01
Nov
By First Rate Financial Group
Real Estate

When’s The Best Time To Buy A House?

When's The Best Time To Buy A HouseIf you happen to want to move to a hot market for home sellers, here is some advice. Go looking for a home to buy when it is freezing outside or the weather is otherwise severe. Buying a home is both about finding one you like and beating out others if the market has buying competition. 

Days On Market

To find out the competition for a particular market, check the median number of days that a home is listed on the market before it sells. This is called the “days on market.”

In a hot seller’s market, the median number of listing days may be very low. The national average days on market (DOM) is 62 days in America.

The top ten cities where homes sell the fastest with the lowest DOM as reported by Realtor.com® are:

  1. San Francisco, CA – DOM 28
  2. Spokane, WA – DOM 31
  3. Boston, MA – DOM 32
  4. Colorado Springs, CO – DOM 32
  5. Lafayette, IN – DOM 34
  6. Columbus, OH – DOM 34
  7. Sacramento, CA – DOM 34
  8. Santa Cruz, CA – DOM 34
  9. Midland, TX – DOM 36
  10. Odessa, TX – DOM 36

Time Of Year

Most homebuyers look for a home during spring and summer. That is when the buying competition is normally stronger. June is the worst month to buy a home if you want to get a discount.

If you can wait until fall or winter, you may see more price reductions. The best time to make a low offer may be during the short window of time between Christmas and New Year’s when virtually no one is looking to buy a home.

Use bad weather for an advantage. Go looking for a home in the dead of winter, when the roads are barely passable, and you may be the only buyer interested. Another advantage that comes from viewing a home during severe weather is that you get to see how much trouble the weather will be if you own it. 

Tax Time

One very successful real estate investor buys homes right before tax time because that is when sellers are worried about paying taxes and might be more flexible on the price.

Estate Sales

It is possible to get a nice deal on a house when a family is liquidating assets.

Divorce

A seller may be motivated by having to sell a house as part of a divorce settlement.

Summary

The main factors, if you want to get a discounted price for buying a home, are not to be in a rush to buy one and take your time finding a home that is for sale by a motivated seller. Always ask, “Why are you selling your home?” when negotiating with a seller.

If you are interested in buying a new home or in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss current financing options.

19
Sep
By First Rate Financial Group
Market Outlook

Fed Policymakers Cut Key Rate Range by .25 Percent

Fed Policymakers Cut Key Rate Range by.25 PercentThe Federal Reserve’s Federal Open Market Committee reduced its key short-term interest rate range one-quarter percent to 1.75 to 2.00 percent during it’s September meeting. While FOMC members had mixed opinions on reducing the benchmark rate range for short term loans, the post-meeting statement suggested that reducing the federal funds rate was a hedge against inflation. The federal funds rate impacts short-term consumer loan rates for autos and adjustable rate mortgages, but does not impact fixed mortgage rates. FOMC monetary policy decisions are governed by the Federal Reserve’s dual mandate of maintaining price stability and an inflation rate of 2.00 percent.

FOMC Members Facing Conflicted Opinions On Rate Cuts

Policymakers consider a variety of influences and news when cutting or raising the federal funds rate range. In addition to its dual mandate, FOMC members consider domestic and global impacts on the economy. Uncertainty over effects of international trade disputes and Great Britain’s looming exit from the European Union balanced strengths in the U.S. economy.

According to the post-meeting statement, seven FOMC members voted in favor of the rate cut to 1.75 to 2.00 percent; one member voted for a rate cut to 1.50 to 1.75 percent and two members voted against changing the target federal funds rate range.

Fed Chair: U.S. Economy Expected To Stay Strong

Fed Chair Jerome Powell said in a post-meeting press conference that while U.S. economy expanded for its 11th consecutive year, global economic outlook was less certain particularly in Europe and China. The U.S. economy expanded 2.50 percent in the first half of 2019; factors driving growth included rising consumer confidence, wages and strong job markets. Business investment and exports were lower due to uncertainties over trade. Job growth slowed, but this was expected based on 2018’s fast pace of job growth. Work force participation grew; the Fed expects the national unemployment rate to remain below four percent for the next few years.

Chair Powell said that maintaining strong economic conditions was particularly important for low to middle income consumers left behind during the Great Recession. While current inflation stands at 1.40 percent, the Fed projects that it will grow to 1.90 percent in 2020 and achieve the target goal of 2.00 percent in 2021. Chair Powell said that inflation pressures are muted and at the lower end of historical ranges.

Chair Powell echoed the FOMC statement in saying that the Fed would continue to monitor economic developments abroad and would adjust monetary policy according to economic developments prompted by trade disputes and emerging economic developments.

 

04
Sep
By First Rate Financial Group
Real Estate

Young Home Buyers Are A Growing Trend

Young Home Buyers Are A Growing TrendA new group of young American adults is emerging as home buyers. These are the young adults who were born after 1995 and are part of the demographic group named Generation Z (Gen Z). In 2019, there are 31.5 million Gen Z members who are adult age. This will increase to 44.5 million adults in this demographic group by 2032 as all the younger members become adults.

Right now, there are around 14 million adults in the Gen Z category who are using credit for the first time.

Not Too Young To Buy A Home

Transunion reports that most Gen Z members are getting credit cards, which is the easiest form of credit available to them. However, they are also applying for mortgage financing in record numbers. The year-over-year increase in home loans among this demographic group is up 112%.

Planning For The Future

In a study conducted by Bank of America, the majority of Gen Z consumers, who are between 18 and 23 years old, are already saving for the down payment needed to buy a home. A huge number of them, 59%, report that they plan to purchase a home during the next five years.

Most dream of owning a home before they are 30 years old. They want to buy modestly-sized and lower-priced homes. They have a high interest in homes that are energy-efficient, homes that use smart technology, and those with renewable energy systems.

Smart Homes And Smart Financial Planning

Many of this generation are still living with their parents to save money for a home purchase, which they would otherwise have to pay in rent. Having lived through the Great Recession in 2008, they are, in general, more pragmatic than previous generations. They take home ownership very seriously.

Manifestation Of The American Dream

Over 71%, of those desiring to buy a home, are already designing it in great detail by selecting things they find on the Internet, which appeal to them. They use social media systems like Pinterest and others to get interesting decorative ideas. They share their home decor ideas with friends.

Conclusion

REALTORS® who work with this new group of home buyers will likely find them more motivated to buy a home than previous generations. They are usually more dedicated with their serious financial planning efforts in how to go about achieving their dreams.

The Generation Z consumers know what they want. They are willing to make sacrifices to get it. The majority want a home and are making plans about how to pay for it.

If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss your financing options.