Real Estate with Robbie - Robbie English, Broker: July 2016

Friday, July 29, 2016

Consumers Stand to Win Big With Proposed 'Know Before You Owe' Rule Coming Their Way

WASHINGTON (July 29, 2016) — Since the October 2015 implementation of the Consumer Financial Protection Bureau’s ‘Know Before You Owe’ mortgage initiative, Realtors® have raised red flags (link is external) over challenges in gaining access to what’s known as the mortgage “closing disclosure” form, or CD. The CD is delivered to homebuyers in advance of their closing and contains important financial information related to their purchase.

Unfortunately, many lenders have chosen to withhold this document from real estate agents since Know Before You Owe went into effect, despite a longstanding tradition of sharing similar information.

Earlier this year, the Consumer Finance Protection Bureau announced that it was considering changes to Know Before You Owe - also known as the TILA-RESPA Integrated Disclosure, or TRID - including a clarification of the rules regarding sharing the CD.

Today, the CFPB made good on that promise when it announced a proposed rule on TRID, and stated in their announcement (link is external) that “the Bureau understands that it is usual, accepted and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers and their real estate brokers or other agents.”

The National Association of Realtors® believes this announcement marks significant progress for consumers, as well as for its members. Giving Realtors® access to the CD would strengthen consumers’ understanding of their mortgage and home purchase by helping agents continue to provide expert advice to their clients.

The following is a statement by NAR President Tom Salomone:

“Realtors® have reported challenges gaining access to the Closing Disclosure ever since TRID went into effect, despite a long history of access to the substantively similar HUD-1 that is replaced. Today the CFPB acknowledged that concern by making it clear that it is appropriate and accepted for creditors and settlement agents to share the CD with consumers, sellers and their real estate agents.

"This is a significant victory that will help Realtors® continue to provide the expert service their clients have come to expect. We appreciate the CFPB’s willingness to reconsider the TRID-related challenges our members face and will continue to monitor the progress on this important issue in the months ahead.

Home Sales Accelerate During The “Dog Days of Summer” [INFOGRAPHIC]

Some Highlights:

Existing home sales have accelerated to the highest pace since February 2007 at an annual pace of 5.57 million.
Inventory of homes for sale remains below the historically normal 6-month mark at a 4.6-month supply, down 5.8% year-over-year.
Median home sales prices rose to $247,700, 4.8% higher than a year ago and replaced the previous peak in May of $238,900.

Robbie English, Broker, Realtor®, CRB, GRI, PSA, RENE • Dewey Blanton Real Estate • 512-910-HOME - mobile • soldbyrobbie@gmail.com
#DBRTX, #robbieenglish, #deweyblantonrealestate #austinrealestate #realtor #realtorslife #realestate #broker #realty #austinrealtor #realestateagent #austinrealtors #realestateagentaustin #realestateagentnewbraunfels #newbraunfelsrealestate #realestateaustin #realestatenewbraunfels #newbraunfelsrealtor #listingagent #salesagent #buyersagent #realestatecareer #realestateagentcareer #realestatebroker

Thursday, July 28, 2016

Pending Home Sales Marginally Rise in June

WASHINGTON (July 27, 2016) — Pending home sales were mostly unmoved in June, but did creep slightly higher as supply and affordability constraints prevented a bigger boost in activity from mortgage rates that lingered near all-time lows through most of the month, according to the National Association of Realtors®. Increases in the Northeast and Midwest were offset by declines in the South and West.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, inched 0.2 percent to 111.0 in June from 110.8 in May and is now 1.0 percent higher than June 2015 (109.9). With last month’s minor improvement, the index is now at its second highest reading over the past 12 months, but is noticeably down from this year’s peak level in April (115.0).

Lawrence Yun, NAR chief economist, says a solid bump in activity in the Northeast pulled up pending sales modestly in June. “With only the Northeast region having an adequate supply of homes for sale, the reoccurring dilemma of strained supply causing a run-up in home prices continues to play out in several markets, leading to the last two months reflecting a slight, early summer cooldown after a very active spring,” he said. “Unfortunately for prospective buyers trying to take advantage of exceptionally low mortgage rates, housing inventory at the end of last month was down almost 6 percent from a year ago,1 and home prices are showing little evidence of slowing to a healthier pace that more closely mirrors wage and income growth.”

Adds Yun, “Until inventory conditions markedly improve, far too many prospective buyers are likely to run into situations of either being priced out of the market or outbid on the very few properties available for sale.”

One noteworthy and positive development occurring in the housing market during the first half of the year, according to Yun, is that sales to investors have subsided from a high of 18 percent in February to a low of 11 percent in June, which is the smallest share since July 2009 2. Yun attributes this retreat to the diminished number of distressed properties coming onto the market at any given time and the ascent in home prices, which have now risen year-over-year for 52 consecutive months.

“Limited selection of homes at bargain prices is reducing the number of individual investors willing or able to buy,” adds Yun. “This will hopefully open the door for first-time buyers, who made some progress last month 3 but are still buying homes at a subpar level even as rents increase at rates not seen since before the downturn 4.”

In spite of the slight slowdown in contract signings from April’s peak high, existing-home sales this year are still expected to be around 5.44 million, a 3.6 percent boost from 2015 and the highest annual pace since 2006 (6.48 million). After accelerating to 6.8 percent a year ago, national median existing-home price growth is forecast to slightly moderate to around 4 percent.

Regional Breakdown
The PHSI in the Northeast advanced 3.2 percent to 96.0 in June, and is now 1.7 percent above a year ago. In the Midwest the index increased 0.8 percent to 108.9 in June, and is now 1.6 percent higher than June 2015.

Pending home sales in the South decreased modestly (0.6 percent) to an index of 125.9 in June but are still 1.8 percent higher than last June. The index in the West declined 1.3 percent in June to 101.3, and is now 1.8 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

1 Total housing inventory at the end of June dipped 0.9% to 2.12 million existing homes available for sale, and was 5.8% lower than a year ago (2.25 million).

2 According to the June Realtors® Confidence Index, sales to investors fell to their lowest overall share since July 2009 (9 percent).

3 According to the June Realtors® Confidence Index, sales to first-time buyers were the highest (33 percent) since July 2012 (34 percent).

4 According the U.S. Bureau of Labor Statistics’ Consumer Price Index (link is external), rents increased by 3.8% in June, the strongest pace since January of 2008.

* The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population.

NOTE: NAR’s second quarter metropolitan area home prices will be released August 10, Existing-Home Sales for July will be reported August 24, the third quarter Commercial Real Estate Report/Forecast will be released August 29, and the next Pending Home Sales Index will be August 31; all release times are 10:00 a.m. ET.

House Hasn’t Sold Yet? Take Another Look at Your Price!

The residential housing market has been hot. Home sales have bounced back solidly and are now at their second highest pace since February 2007. Demand has remained strong throughout the summer as many real estate professionals are reporting bidding wars with listings actually selling above listing price. What about your house?

If your house hasn’t sold, it is probably because of the price.

If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prospective buyers that will even see your house. See chart below.

Bottom Line

The housing market is hot. If you are not seeing results you want, sit down with your agent and revisit the pricing conversation.

Wednesday, July 27, 2016

Americans Believe Real Estate is Best Long-Term Investment

According to Bankrate’s latest Financial Security Index Poll, Americans who have money to set aside for the next 10 years would rather invest in real estate than any other type of investment.

Bankrate asked Americans to answer the following question:

“Which would be the best way to invest money you did not need for more than 10 years?”

Real Estate came in as the top choice with 25% of all respondents, while cash investments (such as savings accounts and CD’s) came in second with 23%. The chart below shows the full results:

Sterling White, co-founder of Holdfolio, gave one reason as to why real estate may have ranked so high.

“Houses are tangible. You can physically see and feel the product. So you know where your money is going.”

July’s poll also found that for the “26th consecutive month, Americans’ sense of financial well-being improved when taking into account debt, savings, net worth, job security, and overall financial situation.”

Bottom Line

There are several reasons, both financial and non-financial, as to why homeownership makes sense. It is nice to see that Americans have returned to a belief in homeownership as the best investment.

Tuesday, July 26, 2016

The Top Reason to List Your House For Sale Now!

If you are debating listing your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage:

“With demand holding firm and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale.

Realtors are acknowledging, with increasing frequency lately, that buyers continue to be frustrated by the tense competition and lack of affordable homes for sale in their market.”

The latest Existing Home Sales Report shows that there is currently a 4.6-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and 5.8% lower than June 2015.

The chart below details the year-over-year inventory shortages experienced over the last 12 months:

Anything less than a six-month supply is considered a “Seller’s Market”.

Bottom Line

Let’s get together and discuss the supply conditions in your neighborhood to be able to assist you in gaining access to the buyers who are ready, willing and able to buy now!

Monday, July 25, 2016

Brexit 1 Month Later: The Impact on Mortgage Rates

Just over a month ago, the United Kingdom decided to withdraw from the European Union in a decision commonly known as Brexit. At that time there was a lot of speculation on how that decision would impact the U.S. residential mortgage market. Today, we want to look at the impact of the first 30 days.

Most believed that the Brexit decision would drive mortgage rates down and keep them down for some time. As CoreLogic reported:

“First-time buyers can count on continued low mortgage rates to help with affordability issues. Similarly, re-setting adjustable rate loans will have less of a rate shock, and in some cases may even go down.”

What has actually happened?

Initially, rates did fall. However, Freddie Mac has reported that rates have stabilized and have actually increased marginally each of the last two weeks. This prompted Freddie Mac Chief Economist Sean Beckett to say:

“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their near-record 30-year mortgage rate lows.”

And, Capital Economics Property Economist Matthew Pointon believes rates will continue to increase:

“Given we expect Brexit will have a minimal impact on the U.S. economy, we see no reason to change our forecast for mortgage rates to reach 3.85% by the end of this year, and 5.0% by the middle of 2018.”

For now, it appears that the impact of Brexit on the U.S. housing market was not as dramatic as some thought it could be.

Friday, July 22, 2016

Gap Between Homeowner’s & Appraiser’s Opinions Narrows Slightly

Slaying Myths About Home Buying [INFOGRAPHIC]

Some Highlights:

Interest Rates are still below historic numbers.
88% of property managers raised their rent in the last 12 months!
Credit score requirements to be approved for a mortgage continue to fall.

Thursday, July 21, 2016

Baby Boomers Are On the Move

According to a Merrill Lynch study, “an estimated 4.2 million retirees moved into a new home last year alone.” Two-thirds of retirees say that they are likely to move at least once during retirement.

As one participant in the study stated:

“In retirement, you have the chance to live anywhere you want. Or you can just stay where you are. There hasn’t been another time in life when we’ve had that kind of freedom.”

The top reason to relocate cited was “wanting to be closer to family” at 29%, a close second was “wanting to reduce home expenses” at 26%.

A recent Freddie Mac study found similar results, as “nearly 20 percent of Boomers said they would move closer to their grandchildren/children compared to 13 percent who said they would move to a warmer climate.”

Not Every Baby Boomer Downsizes

There is a common misconception that as retirees find themselves with fewer children at home, they will instantly desire a smaller home to maintain. While that may be the case for half of those surveyed, the study found that three in ten decide to actually upsize to a larger home.

Some choose to buy a home in a desirable destination with extra space for large family vacations, reunions, extended visits, or to allow other family members to move in with them. According to Merrill Lynch:

“Retirees often find their homes become places for family to come together and reconnect, particularly during holidays or summer vacations.”

Bottom Line

If your housing needs have changed, or are about to change, let’s get together to discuss your next steps.

Wednesday, July 20, 2016

Rents Skyrocket at Highest Rate in almost a Decade

Rent Set to Exceed $535 Billion Paid Last Year | Simplifying The Market

The Consumer Price Index (CPI) was released by the Labor Department last week. An analysis by Market Watch revealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That’s the strongest yearly price gain since 2007.

This coincides with a report released earlier this month in which AxioMetrics announced that rents are continuing to increase in 2016. The report revealed:

There was a 3.7% increase in effective rents in the second quarter of 2016 as compared to the same period last year.
That the effective rent growth this quarter compared to last quarter was 2.3%.
Annual effective rent growth was positive in 49 of the top 50 markets, based on number of units. Only Houston was negative, at -1.4%, as the fallout from energy-industry job losses and excess construction continues.

Here is a graph to illustrate the rate of increase over the last several years:

Bottom Line

With rents continuing to rise and mortgage interest rates still at historic lows, let’s meet up today to determine if you could turn your monthly rental cost into a home of your own.

Tuesday, July 19, 2016

3 Reasons to Buy Luxury Property THIS Year!!

A Homeowner’s Net Worth is 45x Greater Than a Renter’s!

Every three years, the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a Forbes article, the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:

Put Your Housing Cost to Work for You

Simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.

The latest National Housing Pulse Surveyfrom NAR reveals that 85% of consumers believe that purchasing a home is a good financial decision. Yun comments:

“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.”

Bottom Line

If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, let’s get together to discuss your next steps.

Monday, July 18, 2016

3 Questions Every Buyer Should Ask Themselves

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.

Answering the following 3 questions will help you determine if now is actually a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”

This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons why people buy a home have nothing to do with money. They are:

A good place to raise children and for them to get a good education
A place where you and your family feel safe
More space for you and your family
Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.

What does that mean to you?

Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait till next year. Your down payment will need to be higher as well to account for the higher home price.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase over the next twelve months as you can see in the chart below:

Bottom Line

Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.

Sunday, July 17, 2016

Why Martin Neath wants to sell his Austin mansion via a mobile app - Austin Business Journal

Why Martin Neath wants to sell his Austin mansion via a mobile app - Austin Business Journal:

Huge Barton Creek mansion to be sold in mobile app auction

Robbie English, Broker, Realtor®, CRB, GRI, PSA, RENE • Dewey Blanton Real Estate | 512-910-HOME mobile • 512-623-STAR ext 102 office • soldbyrobbie@gmail.com • http://ift.tt/1fnrkDV

#DBRTX, #robbieenglish, #deweyblantonrealestate #austinrealestate #realtor #realtorslife #realestate #broker #realty #austinrealtor #realestateagent #austinrealtors #realestateagentaustin #realestateagentnewbraunfels #newbraunfelsrealestate #realestateaustin #realestatenewbraunfels #newbraunfelsrealtor #listingagent #salesagent #buyersagent #realestatecareer #realestateagentcareer #realestatebroker

Why Martin Neath wants to sell his Austin mansion via a mobile app - Austin Business Journal

http://ift.tt/2a838IH
Huge Barton Creek mansion to be sold in mobile app auction Robbie English, Broker, Realtor®, CRB, GRI, PSA, RENE • Dewey Blanton Real Estate | 512-910-HOME mobile • 512-623-STAR ext 102 office • soldbyrobbie@gmail.com • http://ift.tt/1fnrkDV #DBRTX, #robbieenglish, #deweyblantonrealestate #austinrealestate #realtor #realtorslife #realestate #broker #realty #austinrealtor #realestateagent #austinrealtors #realestateagentaustin #realestateagentnewbraunfels #newbraunfelsrealestate #realestateaustin #realestatenewbraunfels #newbraunfelsrealtor #listingagent #salesagent #buyersagent #realestatecareer #realestateagentcareer #realestatebroker

Thinking You Should FSBO? Think Again

Saturday, July 16, 2016

Hurry Up and List Your House TODAY!!

Do Homeowners Realize Their Equity Position Has Changed?

Friday, July 15, 2016

What’s Happening in the Real Estate Market?

4 Reasons to Buy This Summer!

Should I Wait Until Next Year? Or Buy Now? [INFOGRAPHIC]

Some Highlights:

The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
Freddie Mac predicts interest rates to rise to 4.6% by next year.
CoreLogic predicts home prices to appreciate by 5.3% over the next 12 months.
If you are ready and willing to buy your dream home, find out if you are able to!

Robbie English, Broker • Dewey Blanton Real Estate • 512-910-HOME mobile • soldbyrobbie@gmail.com
#DBRTX, #robbieenglish, #deweyblantonrealestate #austinrealestate #realtor #realtorslife #realestate #broker #realty #austinrealtor #realestateagent #austinrealtors #realestateagentaustin #realestateagentnewbraunfels #newbraunfelsrealestate #realestateaustin #realestatenewbraunfels #newbraunfelsrealtor #listingagent #salesagent #buyersagent #realestatecareer #realestateagentcareer #realestatebroker

Thursday, July 14, 2016

2 Tips For Getting The Most Money When Selling Your House

3 Crucial Questions Most Home Buyers Don’t Know the Answer To...DO YOU?

Whether you are considering the purchase of your first home or trading up to the home your family frequently fantasizes about, there are three crucial questions you must know the answer to:

What is the minimum down payment required to purchase a home?
What is the minimum FICO score required to qualify for a mortgage?
What is the maximum Back-End DTI Ratio allowed?

A survey conducted by Fannie Mae revealed startling information: most Americans don’t know the answer to these three crucially important questions. Here is a graphic showing the results of the survey:

The percentages are quite disturbing but can explain why so many people believe they are not eligible to purchase a home whether it is a first home or a trade-up home. Here are the actually requirements as per Fannie Mae:

Bottom Line

If you are considering purchasing a home, make sure you are aware of all your options before moving forward.

Wednesday, July 13, 2016

Saving To Buy A Home? What Would You Sacrifice?

Would You Qualify for a Mortgage Now?

The widespread myth that perfect credit and large down payments are necessary to buy a home are holding many potential home buyers on the sidelines. According to Ellie Mae’s latest Origination Report, the average FICO score for all closed loans in May was 724, far lower than the 750 or 800 that many buyers believe to be true.

Below is a graph of the distribution of FICO scores of approved loans in May (the latest available data):

Looking at the chart above, it becomes obvious that not only do you not need a 750+ credit score, but 54.9% of approved loans actually had a score between 600 and 749.

More and more experts are speaking up about the fact that if potential buyers realized they could be approved for a mortgage with a credit score at, or above, 600, the distribution in the chart above would shift further to the left.

Ellie Mae’s Vice President, Jonas Moe encouraged buyers to know their options before assuming that they do not qualify for a mortgage:

“The high median credit score is due to many millennials believing they won’t qualify with the score they have - and are therefore waiting to apply for a mortgage until they have the score they think they need.” (emphasis added)

CoreLogic’s latest MarketPulse Report agrees that the median FICO score does not always tell the whole story:

“The observed decline in originations could be a result of potential applicants being either too cautious or discouraged from applying, more so than tight underwriting as the culprit in lower mortgage activity.”

It’s not just millennials who believe high credit scores and large down payments are needed. Many current homeowners are delaying moving on to a home that better fits their current needs due to a belief that they would not qualify for a mortgage today.

So what does this all mean?

Moe put it this way:

“Many potential home buyers are ‘disqualifying’ themselves. You don’t need a 750 FICO Score and a 20% down payment to buy.”

Bottom Line

If you are one of the many Americans who has always thought homeownership was out of your reach, let’s get together to start the process of getting you pre-qualified and see if you are able to buy now!

Friday, July 29, 2016

Some Highlights:

Thursday, July 28, 2016

If your house hasn’t sold, it is probably because of the price.

Bottom Line

Wednesday, July 27, 2016

“Which would be the best way to invest money you did not need for more than 10 years?”

Bottom Line

Tuesday, July 26, 2016

Buyer Demand Continues to Outpace the Supply of Homes For Sale

Bottom Line

Monday, July 25, 2016

What has actually happened?

Friday, July 22, 2016

Thursday, July 21, 2016

Not Every Baby Boomer Downsizes

Bottom Line

Wednesday, July 20, 2016

Here is a graph to illustrate the rate of increase over the last several years:

Bottom Line

Tuesday, July 19, 2016

Put Your Housing Cost to Work for You

Bottom Line

Monday, July 18, 2016

1. Why am I buying a home in the first place?

2. Where are home values headed?

What does that mean to you?

3. Where are mortgage interest rates headed?

Bottom Line

Sunday, July 17, 2016

Saturday, July 16, 2016

Friday, July 15, 2016

Some Highlights:

Thursday, July 14, 2016

What is the minimum down payment required to purchase a home?

What is the minimum FICO score required to qualify for a mortgage?

What is the maximum Back-End DTI Ratio allowed?

Bottom Line

Wednesday, July 13, 2016

So what does this all mean?

Bottom Line

Tuesday, July 12, 2016

Monday, July 11, 2016