by Keeping Current Matters
Every three years, the Federal Reserve conducts its Survey of Consumer Finances. Data is collected across all economic and social groups. The latest survey data covers 2013-2016.The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.Owning a home is a great way to build family wealth.As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.That is why Gallup reported Americans picked real estate as the best long-term . . .

by Keeping Current Matters
Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed:The share of Americans who say it is a good time to buy a home increased from the same time last year.The share of those who say it is a good time to sell a home increased from the same time last year.The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the . . .

by Keeping Current Matters
On his personal website, self-made millionaire David Bach makes a striking statement: “Not prioritizing homeownership is the single biggest mistake millennials are making.”  He further stated, “Buying a home is an escalator to wealth.”Bach explains:“Young adults in particular aren’t hopping on this escalator, and it’s a costly mistake…If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.”He then elaborates on the game of homeownership:“Start by crunching the numbers…actually do the math…This way, you’re really clear on your goals and you won’t just say to yourself, ‘I’ll never afford this!’ A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay.” Bach . . .

by Keeping Current Matters
The current housing landscape presents greater home values, low interest rates, and high buyer demand. All of these factors point to the strong market forecasted to continue throughout the rest of the year.There is, however, one thing that may cause the industry to tap the brakes: an overall lack of housing inventory. Buyer demand naturally increases during the summer months, but the current supply is not keeping up.Here is a look at what a few industry experts have to say:Lawrence Yun, Chief Economist at National Association of Realtors“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices.”Mark Fleming, Chief Economist of First American“Market conditions are ripe for increasing home sales with one glaring exception. . . .

by Keeping Current MattersWe’re halfway through the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the experts predict for the second half of 2019.Here’s what some have to say: Danielle Hale, Chief Economist at realtor.com“Lower mortgage rates, higher wages and more homes for sale have helped counteract rising home prices, and ultimately, made it so that buyers are able to afford more than last year.” “Our outlook implies 4% growth for the remaining months of the year, predicated on…more supply than last year, the decline in mortgage rates, moderating home price appreciation and improving affordability.”Lawrence Yun, Chief Economist at NAR“Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and . . .

by Keeping Current Matters
Over the last few years, many sellers have been hesitant to put their houses on the market because they feared not being able to find another home to buy.We’ve reported on inventory shortages in the past, and it’s been a constant concern for potential buyers throughout recent years. New research shows the inventory concern is starting to decrease among potential buyers.According to First American, the two leading obstacles to homeownership that buyers feel today are Affordability and Limited Inventory. This means the feeling that homes are less affordable has risen, while the fear of limited inventory has decreased, delivering a wealth of good news for sellers.At the same time, over the past 12 months, we’ve seen a steady month-over-month increase in the number of homes coming to market for purchase. In the past, the lack of listings and . . .

by Keeping Current Matters
Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.According to ILHM’s Luxury Report, this mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $1 million or more.“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of . . .

by Keeping Current MattersRising home prices coupled with a lack of inventory in today’s market may cause some homeowners to consider selling their home on their own (known in the industry as a For Sale By Owner). However, a FSBO might not be a good idea for the vast majority of sellers.The top 5 reasons are listed below:1. Online Strategy for Prospective PurchasersRecent studies have shown that 95% of buyers search online for a home. In comparison, only 13% use print newspaper ads. Most real estate agents have an Internet strategy to promote the sale of your home. Do you?2. Results Come from the InternetWhere did buyers find the home they actually purchased?50% on the Internet28% from a Real Estate Agent7% from a yard sign1% from newspapersThe days of selling your house by putting up a sign and listing it in the paper are long gone. Having a strong Internet strategy is . . .

by Keeping Current Matters
A lot is happening in the world, and it’s having a direct impact on the housing market. The reality is this: some of it is positive and some of it may be negative. Some we just don’t know yet.The following three areas of the housing market are critical to understand: interest rates, building materials, and the outlook for an economic slowdown.1. Interest RatesOne of the most important things to consider when buying a home is the interest rate you will be charged to borrow the money. In our recent post we posed the question, “Are Low Interest Rates Here To Stay?” The latest information from Freddie Mac makes it appear they are. We are currently at a 21-month low in interest rates.2. Building MaterialsTalk of tariffs could also affect the housing market. According to a recent article, the National Association of Home Builders reports that as . . .

by Keeping Current Matters
The price of any item (including residential real estate) is determined by the theory of ‘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.The supply of homes for sale dramatically increases every spring, according to the National Association of Realtors (NAR). As an example, here is what happened to housing inventory at the beginning of 2018:Putting your home on the market now, rather than waiting for increased competition in the spring, might make a lot of sense.Bottom LineBuyers in the market during the winter are truly motivated purchasers and they want to buy now. With limited inventory currently available in most markets, sellers are in a great position to . . .