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Wage Increases Make Home Buying More Affordable

by Elite Asset Management Team

 

Everyone knows that housing affordability has been negatively impacted by rising prices and increasing mortgage rates, but there is another piece to the affordability equation – wages.

How much a family earns obviously impacts how easy or difficult it is for them to afford to own a home. Because of an improving economy, wages are finally beginning to increase – and that dramatically affects home affordability.

According to the National Association of Realtors’ (NAR) September 2018 Housing Affordability Index, wages have increased in every region of the country:


After applying current salaries, home prices, and mortgage rates to their Home Affordability Index equation, the index, though still lower than this time last year (160.1 to 146.7), increased over the last month (141.2 to 146.7). For the complete methodology used by NAR, click here.

The percentage of income needed to own a home has also decreased each of the last three months. It currently sits at 17% which is substantially lower than historic numbers.

 

 

Bottom Line

If you are a first-time buyer or a move-up buyer who believes that purchasing a home is not within your budget, check with a local real estate professional to find out if that is still true.

 

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

 

He has a great website full of the latest information at www.NMElite.com
Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.
You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.
 
He has a great website full of the latest information at www.NMElite.com

Buying a Home? Do You Know the Lingo?

by Elite Asset Management Team

 

 

 

 

Buying A Home? Do You Know the Lingo? 
To start you on your path with confidence, we have 
compiled a list of some of the most common terms 
used when buying a home. 
Appraisal - A professional analysis used to estimate the value 
of the home. A necessary step in validating the home's worth to 
you & your lender to secure financing. 
Closing Costs - The cost to complete the real estate 
transaction. Paid at closing, they include: points, taxes, title 
insurance, financing costs, items that must be prepaid or 
escrowed. Ask your lender for a complete list of closing cost items. 
Credit Score - A number ranging from 300-850, that is based 
on an analysis of your credit history. Helps lenders determine the 
likelihood that you'll repay future debts. 
Down Payment - Down payments are typically 3-20% of the 
purchase price of the home. 0% down programs also exist, ask 
your lender for more information. 
Mortgage Rate - The interest rate you pay to borrow money to 
buy your house. The lower the rate, the better. 
Pre-Approval Letter - A letter from a lender indicating that 
you qualify for a mortgage of a specific amount. 
Real Estate Professional - An individual who provides services 
in buying & selling homes. Real estate professionals are there to 
help you through the confusing paperwork, find your dream home, 
negotiate any of the details that come up, and to help you know 
exactly what's going on in the housing market. 
The best way to ensure that your home-buying process is 
a confident one is to find a real estate pro who will guide 
you through every aspect of the transaction with 
'the heart of a teacher', putting your family's needs first. 

 

To start you on your path with confidence, we have compiled a list of some of the most common terms used when buying a home. 

Appraisal - A professional analysis used to estimate the value of the home. A necessary step in validating the home's worth to you & your lender to secure financing. 

Closing Costs - The cost to complete the real estate transaction. Paid at closing, they include: points, taxes, title insurance, financing costs, items that must be prepaid or escrowed. Ask your lender for a complete list of closing cost items. 

Credit Score - A number ranging from 300-850, that is based on an analysis of your credit history. Helps lenders determine the likelihood that you'll repay future debts. 

Down Payment - Down payments are typically 3-20% of the purchase price of the home. 0% down programs also exist, ask your lender for more information. 

Mortgage Rate - The interest rate you pay to borrow money to buy your house. The lower the rate, the better. Pre-Approval Letter - A letter from a lender indicating that you qualify for a mortgage of a specific amount. 

Real Estate Professional - An individual who provides services in buying & selling homes. Real estate professionals are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up, and to help you know exactly what's going on in the housing market. 

The best way to ensure that your home-buying process is a confident one is to find a real estate pro who will guide you through every aspect of the transaction with 'the heart of a teacher', putting your family's needs first. 

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

 

He has a great website full of the latest information at www.NMElite.com

Are We About to Enter a Buyers' Market?

by Elite Asset Management Team

 

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a buyers’ market after sellers have had the upper hand for the past several years. Is this really happening?

The market has definitely softened. However, according to two chief economists in the industry, we are a long way from a market that totally favors the purchaser:

Dr. Svenja Gudell, Zillow Chief Economist:

“These seller challenges don’t indicate we’re suddenly in a buyers’ market – we don’t expect market conditions to shift decidedly in favor of buyers until 2020 or later. But buyers certainly are starting to balk at the rapid rise in prices and home values are starting to grow at a less frenetic pace.”

Danielle Hale, Chief Economist of realtor.com:

“The signs are pointing to a market that’s shifting toward buyers. But, in most places, we’re still a long way from a full reversal.”

In addition, Pulsenomics Inc. recently surveyed over one hundred economists, real estate experts, and investment & market strategists and asked this question:

“When do you expect U.S. housing market conditions to shift decidedly in favor of homebuyers?”

Only 5% said the market has already shifted. Here are the rest of the survey results:

 

Bottom Line

The market is beginning to normalize but that doesn’t mean we will quickly shift to a market favoring the buyer. We believe Ivy Zelman, author of the well-respected ‘Z’ Report,best explained the current confusion:

“With the rate of home price appreciation starting to decelerate alongside the uptick in inventory…we expect significant debate about whether this is a bullish or bearish sign.

In our view, the short-term narrative will probably be confusing, but more sustainable growth and affordability will likely be the end result.”


 

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Here are also some Free Sellers resources. VIP-Seller-Resources

 

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.


You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.


He has a great website full of the latest information at www.NMElite.com


Here are also some Free Sellers resources. VIP-Seller-Resources

Home Sales Low This Summer

by Elite Asset Management Team

 

 

 

Sales in June down 2.2% from last year, according to the National Association of Realtors’ latest Existing Home Sales Report.

Home inventory still below 6-month supply needed for a normal market despite the 0.5% improvement from last year.

NAR’s Chief Economist Lawrence Yun had this to say: “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining. The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market.”

 

In our local Albuquerque Market the median sales price is $208,000, up +4.1% from last year this time and months supply is 2.5, down -37% from last year

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Here are also some Free Sellers resources. VIP-Seller-Resources

Home Prices Are Increasing, But Why?

by Elite Asset Management Team

Home prices have been increasing and there are many unsubstantiated theories why it has been happening. Some say that lending standards are again becoming too lenient, while some are concerned that prices are again approaching boom peaks because of “irrational exuberance”. Both these theories are both untrue since data shows that lending standards are not being too lenient and prices are not at peak levels when they are adjusted for inflation.

The real reason prices are increasing is because of supply and demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate.

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years.

As long as there more home buyers than home sellers, prices will continue to rise. Nothing out of the ordinary is happening. It’s just simple supply and demand.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record. He can also help you to get a  loan pre-approval at no cost.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com

He has a great website full of the latest information at www.NMElite.com

 

 

Interest Rates of Mortgage Steady

by Elite Asset Management Team

One of the most important things to understand when buying a home is the mortgage rates.

According to Freddie Mac’s Primary Mortgage Market Survey, in 2018, the difference in mortgage rates from January to April is .45%. January’s mortgage rates was at 3.95% and increase gradually through the first week of April to 4.40%.

This increase looks alarming, but if you look at the graph you’ll see that it has stayed steady for the past few months and has returned to the mortgage interest rates back in February.

 

If you’re looking to buy a home this spring, now is the best time to buy. With rates keeping steady, it is wise to get that rate locked in before prices go up even higher as predicted.

Every month, Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors release their projections for where they believe mortgage rates will be in the coming months. If we take the average of what each of the four organizations is predicting for the second quarter, rates are expected to rise to about 4.48% by June.

That average climbs to 4.73% by the end of this year.

Don’t wait till the end of the year to buy. Rates are projected to increase and it will cost you more on your monthly payment. For every $250,000 you need to borrow to purchase your dream home, you will spend $49.21 more per month, $590.52 per year, and over $17,700 by the end of your 30-year mortgage.

And that’s just the impact of your interest rate going up!

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Start Saving for a Down Payment Using Your Tax Refund

by Elite Asset Management Team

This year’s estimated average refund is at $2,840, according to the Internal Revenue Service (IRS). It’s a little bit less than last year’s average at $2,895.

You’re probably thinking of what you’re going to spend it on right now but if you’re planning on buying a home this year, it can actually get you started on saving for a down payment.

Here’s a map showing the tax refunds received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

Do you need to make a 20% down payment to qualify for a mortgage? Many first time buyers think so. There are other options. Did you know that there are programs that allow you to just make a 3% down payment? These programs are from the Federal Housing Authority, Freddie Mac, and Fannie Mae. If you’re a veteran, the Veterans Affairs Loans can allow you to purchase a home for 0%!

Let’s say you started saving up for a down payment using your tax refund check. Would you be close to the 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

 

As you can see, you’re not that far from owning your own home. New Mexico is almost at 50%. Now is the time to get the ball rolling and start saving up. That piece of paper in your hand can soon turn into the keys of your new home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record. He can also help you to get a  loan pre-approval at no cost.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com

He has a great website full of the latest information at www.NMElite.com

Why Hire a Real Estate Professional? Here are 5 Reasons Why

by Elite Asset Management Team

 

Buying or selling a home is a big decision. It is one of the biggest decisions you’ll be making in your life. It is crucial that you know what you’re doing, but being knowledgeable may not be enough. Getting help from an experienced real estate professional can be the difference between you enjoying your new home or the equity from a sale and losing it all.

With continuous increase in mortgage rates and home prices, buying or selling on your own may not be a wise decision.

Why hire a real estate professional?

State Regulations

In each state, there are varying regulations on the contracts needed for a successful sale. It would mean a lot of paperwork. Your local real estate expert would know these regulations and make sure that everything goes smoothly.

Experience

Buying or selling a home involves a lot of steps. A real estate professional with experience can make sure that all steps are done the right way to get you in your dream home.

Negotiating

There will be a lot of negotiating in the buying or selling of a home. You need someone who can help you get what you want, someone to deal with buyers, sellers, appraisers, inspectors, etc.

What is your property or the property you want really worth?

Knowing this is very important when buying or selling a home. Your home could be worth more than you think. The home you’re buying maybe worth less than the listing price. It could mean losing thousands of dollars if you don’t know what you’re doing.

According to a study by Collateral Analytics

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

Up to date

The real estate market is ever changing. You need someone who knows the past, the present and can foresee the future. A good real estate professional knows the market and would tell you what you need to hear and not what you want to hear.

Financial guru Dave Ramsey advises,

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers and Seller Representative who can help you navigate thru the process and get the job done for you. He can provide you with a Free Market analysis when you are ready. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Here are also some Free Sellers resources. VIP-Seller-Resources

2018 and Mortgage Rates

by Elite Asset Management Team

 

Are you planning on buying a home? One of the most important things to know about is mortgage rates and what’s going to happen to it in 2018. Keep in mind, the higher rate, the higher the monthly payment.

According to Freddie Mac’s U.S. Economic & Housing Marketing Outlook’s chart, in the next 12 months, interest rates are projected to go up steadily.

 

 

How will this affect your mortgage payment?

A half percent increase can significantly increase you monthly payments. It will also depend on the amount of the loan you get.

National home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year, according to CoreLogic’s latest Home Price Index.

If both scenarios come true, people would be paying more to be able to buy a home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Major Mistakes Buyers Should Avoid In A Seller’s Market

by Elite Asset Management Team

 

In a seller’s market, it’s crucial to avoid any mistakes as a buyer. You should have an appropriate plan ready to go.

We are now in a seller’s market and it is very important that you are prepared for it when buying a home. The rules have changed on how to place an offer and how to negotiate. Here are some major mistakes you can avoid to make sure you are on the right path to getting your dream home.

Offer not strong enough

In this market offering low is not the best option. With not much inventory available in the market, competition can be fierce. The home you have fallen in love with might be taken away buy another buyer with a stronger offer. According to David Dubin, a New York broker, “In a seller’s market, many buyers do not step up with a strong enough offer,” he also states “There is usually a shortage of inventory, and the competition is usually fierce. I always encourage a buyer to come in with a strong opening offer.” You also want to keep response times shorter and don’t counter too many times as that can allow time for a better offer to come in.

Waiting too long

It’s understandable that you would want to analyse your home purchase and want to be sure of the whole process, but you shouldn’t over analyse. Once you find the home you love, don’t be afraid to make a competitive offer. It is best to get your finances in order and get a preapproval. “Know how much you can truly afford, repair any credit issues, have your down payment in hand, and delay [other] major purchases,” says John Lazenby, president of the Orlando Regional Realtor Association in Florida. You don’t want to lose the home to a more aggressive buyer.

Inexperienced agent

Home buying can be stressful. Getting help from a real estate agent can save you time, money, and make the whole process easier and maybe even stress free. Work with an agent who has a good track record and who has experience. They can most certainly give you a better chance of getting the home you want. Michael Holt, a New York agent explains, “When you are competing against other buyers in a fast-paced market, it is vital to be ‘offer-ready,’” he also says, “Working with a real estate professional saves tons of time and stress, as they know the ins and outs of the process and can provide tremendous insight regarding upcoming inventory.” A CRS, Certified Residential Specialist may be the best agent to use as they are some of the most experienced agents out there.

Not getting Prequalified or preapproved

Getting prequalified is good then get preapproved. Getting preapproved will show sellers that you have you finances in order and that you’re ready and able to buy. Getting prequalified is a good first step to show seller’s how serious you are. “Prequalification is absolutely paramount,” says Teka Klopfenstein, a New York agent. “A buyer has zero advantage if they do not have the cash to purchase without a mortgage and haven’t taken the time to speak with a lender.” Not getting prequalified, she says, “sends a message to the seller that the buyer will lag on getting their ducks in order and aren’t taking their house hunting seriously.”

Unprepared for a bidding war

In a seller’s market, the inventory is low and competition is fierce. You should be prepared for a bidding war. There is a solution that’s presented by broker Michael Holt. “Set your search below your max budget to leave room in case of an over-asking bidding war.” This way, you get an advantage over buyers who have their bids at max.

Not knowing and understanding your mistakes

Like everything that happens in life, learning from your mistakes makes you stronger and better than you were before. In real estate, when your offer gets declined or if you lose a home to another buyer, it’s not the end of the world. With the experience you’ll gain from them, you’ll come back stronger and know what needs to be done to get the home you want.  “You probably have to let a few keepers slip through your fingers, have a couple sleepless nights over it, and then come back with serious intent to lock up the next greatest opportunity in front of you.”, says Stenta who compared the home buying process to dating, particularly for first-time buyers.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com



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Photo of Elite Asset Management  Real Estate
Elite Asset Management
RE/MAX Elite
8300 Carmel Ave. NE Ste. 201
Albuquerque NM 87122
(505)362-2005
Reviews on Zillow
4417042
"Professional and Knowledgeable about real estate in the area, patient with difficult customers like me and my wife (who occasionally wanted very ... more "
5.0/5.0
by rezaarghavani
4279664
"We interviewed the top 4 realtors in our zip code and Pete was at the top of the list. His presentation was professional and well thought out. ... more "
5.0/5.0
by chuck tabbert