Blog



Thinking of Buying? What are you waiting for?

Posted by on Feb 23, 2015 in First Time Homebuyers, For Buyers, Move-Up Buyers | Comments Off on Thinking of Buying? What are you waiting for?

If you are planning on becoming a homeowner, or moving up to the home of your dreams in 2015, here are four great reasons to consider buying a home now, instead of waiting until spring. 1. Prices Will Continue to Rise The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 11.7% (most pessimistic) and 27.5% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense. 2. Mortgage Interest Rates Are Projected to Increase Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of 2015. An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home. 3. Either Way You are Paying a Mortgage As a paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.” 4. It’s Time to Move On with Your Life The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

The Truth About US Homeownership Rates [INFOGRAPHIC]

Posted by on Feb 20, 2015 in Infographics | Comments Off on The Truth About US Homeownership Rates [INFOGRAPHIC]

Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

Two Graphs that Scream – List Your Home Today!

Posted by on Feb 19, 2015 in For Sellers, Pricing | Comments Off on Two Graphs that Scream – List Your Home Today!

We all learned in school that when selling anything, you will get the most money if the demand for that item is high and the inventory of that item is low. It is the well-known Theory of Supply & Demand. If you are thinking of selling your home, here are two graphs that strongly suggest that the time is now. Here is why… DEMAND According to research at the National Association of Realtors (NAR), buyer activity last month (January) was three times greater than it was last January. Purchasers who are ready, willing and able to buy are in the market at great numbers. SUPPLY The most recent Existing Home Sales Report from NAR revealed that the months’ supply of housing inventory had fallen to 4.4 months which is the lowest it has been in over a year. Bottom Line Listing your house for sale when demand is high and supply is low will guarantee the offers made will truly reflect the true value of your property. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

Homeownership Rates: Are they Crashing?

Posted by on Feb 18, 2015 in For Buyers | Comments Off on Homeownership Rates: Are they Crashing?

The Census recently released their 2014 Homeownership Statistics, and many began to worry that Americans have taken a step back from the notion of homeownership. Easy… Chicken Little The national homeownership rate peaked in 2004, representing a 69.2% of Americans who bought vs. rented their primary residence. Many have noticed a decline in rate since then and taken that as a bad sign. However, if you look at the national rate over the last 30 years (1984-2014), you can see that the current homeownership rate has returned closer to the historic norm. 2014 ended the year with a rate of 64% just under the rate in 1985 and 1995. Bottom Line With interest rates and prices still below where experts predict, evaluate your ability to purchase a home with a local real estate professional. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

VIA – Village Improvement Association

Posted by on Feb 18, 2015 in Uncategorized | 0 comments

VIA – Village Improvement Association

On Wednesday February 11, 2015 I attended the monthly meeting of the VIA, Village Improvement Association. An amazing group of women collected at the clubhouse located at the Surf Avenue and Grenoble Place for their monthly meeting. The VIA was founded in the early 1900’s and the first clubhouse was built around the same time.  The ladies of the VIA pride themselves are completing important projects to serve our community and the betterment of the people here.   The featured speaker this month was Faye from the Pathways to Success program.  The program assists high school aged children who have a tough home life. The program follows the kids through high school with the goal to see them through to college and hopefully a successful life after college. Faye’s passion for her purpose was evident and the difference she is making in the lives of our area children is incredible! The drop out rate for high school aged kids in Cape Henlopen High School has dropped about 50% since the beginning of the program! I was moved by this process and thankful to hear of the program. Next up we had the new member installment ceremony. This was the first time I have seen new members be installed. What a great experience! This month marks my second meeting. I am in process of applying for membership. After my third meeting and completing orientation I will be eligible to apply for membership. I will be so honored to join this amazing group of women who have been making a difference in our community for more than 100 years! Stay Tuned for more exciting news from our Village Improvement Association in Rehoboth Beach,...

read more

Home Prices: A 5-Year Outlook

Posted by on Feb 17, 2015 in Pricing | Comments Off on Home Prices: A 5-Year Outlook

With inventory presently below historically normal levels, current & future home prices have been the topic of many real estate conversations. The most recent Home Price Expectation Survey was just released; giving insight into where experts believe prices will be leading up to 2019. Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. Here are some highlights from their latest survey: Home values will appreciate by 4.4% in 2015. The cumulative appreciation will be 19.3% by 2019. That means the average annual appreciation will be 3.6% over the next 5 years. Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 11.7% by 2019. Individual opinions make headlines. We believe the survey is a fairer depiction of future values. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

2015: A Year of Housing Opportunity

Posted by on Feb 16, 2015 in First Time Homebuyers, For Buyers | Comments Off on 2015: A Year of Housing Opportunity

Many believed that when the housing market crashed, so too would the desire of American’s to own a home again. Many reports have shown that, especially among younger generations, the American Dream of homeownership is still very much alive. Julián Castro, Secretary for HUD, recently summed up what it means to own a home in a speech at the National Press Club. “Homeownership is still the cornerstone of the American Dream — a fact you can see in the lives of everyday folks. It’s a source of pride. It’s a source of wealth, providing both a nest and a nest egg. And it strengthens communities and fuels growth in the overall economy.” Castro appropriately named his speech, “2015: A Year of Housing Opportunity”, a theme that rang true throughout. “Opportunity is not an abstract concept – it’s a path to a more prosperous life, and housing often serves as its foundation. T.S. Elliot once said that “home is where one starts from.” “A home is often a primary source of wealth in a family… Having a home is generational way to pass that wealth on. We want people responsible enough to own a home to have that opportunity.” Bottom Line “Over the years-through decades of economic downturns and wars-the American people have always held on to this Dream, and always will.” As the economy continues to improve, more and more Americans will qualify for homeownership, allowing more families to obtain the American Dream. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

Either Way, You’re Paying a Mortgage

Posted by on Feb 12, 2015 in First Time Homebuyers, For Buyers | Comments Off on Either Way, You’re Paying a Mortgage

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.” Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period. As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity. Bottom Line Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still lower than projected. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more

Foreclosure Inventory Down 34.3% from Last Year

Posted by on Feb 11, 2015 in Foreclosures | Comments Off on Foreclosure Inventory Down 34.3% from Last Year

According to the latest CoreLogic National Foreclosure Report, “approximately 552,000 homes in the US were in some state of foreclosure as of December 2014”. This figure is down 34.3% from the 840,000 homes in December of 2013. December marked the 38th consecutive month in which there were year-over-year declines. Anand Nallathambl, the President and CEO of CoreLogic, is hopeful for the future, saying: “At current foreclosure rates, we expect to see the foreclosure inventory in the U.S. drop below 500,000 homes sometime in the first quarter of 2015 which would be another milestone in the healing of the housing market.” The map below shows the percentage of foreclosure inventory in each of the 50 states and Washington, D.C. Thirty-six states have inventory below the national rate of 1.4% and can be seen in two shades of green. Bottom Line Even though some states have not recovered completely from the foreclosure crisis, the nation as a whole is on the right track as inventory...

read more

Consumer Confidence at Highest Level in Over a Decade

Posted by on Feb 10, 2015 in For Buyers, For Sellers | Comments Off on Consumer Confidence at Highest Level in Over a Decade

Two recently released reports reveal that the American public is starting to feel much better about the U.S. economy. The University of Michigan’s Surveys of Consumers showed that: “Consumer optimism reached the highest level in the past decade in the January 2015 survey…Consumers judged prospects for the national economy as the best in a decade, with half of all consumers expecting the economic expansion will continue for another five years. The anticipated strength in the overall economy has been accompanied by more favorable income and employment expectations.” Here is a chart showing results over the last decade: As all consumers are feeling more optimistic, more young adults are moving out of their parents’ basements and into a residence of their own. The recent Census report shows that new household formations skyrocketed in 2014. Below is a chart showing the historical significance of the numbers: Bottom Line The economy is definitely improving and, more importantly, the American consumer is beginning to feel much more confident. This should lead to a very robust real estate market in 2015. Members: Sign in now to set up your Personalized Posts & start sharing today! Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized...

read more