Author: admin

By Susanne Dwyer

The current housing market is ripe with opportunity. Interest rates remain low, credit availability is expanding, and employment is on the rise. For many hopeful homeowners, however, one hurdle they may not feel comfortable getting over comes in the form of the down payment. In fact, many buyers (and real estate professionals) believe that in order to purchase a home, a 20 percent down payment is necessary. Luckily, this long-held notion is untrue, but its widespread belief locks out thousands of potential homeowners who may have great credit and a steady income but less than 20 percent in their savings account.

As a real estate professional, this information is vital, as it opens up your business to an entire fleet of clients you may have previously believed were ineligible.

So where can you direct potential clients who can’t afford a large down payment? The answer is Freddie Mac. Options offered through Freddie Mac have long allowed for 5 percent down, and their Home Possible Advantage® mortgage is available to qualified borrowers with as little as 3 percent down. This nominal amount can even be provided through a gift from a family member or employer, or a grant from a government agency.

Dispelling the 20 Percent Myth
According to the Q1 2015 U.S. Home Purchase Down Payment Report published by RealtyTrac®, the average down payment for single-family homes bought in the first quarter of 2015 was 14.8 percent, down from 15.5 percent in 2014. Further, in 2015, about 40 percent of homebuyers put down less than 10 percent, and nearly a third of the 1.6 million loans funded by Freddie Mac were for buyers putting down less than 20 percent.

Below are a few simple steps you can walk your clients through:

• Refer them to a lender with Home Possible Advantage. Freddie Mac works with more than 3,000 lenders nationwide, so there’s a good chance that one or more of the lenders you work with offer Home Possible Advantage, although they may call it by a different name.
• Plan to live in the home. To qualify, your client must plan to live in the home they are financing, which nixes second homes and investment properties. Your client can also refinance their existing mortgage without taking any cash out. It’s available in 15-, 20- and 30-year fixed-rate terms.
• Gather enough money. Although the down payment is low, your client must have funds to cover the down payment and closing costs. The good news is that these funds do not need to be their own. According to a June 2016 Freddie Mac 55+ survey, over 20 percent of 55+ homeowners said they have helped family and friends with a down payment.

Taking the time to educate your client is key, but you don’t have to do it alone. “Freddie Mac Borrower Help Centers and the Borrower Help Network deliver free counseling services across the country,” concludes Danny Gardner, vice president of Single-Family Affordable Lending and Access to Credit at Freddie Mac. “Equipped with knowledge and some help with the down payment, many …read more

From:: Finance and Economy

By Susanne Dwyer

The current housing market is ripe with opportunity. Interest rates remain low, credit availability is expanding, and employment is on the rise. For many hopeful homeowners, however, one hurdle they may not feel comfortable getting over comes in the form of the down payment. In fact, many buyers (and real estate professionals) believe that in order to purchase a home, a 20 percent down payment is necessary. Luckily, this long-held notion is untrue, but its widespread belief locks out thousands of potential homeowners who may have great credit and a steady income but less than 20 percent in their savings account.

As a real estate professional, this information is vital, as it opens up your business to an entire fleet of clients you may have previously believed were ineligible.

So where can you direct potential clients who can’t afford a large down payment? The answer is Freddie Mac. Options offered through Freddie Mac have long allowed for 5 percent down, and their Home Possible Advantage® mortgage is available to qualified borrowers with as little as 3 percent down. This nominal amount can even be provided through a gift from a family member or employer, or a grant from a government agency.

Dispelling the 20 Percent Myth
According to the Q1 2015 U.S. Home Purchase Down Payment Report published by RealtyTrac®, the average down payment for single-family homes bought in the first quarter of 2015 was 14.8 percent, down from 15.5 percent in 2014. Further, in 2015, about 40 percent of homebuyers put down less than 10 percent, and nearly a third of the 1.6 million loans funded by Freddie Mac were for buyers putting down less than 20 percent.

Below are a few simple steps you can walk your clients through:

• Refer them to a lender with Home Possible Advantage. Freddie Mac works with more than 3,000 lenders nationwide, so there’s a good chance that one or more of the lenders you work with offer Home Possible Advantage, although they may call it by a different name.
• Plan to live in the home. To qualify, your client must plan to live in the home they are financing, which nixes second homes and investment properties. Your client can also refinance their existing mortgage without taking any cash out. It’s available in 15-, 20- and 30-year fixed-rate terms.
• Gather enough money. Although the down payment is low, your client must have funds to cover the down payment and closing costs. The good news is that these funds do not need to be their own. According to a June 2016 Freddie Mac 55+ survey, over 20 percent of 55+ homeowners said they have helped family and friends with a down payment.

Taking the time to educate your client is key, but you don’t have to do it alone. “Freddie Mac Borrower Help Centers and the Borrower Help Network deliver free counseling services across the country,” concludes Danny Gardner, vice president of Single-Family Affordable Lending and Access to Credit at Freddie Mac. “Equipped with knowledge and some help with the down payment, many …read more

From:: Real Estate News

By Susanne Dwyer

Homebuyers have a new, robust experience that makes global for-sale home search more simple and efficient in the United States and across dozens of countries. Recently, realtor.com® announced the addition of U.S. listings to realtor.com/international, giving users access to more than 4.5 million listings from over 70 countries.

The site, which relaunched in July as part of a newly formed global property network created by News Corp, REA Group and Move, now allows users to view U.S. listings along with for-sale properties all around the world within an upgraded common interface using their preferred language, currency and units of measurement. It also helps attract more global buyers to realtor.com/international as the only site in the network to display the complete property inventory, including U.S. listings in a single location. The American inventory is sourced from realtor.com®, the most comprehensive inventory of for-sale real estate listings in the United States, with approximately 1.5 million for-sale U.S. listings updated at least every 15 minutes on average in most areas.

The global property network is the world’s largest global real estate listing community, offering more than 4.5 million listings from 72 countries. The network consists of 13 leading international real estate sites in Australia, France, Germany, Hong Kong, Indonesia, Italy, Luxembourg, Macau, Malaysia, Singapore, Thailand and the United States, as well as News Corp’s Mansion Global and India-based PropTiger, collectively attracting more than 200 million visits globally each month, according to internal metrics.

“The expansion of realtor.com/international reflects the increasing demand for global property information and experiences across geographic boundaries, while helping make the process simpler, easier and more personalized for consumers and professionals alike,” says Eleonore Rojas, vice president, NAR partnerships and international at realtor.com®. “We are constantly working to enhance our solutions to help connect people wherever they are with properties and with the professionals to help them through their home journey.”

In addition to making global home search easier for buyers and sellers, the new opportunity offers expanded capabilities to real estate professionals who represent U.S. sellers looking to promote their listings to international buyers. All U.S listings on realtor.com® are displayed and translated on realtor.com/international as a free benefit, accessible by property searchers around the world. Additionally, real estate professionals who wish to take full advantage of the reach of the global property network may opt to syndicate their U.S. listings to other global property network partner sites as a free benefit through ListHub, the nation’s leading provider of listing syndication services and performance marketing metrics, also operated by Move.

For more information, visit www.realtor.com.

…read more

From:: Finance and Economy

By Susanne Dwyer

Homebuyers have a new, robust experience that makes global for-sale home search more simple and efficient in the United States and across dozens of countries. Recently, realtor.com® announced the addition of U.S. listings to realtor.com/international, giving users access to more than 4.5 million listings from over 70 countries.

The site, which relaunched in July as part of a newly formed global property network created by News Corp, REA Group and Move, now allows users to view U.S. listings along with for-sale properties all around the world within an upgraded common interface using their preferred language, currency and units of measurement. It also helps attract more global buyers to realtor.com/international as the only site in the network to display the complete property inventory, including U.S. listings in a single location. The American inventory is sourced from realtor.com®, the most comprehensive inventory of for-sale real estate listings in the United States, with approximately 1.5 million for-sale U.S. listings updated at least every 15 minutes on average in most areas.

The global property network is the world’s largest global real estate listing community, offering more than 4.5 million listings from 72 countries. The network consists of 13 leading international real estate sites in Australia, France, Germany, Hong Kong, Indonesia, Italy, Luxembourg, Macau, Malaysia, Singapore, Thailand and the United States, as well as News Corp’s Mansion Global and India-based PropTiger, collectively attracting more than 200 million visits globally each month, according to internal metrics.

“The expansion of realtor.com/international reflects the increasing demand for global property information and experiences across geographic boundaries, while helping make the process simpler, easier and more personalized for consumers and professionals alike,” says Eleonore Rojas, vice president, NAR partnerships and international at realtor.com®. “We are constantly working to enhance our solutions to help connect people wherever they are with properties and with the professionals to help them through their home journey.”

In addition to making global home search easier for buyers and sellers, the new opportunity offers expanded capabilities to real estate professionals who represent U.S. sellers looking to promote their listings to international buyers. All U.S listings on realtor.com® are displayed and translated on realtor.com/international as a free benefit, accessible by property searchers around the world. Additionally, real estate professionals who wish to take full advantage of the reach of the global property network may opt to syndicate their U.S. listings to other global property network partner sites as a free benefit through ListHub, the nation’s leading provider of listing syndication services and performance marketing metrics, also operated by Move.

For more information, visit www.realtor.com.

…read more

From:: Real Estate News

By Susanne Dwyer

White and Asian borrowers are more likely to be approved for a conventional loan than black or Hispanic borrowers, according to the latest federally released data from the Home Mortgage Disclosure Act (HMDA). The disparity persists despite improvements in mortgage access for borrowers over the last few years.

In 2015, 22.4 percent of black applicants were denied conventional loans, according to HMDA data. In 2010, 30.5 percent of black applicants were denied. Among Hispanic applicants, 17.3 percent were denied in 2015, down from 25 percent in 2010.

By comparison, 10.4 percent of all conventional loan applications were denied in 2015, a drop from 14.2 percent in 2010.

“Even though conditions have improved over the past few years, getting approved for a mortgage is still a significant barrier for some would-be buyers,” says Zillow Chief Economist Dr. Svenja Gudell. “Owning a home is an important way for the middle class to build personal wealth. It’s encouraging to see more black and Hispanic borrowers getting approved for mortgages, but there’s still a lot of progress that needs to be made.”

The problem is so entrenched that Fannie Mae and Freddie Mac recently announced programs designed to improve access to credit for these groups, which have historically had the lowest homeownership rates even though they are more likely to place a higher value on owning a home.

According to the Zillow® Housing Confidence Index, 68 percent of Hispanic respondents and 65 percent of black respondents considered homeownership necessary to living the American Dream. By comparison, 59 percent of white respondents and 58 percent of Asian respondents felt the same.

Homeowners are becoming increasingly diverse, data from the Zillow Group Consumer Housing Trends Report show. Even so, the homeownership gap between black and white households is as wide in 2016 as it has been for the past century.

For more information, visit www.zillow.com.

…read more

From:: Finance and Economy

By Susanne Dwyer

White and Asian borrowers are more likely to be approved for a conventional loan than black or Hispanic borrowers, according to the latest federally released data from the Home Mortgage Disclosure Act (HMDA). The disparity persists despite improvements in mortgage access for borrowers over the last few years.

In 2015, 22.4 percent of black applicants were denied conventional loans, according to HMDA data. In 2010, 30.5 percent of black applicants were denied. Among Hispanic applicants, 17.3 percent were denied in 2015, down from 25 percent in 2010.

By comparison, 10.4 percent of all conventional loan applications were denied in 2015, a drop from 14.2 percent in 2010.

“Even though conditions have improved over the past few years, getting approved for a mortgage is still a significant barrier for some would-be buyers,” says Zillow Chief Economist Dr. Svenja Gudell. “Owning a home is an important way for the middle class to build personal wealth. It’s encouraging to see more black and Hispanic borrowers getting approved for mortgages, but there’s still a lot of progress that needs to be made.”

The problem is so entrenched that Fannie Mae and Freddie Mac recently announced programs designed to improve access to credit for these groups, which have historically had the lowest homeownership rates even though they are more likely to place a higher value on owning a home.

According to the Zillow® Housing Confidence Index, 68 percent of Hispanic respondents and 65 percent of black respondents considered homeownership necessary to living the American Dream. By comparison, 59 percent of white respondents and 58 percent of Asian respondents felt the same.

Homeowners are becoming increasingly diverse, data from the Zillow Group Consumer Housing Trends Report show. Even so, the homeownership gap between black and white households is as wide in 2016 as it has been for the past century.

For more information, visit www.zillow.com.

…read more

From:: Finance and Economy

By Susanne Dwyer

Persistent supply shortages throughout the country led to slightly faster home price appreciation during the third quarter, according to the latest quarterly report by the National Association of REALTORS®. The report also revealed that seven of the 10 most expensive housing markets in the U.S. are in the West, including San Jose, Calif., which had a median single-family home price of $1 million for the second straight quarter.

The median existing single-family home price increased in 87 percent of measured markets, with 155 out of 178 metropolitan statistical areas (MSAs) showing gains based on closed sales in the third quarter compared with the third quarter of 2015. Twenty-two areas (12 percent) recorded lower median prices from a year earlier.

There were a growing number of rising markets in the third quarter compared to the second quarter of this year, when price gains were recorded in 83 percent of metro areas. Twenty-five metro areas in the third quarter (14 percent) experienced double-digit increases—unchanged from the second quarter of this year. A year ago, 21 metro areas (12 percent) saw double-digit price appreciation.

Lawrence Yun, NAR chief economist, says prospective buyers faced a very challenging market during the third quarter. “Mortgage rates around historical lows and solid local job creation created a winning formula for sustained home-buying demand all summer long,” he says. “Unfortunately, for house hunters in several of the top job producing metro areas around the country, deficient supply levels limited their options and drove prices higher—especially in markets in the West and South.”

The national median existing single-family home price in the third quarter was $240,900, which is up 5.2 percent from the third quarter of 2015 ($228,900), surpassing this year’s second quarter ($240,700) as the current peak quarterly median sales price. The median price during the second quarter increased 4.9 percent from the second quarter of 2015.

Total existing-home sales, including single-family and condos, slid 2.2 percent to a seasonally adjusted annual rate of 5.38 million in the third quarter from 5.50 million in the second quarter of 2016, and are 0.4 percent lower than the 5.40 million pace during the third quarter of 2015.

“After climbing to their highest annual pace in over nine years in June, sales sputtered in the third quarter because inventory could not catch up with what was being quickly sold,” says Yun. “Only a decent rebound in September kept the monthly and annual sales declines from being even larger.”

At the end of the third quarter, there were 2.04 million existing homes available for sale, which was 6.8 percent below the 2.19 million homes for sale at the end of the third quarter in 2015. The average supply during the third quarter was 4.6 months, down from 4.9 months a year ago.

Despite faster price growth last quarter, the decline in mortgage rates and an uptick in the national family median income ($70,306) slightly improved affordability compared to a year ago. To purchase a single-family home at the national median price, a buyer making a 5 percent down …read more

From:: Finance and Economy

By Susanne Dwyer

Persistent supply shortages throughout the country led to slightly faster home price appreciation during the third quarter, according to the latest quarterly report by the National Association of REALTORS®. The report also revealed that seven of the 10 most expensive housing markets in the U.S. are in the West, including San Jose, Calif., which had a median single-family home price of $1 million for the second straight quarter.

The median existing single-family home price increased in 87 percent of measured markets, with 155 out of 178 metropolitan statistical areas (MSAs) showing gains based on closed sales in the third quarter compared with the third quarter of 2015. Twenty-two areas (12 percent) recorded lower median prices from a year earlier.

There were a growing number of rising markets in the third quarter compared to the second quarter of this year, when price gains were recorded in 83 percent of metro areas. Twenty-five metro areas in the third quarter (14 percent) experienced double-digit increases—unchanged from the second quarter of this year. A year ago, 21 metro areas (12 percent) saw double-digit price appreciation.

Lawrence Yun, NAR chief economist, says prospective buyers faced a very challenging market during the third quarter. “Mortgage rates around historical lows and solid local job creation created a winning formula for sustained home-buying demand all summer long,” he says. “Unfortunately, for house hunters in several of the top job producing metro areas around the country, deficient supply levels limited their options and drove prices higher—especially in markets in the West and South.”

The national median existing single-family home price in the third quarter was $240,900, which is up 5.2 percent from the third quarter of 2015 ($228,900), surpassing this year’s second quarter ($240,700) as the current peak quarterly median sales price. The median price during the second quarter increased 4.9 percent from the second quarter of 2015.

Total existing-home sales, including single-family and condos, slid 2.2 percent to a seasonally adjusted annual rate of 5.38 million in the third quarter from 5.50 million in the second quarter of 2016, and are 0.4 percent lower than the 5.40 million pace during the third quarter of 2015.

“After climbing to their highest annual pace in over nine years in June, sales sputtered in the third quarter because inventory could not catch up with what was being quickly sold,” says Yun. “Only a decent rebound in September kept the monthly and annual sales declines from being even larger.”

At the end of the third quarter, there were 2.04 million existing homes available for sale, which was 6.8 percent below the 2.19 million homes for sale at the end of the third quarter in 2015. The average supply during the third quarter was 4.6 months, down from 4.9 months a year ago.

Despite faster price growth last quarter, the decline in mortgage rates and an uptick in the national family median income ($70,306) slightly improved affordability compared to a year ago. To purchase a single-family home at the national median price, a buyer making a 5 percent down …read more

From:: Real Estate News

By Susanne Dwyer

The real estate market in Manhattan and Brooklyn continues to cool, according to the Q3 2016 StreetEasy® Market Reports. Manhattan rents, however, are now rising faster than Manhattan sale prices. Median rent rose 3 percent over the past year, while median resale price increased by 1.1 percent, which marks the slowest pace of growth since Q4 2010.

Resale prices rose the most in the Upper Manhattan (3.6 percent) and Midtown (2.2 percent) submarkets. The most expensive submarket, Downtown, was the only submarket with declining prices year-over-year (-0.5 percent). Median rent in the borough increased 2.9 percent year-over-year to $3,309, surpassing annual resale price growth for the first time in four years.

In Brooklyn, median resale prices increased 4 percent year-over-year, marking the slowest annual increase since Q3 2012. Prices in the South Brooklyn and Prospect Park submarkets increased the most over the past year, rising 6 percent and 5.8 percent, respectively. Median rent in Brooklyn increased 1.8 percent year-over-year to $2,929 in the third quarter.

As rents continue to increase, this may be a good time for renters to consider buying. The StreetEasy Tipping Point looks at how long a New Yorker would need to stay in a home before buying beats renting financially. In Manhattan, the tipping point is 9.2 years, but in Upper Manhattan, the tipping point is 3.4 years, making it a sound investment for those who plan to live in the area at least three-and-a-half years. By contrast, the Downtown submarket’s more expensive housing stock stretches the tipping point to a daunting 19 years.

In Brooklyn, the tipping point fell slightly year-over-year from 3.8 to 3.6 years, nearly three times shorter than that of Manhattan. South Brooklyn had the shortest tipping point (2.8 years), followed by East Brooklyn (3.5 years) and Prospect Park (5 years).

“Uncertainty surrounding the presidential election and rising interest rates is likely having a cooling effect on the New York market,” says StreetEasy economist Krishna Rao. “While people generally don’t like to make big financial decisions in volatile times, it may help buyers to know where their investment will pay off more quickly. In parts of Brooklyn, for example, a homebuyer could break even in under three years.”

Over the next year, Manhattan rents will continue to outpace resale prices, with rents rising 3.9 percent compared to sales rising 1.2 percent, according to StreetEasy’s forecast. Upper Manhattan’s median rent is expected to increase the most at 5.5 percent.

Brooklyn’s median resale price will increase 3.7 percent over the next year. The biggest gains will be seen in Prospect Park (8.1 percent), while North Brooklyn and East Brooklyn are expected to see resale prices drop by 0.6 percent and 3.8 percent, respectively. Median rent price in Brooklyn will increase 3 percent, with North Brooklyn’s median rent rising the least at 1.1 percent.

For more information, visit www.streeteasy.com/blog/market-reports.

…read more

From:: Finance and Economy

By Susanne Dwyer

The real estate market in Manhattan and Brooklyn continues to cool, according to the Q3 2016 StreetEasy® Market Reports. Manhattan rents, however, are now rising faster than Manhattan sale prices. Median rent rose 3 percent over the past year, while median resale price increased by 1.1 percent, which marks the slowest pace of growth since Q4 2010.

Resale prices rose the most in the Upper Manhattan (3.6 percent) and Midtown (2.2 percent) submarkets. The most expensive submarket, Downtown, was the only submarket with declining prices year-over-year (-0.5 percent). Median rent in the borough increased 2.9 percent year-over-year to $3,309, surpassing annual resale price growth for the first time in four years.

In Brooklyn, median resale prices increased 4 percent year-over-year, marking the slowest annual increase since Q3 2012. Prices in the South Brooklyn and Prospect Park submarkets increased the most over the past year, rising 6 percent and 5.8 percent, respectively. Median rent in Brooklyn increased 1.8 percent year-over-year to $2,929 in the third quarter.

As rents continue to increase, this may be a good time for renters to consider buying. The StreetEasy Tipping Point looks at how long a New Yorker would need to stay in a home before buying beats renting financially. In Manhattan, the tipping point is 9.2 years, but in Upper Manhattan, the tipping point is 3.4 years, making it a sound investment for those who plan to live in the area at least three-and-a-half years. By contrast, the Downtown submarket’s more expensive housing stock stretches the tipping point to a daunting 19 years.

In Brooklyn, the tipping point fell slightly year-over-year from 3.8 to 3.6 years, nearly three times shorter than that of Manhattan. South Brooklyn had the shortest tipping point (2.8 years), followed by East Brooklyn (3.5 years) and Prospect Park (5 years).

“Uncertainty surrounding the presidential election and rising interest rates is likely having a cooling effect on the New York market,” says StreetEasy economist Krishna Rao. “While people generally don’t like to make big financial decisions in volatile times, it may help buyers to know where their investment will pay off more quickly. In parts of Brooklyn, for example, a homebuyer could break even in under three years.”

Over the next year, Manhattan rents will continue to outpace resale prices, with rents rising 3.9 percent compared to sales rising 1.2 percent, according to StreetEasy’s forecast. Upper Manhattan’s median rent is expected to increase the most at 5.5 percent.

Brooklyn’s median resale price will increase 3.7 percent over the next year. The biggest gains will be seen in Prospect Park (8.1 percent), while North Brooklyn and East Brooklyn are expected to see resale prices drop by 0.6 percent and 3.8 percent, respectively. Median rent price in Brooklyn will increase 3 percent, with North Brooklyn’s median rent rising the least at 1.1 percent.

For more information, visit www.streeteasy.com/blog/market-reports.

…read more

From:: Real Estate News