3 Reasons to Sell Your Home this Spring!

Posted on by thecovenantteam

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are three of those reasons.

1. Demand is about to skyrocket

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. We also have a pent-up demand as many buyers pushed off their home search this winter because of extreme weather. Sellers in markets where seasonal weather is never an issue must realize that buyers relocating to their region will increase dramatically this spring as these purchasers finally decide to escape the freezing temperatures of the winters in the north.

These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition – For Now

Housing supply always grows from the spring through the early summer. Also, there has been a growing desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners have seen a return to positive equity as prices increased over the last eighteen months. Many of these homes will be coming to the market in the near future.

The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by approximately 4% this year and 8% by the end of 2015. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Freddie Mac projects rates to be 5.1% by this time next year and 5.7% by the fourth quarter of 2015.

Moving up to a new home will be less expensive this spring than later this year or next year.

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Housing shortages fuel big price increases this year in some Dallas-area neighborhoods.

Posted on by thecovenantteam

More than half of the Dallas area’s neighborhoods have had declines in home sales so far this year — some of them significant.

Usually falling home sales are a sign of an economic malaise.

Not this time.

The drop in Dallas-area pre-owned home purchases in the first quarter is mostly due to a lack of houses on the market.

That’s also what’s pushing local home prices to record highs in many neighborhoods.

Area home sales for first quarter of 2014

“The increase in prices is accelerating, and that’s not good,” veteran Dallas-area real estate appraiser D.W. Skelton said. “The number of buyers is actually increasing, and the inventory available is getting smaller.

“The problem is getting bigger,” he said. “We are hoping it moderates soon.”

But that’s not too likely because this spring there are even fewer houses on the market for buyers to choose from.

Total home sales listings with real estate agents are down more than 10 percent from the first quarter of 2013.

In the most popular neighborhoods in the northern suburbs — markets including Richardson, Plano, Grapevine, Allen and McKinney — less than a third of what is considered a “normal” inventory of houses are for sale.

The housing shortage is causing potential buyers and agents to scramble.

“Our office is seeing multiple offers on almost 60 percent of our deals and many have multiple offers within the first day on the market,” said Becky Connatser with Dave Perry-Miller & Associates. “We also continue to see a drop in days on the market.”

On average, it takes 60 days to sell a house in North Texas.

But local real estate agents said many houses go much quicker.

“From what I hear, this is true for most areas in and around Dallas and North Texas,” Connatser said.

In Allen, Bedford, Grapevine and The Colony, houses sell in 40 days or less on average, according to data from the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems.

‘Super quick’

Almost 40 percent of Dallas-area houses have a sale contract within two weeks of hitting the markets, according to data from Redfin.com.

“It’s insane,” said Scott Schueler with Keller Williams Realty. “They are moving super quick.

“Sellers price it at the top end of the comparable sales and still get multiple offers, beyond anyone’s expectations.”

Overall median home sales prices are up almost 10 percent this year in North Texas.

But in some areas, the price increases are even sharper.

In southeast Dallas, median home sales prices are more than 40 percent higher than in the first quarter of 2013.

Prices are up 31 percent in the Park Cities and rose 25 percent in Cedar Hill and 22 percent in Oak Cliff from a year ago.

Annual home price increases in North Texas are typically less than 5 percent.

Skelton, who appraises houses all over North Texas, said the last time he saw similar home price jumps in this area was in the 1980s boom.

“This market is going up faster than that market went up,” Skelton said.

Job-driven factors

Unlike in some “bubble” markets, the gains in home prices in the Dallas area are being fueled by the area’s strong economy and demographics, said Dr. Ted Jones, economist with Houston-based Stewart Title Co.

“In the last 12 months, the D-FW market added more than 86,000 new jobs,” Jones said. “In that same period, new building permits totaled 39,620.

“There is massive growth and demand — all job driven — for the D-FW area.”

And Jones said home builders who were hard hit during the recession can’t respond fast enough to the rising housing demand.

“We are under-building this market by more than 40 percent,” he said. “Housing demand is outpacing supply, and as long as that continues, values will rise.”

For the next year or even longer, Jones doesn’t expect the housing shortage in North Texas to significantly abate.

The flow of large numbers of migrants to this area from other parts of the country is adding to the strain on the residential market.

“You have thousands of people showing up with no place to live,” Jones said.

“As long as we continue to under-build this housing market, we are going to continue to see prices rise.”

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Selling Your Home Faster — and Maybe for More

Posted on by redmetal

Selling a house is a major undertaking. Where do you begin? First you’ll need to establish a big-picture view of how to prepare it. This ideabook will help you do that, so you can get your home in shape to sell quickly at the best possible price (without breaking your budget).

When it’s time to sell, Let Service First Mortgage – The Covenant Team assist you with your next mortgage.

Source: Laura Gaskill at Houzz

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Housing Market Poised for Hot Summer of Sales

Posted on by redmetal

There’s data showing that existing home sales are down as are housing starts. But here’s the deal, the freakishly cold winter is the cause for a lot of this. Here’s what else we know. Millions of current renters want to buy this year. So you might say, “yeah but there’s no inventory.” Not so fast Jack, despite the wicked winter, inventor is actually on the rise.

What’s more, we’ve seen an increase of $4 trillion in home equity nation wide, which means if you’re a real estate agent, you should jump on the phone because there’s listings in that past client database of yours.

Source: National Real Estate Post

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Local Magazine Shares Our Story

Posted on by redmetal

McKinneyMagCover

You can find a fantastic new article about The Covenant Team in the Business Section of the McKinney Magazine 2014 Community Resource Guide. Read why The Covenant Team of Service First Mortgage is a perfect choice for anyone shopping mortgages in McKinney.

Click here and scroll to page 23 to find the article.

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FHA Financing on a property with private Septic or Well

Posted on by thecovenantteam

Did you know – FHA requires that connections be made to public sewer and water systems if they are available and if it is “feasible” to do so.  

 When representing a buyer on a home that is set-up with a Septic or Well system you may want to discuss this with the listing agent.   You will want to find out if there is a connection available near the home. 

Then you need to have the agent verify that the connection is available with the local city/ county authorities.

 If a public connection option does exist, the sellers will have to decide if they can agree to make the investment required for FHA financing.  If not, the buyers need to be made aware of the costs.

 The repairs must be completed prior to closing.

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Buyers, now is the Perfect Time to Buy a House

Posted on by thecovenantteam

Home prices have been rising for three straight quarters.  In fact, home values increased 7.3% in the last quarter of 2012 alone.  That means we are seeing the bounce from the home value bottom.  Combine this information with super low mortgage rates and you have the perfect storm for one of the best times to buy a home in history. 

The housing market is recovering as part of the US economy as a whole, and with that recovery is a natural increase in mortgage rates.  That means that even as house prices rise, so will mortgage interest rates, providing a double whammy to buying power. 

Call The Covenant Team of Service First Mortgage today for accurate and up to date advice on your home financing.

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FHA Mortgage Insurance Premium Changes Effective April 1st, 2013

Posted on by thecovenantteam

The following changes to FHA Mortgage Insurance Premiums (MIP) will take effect with the respective case number assignment dates, April 1, 2013 and June 3rd, 2013.   These changes are big and may affect borrowers affordability or ability to qualify for FHA Financing. 

PREMIUM CHANGES

 

Example on how this increase will affect our customers (using the same estimated rate, taxes and insurance):

Before the change:

Loan Amount = $200,000 with 3.5% down on a 30 year term and 1.25% annual MIP factor =  Monthly MI of $201.04 and an estimated total monthly payment of $1567 (PITI)

After the change: 

Loan Amount = $200,000 with 3.5% down on a 30 year term and 1.35% annual MIP factor =  Monthly MI of $217.13 and an estimated total monthly payment of $1583 (PITI)To keep the payment equivalent to the payment prior to the change the borrower would need to reduce the sales price by $3000.    

Another change is that currently if you take a 15-year fixed (or shorter) and are putting down 22% then there is NO annual MIP

… but on 6/3/13 there will be a .45% annual MIP (on a $200k mortgage that would be $900/year, or $75/mo), see below.

 The annual MIP is calculated on the base loan amount, not total loan amount

 DURATION

 

 *The upfront mortgage insurance premium (UFMIP) will not change.   It is 1.75% of the base loan amount.

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FHA Financing on a property with private Septic or Well

Posted on by thecovenantteam

Did you know – FHA requires that connections be made to public sewer and water systems if they are available and if it is “feasible” to do so.  

 When representing a buyer on a home that is set-up with a Septic or Well system you may want to discuss this with the listing agent.   You will want to find out if there is a connection available near the home. 

Then you need to have the agent verify that the connection is available with the local city/ county authorities.

If a public connection option does exist, the sellers will have to decide if they can agree to make the investment required for FHA financing.  If not, the buyers need to be made aware of the costs.

 The repairs must be completed prior to closing.

Posted in Mortgage News | Leave a comment

REALTOR REVIEW Tuesday 1/22/2013

Posted on by thecovenantteam

Interesting Joint Study by NAR & Google
A joint study by NAR and Google was released last week that discussed the role that digital media plays in the consumer’s home search process.  If you haven’t seen it yet, be sure to check it out: http://www.realtor.org/reports/digital-house-hunt)

Here are some of the report highlights:
  – 90 percent of home buyers searched online during their home buying process
  – Real estate related searches on Google.com grew 253 percent over the past four years
  – Buyers use specific online tools during different phases of the home search process
  – How important “local” search terms and websites are for buyers
  – How mobile technology cements online to offline home buying – including the reading of online reviews
  – How video and YouTube satisfy buyers’ research needs
Be sure to take a few minutes today and check it out, definitely worth the read.
 
This Week’s Mortgage Rates Forecast
Risks Favor: LOCKING
This week has Economic data on the calendar which focuses on the housing market, but the data won’t have nearly the same effect that we will see from continued government discussion about both the debt ceiling and spending cuts.  Both stocks and bonds will see movement depending on how this plays out.  Right now, the House Republicans are offering a bill to increase the debt ceiling for three months to allow more time to deal with spending cuts.  The question is whether the President will go along with it.  Be ready to see volatility in the markets based on rumors and posturing, as traders look to be in the right position to benefit from market sentiment about the news.  Rates shouldn’t venture too far, but be sure and ask your preferred Loan officers, The Covenant Team of Service First Mortgage, for the best times to lock mortgage rates this week.  Even though we say that rates are stabile, meaning that we won’t see large increases from where we are at now to the end of the week, there will be lots of volatility.

This market isn’t doing much and as data for the fourth quarter of 2012 rolls in, we are seeing evidence of an economy that can be described as tentative but not stalled.  That has been the case for quite some time, but now a key question is how do shoppers feel right now, after taxes have been increased and more fiscal drag is likely to come from federal spending cuts? Perhaps consumers will feel some support from the positive wealth effect of increasing home prices and increasing equity prices? They will feel comfortable utilizing credit, and they may pull down their saving rate to grow spending slightly despite a dip in real disposable income. Never underestimate the ability of the American consumer to continue to shop.

 

Rates continue to go up a little and down a little.  Economic news this week focuses on housing. Today we’ll have Existing Home Sales, tomorrow is the MBA application numbers and the FHFA Housing Price Index, Thursday is Jobless Claims and Leading Economic Indicators, and Friday is New Home Sales. Overall, it is a great time to sell a home or to buy a home. 

 

 News brought to you by The Covenant Team of Service First Mortgage

8930 State Hwy 121, Ste 525

McKinney, TX 75070

(972) 396-9143 Office

thecovenantteam@servicefirstmtg.com

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