller, gathering several quotes from qualified sources may help pinpoint what exact costs are likely to be. In some cases, repair costs may be lower than the client’s project, which can be reassuring. If the estimates come in higher than clients predict, they have the accurate information they need for negotiation and decide whether to move forward.

Communicate.

With accurate figures in hand, have a heartfelt conversation with your clients to understand how the inspection report affects their financial and emotional commitment to the deal. Be ready to communicate their position to the other agent clearly.

Negotiate.

After you’ve assessed market conditions, have an accurate understanding of costs involved, and have communicated with your clients, it’s time to negotiate. In some cases, you may be negotiating which repairs the seller needs to make before the deal can close. In other cases, you might negotiate a reduction in selling price or a credit at closing to cover the repair costs. If you’re facing an unusual inspection issue, seek advice from trusted colleagues who may have handled similar situations in the past.

Request documentation.

For everyone’s protection, specify that sellers submit documentation of repair work performed from qualified service professionals. It’s also a good idea to schedule a follow-up inspection or a walk-through to confirm that the negotiated work was satisfactorily completed.

Add American Home Shield® Home Warranty Coverage.

300,000 real estate transactions per year include American Home Shield home warranties, and for a good reason. In addition to offering important budget protection for covered items, American Home Shield coverage can help mitigate unexpected home inspection issues to keep transactions on track. Home warranty protection can also offer valuable reassurance to buyers, especially when the age or condition of covered home systems and appliances are in question.

When home inspection reports are disappointing, it’s important for clients to see their agent responding calmly and deliberately. They will always remember the valuable, professional, and steady guidance that you offer during a critical time.

For more helpful tips from our partners at American Home Shield, check out their blog!

Homes Sold By Jessica Harless | NextHome RealtyCenter

How Is Remote Work Changing Homebuyer Needs?

With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs. Do I still need to live close to my company’s office building? Do I need a larger home with more office space? Would making a move to the suburbs make more sense for my family? All of these questions are on the table for many Americans as we ride the wave of the current health crisis and consider evolving homeownership needs.

According to George RatiuSenior Economist for realtor.com:

“The ability to work remotely is expanding home shoppers’ geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term…Although it’s too early to tell what long-term impact the COVID-era of remote work will have on housing, it’s clear that the pandemic is shaping how people live and work under the same roof.” 

Working remotely is definitely changing how Americans spend their time at home, and also how they use their available square footage. Homeowners aren’t just looking for a room for a home office, either. The desire to have a home gym, an updated kitchen, and more space in general – indoor and outdoor – are all key factors motivating some buyers to change their home search parameters.

A recent realtor.com-HarrisX survey indicates:

“In a June poll of 2,000 potential home shoppers who indicated plans to make a purchase in the next year, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely, while nearly 40% [of] that number expected to purchase a home within four to six months and 13% said changes related to pandemic fueled their interest in buying a new home.

Clearly, Americans are thinking differently about homeownership today, and through a new lens. The National Association of Home Builders (NAHB) notes:

“New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.”

Through these challenging times, you may have found your home becoming your office, your children’s classroom, your workout facility, and your family’s safe haven. This has quickly shifted what home truly means to many American families. More than ever, having a place to focus on professional productivity while many competing priorities (and distractions!) are knocking on your door is challenging homeowners to get creative, use space wisely, and ultimately find a place where all of these essential needs can realistically be met. In many cases, a new home is the best option.

In today’s real estate market, making a move while mortgage rates are hovering at historic lows may enable you to purchase more home for your money, just when you and your family need it most.

Bottom Line

If your personal and professional needs have changed and you’re ready to accommodate all of your family’s competing priorities, let’s connect today. Making a move into a larger home may be exactly what you need to set your family up for optimal long-term success.

Homes SoldBy Jessica Harless | NextHome Realty Center

Does Your Home Have What Buyers Are Looking For?

There’s great opportunity for today’s homeowners to sell their houses and make a move, yet due to the impact of the ongoing health crisis, some sellers are taking their time coming back to the market. According to Javier Vivas, Director of Economic Research at realtor.com:

“Sellers continue returning to the market at a cautious pace and further improvement could be constrained by lingering coronavirus concerns, economic uncertainty, and civil unrest.”

For homeowners who need a little nudge of motivation to get back in the game, it’s good to know that buyers are ready to purchase this season. After spending several months at home and re-evaluating what they truly want and need in their space, buyers are ready and they’re in the market now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) explains:

“A number of potential buyers noted stalled plans due to the pandemic and that has led to more urgency and a pent-up demand to buy…After being home for months on end – in a home they already wanted to leave – buyers are reminded how much their current home may lack certain desired features or amenities.”

The latest Market Recovery Survey from NAR shares some of the features and amenities buyers are looking for, especially since the health crisis has shifted many buyer priorities. The most common home features cited as increasingly important are home offices and space to accommodate family members new to the residence (See graph below):Does Your Home Have What Buyers Are Looking For? | MyKCMThe survey results also show that among buyers who indicate they would now like to live in a different area due to COVID-19, 47% have an interest in purchasing in the suburbs, 39% cite rural areas, and 25% indicate a desire to be in small towns.

As we can see, buyers are eager to find a new home, but there’s a big challenge in the market: a lack of homes available to purchase. Danielle Hale, Chief Economist at realtor.com explains:

“The realtor.com June Housing Trends Report showed that buyers still outnumber sellers which is causing the gap in time on market to shrink, prices to grow at a faster pace than pre-COVID, and the number of homes available for sale to decrease by more than last month. These trends play out similarly in the most recent week’s data with the change in time on market being most notable. In the most recent week homes sat on the market just 7 days longer than last year whereas the rest of June saw homes sit 2 weeks or more longer than last year.”

In essence, home sales are picking up speed and buyers are purchasing them at a faster rate than they’re coming to the market. Hale continues to say:

“The housing market has plenty of buyers who would benefit from a few more sellers. If the virus can be contained and home prices continue to grow, this may help bring sellers back to the housing market.”

Bottom Line
If you’re considering selling and your current house has some of the features today’s buyers are looking for, let’s connect. You’ll likely be able to sell at the best price, in the least amount of time, and will be able to take advantage of the low interest rates available right now when buying your new home.

« Mortgage Rates Hit Record Lows for Three Consecutive WeeksMortgage Rates Fall Below 3% [INFOGRAPHIC] »

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. 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. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Homes Sold By Jessica Harless | NextHome Realty Center

Thinking of Selling Your Home?

Selling a home can be a process, even in a hot seller’s market.

Homes Sold By Jessica Harless | NextHome Realty Center
By prepping your home a few months in advance, you can reduce your stress and increase the odds of finding a buyer quickly after listing. Take a look at this handy checklist I’ve created to ensure you know all the important steps that go into selling your home.

If at any time, you’d like to discuss the home selling process, don’t hesitate to reach out! My specialty is getting homeowners the best possible price for their home.

Download Your copy of The checklist

Homes Sold by Jessica Harless | NextHome Realty Center

Housing Market Positioned to Bring Back the Economy

 All eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary.

Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor to the economy – holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit.

As Mark Fleming, Chief Economist of First Americanrecently explained:

“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”

Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted:

“For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.”

And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an economic update last week explained:

“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”

Bottom Line

Every time a home is sold it has a tremendous financial impact on local economies. As the real estate market continues its recovery, it will act as a strong tailwind to the overall national economy.

reprint KCM.com
Homes Sold By Jessica Harless | NextHome Realty Center

Will Home Values Appreciate or Depreciate in 2020?

With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item.

Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.

Seller Supply

The index also asks: “How would you rate seller traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMAs the map above indicates, 46 states and Washington, D.C. reported ‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1 state reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now.

With demand still stronger than supply, home values should not depreciate.

What are the experts saying?

Here are the thoughts of three industry experts on the subject:

Ivy Zelman:

“We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through the year.”

Mark Fleming, Chief Economist, First American:

“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”

Freddie Mac:

“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.”

Bottom Line

Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about listing your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.

Homes Sold by Jessica Harless | NextHome Realty Center

Virtual Home Buying

BY KEITH ROBINSON | APRIL 24, 2020

How in the heck am I supposed to buy a house while I am sheltering in place?? I hardly know what day it is without checking right now. Is it actually possible for me to find a house, evaluate it, write an offer, get it accepted, and close on it? Not to mention moving… is that even legal right now?

Trust me, we hear you. It is always complicated, stressful, and a little emotional buying a house. Maybe even a little more so in this “new normal” (nothing normal about this) of COVID-19. To start with, the answer to all of the above questions is “it depends.” Super helpful, right? The thing is, every state (heck, every county) is approaching this differently. In some states it’s kind of business as nearly normal – just add in vats of hand sanitizer, masks, and 6-feet-away hellos. Others are in lockdown but real estate is deemed essential so you can still transact. And in a few, it’s been deemed non-essential and it’s literally not even possible to close on a home, not to mention see one. So… it depends.

If you are in one of the states (counties) with the first two options, there are some real opportunities out there for buyers right now. We’ve had an inventory shortage in this country for a while now and that is only going to continue with builders slowing down building and more and more millennials entering “household formation” years (a fancy way of saying they can now afford to buy a house). For the buyer with a little creativity and willingness to take action – and the right real estate professional – this could be the time. That being said, it is stressful and a person deciding to hold off to let the dust settle could make sense. The rest of this is for the creative and willing buyer.

Step 1: virtual buyer consultation.  It could be over Facetime, a Zoom meeting, or some other virtual conference room software. We’ve been doing things remote at NextHome since we started our company over five years ago. It’s not quite as good as meeting face-to-face but it’s really close to the same thing. I mean, if virtual happy hours are popping up around the U.S., then we can set up a virtual buyer consultation to have all your questions answered.

Step 2: virtual property search. Now you’ve already been digging through Zillow like a detective looking for the one clue to make your case. Now you’ve got someone to send them to so you can get more information. And you’ve got a partner in detective work who will be doing some digging with you and sending you properties that fit your criteria. Think of it as your virtual property concierge who is there to assist, and sometimes lead, the property finding process. Thank the technology gods that more and more have been developed to help you know a lot about a house before you see it. I know, I know, you’re already wondering what happens when you find your dream house online for that, it’s step 3.

Step 3: video home tours. We’ve all got a camera in our pocket (along with a calculator, take that my 6th-grade math teacher who said I wouldn’t always have one handy)and it’s as easy as ever to “see” a property at a distance. Your agent can get access to the property, fire up that Facetime, Facebook video chat, Google Duo, etc. and walk you through every inch of your future home.

Step 4: electronically sign things. Ok, we like it, no, we love it. Now what? It’s offer writing time. The ability to sign documents at distance has been around for years on the real estate side (come on mortgage side, step your game up, because not everything can be signed digitally there). We have all the real estate contracts, addendums, forms, and such available digitally and can email them to you. Then you would need to lean forward towards the computer screen to read the small print and smush a few mouse clicks –  you’re now in offer, counteroffer, negations, and starting the closing process. You will probably have to go somewhere to sign loan documents (see above about mortgage) but in most areas, they have changed their process to allow for safe signing. Some even have a mobile notary and closing specialist who can come to you to sign everything. Easy peasy lemon squeezy (it’s actually hard hard lemon hard but our trained real estate professionals are there to help you every step of the way).

Step 5: inspections. Buying a house is one of the biggest financial decisions you’ll ever make. There are lots and lots of inspections you can have done. And each of them can be completed, then the reports sent to you via email. We can even set up a virtual conference room to review the report with the inspector and the agent so you can get all your questions answered.

Step 6: transfer funds by wire. Yup, that’s right. You can move money around like a high-powered hedge fund manager. You feel pretty dang cool when you tell the closing facilitator, “I’ll have my people wire the money over.” Trust me. You do.

Step 7: keys, please! As an agent, this was always my favorite part of closing with a buyer.  Giving them their keys. As a real estate agent, there isn’t much more rewarding than seeing the people you’ve helped get the keys to “their home.”  It’s amazing. Now we just do it over a screen instead of in person. There are key delivery services that can have the keys brought right to you. You’ll just have to Facetime when you do it because I know your agent is going to want to see your smiling face when you get them.

Do I write this with the thoughts that someone will buy a house without ever seeing it. No, of course not. What’s important right now is we all stay safe and we can limit the contact as much as we need to for everyone to feel safe. And we’re fully set up to take care of as much of the process virtually as we can. For some buyers, this is the right time to get bold, take action, and go find their house. And for others, they might want to hold off a few months. For both sets of buyers, we’re here to help you whenever you’re ready.

Homes Sold by Jessica Harless | NextHome Realty Center

What If I Need to Sell My Home Now? What Can I Do?

Every day that passes, people have a need to buy and sell homes. That doesn’t stop during the current pandemic. If you’ve had a major life change recently, whether with your job or your family situation, you may be in a position where you need to sell your home – and fast. While you probably feel like timing with the current pandemic isn’t on your side, making a move is still possible. Rest assured, with technology at your side and fewer sellers on the market in most areas, you can list your house and make it happen safely and effectively, especially when following the current COVID-19 guidelines set forth by the National Association of Realtors (NAR) and the Centers for Disease Control and Prevention (CDC).

You may have a new baby, a new employment situation, a parent who moved in with you, you just built a home that’s finally ready to move into, or some other major part of your life that has changed in recent weeks. Buyers have those needs too, so rest assured that someone is likely looking for a home just like yours.

According to the NAR Flash Survey: Economic Pulse taken April 5 – 6, real estate agents indicate, not surprisingly, that there’s a noticeable decline in current homebuyer interest. That said, 10% of agents said in the same survey that they saw no change or even an increase in buyer activity. So, while buyer interest is low compared to normal spring markets, there are still buyers in the market. Don’t forget, you only need one buyer – the right one for your home.

Here’s the other thing – people are spending a lot of time on the Internet right now, given the stay-at-home orders implemented across the country. Buyers are actively looking at homes for sale online. Some of them are reaching out to real estate professionals for virtual tours and getting ready to make offers too. Homes are being sold in many markets.

There Is Less Competition Right Now

The same survey indicates that 56% of NAR members said sellers are removing their homes from the market right now. This can definitely work in your favor. If other sellers are removing their listings, your home has a better chance of rising to the top of a buyer’s search list and being seen. Keep in mind, listings will pick up again soon, as 57% of the respondents note that sellers are only planning to delay the process by a couple of months. If you need to sell right now, don’t wait for the competition to get back into the market again.

This year, delayed listings from the typically busy spring season will push into the summer months, so more competition will be coming to the market as the pandemic passes. Getting ahead of that wave now might be your biggest opportunity.

Your Trusted Real Estate Advisor Can Help

Real estate agents are working hard every single day under untraditional circumstances, utilizing technology to help both buyers and sellers who need to continue with their plans. We’re using virtual tours to show homes currently on the market, staying connected with the buyers and sellers through video chats, and leveraging resources to complete transactions electronically. We’re making sure the families we support remain safe and can keep their real estate needs on track, especially as life is changing so rapidly.

Bottom Line

Homes are still being bought and sold in the midst of this pandemic. If you need to sell your house and would like to know the current status in our local market, let’s work together to create a safe and effective plan that works for you and your family.

Homes Listed by Jessica Harless | NextHome Realty Center

How Pricing Your Home Right Makes a Big Difference

a-buy-me-a-coffee-987096_1280

2020 Homebuying Checklist

Some Highlights:Homes Listed and Sold by Jessica Harless | nextHome Realty Center

  • If you’re thinking of buying a home, plan ahead and stay on the right track, starting with pre-approval.
  • Being proactive about the homebuying process will help set you up for success in each step.
  • Make sure to work with a trusted real estate professional along the way, to help guide you through the homebuying steps specific to your area.
Homes Sold By Jessica Harless -| NextHome Realty Center

Have You Outgrown Your Home?

It may seem hard to imagine that the home you’re in today – whether it’s your starter home or just one you’ve fallen in love with along the way – might not be your forever home.

The good news is, it’s okay to admit if your house no longer fits your needs.

According to the latest Home Price Insights from CoreLogic, prices have appreciated 3.5% year-over-year. At the same time, the National Association of Realtors (NAR) reports inventory has dropped 4.3% from one year ago.Have You Outgrown Your Home? | Simplifying The MarketThese two statistics are directly related to one another. As inventory has decreased and demand has increased, prices have been driven up.

This is great news if you own a home and are thinking about selling. The equity in your house has likely risen as prices have increased. Even better is the fact that there’s a large pool of buyers out there searching for the American dream, and your home may be high on their wish list.

Bottom Line

If you think you’ve outgrown your home, let’s get together to discuss local market conditions and determine if now is the best time for you to sell.

Homes Sold by Jessica Harless | NextHome Realty Center

Planning on Buying a Home? Be Sure You Know Your Options.

When you’re ready to buy, you’ll need to determine if you prefer the charm of an existing home or the look and feel of a newer build. With limited existing home inventory available today, especially in the starter and middle-level markets, many buyers are considering a new home that’s recently been constructed, or they’re building the home of their dreams.

According to Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB),

“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months.”

This is great news for homebuyers because it means there is additional inventory coming to the market, giving buyers more choices. The most recent data from NAHB shows,

“The inventory of new homes for sale was 321,000 in September, representing a 5.5 months’ supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300.”

Another added bonus is that builders are very aware of buyer demand in this segment, so they’re now building in a price range where there are more interested buyers ($299,400 instead of $328,300). With a reduced sales price and low-interest rates, today’s buyers have strong purchasing power.

Bottom Line

If you’re thinking of buying a home, you may want to consider a new build to meet your family’s needs. Let’s get together to discuss the process and review what’s available in our area.

Homes Sold By Jessica Harless | NextHome Realty Center

What to Expect from Your Home Inspection

You made an offer and it was accepted. Your next task is to have the home inspected prior to closing. Agents often recommend you make your offer contingent upon a clean home inspection.

This contingency allows you to renegotiate the price you offered for the home, ask the sellers to cover repairs, or in some cases, walk away if challenges arise. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector

Your agent will most likely have a short list of inspectors they’ve worked with in the past to recommend to you. HGTV suggests you consider the following five areas when choosing the right home inspector for you:

1. Qualifications – Find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.

2. Sample Reports – Ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. In most cases, the more detailed the report,
the better.

3. References – Do your homework. Ask for phone numbers and names of past clients who you can call to discuss their experiences.

4. Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations does, however, often mean continued training and education are required.

5. Errors and Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human, after all, and it is possible they might miss something they should see.

Ask your inspector if it’s okay for you to tag along during the inspection, so they can point out anything that should be addressed or fixed.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating and air conditioning systems, ventilation, windows, fireplace and chimney, foundation, and so much more.

Homes Listed and Sold by Jessica Harless | NextHome Realty Center

Renting vs Buying – Is now the time?

Renting vs. buying a home: Which is right for you?

Weighing the rent-versus-buy decision? Both have upsides and drawbacks. Ultimately, the answer depends on multiple factors, including your finances, your long-term plans and the real estate market in your area. Here are five questions to ask when deciding to rent or buy a home:

  1. What can you afford and how much savings do you have?
  2. How long do you plan to stay in the home?
  3. Do you want stability or flexibility to move around?
  4. Do you want to be responsible for repairs/maintenance?
  5. What are your financial, career and family goals?

Renting vs. buying a home: Calculating the costs

The first consideration in the rent vs. buy decision is often how much each will cost. If you rent a home, your monthly costs are generally fixed for the term of the lease. Your monthly rent may or may not include utilities such as electric, gas, cable or internet. Most leases require the first month’s rent, last month’s rent and a security deposit equal to one month’s rent in advance. For an apartment that costs $1,000 per month, you’d typically need $3,000 up front. Keep in mind, though, that landlords can in most places increase the rent as much as they like when the lease ends or sell the property you’re renting, so you may have to move a few times.
The good news: When you’re a tenant, your landlord is generally responsible for fixing any issues with the property, whether it’s a leaky roof, a cranky furnace or a burst pipe.
You can use Bankrate’s rent vs. buy calculator to help you crunch numbers and determine whether renting or buying option is better for you.

How much house can I afford?

When buying a home, most mortgage lenders require a down payment between 3 percent and 20 percent of the home’s price. Some loans may have a lower threshold, but down payments below 20 percent will mean paying for private mortgage insurance, or PMI, which is an additional monthly expense. You’ll also pay closing costs, which average 2 percent to 4 percent of the home’s price. A mortgage calculator can give you a rough estimate of your monthly payments, including your interest and principal, outlays and other expenses such as property taxes, homeowners insurance and, in some cases, homeowners association dues. A housing affordability calculator can help you determine how much house you can afford. But our financial responsibility doesn’t end with your monthly mortgage payment. You’ll also need to pay for utilities, maintenance, and repairs, whether it’s a few bucks to fix a leaky faucet or thousands to replace a roof.

With a strong local lender and an experienced REALTOR® at your side – together we can find your NextHome.

Reeal Estate Market - Jessica Harlesss

Top 3 Myths About Today’s Real Estate Market

There are many conflicting headlines when it comes to describing today’s real estate market. Some are making comparisons to the market we experienced 10 years ago and are starting to believe that we may be doomed to repeat ourselves. Others are just plain wrong when it comes to what it takes to qualify for a mortgage.

Today, we want to try and clear the air by shedding some light on what’s causing some of these headlines, as well as what’s truly going on.

Myth #1: We Are Headed for Another Housing Bubble

Home prices have appreciated year-over-year for the last 76 straight months. Many areas of the country are at or near their peak prices achieved before the last housing bubble burst. This has many worried that we are headed towards another housing bubble.

Reality: The biggest challenge facing today’s real estate market is a lack of homes for sale! Demand is strong, as many renters have come off the fence and are searching for their dream homes.

Historically, a normal market requires a 6-month supply of inventory in order for prices to rise with the rate of inflation. According to the National Association of Realtors (NAR) there is currently a 4.3-month supply of inventory.

The US housing market hasn’t had 6-months inventory since August 2012! The concept of supply and demand is what is driving home prices up!

Myth #2: The Rumored Recession Will Lead to Another Housing Market Crash

Economists and analysts know that the country has experienced economic growth for almost a decade. When this happens, they also know that a recession can’t be too far off. But what is a recession?

Merriam-Webster defines a recession as “a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two consecutive quarters.”

Reality: Recession DOES NOT equal housing crisis. Many people associate these two terms with one another because the last time we had a recession it was caused by a housing crisis. According to the Federal Reserve, over the last 40 years, there have been six recessions. In each of the previous five recessions, home values appreciated.

Myth #3: There is an Affordability Crisis Looming

Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American Dream – their own home.

There are many different affordability indexes supported by different organizations that all measure different data. For this reason, there is a lot of confusion about what “affordable” actually means.

The monthly cost of a home is determined by the home’s price and the interest rate on the mortgage used to purchase it. According to Freddie Mac, interest rates have risen from 3.95% in January to 4.59% just last week.

Reality: As we mentioned earlier, home prices have appreciated year-over-year for the last 76 months, largely driven by high demand and low supply.

According to a recent study by Zillow, the percentage of median income necessary to buy a home in today’s market (17.1%) is well below the mark reached in 1985 – 2000 (21%), as well as the mark reached in 2006 (25.4)! Interest rates would have to increase to 6% before buying a home would be less affordable than historical norms.

The starter-home market has appreciated at higher levels (9.4% year-over-year) than any other market. One reason for this is the fact that many of the first-time buyers who have flocked to the starter-home market are being met with high competition. For some hopeful buyers, it may take more than a good offer to stand out from the crowd!

Bottom Line

There is a lot of confusion in today’s real estate market. If your future plans include buying or selling, make sure you have a trusted advisor and market expert by your side to help guide you to the best decision for you and your family.

Interest Rates - Jeessica Harless - One 2 Sell

The Cost of Waiting: Interest Rates Edition

Some Highlights:

  • Interest rates are projected to increase steadily heading into 2019.
  • The higher your interest rate, the more money you end up paying for your home and the higher your monthly payment will be.
  • Rates are still low right now. Don’t wait until rates hit 5% to start searching for your dream home!
Real Estate When to Sell - Jessica Harless - One 2 Sell

The #1 Reason to Sell Now Before Spring

The price of any item (including residential real estate) is determined by ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases. This leads us to the main reason to sell before spring. Spring being the time when the market traditionally heats up.

According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to housing inventory at the beginning of 2017:

The #1 Reason to Sell Now Before Spring | MyKCM

Putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense.

Viewing Homes - Jessica Harless

What To Look For When Viewing A home

Whenever you view a home for the first time (or the second)…

Walk through the entire house to get a feel for the layout.

  • Will you be able to live happily in the home as-is?
  • Are there major changes you will want to do? Be sure to consider their cost.
  • Is there adequate closet and storage space?

Check the condition of the floors.

  • Will the carpet need to be changed or removed? Check for hardwood under carpet
  • Will the hardwood refinished?.
  • If possible, check under rugs for stains or faded flooring.

Look for evidence of water.

  • take a close look at the ceilings and under windows for wet spots or water stains. Remember to check under sinks, too. In older homes with stone foundations, you are likely to find some moisture in the basement. A small amount is fine and to be expected in these homes, but a large amount of water in the basement is an issue. While you’re down there, check for mold, foundation cracks and the condition of the floor joists, if visible.

Locate the furnace, boiler, hot water heater, A/C unit, etc. You might be able to find a tag or sticker on these items with a date on it – this will give you an idea of its age. Your inspector will be able to tell you its remaining useful life.

Check out any appliances that may be staying in the home. Feel free to turn them on to make sure they work. Double check that the water line has been hooked up to the fridge, if necessary for filtered water or an ice maker.

Take a walk around the property for exterior issues. This is a good time to check for foundation issues and caulk around windows, doors, and siding.

Don’t stress yourself out about missing something – you’ll have an in-depth inspection once the property is under contract.

Selling Your Home - Jessica Harless

Thinking of Selling your Home? Competition is Coming

How will this impact buyers?

More inventory means more options. Danielle Hale, Realtor.com’s Chief Economistexplained this is good news for the housing market – especially for those looking to buy:

“It’s not spectacular construction growth, but it’s slow and steady in the right direction. Eventually, the pickup in single-family home construction will mean [buyers] will have more options. Especially with the limited number of sales right now, more options are really needed.”

How will this impact sellers?

More inventory means more competition. Today, because of the tremendous lack of inventory, a seller can expect:

  1. A great price on their home as buyers outbid each other for it
  2. A quick sale as buyers have so little to choose from
  3. Fewer hassles as buyers don’t want to “rock the boat” on the deal

With an increase in competition, the seller may not enjoy these same benefits. As Hale said:

“As new construction continues to increase, home shoppers will eventually have more [choices] and a bit more time to make purchase decisions compared to today’s quick-moving housing market.”

Bottom Line

If you are considering the sale of your home, it might make sense to beat this new construction competition to the market.

List Your House - Jessica Harless - One 2 Sell

Hurry Up and List your House TODAY!!

That headline might be a little aggressive. However, as the data on the 2016 housing market begins to roll in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOUSE!

The May numbers are not in yet, but the April numbers were sensational. Jonathon Smoke, Chief Economist at realtor.com, explained:

“We had a triple crown of April home sales reports, so 2016 is in the pole position to earn best year of home sales in a decade.”

And Freddie Mac also expressed a tremendous optimism regarding home sales for the rest of the summer:

“Home sales typically rise in the spring and summer months, and we anticipate acceleration in home sales that will surpass 2007’s pace by late summer.”

The only challenge to the market is a severe lack of inventory. A balanced market would have a full six-month supply of homes for sale. Currently, there is less than a five-month supply of inventory. This represents a decrease in supply of 3.6% from the same time last year.

Bottom Line
With demand increasing and supply dropping, this may be the perfect time to get the best price for your home. Let’s get together to see whether that is the case in your neighborhood.

Home Mortgage and Finance - Jessica Harless - One 2 Sell

5 Reasons Why Owning A Home Makes Sense

We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own a home differ for each buyer, but there are many basic similarities.

Eric Belsky is the Managing Director of the Joint Center of Housing Studies (JCHS) at Harvard University.He authored a paper on homeownership titled – The Dream Lives On: The Future of Homeownership in America. In his paper, Belsky reveals five financial reasons why people should consider buying a home.

Here are the five reasons, each followed by an excerpt from the study: 

1) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2) You’re paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.” 

3) Owning is usually a form of “forced savings.”

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition. 

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, let’s get together and evaluate your ability to do so.

Home Values

Past, Present & Future Home Values

In CoreLogic’s latest Home Price Index, they revealed home values – appreciation in three categories: percentage appreciation over the last year, over the last month, and projected appreciation over the next twelve months.

Here are state maps for each category:>

The Past – home appreciation over the last 12 months

Past, Present & Future Home Values | Simplifying The Market

The Present – home appreciation over the last month

Past, Present & Future Home Values | Simplifying The Market

The Future – home appreciation projected over the next 12 months

Past, Present & Future Home Values | Simplifying The Market

Bottom Line

Homes across the country are appreciating at different rates. As we have mentioned before, the rate of home price appreciation across the country is due to a strong housing market reacting to supply and demand, and not a new housing bubble.

If you plan on relocating to another state, and are waiting for your home to appreciate more, you need to know that the home you will buy in another state may be appreciating even faster.

Let’s meet up so I can guide you through your next steps and help you decide what’s right for you.

Calendar - Option Period Home Buyers

How to calculate the last day of your option period

My clients often ask me about their option period and when it ends. The Texas Real Estate Commission (TREC) ensures compliance of state rules and regulations for all transactions in Texas.

The Texas Real Estate Option Period:

  • is at the beginning of the purchase contract period
  • is an agreed-upon number of days between the buyer and the seller, i.e., it is negotiable
  • the option money is non-refundable
  • is given directly to the seller (or seller’s agent) at the beginning of the contract, usually in the form of a personal check
  • must be delivered within 48 hours, regardless of business day or weekend
  • should not be delivered to the Title Company
  • can be extended by mutual agreement between the buyer and the seller, for an additional option payment ( also negotiable)
  • is commonly 10 or so days, to allow time for the property to be inspected and for repair quotes to be obtained
  • can be shorter, or longer – depending on the circumstances and requirements of the buyer and the seller

Option periods provide time for buyers to inspect and initiate mortgage qualification. For sellers, they provide nominal compensation for not showing their property to other buyers. Option periods are security for buyers because one can terminate for ANY reason within the option period without risking earnest money. If a buyer chooses to terminate a contract, the seller has the right to keep the amount paid for the option period (option fee).

Your Realtor uses the following method to calculate the beginning and end of an option period:

  • How do I determine the last day to terminate under my client’s 10-day option period in the One to Four Family Residential Contract (Resale)?
  • Since Paragraph 23, the Termination Option Paragraph, uses the word within when describing the time period, Day One of the option period is the day after the effective date of the contract.
  • For example, if your client’s effective date is January 22 with a 10-day option period, the option period will end on February 1. If your client wishes to terminate under the Termination Option Paragraph, she must provide notice to the seller by 5 p.m. local time where the property is located on February 1.

– 01/14/2016 | Author: Editorial Staff TREC

 Buying or selling a home in Cypress, Katy or the NW Houston, TX  area? Let’s talk through your questions about buying a home or/and selling your current home…

map-2016-1

One-2-Sell – 2015 Recap

Business plans, strategies, goals, resolution, and reflections are all part of the January landscape. If gives us a time for “do-overs,” “do-betters” and  “well that was a mistake” accountability. This is a roller-coaster of emotions, piles of paper, and long conversations.

All in all, I can say 2015, was a good year in so many ways, especially when it comes to the great people, who became clients, new friends, and of course, new homeowners!   You can see on the map – Cypress, Katy, and Northwest Houston are now home to smiling faces getting the keys to their new home.  Others smiling as they started new chapters in their lives, selling their home and moving on to their next adventure.

2016, the road ahead…  I hope to put smiles on more faces with some fabulous spaces, all in one of the greatest places to live!

 

 

 

TRID – New Process for Real Estate Transactions

TRID Is The New TILA-RESPA Integrated Disclosures
•The Loan Estimate replaces the initial Truth-in-Lending disclosure & Good Faith Estimate for most closed-end mortgage loans
•The Closing Disclosure replaces the final Truth-in-Lending disclosure & HUD-1 Settlement Statement for most closed-end mortgage loans
Disclosures are required on transactions for which the creditor receives an application on or after…October 3rd, 2015

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If you are a homeowner…

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If you are a home buyer or about to become one…

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