May 2018

Found 17 blog entries for May 2018.

The effect of Low Inventory and Home Sales

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Worth Noting

  • Existing Home Sales nationwide are currently at an annual pace of 5.46 million.
  • Supply of existing homes for sale decreased to a four month supply, marking the 35th consecutive month of declines.
  • The median price of homes sold across the country in April was $257,900. This is the seventy-fourth mont in a row of year-over-year gains.

As of today, there are currently 997 single family homes for sale in Fort Lauderdale and 1,573 Fort Lauderdale Condos for sale. There are currently 311 pending house sales (31%) and 408 pending condominium sales (26%). Median home Price year-to-date is $379,000 and $310,000 median price for a condo.

To begin the home-buying or home-selling

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Why Sell This Summer?

 Here are 5 reasons to list your home or condo for sale this summer:

Strong Demand

The most current Buyer Traffic Report from NAR (National Association of Realtors) reports that demand from buyers for properties for sale remains very strong. These buyers are actively looking, and are ready to purchase. In many situations, multiple buyers are viewing and bidding on the same property. Take Advantage of the buyer activity currently in the Fort Lauderdale real estate market.

Less Competition

Inventory for homes and condos has declined year-over-year during the last 35 months and is still short of the six month supply needed for a balanced housing market. In other words, there are not enough properties currently for

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Why Selling on Your Own May End Up Costing You

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As we are currently in a hot seller's market, with more Home-buyer demand than housing inventory, it may be tempting for home-sellers to consider selling on their own - For Sale By Owner (FSBO). In an effort to save paying the real estate commission, some home-owners may rationalize that they really don't need a real estate sales agent to handle the sale, as they believe they can do it themselves.

However, a Collateral Analytics study showed that For Sale By Owner sellers don't actually save anything, and in some situations, they may be costing themselves more, by not hiring a professional real estate agent.

Analyzing home sales in various markets across the country, The study found that: "For

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Why Have Interest Rates Jumped?

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According to Freddie Mac, mortgage interest rates have risen to a 7-year high. At the beginning of this year, interest rates for a 30-year fixed were hovering around 3.95%. Now, interest rates have risen to 4.6%. The reason for the climb can be attributed to several factors.

Freddie Mac's chief economist Sam Khater recently said, "Healthy consumer spending and higher commodity prices spooked bond markets and led to higher mortgage rates over the past week. Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season."

How do gas prices affect Interest Rates?

Investopedia explains: "The price of oil and inflation are often

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Mortgage Interest Rates Have A High Impact On Purchasing Power

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In a recent finding from Freddie Mac's "Primary Mortgage Market Survey", thirty-year fixed interest rates are currently at 4.61%, which is still close to historic lows in comparison to record history.

The interest rate you qualify for when buying a home has a significant affect on your monthly housing costs. In addition, it also has a great impact on your purchasing power.

In easy terms, Purchasing power is the amount of home you can afford to buy for the amount of budgeted money you have to spend. As interest rates go up, the price of a home you can afford to purchase goes down if you plan to respect a monthly housing budget.

To explain this further, the chart below

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Buyers Are out Looking Now!

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 The National Association Of Realtors (NAR) recently released findings that show now could be a great opportunity to sell your home. The concept of "supply and demand" indicates the best time for a product or service is realized when there is a low supply, limited competition and a high demand for that good or service.

Let's test this concept to the current residential real estate market.

Supply

Everyone knows  that for more than a year now, the current inventory for homes and condos for sale has been far below the number needed to sustain a normal balanced market. A normal market can be defined where there is six months housing supply to satisfy the demand. A recent NAR report showed that at this time, there is

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Real Estate Tops Best Investment Poll For 5 YearS

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To determine what Americans consider the best long-term investment choice, Gallup surveys Americans each year. Survey respondents are asked to choose between real estate, stocks and mutual funds, gold, bonds or savings account and Certificate of Deposits (CD's).

For Five years in a row, real estate has been the top choice for respondents as the best long-term investment choice.

This year's findings show 34% of Americans selected real estate, while 26% chose stocks and bonds. the chart below illustrates The full study results.

Best Investment Chart Results | www.johnsabia.com

Emphasized in the study is the contrast in the sentiment over the past 5 years as compared to years 2011 and 2012, when the best investment choice was gold with

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2018 Tax Reform Impact on Housing Market

Predictions as early as last year were that the 2018 TAX CHANGES would be disastrous for the housing market. Headlines warned that double-digit price depreciation was coming and suggested demand from buyers could sink like a ship. There was even sentiment that home-ownership could lose its coveted status as a major component of the American Dream.

As we look at numbers from the first quarter, we can begin to measure the actual impact that tax reform has had on the real estate housing market.

Tax Reform Has not killed off buyer demand

Showing Time Index which "tracks the average number of buyer showings on active residential properties on a monthly basis" and is a "highly reliable leading indicator of

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Is Your Firt Home Within Reach?

If you are dreaming about owning your first home, the below infographic may offer good news for you. Where do you place on the chart?First Home Infographic | www.johnsabia.com

Worth Noting

  • Millenials as defined by the US Census Bureau are between Ages 18 - 36.
  • The Median Age of First Time Buyers is 32 per The National Association Of Realtor's (NAR) Profile of HomeBuyers and Sellers
  • More and More older Millenials between the ages of 25 thru 36 are quickly realizing home ownership is actually within their grasp now!

If you have questions about real estate or would like to begin the home-buying process, call/text or email me to get started!

 

Disclaimer:The information contained, and the opinions expressed, in this article are not

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Are You Under 50 And renting?

Each year, findings in the Survey of Consumer Expectations (SCE) are made public by the New York Federal ReservE. Each survey covers a variety of topics, including inflation, labor market, household finance, credit access and housing.

In the housing section of the survey, one question asked participants: "Assuming you had the financial resources to do so, would you like to OWN instead of RENT your primary residence?"

More than 3/4 of respondents under age fifty replied they would prefer to own their home, rather than rent. While just 52.6% of participants over age 50 said they would prefer to own. The chart below illustrates the full breakdown.

Consumer Expectation Survey | JohnSabia.com

When renter respondents were asked what the average probability of

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