If you are looking to buy or sell a home, get all the information and the latest updates, tips, and tricks from Teixeira Realty Group - your professional Mansfield Area Real Estate Agents.
A market shift is happening, but there’s still time to get your home sold for top dollar. Here’s how. The latest numbers are pointing to an upcoming shift in our real estate market. Here’s where the market is currently: 1. Prices are at all-time highs. For the past several years, home prices grew at twice the rate of inflation, and faster than incomes. Not surprisingly, we are now at record price levels. However, price growth has definitely been slowing over the past several months. We’re even seeing some softness in the market with an increasing number of price cuts. 2. Mortgage rates are rising. The current 30-year fixed mortgage rate stands at 4.63%. That’s almost a 1% increase over a year ago and the highest level we’ve seen since 2011. 3. Affordability and demand are dropping. Combined with current high prices, the rise in mortgage rates is causing a decrease in affordability. Earlier in the year, affordability was estimated to be at a 10-year low. Not surprisingly, this is having an effect on demand, with mortgage applications down 16% over last year. This all seems to be part of a fundamental shift in the market.Home price growth is slowing, and home prices might eventually start to decrease. Mortgage rates are expected to continue to grow, and if that happens, we will slowly but surely enter a market where buyers, not sellers, have the final say.So what does this mean for you? If you’re looking to sell, it means the time to act is now. I still see a lot of demand for homes. However, over the next several months, it’s likely that national trends will catch up with us here as well. “We will slowly but surely enter a market where buyers, not sellers, have the final say.” Fortunately, you have an opportunity to act before this happens.If you decide to list your home this winter, you might benefit from the current high prices as well as the solid demand around Dallas-Fort Worth. In other words, you could sell quickly and for top value. In case you’re considering it, you can get more info on what your home is currently worth by using this home value calculator, which takes into account recent Dallas-Fort Worth sales. If you’re ready to get the process rolling, give me a call at (817) 637-4658. I’m always here to help!
Our market is beginning to shift in favor of buyers, and today we’d like to give you an update on why this is the case. If you’ve been looking to buy a home for a while, you’ll want to hear this. You see, for several years now, we’ve been in a definite seller’s market. Home prices kept rising. Demand was high. Bidding wars were common. But now, there are clear signs that the housing boom is coming to an end. Home price growth is slowing; it’s currently the lowest it’s been in two years. Price cuts are becoming increasingly common, as an average of 17% of home listings saw their price decrease—a four-year high. Mortgage applications are down over 16% from a year ago and homes appear to be selling more slowly than at the start of the year. In other words, the tide is turning, and we seem to be entering a buyer’s market. So, if you’ve been looking to buy a home for a while, should you act now or should you hold out for conditions to become even more favorable? “The tide is turning, and we seem to be entering a buyer’s market.” I personally don’t believe you should wait for the market to shift any more. Instead, the time to act is now. Here are two reasons why: The first reason is the ongoing rise in mortgage rates. Mortgage rates have increased by about 1% over the last year, and they now stand at the highest level since 2011. The thing is, this trend is likely to continue, with mortgage rates expected to increase through 2019 as well. Of course, more expensive mortgage rates could easily cancel out—or even overwhelm—any decrease in home prices. That’s why it makes sense to move now, while mortgage rates are still relatively low. The second reason to act is the time of the year. Home prices at this time are typically the lowest they will be all year. Now is also the best time of year if you want to avoid competition, which can drive prices up and make it harder to get your dream home. Combine this with the way mortgage rates are moving, and now might actually be an optimal moment to start looking for a new home. The situation could be much less favorable in six months to a year down the line. The good news is, several beautiful and surprisingly affordable homes have recently come on the Dallas-Fort Worth market. Click here to see a complete list of homes in our area. And if you have any questions about the current real estate market or you’re ready to start seriously searching for homes, give me a call at (817) 637-4658. I’m here to help.
Today on Tarrant County Eats, we took a trip to DFW’s newest entertainment venue: Texas Live! Welcome back to Tarrant County Eats! This time, we’re coming to you straight from DFW’s newest entertainment venue: Texas Live!. The Live! Arena, the venue where all the action takes place, has nine restaurants, five live-music stages, two massive video feeds from the AT&T Stadium and the Rangers Ballpark, and over 30 bars where patrons can come to watch the game. We’re going to show you around today. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific sections at your leisure: 0:25 - An introduction to Texas Live! 1:08 - Audio/Video technician Dakota Jimenez explains the technology behind Texas Live! 2:02 - Chief Operating Officer Jim Watry shares the origin of Texas Live! 3:19 - Jim explains what Texas Live! has to offer 4:17 - Jim tells us about his vision for the future of Texas Live! 5:33 - How Texas Live! provides great pre- and post-game experiences for sports fans 6:12 - Why the atmosphere varies throughout the venue 7:01 - How Texas Live! is utilized for various public events To find out more about Texas Live!, view the restaurants they house, or find events that pique your interest, call (817) 852-6688 or visit their website. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
For this episode of Tarrant County Eats, we sat down with Chef Quincy of Twisted Root Burger Co. in Mansfield. He shares the history of the restaurant, shows us the process of making the perfect burger, and informs us on what makes their burgers different. To find out more about their menu and hours, call (817) 435-8414 or visit their website today!
Our new series, Tarrant County Eats, has just launched. For our first episode, we’ll be featuring a great local spot in Downtown Mansfield: Dirty Job Brewing. Welcome to our new series: Tarrant County Eats! To kick things off, we’re taking a behind-the-scenes look at a great new brewery in Downtown Mansfield: Dirty Job Brewing. According to founder Derek Hubenak and co-owner Justin Watson, they got their start in brewing years ago. The two of them have been friends (and big fans of beer) for quite some time now, so going into business together in pursuit of their passion just made sense. Now, a few years and several local awards later, what started off with just a humble home brewing kit has grown into the popular local business Derek and Justin are running today. As for why they chose Downtown Mansfield, Derek and Justin say it was an easy and obvious decision. The revitalization of this historic area was a major draw for them both. “The place is great, [and] the community is awesome,” says Derek. When they saw everything Downtown Mansfield had to offer, they knew right away that, in Derek’s words, “this is home.” After hearing their backstory, it was time to go see where the magic happens and, after that, have a taste for ourselves. “If you haven’t already checked them out, then it’s time to take a trip to Downtown Mansfield and try their brews for yourself.” You can see a full breakdown of their brewing process in today’s episode starting at 3:23 in the video. The four beers we tried in today’s episodes were just a small sampling of the 44 main recipes Dirty Job Brewing cycles through on a seasonal basis. You can see how our tasting experience went down in the video at 4:09. All in all, we couldn’t have a better experience at Dirty Job. If you haven’t already checked them out, then it’s time to take a trip to Downtown Mansfield and try their brews for yourself. And be sure to come thirsty. If you have any other questions about Dirty Job Brewing you can visit their website where you’ll find hours, their list of beers, contact info, and more. And, as always, if you have any other questions or would like more information from our team, feel free to give us a call or send us an email. We look forward to hearing from you soon.
Before hiring a real estate agent, you need to do some vetting. Here are the questions that we recommend you ask. Buying or selling a home is a major project. Having a trustworthy agent to guide you through that project can be an invaluable asset. But how can you vet potential real estate agents to see who would be a good fit for you? Here are three important questions you should ask to get started:1. “How many homes have you sold in the last 12 months?” Many real estate agents will tell you the number of years they have in the business. That’s useful, but their recent activity can be more relevant than their total experience. Asking this question can tell you how well they know the market, as well as how successful you can expect them to be in your case.Bonus question: You will probably want to ask whether the agent works primarily with buyers or sellers because many agents specialize to some extent in one or the other.2. “Can I have the contact info for your last three deals?” Anybody can say they are a marvelously effective real estate agent. But talking to actual past clients can help you decide whether this is true or a bunch of hot air. When you do talk to a real estate agent’s previous clients, you don’t need to get too fancy to get useful information. Simply ask them to share their experience.3. “What is your strategy for my specific needs?” As a buyer, you will want the agent to explain how they will search for your new home, how many homes you can expect to see, and how the agent handles multiple offers. As a seller, you will want to know how and where the agent will advertise your home. “You want to get a sense that this agent is somebody you can trust.” So what kinds of answers should you look for to these questions?Ideally, you will want to get a sense that this agent is somebody you can trust and that you feel comfortable working with.At the same time, you will want them to be experienced and diligent, as evidenced by recent successful deals and a concrete plan of action for your situation.If you ever want to know how I measure up on these questions, you can always give me a call or send me an email. I’d love to hear what your specific situation is and whether I would be a good match to help you in the current Mansfield real estate market.
Most real estate experts can agree that the best time to sell a home is in the spring months. Now we have the data to prove why. Which month is the best time to sell one’s home? We’ll be discussing the answer to this question, and the controversy around it, today. Real estate experts across the country agree that spring is the best time to sell your home. However, do the facts support this view? Real estate web platform Homelight wanted to find the definitive answer, so they looked at different markets to see when the best time was to sell a home. What they found was that spring did come out on top in many situations, however, not all of them. For example, the best month to sell in Greenville, South Carolina tends to be July, when the area’s average sales price has been shown to increase by 150%. In Breckenridge, Colorado, February was the winner with a 106% increase over the average. And homes in Tomball, Texas sold in October for 133% more than the average for the year. So, what does all this mean for you? If you want a broad recommendation for when to sell your home, list your home right now at the very start of spring. It is a recommendation that can’t be beat. “List your home right now at the very start of spring.” While spring is best for selling your home, there are a lot of details that need to be taken into consideration when doing it. Weather is a big one. Recent real estate trends in the area, as well as the specifics of your own home and the kinds of homebuyers it is likely to attract, are also important factors. For example, while there are fewer homebuyers in the fall and winter, they tend to be more serious and eager to find a place before the holidays. In the summer there may be added pressure because of school returning to session. In short, it’s not as simple as saying that spring is the best time to sell for everyone. If you have any other questions about when to list your home, please feel free to contact me anytime. I look forward to speaking with you soon.
When it comes to approaching today’s competitive market with confidence, having a pre-approval in hand is a home buying must. There is no doubt about it: It is a very competitive market today if you are looking to buy a home. Inventory is near record lows. At the same time, more and more homebuyers are entering the market. This means you will need every advantage to grab that perfect home when you do find it. One no-brainer aspect of preparing to buy a home is to get pre-approved for a mortgage. After all, getting pre-approved informs you of how much you can borrow. It is something you will need to do at a later point anyway. In our current competitive market, it can mean the difference between having your offer accepted or having to watch your dream home go to somebody else. But here is the crazy thing: in spite of all these good reasons, less than 10% of buyers who get a mortgage get pre-approved by the lender who originated the loan. “You can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house.” In other words, you can definitely get a leg up on the competition by starting your home search at the loan office rather than at the open house. In general, here’s what you will need: 1. Proof of income. At a minimum, lenders will want to see pay stubs from the past 30 days showing your year-to-date income, two years of federal tax returns, and two years of W-2 forms from your employer. 2. Proof of assets. You will need to present statements from your checking, savings, or investment accounts to prove that you have funds for the down payment and closing costs. 3. Good credit. Most lenders reserve the best rates for homebuyers with a credit score of 740 or above. You can still qualify for a mortgage with a lower credit score, but a good lender will also recommend ways to improve your credit and qualify for a better loan. These are the most common things you will need to get pre-approved, though your lender might want to see some other documents as well. Once you are pre-approved, what happens then? The lender has committed to lending you a given sum of money for a certain period of time (typically 90 days). This will make the buying process faster, more convenient, and less stressful. Most importantly, it will make it more likely that your offer for that perfect home gets accepted. If you have any other questions, would like more information, or are ready to start your home buying process in earnest, feel free to give me a call or send me an email. I look forward to hearing from you soon.
Many homeowners are tapping into their home’s equity. Here’s why. Do you notice that pile of cash you’re sitting on right now? I’m not joking. 42 million homeowners with mortgages have equity in their homes right now. When added up, tappable home equity recently reached $5.5 trillion. That’s about $3 trillion more than when the housing market bottomed out in 2012. “Tappable equity” here is defined as the amount a homeowner could borrow before they hit 80% of debt to value. Not surprisingly, many homeowners are looking to tap into these hidden reserves. As just one sign of this, mortgage applications are up 4.1% this January over last year. That’s mostly been driven by mortgage refinances, as homeowners are looking to take advantage of low (but increasing) rates to take out some of that equity as cash. Another option to a mortgage refinance is a home equity line of credit (HELOC), a kind of checking account on your home. While HELOCs have been growing in popularity, they’ve hit a slight snag recently because the new tax bill eliminates the deductions for interest paid on such lines of credit. “Many homeowners are tapping into their equity now.” What are homeowners who tap into their equity actually doing with the extra cash? Most people are spending it on making their homes even more valuable. According to one survey, 80% of borrowers would consider using that cash to renovate their home. However, other homeowners are using their home equity to cover education expenses, to pay down other debt, or investing in stocks, real estate, or cryptocurrencies. So should you tap into your home equity? I can’t say either yes or no. It’s something you’ll have to decide on your own. However, if you have any questions or would like us to take a look at your specific situation to see what your best move is, we would be glad to help. Don’t hesitate to give me a call or send me an email any time.
Here are a few things to know about the real estate market as we head into spring. It should be a great season. Each year, spring is the hottest season for real estate. However, spring 2018 looks to be an especially important time for anyone looking to sell a home. Here are a few facts to get you thinking:1. Demand continues to outstrip supply. The number of homes on the market is near an all-time low, and listings of existing homes have plunged 8.1% over the past year. While this means that the total number of sold homes has actually decreased, demand continues to be strong.2. Home prices are still surging. Home prices are up 6.3% year over year in the last quarter for which we have data. It’s not just Mansfield that’s doing well—areas around the country keep posting record highs for home values.3. Mortgage rates are finally rising. The Fed increased its benchmark rate several times over the past year, but this did not translate to an immediate increase in mortgage rates. However, mortgage rates do seem to be finally responding, and the 30-year fixed rate is now hovering around 4.5.%. While this is a four-year high, it is still near historic lows and makes mortgages affordable to would-be buyers. “It’s not clear how long this favorable situation will last.” Put together, what do these facts mean if you are considering selling your home?First off, they mean that right now is a very good time to sell. That’s because of the strong demand and the high level of current prices. In other words, if you were to put your home on the market right now, you could get top dollar, and you would be able to sell quickly and without hassle.Second, it’s not clear how long this favorable situation will last. As I mentioned, mortgage rates are on the rise. Currently, that is not enough to dampen demand. But if rates continue to rise, it might drive more buyers out of the market, eventually driving down prices and making it more difficult to sell your home.Another thing to consider is the effect of the new tax plan. It’s not entirely clear how it will affect the real estate market, but odds are good it will make home buying more expensive. That’s because of a new cap on state and local tax deductions, which could combine with higher mortgage rates to push more buyers out of the market.To everything sum up, if you have been considering selling your home, consider selling now. The current moment is very favorable, but it won’t last forever. If you have any questions for me about how to get started buying or selling a home, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you soon.
We’re in for a very competitive stretch in the real estate market. First off, mortgage rates have started increasing. For the first time since last summer, the 30-year average mortgage rate is now over 4%. This follows a long period when mortgage rates were near record lows. This latest increase might be more than just a temporary bump. Some experts predict that we’ve seen the last of sub-4% mortgage rates, thanks to strengthening inflation and broad-based economic growth. Second, mortgage applications are also increasing. Applications were up in January by 4.1% compared to last year. This has been led by people looking to refinance their homes, while mortgage applications by homebuyers remained at steadier levels. Third, housing supply continues to be increasingly tight, with 10% fewer homes on the market than a year ago. “Homebuyers are looking to lock in the current, low rates.” What do all of these numbers mean for you? The growth in mortgage rates shouldn’t affect the number of eager homebuyers very much because there is so much more demand than supply right now. However, this rise in mortgage rates might actually reduce the number of homes for sale even further. Homebuyers should be looking to lock in the current, still fairly low mortgage rates. When mortgage rates increase further, homeowners will have less of an incentive to sell their current home and buy a new home, which will require a mortgage at a new, higher rate. If you have any questions about where the current rates are at or you have any real estate needs we can assist with, please don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.
Do you notice that pile of cash you’re sitting on right now? I’m not joking. 42 million homeowners with mortgages have equity in their home right now. When added up, tappable home equity recently reached $5.5 trillion. That’s about $3 trillion more than when the housing market bottomed out in 2012. “Tappable equity” here is defined as the amount a homeowner could borrow before they hit 80% of debt to value. Not surprisingly, many homeowners are looking to tap into these hidden reserves. As just one sign of this, mortgage applications are up 4.1% this January over last year. That’s mostly been driven by mortgage refinances, as homeowners are looking to take advantage of low (but increasing) rates to take out some of that equity as cash. Another option to a mortgage refinance is a home equity line of credit (HELOC), a kind of checking account on your home. While HELOCs have been growing in popularity, they’ve hit a slight snag recently because the new tax bill eliminates the deductions for interest paid on such lines of credit. “Many homeowners are tapping into their equity now.” What are homeowners who tap into their equity actually doing with the extra cash? Most people are spending it on making their homes even more valuable. According to one survey, 80% of borrowers would consider using that cash to renovate their home. However, other homeowners are using their home equity to cover education expenses, to pay down other debt, or simply for investing, whether in stocks, real estate, or even cryptocurrencies. So should you tap into your home equity? I can’t say either yes or no. It’s something you’ll have to decide on your own. However, if you have any questions or would like us to take a look at your specific situation to see what your best move is, we would be glad to help. Don’t hesitate to give me a call or send me an email any time. I look forward to hearing from you!
Student loan debt continues to grow in size and share of the economy. Currently, the U.S. has student loan debt of $1.4 trillion, which accounts for 10% of all outstanding debt and 35% of non-housing debt. How does student loan debt impact millennial homebuyers? A new joint study on student loan debt recently released by the National Association of Realtors and American Student Assistance® shows that while the amount of debt has risen, the rate of homeownership has fallen, especially among younger homeowners. In fact, in spite of being in the prime age to buy their first home, the majority of millennials with student debt do not currently own a home and do not plan on buying a home for up to seven years, as debt delays their purchase. Only 20% of millennials currently own a home. 28% rent with roommates, 15% rent on their own or from friends and family, and 15% live with friends and family without paying rent. Of the 80% of current non-owners, 83% believe that their student loan debt has affected their ability to buy a home. The median student debt load is $41,200, which suprasses the median annual income of $38,000. 79% borrowed to finance their education at a four-year college, and 51% are repaying a balance of over $40,000. A significant percentage, 17%, are paying a balance over $100,000. “85% of respondents say student loan debt hurts their ability to save for a down payment.” 85% of survey respondents believe that they are delayed due to their inability to save for a down payment because of student loan debt. 74% of those do not feel financially secure enough to buy a home, and 52% cannot qualify for a mortgage. 48% of younger millennials born between 1990 and 1998 cannot qualify for a mortgage due to their debt-to-income ratios, compared to 57% of older millennials born between 1980 and 1989. If a student loan borrower did not have to pay toward student loan debt, more than three-fifths would put the extra money toward a long-term savings investment or purchase of a home. For those millennials with student loan debt who do own a home, 28% face housing hurdles and are unable to sell their existing home and buy another property. They face a variety of problems: 21% believe that it’s too expensive to move and upgrade to a new home, 4% have trouble with credit, 3% are underwater on their home. 42% of those with a student loan debt of more than $100,000 and 33% of older millennials are in a situation where they would rather sell and purchase another home but cannot. You can download the 2017 Student Loan Debt and Housing report on our website at www.TRGDFW.com. If you have any other questions about real estate, just give me a call or send me an email. I would be happy to help you!
Today I’m here with Trevor Kerr from Gateway Mortgage to help me answer a few questions about financing rental properties. Q: How much money does it take to buy a rental? A: It used to be that you had to put 20% down. You can now buy a rental with a minimum payment of 15%. However, you will have to pay a mortgage insurance premium until you get 20% equity in the property. For example, if you are looking for properties between $150,000 and $200,000, the average investor might purchase a $175,000 house for $35,000 down to avoid the mortgage insurance. If you put 15% down, that would be $25,000 Q: What other costs can the buyer expect at closing? A: You will have to pay for your down payment, closing costs, and prepaids. Most investors who put 20% down on their house choose to handle their own escrow account to alleviate some of those upfront costs. Either way, if you are looking for a home in that $150,000 to $200,000 price range, you can expect an additional $4,000 to $6,000 out of pocket. As a property manager, we always recommend that our investors handle their own escrow. It’s just one less thing to worry about. You don’t want to miss a tax or insurance payment, so handling your own escrow can give you peace of mind, especially if you are a new investor. Q: How do you qualify for another home if you already have a mortgage on your primary residence? A: The great thing about investment properties is if you qualify for your current house, car payments, or other debts, you generally don’t have to worry about qualifying for two houses. The lender will give you credit for the future rental income you will derive off the rental property. In most cases, if you buy a $175,000 and put 20% down, your payment will be somewhere around $1,100 or so, with taxes and insurance. Depending on the neighborhood, you can lease that house for $1,500 to $1,700 a month. The positive cash flow offsets that payment. That is the case throughout North Texas, so qualifying is rarely a problem. 99% of the time, if you qualify for your current debts and you have the down payment, qualifying for an investment property won’t be an issue. Q: Is investing in real estate that easy? A: Yes! You just have to have some money and find the right Realtor. Q: If you are moving up into a bigger house, how can you turn your current property into a rental? A: This is another great way to start investing in real estate. A big advantage of turning your initial primary residence into a rental property is that the down payment will be smaller. When you buy your replacement home, you may only need 3% to 5% down. However, in order to count the rental income you anticipate from your current property as income to qualify for your next, bigger home, you have to have at least 25% to 30% equity in the current home. So, talk to a Realtor to find out what you can sell your current home for, and talk to a lender about pre-qualifying for your next home before you head into that game plan. Of course, there are a couple exceptions. A VA buyer doesn’t have to have that equity position. Each loan program is a little different, but in general, you need 25% to 30% equity in your current property if you want your future rental income to be used when qualifying for your move-up home. Q: Why doesn’t everybody do this? A: Everyone should! Investing in real estate is a great way to build wealth for you and your family. It doesn’t matter how long you plan on holding a property. In general, a buy and hold strategy is a fantastic way to build wealth. “Investing in real estate is a great way to build wealth for you and your family.” If you have any questions for Trevor, you can reach him at 972-822-7408. As always, if you have any real estate questions, just give me a call or send me an email. I would be happy to help you!
Today I’m joined by special guest Trever Kerr from Gateway Mortgage for our third “Mortgage Minute.” Our topic this time is VA loans. The VA loan is an amazing loan product helping veterans afford homes. As many people know, the product is 100% financing. But the best thing about VA loans is that there’s no monthly mortgage insurance charge. Usually when you put down anything less than 20% on a home, you will be required to pay a monthly mortgage insurance fee. However, this is not the case with the VA loan. The VA loan is 0% down and doesn’t charge any monthly premium. This creates great savings. Most veterans I’ve come across have the assumption that they can only make use of the VA loan once in their lifetime. While it’s true that the VA loan can only be used for primary residences, there are instances where it can be used twice. As long as the amount spent on the home is over $144,001, the VA loan may be used twice. It seems like an unusual number, but it’s simply the way things have been set up. There is a cap for the loan, though. Usually on a second home, this cap will sit at about $297,000. That aside, there are other benefits to this loan product. Veterans with a disability don’t need to pay a funding fee, which helps save money on closing costs. “This loan can help put veterans into homes with next to nothing.” With this loan, Trever and I have helped to put veterans into homes with next to nothing. Sometimes, they even get a small amount of money back at the closing table. Locally, the Texas Vet Program is an amazing extension of the VA loan. This program does charge a participation fee, but ultimately saves thousands in the long-term for veterans. The participation fee depends on the sales price of the home. However, unlike the VA loan, the Texas Vet Program does not base your interest rate on your credit. The same low interest rate is offered for all veterans, as long as they can qualify. For disabled veterans, the interest rate is even lower at just 3.03%. If you have any other questions or would like more information, feel free to give either of us a call or send us an email. We look forward to hearing from you soon.
Today, we’re going to talk about five ways you can get involved with investing in real estate. Investing in real estate is no longer restricted to the super wealthy alone. According to a recent survey, real estate investors now make up to 15% of the population—that translates to almost 50 million individuals who invest in at least one property other than their primary residence. And real estate investing is on the rise. In fact, 89% of US investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation. Are you curious about investing in property yourself? Here are five different ways you can get started: 1. Buy and rent. This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this type of investing because rental rates are on the rise—up 8% since last year—while mortgage rates remain very low and affordable. The downside of this investing approach is the time and work that goes into managing and maintaining your investment, if you choose not to use a property management company. I always recommend that investors do use property management companies, and you can call us for more information about ours. 2. Buy and sell. Also known as home flipping, this involves buying a property and reselling it soon after for a profit. There are two alternatives: you can simply wait for the price to increase, or you can make renovations or improvements to force the value to appreciate. Either way, home flipping has offered a record-breaking 49% return in 2016 3. Real estate investment groups. These are organizations that buy a set of properties and then sell them to individual investors. The main benefit of this approach is that you typically do not need to act as the landlord, because the investment group handles property management for you, for a fee, of course. 4. Crowdfunding sites. Recently, there has been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment, while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees, which can eat into your profits. 5. REIT (real estate investment trust). These are like mutual funds for real estate. They typically pay higher dividends—as much as 90% of their profits. However, they also do not offer many of the other benefits of investing in real estate, such as increased leverage and tax benefits. “89% of US investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation.” Altogether, each of these investing options offers a trade-off between possible profits, risks, and costs. The one constant is that you can minimize your risks with due diligence and by consulting with an experienced partner. If you’re interested in buying property to rent or sell, check out some of the great listings in the area right now, and if you have questions about real estate investing or you’re looking for advice, feel free to give me a call.
Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year and now makes up a $324 billion market. That’s a giant amount—more than a quarter of the total real estate spending in the entire country. But out of all the possible remodeling projects out there, which ones actually pay off the most? According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns: 1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return you should keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment. 2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, it’s definitely worth it. Not only will it pay for itself, but it should give you an added 80% return. (If you already live in Arizona and are selling your home, you don’t need to worry so much about the next two items, but if you’re selling in other parts of the country before moving here, they’re definitely something you should consider.) 3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck. 4. Your siding.Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000. 5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look. Homebuyers are well aware of this, and they are willing to pay accordingly. That’s why a typical window replacement should yield at least a 70% return on your investment. These are the top remodeling projects in terms of ROI. Clearly, some of them will make more sense for your home than others. However, if you’re considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you’ll be able to get. “Just one of these projects could add tens of thousands of dollars to the price you’ll be able to get for your home.” Lastly, I want to tell you about a new program we offer our clients called the Max Value Program. If you’ve been contemplating selling your home but don’t have the time or money needed to make these repairs or updates, this might be perfect for you. By signing up, we’ll come to your house and do the repairs and updates we think it needs to make it as valuable as it can be in your area. This will allow you to get much more for your home than the needed repairs. If have any questions or want any additional advice about which home remodeling projects are right for you or you’re interested in the Max Value Program, don’t hesitate to give us a call. We’d love to help you.
If you’ve been considering selling your home, now is the time to do it. This summer is shaping up to be one of the most favorable seasons in recent years to sell your home quickly and for top dollar. However, this moment won’t last forever. Mortgage rates are still very low. Right now, the 30-year mortgage rate has dipped to 3.9%, which is far from the 4.5% experts predicted for 2017. These continuing low mortgage rates translate into more affordable homes and eager buyers looking to lock in these low rates while they last. We’ve seen this eagerness in action lately. Demand is so strong that home sales actually increased in both April and May, despite the fact that the supply of homes on the market is currently at a seven-year low. As a result of strong demand and tight inventory, home prices reached a record high this May, rising 6% compared to May 2016. It was the 63rd straight month of year-over-year gains. What does this mean for you? These conditions make it very easy for you to sell your home right away for a very favorable price, but they also point to a correction which might appear soon in our market. For example, the increase in sales numbers is likely to push up mortgage rates, making it less affordable for buyers to buy. The ongoing Federal Reserve rate hike might contribute to this as well. “If you’re thinking of selling your home, the time to do so is now.” Furthermore, the continuing demand and high home prices will eventually spur construction of new homes. The record-high confidence levels reported recently the National Association of Homebuilders support this. All this new construction will certainly impact the growth of home prices, and might even drive them down. So, again, if you’re thinking of selling your home, the time to do so is now. If you have any questions about our current market or need help getting started on selling your home quickly and for top dollar, don’t hesitate to give me a call at 817-637-4658 or send me an email at northtexasre@sbcglobal.net. I’d be happy to help.
What’s the biggest obstacle to homeownership? According to a recent survey, “saving enough for a down payment” comes at the top of the list. A whopping 55% of prospective homebuyers cited this as their main stumbling block. With the continuing growth of home prices, things aren’t getting any easier. In fact, homeownership rates reached a 20-year low last November. It wasn’t always like this. A decade ago, many lenders were offering easy, no-money-down mortgages. However, after the financial crisis, mortgage standards have become more restrictive. A typical mortgage now requires a 20% down payment. Here’s the good news. If you have decent credit and a steady income, you might be qualified for a number of specialized programs that require no or very little down payment. Here are a few of the top options. First, there’s the USDA loan, which is valid for homes in certain regions, such as rural and suburban areas. With zero money down and lenient credit requirements, the USDA loan can be a great choice for many homeowners. Second, there’s the VA loan, which you can apply for if you or your spouse served in a branch of the military. It’s possibly the most generous zero-money-down mortgage because of low interest rates and low closing costs. Third, there’s the FHA loan. It does require a 3.5% down payment — still drastically more achievable than the 20% required for a conventional mortgage. Finally, there are a number credit unions and first-time homebuyer programs that might apply to your particular situation. “There are many ways to make owning a home a reality.” There’s one important thing you should know. If you get one of these no-money-down mortgages, chances are good you will be required to pay private mortgage insurance, which can drive up your monthly payments. Fortunately, private mortgage insurance will disappear after your mortgage balance is under 80%. Also, the money you do pay will be tax deductible in most cases. In short, there are lots of options to make owning a home a reality for you, even if you haven’t saved up tens of thousands of dollars. If you have any questions for me or you’re looking to buy or sell a home in Mansfield, give me a call or send me an email. I look forward to hearing from you.
If you have a pet and you’re looking to sell your home, we have some helpful advice for you. The good news is, many homebuyers are looking for a pet-friendly home. Two out of three of us have a pet, and 61% of pet owners say they have trouble finding a home that is a good match for their pet. In fact, a recent survey estimates that 31% of animal owners frequently don’t put in an offer because a home would not suit their pet. This means that if your home is a good match for a pet, it will be attractive to a large pool of dedicated animal owners. On the other hand, 67% of Realtors also estimate that actually having a pet in your home can make it harder for you to sell. So what can you do? Here are three things I typically recommend: 1. Repair any damage. Floors, walls, doors, the yard — these are some typical areas that pets love to chew, scratch, and dig up. Repairing this damage is an investment that will pay for itself many times over in terms of a higher selling price. 2. Get a professional to remove pet odors. Many pet owners are less sensitive to odors in their home than prospective buyers will be. That’s why you should hire a professional cleaning crew to clean any carpets, rugs, or upholstery that have absorbed pet odors. Once you’re done with the cleaning, ask a friend or your Realtor for a sniff assessment to make sure the job is really complete. 3. Take your pet out during showings. Some people are afraid of animals. Others are allergic. And regardless of the time, money, and effort you’ve put in to clean and repair your home, many buyers will be prejudiced by knowing that a pet currently lives there. That’s why I recommend taking your pet out during showings and also removing any pet objects such as toys, food bowls, or scratching posts. “The good news is that many buyers want a pet-friendly home.” By following these three simple guidelines, you will be able to sell your home for top dollar, whether the buyer is a pet owner or not. And in case you have any questions or concerns about preparing your home for a sale, give me a call. I’m here to help. In the meantime, have a great day, from all of us at Teixeira Realty Group.
Mortgage interest rates are one of the hottest topics with homebuyers right now. Many buyers are currently wondering whether they should wait for interest rates to go back down, but they are only expected to go up. The Federal Reserve has already increased rates and signaled that there are more increases to come. The days of 3% interest rates are gone right now, but the good news is that rates are still at historic lows at about 4% currently. Here’s an example of why it’s smart to buy now and lock in a low rate rather than waiting six months or a year. For a $250,000 house under current rates, your principal and interest payments would be about $1,189 a month. Conservatively estimating that the house will appreciate 5%, waiting a year would mean the same house would cost about $262,500. If interest rates went up 0.5% this year as expected, the same house would cost you an additional $136 a month. “Both values and interest rates could tick up if you wait to buy a home.” If you’re selling your house, remember that as rates tick up, the buyer pool for your home shrinks since fewer people will qualify for your home at an increased price. If a buyer’s income doesn’t go up, they might be priced out of that house. Buying a home sooner also means you will start building equity sooner in addition to getting it cheaper. There’s really no reason to wait and watch interest rates and home values continue to go up. If you have any mortgage or financing questions for Trever, you can call him at (972) 822-7408 or email him at Trever.Kerr@GatewayLoan.com. If you have any questions about the Mansfield real estate market or you’re thinking of buying or selling a home, you can always give me a call or send me an email. I’m here to help.
If you’re thinking about buying a home, your first step before actually looking at homes should be to understand the mortgage lending process. To help me broach this topic, I’m joined for the very first time today by my preferred lender, Trever Kerr of Gateway Mortgage. Trever has been in the business for 15 years, and I’ve been working with him for over 10 years. He’s the only lender I refer to my clients, and Gateway Mortgage makes many exceptions for their clients that other lenders can’t. The first part of the mortgage lending process is to find out whether you qualify for a loan. If you don’t qualify, your lender can tell you what you need to do to get qualified down the road. In addition to knowing what you qualify for, you also have to work with your lender to know what your comfort level is as far as what your monthly payments will be. Even though you might qualify for a $300,000 home, you might only want payments on a $200,000 home. If you don’t speak to a lender, you won’t know what your roadmap to homeownership is. Some people think they can qualify when they can’t, while others think they can’t qualify when they actually can. These people do the wrong things for their credit thinking they’re doing the right things, like paying off their collections once they think they’ll purchase a house soon. Trever and I both see this happen all the time. “If you don’t speak to a lender, you won’t know what your roadmap to homeownership is.” Paying credit repair companies to help you fix your credit score isn’t necessarily the best idea, either. Many of these companies end up doing things that hurt their customers. To be clear, I’m not bashing the credit repair industry as a whole. There’s a place for it for some people, but overall, a lot of it is unnecessary, especially when you can call an expert like Trever and get his advice for free. Your loan qualification guidelines in our current market can depend on the type of loan product you intend to get, but you can generally qualify with a credit score as low as 600. If you don’t have the cash for the down payment and closing costs, there are different gift programs available for first-time homebuyers. Lastly, your debt-to-income ratio must also be in line. As a general rule of thumb, a debt-to-income ratio for the purchase of a home should be 35% of your total gross income before taxes. The second part of that ratio is the 45% of your total gross income you’re allowed to use to cover your house payment, taxes, insurance, and other bills. I want to thank Trever for helping me today. Stay tuned for more videos featuring both Trever and I where we’ll talk more in depth about credit scores, debt-to-income ratios, and other facets of the lending process. If you have any questions for him, you can call him at (972) 822-7408 or email him at Trever.Kerr@gatewayloan.com. If you have any questions for me, please feel free to give me a call or shoot me an email. I’d be happy to help you.
If you’re thinking of selling your home, you need to immediately start preparing your neighbors. Here’s what I mean. Home appraisals are 5% to 10% lower if you have a so-called “bad” neighbor with an unkempt yard or poorly maintained exterior. That shouldn’t be surprising when you consider that 63% of homebuyers drive by a home before coming for a showing. Make no mistake—these potential buyers won’t just be impacted by the exterior of your home, but by the state of your neighborhood as well. On the other hand, your neighbors can also be your best friends in selling your home. They can provide you with free advertising, they can promote the neighborhood to inquiring buyers, and they might even actively work with you to help you achieve a higher price. Here are three tips on working with your neighbors to achieve a faster, more profitable sale. First, set up a special open house just for your neighbors. Many neighbors will be curious for a peek inside your home. You can make the deal even more enticing by providing some free snacks and drinks. Use this open house as an opportunity to show off your home, as well as to build better relationships with your neighbors so they’ll be more inclined to help you during the sale process. One way to do this is to be forthcoming with information, including the price you’re aiming for, renovations you’re planning, or showings that might eat up local parking for an afternoon. Get your neighbors involved, ask them for suggestions, and ask them how you can make the process easier for them. “Your neighbors can be your best friends when selling your house.” Also, don’t forget to mention that if you are successful in selling your home, this will positively impact the values of all homes in the neighborhood. Second, organize a neighborhood cleanup party. This is an opportunity to boost the image and value of your entire neighborhood, as well as to further cement good relations with your neighbors. You can also use this as a discreet way to suggest small home improvement projects to your neighbors. Which leads me to the third and final tip. You can also offer to help with—or even pay for—any upgrades you’d like to see on your neighbors’ homes. For example, if you’re having a landscaping crew come as part of your sale preparations, ask your neighbors with the overgrown lawn if they’d be ok with the landscapers also taking care of their yard for free. These kinds of small investments can be worth thousands of dollars in terms of your final sale price. If you want to get an estimate of what your home is currently worth without any of these upgrades or you need more advice on dealing with your neighbors in preparation for a home sale, just give me a call or send me an email. I’d be happy to help you.
If you bought your first home in 2016, then you are in for a very new tax experience this year. Why? After you buy a house, it makes sense to itemize your taxes. The good news is that itemizing your taxes is surprisingly easy to do. There are a few things you need to keep in mind in order to save the most on taxes while minimizing your filing headaches. First of all, you need to locate your closing disclosure agreement. This is part of your closing paperwork provided by your lender. Then, you can add up the four main real estate deductions: Loan costs and fees: These are the different fees from your lender spread throughout the closing disclosure agreement. Different lenders will call them by different names, so look for terms like “application fee,” “underwriting fee,” and “loan cost. Mortgage interest: You can deduct the entire interest portion of your mortgage payments. This will probably be your biggest deduction, especially at the start of your mortgage when interest rates are highest. Property taxes: You can deduct property taxes for the part of the year in which you owned the home. Amazingly, you can claim this deduction even if you managed to negotiate for the seller to pay the full year’s property taxes. Mortgage insurance: If you put less than 20% down when you bought the house, you probably have to pay private mortgage insurance. The good news is that PMI is tax deductible. Keep in mind that private mortgage insurance is completely different from homeowners insurance, which is not deductible. “You can deduct the entire interest portion from your monthly mortgage payments.” There are a few other items that you might be able to itemize when filing your taxes. For example, if you gave away furniture or appliances before moving in, those items can be deducted as a charitable donation. If you work from home, then you can claim additional deductions from that. The standard deduction for individuals is $6,300 while the standard deduction for married couples is $12,600. If your total is less than the standard deduction, then congratulations; you will save more money this year by itemizing your taxes. Although most of these tips are for new homeowners, other homeowners can also save money by itemizing their taxes. If you have any questions about filing taxes as a homeowner, or if you would like to know more about becoming a homeowner in 2017, give us a call. We would be happy to help you!
If you’re concerned about the recent rise in mortgage rates, I want to reassure you—things are much better than they might seem. Yes, mortgage rates have certainly risen. From a low of 3.44% last August, the 30-year fixed mortgage rate reached 4.12% recently. This increase means that if you took out a 30-year mortgage on a $250,000 home, you’d pay almost $100 more each month. Your overall mortgage cost would be almost $35,000 higher. That’s a sizeable change, and it’s got some people nervous about a possible slowdown in the real estate market. However, the current rise in rates is unlikely to affect the real estate market any time soon. The rates we saw last year were an all-time record low. Historically, rates have been far higher. Ten years ago, the same 30-year mortgage rate stood at 6.34%. For much of the 90s, rates hovered between 7% and 10%. Throughout the 80s, average annual rates never dipped below 10%. In 1982, they were as high as 16%. When viewed in this context, it’s clear that current mortgage rates are still very low, and that the real estate market is actually in a very good place. So what does this mean for you? First, if you are looking to buy a home, the current low rates offer a great opportunity to afford an amazing home. Second, if you’re looking to sell your home, you are in a great position to do so quickly and at top price. “The current rise in rates is unlikely to affect the real estate market any time soon.” Last December saw a drop in home sales, but not because of any rise in mortgage rates. Instead, this slowdown was due to a constrained supply of new homes. In fact, there are plenty of eager buyers around Mansfield and prices continue to rise. If you want to discuss upcoming trends in mortgage rates and how they could affect you—whether you’re buying or selling a house—give me a call or send me an email. I’d be happy to help however I can.
Have you heard the news? The new administration is looking to revamp the tax code in a way that affects the long-standing mortgage interest deduction (MID). Some people are concerned this might impact home sales and drive down home values. I believe it will do just the opposite. First — a bit of background. Under the current system, you can include the interest you pay on your mortgage in your itemized tax deductions. If your itemized deductions turn out to be more than your standard deduction, you save more on taxes. Currently, about 20% of homeowners who have a mortgage take advantage of the MID for an annual average savings of $2,000 in taxes. Under the proposed new tax plan, the standard tax deduction would almost double. For example, the standard deduction for a married couple would go from $12,600 to $24,000. If this happens, an estimated 84% of people who currently itemize taxes would simply go for the standard deduction, and this is the part that has some people worried. After all, if people don’t take advantage of the MID, won’t this decrease the value of owning a home? Here are two reasons why that won’t happen. First, most people do not buy a home in order to save on taxes. A survey from 2015 confirms this fact. The top reasons why people buy a home include the need for change, an increase in income, or a baby on the way, but there’s no mention of saving on taxes. This bears out what most real estate professionals see in real life. “People don’t buy a home just to save on taxes.” Second, taxes will actually be lower under the proposed new plan. Traditional estimates of the impact of the MID assume other taxes stay the same. In this case, if the deduction goes away, home prices can indeed suffer to an extent. But under the proposed new plan, the overall tax burden will be less than it currently is. In other words, most people will not lose money because they aren’t claiming the MID. Instead, they will gain money by paying less in taxes altogether. With more disposable income, people will be free to spend more on a home. This will drive sales as well as prices. The fact is, current home prices around Mansfield keep increasing — not because of tax breaks, but because of tight supply. If you have any questions about the new tax plan and how it will affect the real estate market or you’re thinking of buying or selling a home in the Mansfield area, give us a call or send us an email. We’re always happy to help!
Is listing your home in the winter a good idea? The answer is yes, and here’s why. Homes listed during the winter are 9% more likely to sell than homes listed during the other seasons. These properties, on average, sell a week faster, sell for 1.2% more than their list price, and are more likely to sell above asking price than the homes listed in summer or fall. If you’re surprised by these statistics, you’re not alone. Conventional real estate wisdom says to pass on the winter market and wait for the spring. However, as you can see from the numbers, passing on the winter market would be a mistake. It’s true that there are less buyers in the winter, but that isn’t necessarily a problem as buyers during the winter are more motivated. Some of them might need to get into a new home for a job relocation, some might want to take advantage of low interest rates before another increase occurs, and some have been searching for months with no luck in finding their dream home. “Homes listed during the winter sell a week faster than those listed during the other seasons.” If you are looking to sell your home, I would definitely recommend selling in the winter. However, keep in mind that the winter market is a whole different ballgame. For example, you really need to list your home as close to market value as possible because an overpriced home causes low buyer interest and strips away time for any price reductions. If you would like to know the current value of your home, get advice on how to prepare your home for the winter market, or if you have any other real estate related questions, feel free to give me a call or send me an email. I would be happy to help!
With regards to how our market has fared since the election, there is some good news and some bad news. First, the bad: mortgage rates have shot up since the election. From a low of 3.74% on November 7th, the average fixed 30-year mortgage rate increased to over 4% by the end of November. Economists are saying this kind of volatility is likely to continue, with day-to-day changes driven by the moves and statements of the new administration. The good news is that there are plenty of reasons to be optimistic down the line. Promised tax breaks for high earners could reinvigorate sales of luxury homes, which have seen a glut lately. This could have a ripple effect throughout the rest of the real estate market, spurring sales and construction of mid-level and lower-priced housing. Also, looser financial regulation could make it easier for buyers to obtain mortgages. One piece of good news is that the election is finally over. Also, you might have seen that the stock market has been surging in the past few weeks. “More people are entering the market now that the election is over.” That might be a vote of confidence for our President and his anticipated business-friendly policies. It certainly seems things are getting back to normal as people come to realize the world’s not ending. In fact, many people who were waiting on the sidelines while the election was going on are now entering the real estate market. It’s a great time to take advantage of this if you are selling. If you want an idea of what your home could sell for in the current market, just send me an email to myhomesvalue@jteixsells.com with your address in the subject line and I’ll get back to you. And if you’re looking to buy, there are two things you should know. First, even though mortgage rates have gone up, they are still historically very low, and worth taking advantage of. Second, many new homes have entered the market since the election, and more new listings will arrive as the spring market approaches. It’s definitely worth investigating what’s available around DFW right now. If you have any questions, don’t hesitate to reach out and give us a call or send us an email. We look forward to hearing from you.
In June of this year, home prices rose for the 50th straight month. Nationwide, current home prices are only about 1% below record highs from 2006, which was the beginning of the housing crisis. At the same time, mortgage rates are trending lower and lower. The average 30-year fixed mortgage rate is now just 3.49%, which is only a few points above the all-time low of 3.31%. When you put these two factors together, many people are wondering the same thing: Are we in the middle of a new housing bubble? The rising home prices over the passover years is undeniable, as are the low mortgage rates. However, the situation today is very different from the housing bubble that happened 10 years ago. Why? First,** lending has been cleaned up**. The risky mortgages that fueled the housing bubble a decade ago aren’t happening today because of new laws like the Dodd-Frank Act. In fact, the stricter regulations surrounding lending is one of the reasons why mortgage rates are so low right now. Since banks have tighter criteria for the lenders they approve, they can afford to lend money at a lower rate. “The situation today is very different than that of 10 years ago.” Second, the current level of new home construction is below historical averages and is only a fraction of the level of 2006. This is the opposite of what you’d expect in a bubble. Home builders are simply not finding it profitable to build new housing right now. This shortage also explains the high prices that existing homes are selling for. In other words, demand is higher than supply right now. This means that it’s a great time to sell. If you’re curious about your current home value, send us an email at myhomesvalue@jtextsells.com. Put your address in that email and we’ll respond with its current market value. The big housing crisis of 10 years ago was set of by speculation and loose borrowing. We’re not seeing either of those things right now. Instead, what we’re seeing is a shortage of certain kinds of homes on the market, which has increased the level of home prices. However, thanks to the lower mortgage rates, those homes are actually affordable. If you’re thinking about selling your home or buying a new one, just give me a call or shoot me an email. I’d be happy to help!
If you have been thinking about trading up to your dream home, now is an excellent time. Builders have been focusing on new high-level homes, and investors have been turning mid-level, lower cost homes into rentals, causing the number of available mid-level, low priced homes to decline 40% in the last four years. This has caused a shortage of mid-level, low cost homes. The shortage is fantastic news for you as a seller. It means you will be able to sell your home more quickly. This summer, the typical home stayed on the market for just 17 days, and 64% of homes sold in less than a month. It also means you can sell your home for more in the current market. Prices are higher now than a year ago, and many sellers are getting more than the asking price. “You could get above asking price for your home.” Because the shortage of homes doesn’t apply to high level dream homes, you have a fantastic chance to sell your home above asking price and buy your new dream home for a steal. If you have other questions about how to get your dream home, feel free to give me a call or send me an email.
Are Fed Rates going up? Over the past few months, we’ve been hearing about a possible rate increase from the Federal Reserve. First, experts were predicting that the Fed would raise interest rates in September. That didn’t happen. Now we’re being told rates will go up in mid-December… we just don’t know by how much. All this uncertainty is making people very uncomfortable. Because of the uncertainty, news outlets are parsing every word Fed members are saying, and everyone is wondering: Will there be a rate increase? Will mortgage rates increase as well? What will happen to the real estate market? My personal opinion is this: the moves by the Fed are nothing to worry about. I think it’s simply another case of people getting nervous while waiting for the test results. In fact, I believe that an increase in the Fed Rate will have minimal impact on the real estate market in Mansfield for three reasons. First, mortgage rates often move independently of the Fed Rate. An increase in the Fed Rate might actually lead to a decrease in mortgage rates — this is exactly what happened the last time the Fed increased rates, back in December of 2015. Second, the likely rate increase will be small, probably 0.25%. If mortgage rates were to increase by the same amount, they would still would be at historically low levels. Third, we know the members of the Fed are concerned with the shortage of new housing right now — it’s right there in their September meeting notes. Because of this, any actions they take will keep the real estate market in mind. In short: the real estate market is doing great right now—and it’s likely to stay that way, with or without a Fed Rate increase. “The real estate market looks great right now.” Right now, if you’re selling, you can benefit from stable prices and strong demand: Check out how much your home is worth based on current Mansfield prices. And if you’re buying, you can benefit from historically-low mortgage rates so you can afford a great home in Mansfield: See available Mansfield homes that are for sale right now. Either way, if you have questions, or you just want to talk about what the Fed might do next, give me a call. I’m here to help.