Over Half of Americans Planning on Buying in the Next 5 Years

Half-of-Americans-KCM

According to the BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said that they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also included other interesting revelations.

Those Looking to Buy

  • 74% of those looking to buy a new home will consult with a real estate agent
  • 59% said they will visit online real estate websites
  • 37% will seek recommendations from friends and family
  • 78% plan to get pre-approved before seriously searching for a home

 Those Who Already Own

  • 75% of current homeowners set a budget before looking for a home, and 16% ended up spending less while 13% went over their budget.
  • 63% of American homeowners spent under six months looking for a new home before they made a purchase.
  • 8% bought their home without participating in an active real estate search – or even any plan to buy at all – because a specific property caught their attention.

The last point is very interesting: Of those who purchased a home, 8% bought “without any plan to buy at all”. A property caught their attention and they acted on it.

Why Are More People Not Planning Their Next Move?

Why are people that are considering a move not putting their home search to a plan, and instead, buying only when a property catches their attention? An article by Fannie Mae reveals evidence that a large number of homeowners are dramatically underestimating the equity they have in their current home. The report explains that:

“Homeowners may be underestimating their home equity. In particular, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes.”

Bottom Line

Perhaps it is time to sit down and talk with me to determine the actual equity you have in your house and to take a look at the opportunities that currently exist in the real estate market. This may be the perfect time to move-up, move-down or buy that vacation home your family has always wanted.

How can I help you achieve your real estate goals so that you live YOUR life?

About Carol Juntunen: I’m a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

You Can Save for a Down Payment Faster Than You Think

FasterThanYouThink-KCM

In a study conducted by Builder.com, researchers determined that nationwide, it would take “nearly eight years” for a first-time buyer to save enough for a down payment on their dream home.

Depending on where you live, median rents, incomes and home prices all vary. By determining the percentage of income a renter spends on housing in each state, and the amount needed for a 10% down payment, they were able to establish how long (in years) it would take for an average resident to save.

According to the study, residents in South Dakota are able to save for a down payment the quickest in just under 3.5 years. Below is a map created using the data for each state:

Years-To-Save-10-KCM-768x576

What if you only needed to save 3%?

What if you were able to take advantage of one of the Freddie Mac or Fannie Mae 3% down programs? Suddenly saving for a down payment no longer takes 5 or 10 years, but becomes attainable in under two years in many states as shown in the map below.

Years-To-Save-3-KCM-768x576

Bottom Line

Whether you have just started to save for a down payment, or have been for years, you may be closer to your dream home than you think! Let me help you evaluate your ability to buy today.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
I’m a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Ready to buy or sell? Contact me:
Website: www.caroljuntunen.com 
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

Building Wealth: First Rung on the Ladder is Housing

First-Rung-KCM

How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is “an online resource for the most rigorous research and practical information on how a quality, stable, affordable home in a vibrant community contributes to individual and community success”.

A recent story they published, The First Rung on the Ladder to Economic Opportunity Is Housing, discussed the importance of having affordable housing available to as many families as possible because:

“The ladder to economic success can stretch only so high without the asset-building power of homeownership.

Home equity provides Americans with the ability to send their children to college with less student loan debt and is the primary source of funds for retirement. Half of the assets of Americans over age 55 are in their home.”

Bottom Line

I have often posted that the net worth of a family owning a home is 45 times greater than that of a family that rents. That is not a coincidence.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
I'm a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Ready to buy, sell or rent? Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

 

 

 

Real Estate: 2016 Will Be the Best Year in a Decade

Great-Year-For-RE-KCM

A few weeks ago, Jonathan Smoke, the Chief Economist at realtor.com, exclaimed: “All indicators point to this spring being the busiest since 2006.”

Now, Freddie Mac has doubled down on that claim and is saying that 2016 will be the best year that the real estate industry has seen in a decade. In their March Housing Outlook Report, Freddie Mac explained:

“Despite the challenges facing the housing market, we expect this to be the best year for housing in a decade. Home sales, housing starts, and house prices will reach their highest level since 2006 according to our latest forecast…Challenges remain, with low housing supply and declining affordability being a key concern in many markets, but on balance, the housing markets in the U.S. are poised for the best year since 2006.”

The key indicators that have given Freddie Mac such a positive outlook are:

  • Low interest rates
  • A resilient labor market
  • An increase in household formations
  • A projected increase in newly constructed homes

Bottom Line

2016 looks to be shaping up as a great year for residential real estate. Whether you are thinking of buying, selling or renting, now may be the time to sit down with a real estate professional to discuss the new opportunities that are arising.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I'm a with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

If you're ready to buy, sell or rent, contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

Don’t Wait! Move Up To Your Dream Home Now!

Dream-Home-KCM

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.

Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. 

Here is a chart detailing this point:

BuyersPurchasingPowerKCM-768x576

According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%.With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).

Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.

Act now to get the most house for your hard-earned money.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I'm a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Ready to buy, sell or rent? Contact me:
Website:  www.caroljuntunen.com
Email:    carol.juntunen@bairdwarner.com
Cell:     224-523-2217  

 

Don’t Be Fooled… Homeownership Is A Great Investment!

Dont-Be-Fooled

Highlights

  • Harvard University’s Joint Center of Housing Studies recently released the top financial & emotional reasons to own a home.
  • Owning is a good way to build up wealth that can be passed along to your family as it is usually a form of “forced savings.”
  • You’re paying for a house whether you own or rent, but owning gives you control over your living space.

Let’s discuss your options!

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I’m a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Ready to buy, sell or rent? Contact me:
Website:  www.caroljuntunen.com
Email:    carol.juntunen@bairdwarner.com
Cell:     224-523-2217

2016 Home Sales Doing Just Fine!!

KCM-2

Some of the housing headlines are causing concern for some consumers who are in the process of either buying or selling a home. Pundits are concerned over the lack of new construction or the month-over-month sales numbers. Let’s set the record straight; 2015 was a good year for residential real estate in the United States and 2016 is starting out stronger.

Here is a graph of total homes sold (new construction and existing homes) in the first two months in 2016 compared to last year:

Slide2-1

Will this momentum continue?

If we look at foot traffic (the number of purchasers currently out looking at homes), we can see that the spring buying market has started early and all indicators point to the fact that we may have the best spring in over a decade.

Foot-Traffic-KCM-1-768x576

Bottom Line

The 2016 housing market started out well and looks to be gaining steam. If you are thinking of buying or selling a home, now may be a great time.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I’m a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Ready to buy, sell or rent?
Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217 

Past, Present & Future Home Values

KCM-3

In CoreLogic’s latest Home Price Index, they revealed home appreciation in three categories: percentage appreciation over the last year, over the last month, and projected appreciation over the next twelve months.

Here are state maps for each category:

The Past – home appreciation over the last 12 months:

1KCM-1-768x576

The Present – home appreciation over the last month:

2KCM-1-768x576

The Future – home appreciation projected over the next 12 months:

3KCM-1-768x576

Bottom Line

Homes across the country are appreciating at different rates. As I have mentioned before, the rate of home price appreciation across the country is due to a strong housing market reacting to supply and demand, and not a new housing bubble.

If you plan on relocating to another state, and are waiting for your home to appreciate more, you need to know that the home you will buy in another state may be appreciating even faster.

Ready to buy or sell? Let’s meet so that I can guide you through the next steps and help you decide what’s right for you.

How can I help you achieve your real estate goals that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I’m a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process. 

Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

Sales Contracts Hit Highest Level in Months

Sales-Contracts-KCM

The National Association of Realtors (NAR) just announced that the February Pending Home Sales Index reached its highest reading since July 2015.

What is the Pending Home Sales Index (PHSI)?

NAR’s PHSI is “a forward-looking indicator based on contract signings”. The higher the Pending Home Sales Index number, the more contracts have been signed by buyers that will soon translate to sales. February’s Index rose 3.5% month-over-month to 109.1.

What does this mean for the market?

Lawrence Yun, NAR’s Chief Economist explained:

“After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory.”

“Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau.”

So What Does This Mean For Buyers?

There is a lot of competition out there right now for your dream home. Prices are going to continue to climb, act now before you are priced out of your future home.

What Does This Mean For Sellers?

If you are on the fence about listing your home for sale and debating whether now is the time to move on with your plans of relocating… don’t wait!

There are more buyers that are ready, willing and able to buy their first, second, third, vacation, or investment property now than there has been in years! The supply of homes for sale is not keeping up with the demand of these buyers.

Listing your home for sale now will give you the most exposure to buyers and the best sales price.

Bottom Line

Whether you are planning on buying or selling a house this year, waiting to act no longer makes sense.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I’m a Realtor® with the Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

Contact Me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217

 

91.5% of Homes in the US have Positive Equity

KCM2 (1)

CoreLogic’s latest Equity Report revealed that one million borrowers regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties would regain equity if home prices rose another 5% this year. 

The study also revealed:

  • 95% of homes valued over $200,000 now have a positive equity position
  • 87% of homes valued under $200,000 have entered a positive position
  • The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit gains

Below is a map showing the percentage of homes with a mortgage, in each state, that have positive equity. (The states in gray have insufficient data to report.)

Slide-1-KCM

Significant Equity Is On The Rise

Anand Nallathambi, President & CEO of CoreLogic, believes this is great news for the“long-term health of the U.S. economy.” He went on to say:

“The number of homeowners with more than 20% equity is rising rapidly. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and ultralow interest rates are also factors.”

Of the 91.5% of homeowners with positive equity in the US, 72.6% have significant equity (defined as more than 20%). This means that nearly three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.

The map below shows the percentage of homes with a mortgage, in each state, with significant equity.

Slide-2-KCM

Bottom Line

If you are one of the many homeowners who is unsure of how much equity you have in your home and are curious about your ability to move, I’d love to meet with you and help evaluate your situation.

How can I help you achieve your real estate goals so that you can live YOUR life?

About Carol Juntunen:
My name is Carol Juntunen and I'm a Realtor® with Baird & Warner in the Chicago northwest suburbs. My intention is to provide insights and information to empower you to make informed real estate choices and decisions, and guide you through the home buying, selling or renting process.

I can help you buy, sell or rent real estate anywhere in the NW suburbs including: Schaumburg, Elgin, South Elgin, Bartlett, Streamwood, Hoffman Estates, Barrington, Dundee (East & West), Sleepy Hollow, Algonquin, Hanover Park, Crystal Lake, Geneva, St. Charles, Palatine, Roselle, Pingree Grove, etc. 

Contact me:
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com
Cell:    224-523-2217