1. It Makes Financial Sense to Buy It Before investing in a fixer-upper, do some quick math to make sure that it will actually be a good investment. “There’s a crude rule of thumb in the flipping world called the ‘70 Percent Rule’ — never pay more than 70 percent of the [after repair value], minus repair costs,” said Brian Davis, real estate investor and co-founder or SparkRental. “Thus, if the ARV is $200,000, and the repair costs are $50,000, a flipper shouldn’t pay more than $90,000 for … [Read more...]
The 4% Mortgage is Back
March 29, 2019 by Leave a Comment
Mortgage rates are fast approaching 4%, a rate low enough that economists and lenders believe it will help jump-start the housing market again. The average rate on a 30-year fixed mortgage fell to 4.06% this week, its lowest since January 2018, according to data released Thursday by Freddie Mac, the mortgage-finance giant. The rate was down nearly a quarter point from a week earlier, its biggest drop in over a decade. In many cases rates are lower than 4%. Lenders advertising mortgages at sub-4% rates this week … [Read more...]
Are We Entering A New Housing Bubble?
March 17, 2016 by Leave a Comment
Home prices are rising too fast in much of the country. In Dallas and Denver, prices have surpassed their prior peak and have risen over the past two years by 18% and 20%, respectively. Similar gains were recorded in many Western cities, including Seattle and San Francisco, regaining most of the price declines during the bust years to reach very close to their prior peak. Nationwide , home prices have risen by 10% over the past two years, according to the Case-Shiller repeat price index, and by 13% in the median … [Read more...]
Many Owners May Underestimate Their Equity
August 6, 2015 by Leave a Comment
A large number of home owners may be erroneously perceiving themselves as underwater on their mortgage, suggests a new analysis by economists at the University of California, Berkeley. Between mid-2011 and the fourth quarter of 2014, home prices nationally have risen about 20 percent. But in a recent Fannie Mae National Housing Survey, the percentage of home owners who perceived they were underwater on their mortgage averaged about 6 percentage points more than estimates from other national surveys. According … [Read more...]
Experts: 2015 should be better than 2014 for housing
January 14, 2015 by 1 Comment
Metro Phoenix's housing market ended 2014 on a low note with both home sales and prices down. Homeowners, potential buyers shopping for a house and investors are all curious — even anxious — about what could happen this year. The big issues to watch in the Valley are job and population growth, whether the federal plan to lower mortgage premiums spurs more first-time buyers and what big investors with thousands of rental houses do. Nationally, whether interest rates climb, the success of new low-down payment … [Read more...]
Why Prospects of Condo Comeback Are High
October 13, 2014 by Leave a Comment
Condo sales have been on a roller coaster ride in recent years, as the recession hit the sector hard. But is the country ready for a condo revival? In 2005, condo sales surged to 12.7 percent of all home sales. But the financial crisis caused the condo market to recede — even more so than the single-family market — with sales falling to 10.7 percent of all home purchases in 2009. "Condo sales moved sideways several years after the recession before picking up steam again in 2013," CoreLogic Deputy Chief … [Read more...]
6 Design Trends You’ll See More Of
October 13, 2014 by Leave a Comment
What home-design trends will likely catch on in new construction? Builder Online recently spoke to Mollie Carmichael, principal at John Burns Real Estate Consulting, and Nick Lehnert, executive director at architecture firm KTGY, about the design trends that are gaining popularity in the new-home market this year: Private space Baby boomers, empty nesters, and Gen Yers are showing a preference for homes that have more private outdoor spaces, straying from the traditional "public" backyard, according to … [Read more...]
Phoenix housing market has worst February in 4 years; prices could stay flat in 2014
April 3, 2014 by Leave a Comment
It was the weakest February in four years for the metro Phoenix housing market, and it’s possible prices may stay flat in 2014. After a steep plunge and then a dramatic turnaround within that four-year span, this pause in the market could be both disappointing and relieving, depending on your perspective. The number of homes sold in February (5,398) fell by more than one quarter versus a year ago, while total cash spent in those transactions ($1.4 billion) was down 16 percent, according to Arizona State … [Read more...]
Home Prices Back at Peaks in Some Areas
December 30, 2013 by Leave a Comment
Recovery Remains Uneven as Cities Spared in Bust Soar, but Many Others Struggle Home prices have zipped back into record territory in a handful of American cities, a milestone that comes seven years after the housing bust ravaged the market and the broader economy. Values are up more than 13% from their 2007 high in Oklahoma City and by more than 6% in the Denver metro area. Prices are back to all-time highs in 10 of the nation's 50 largest metropolitan areas, according to a Wall Street Journal analysis of … [Read more...]
Condo Boom? Market Shows Signs of a Revival
September 13, 2013 by 1 Comment
This headline rings especially true for the immediate area surrounding our offices here in old town Scottsdale. There are currently 4 projects underway within a mile radius. And with an estimated 3,000 or so units available in the next few years, there should be a good mix of baby boomers and first time buyers flooding the area. This mass influx of residents to the old town area should have a significant impact on the area's infrastructure and commerce options - and we are already seeing the beginning of it … [Read more...]
