The Election's Impact on ​the Housing Market

A lot of people have been asking us about the long-term impact of the new president on the real estate market. In reality, the market will continue to operate the same way it always has.

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We’ve been getting a lot of questions lately about the housing market and how it’s going to be affected by the recent results of the presidential election. This isn’t a political topic, because the housing market isn’t about who is in office.

No matter who has been in the office, our market cycles in 10-year increments, and we are in year 10 from the most recent market tip in 2006.

The most important thing to pay attention to when looking to buy a home is what’s right for you when determining your mortgage payment and your interest rate. Homes haven’t been this affordable since the 1970s due to these low rates.

Since Donald Trump was elected president, rates have gone up. The 10-year bond has spiked. It remains to be seen whether that trend will continue. The Federal Reserve is meeting this month to determine whether to raise interest rates or not.
Homeowners have a much higher net worth than renters.
Even though we aren’t sure what the rates are going to do, we do know one thing about homeownership. According to statistics on median net worth for the average American, the average homeowner’s net worth is much higher than the average renter’s. The average net worth for a homeowner is $195,400. The average net worth for a home renter is $5,400. That’s a huge difference just for owning a home. We are big proponents of homeownership because of what it does for you in building wealth over your lifetime. There are great things that come with homeownership, like interest rates, tax writeoffs, and more.

If you want to get a plan going for owning a home, we can help. Whether you are dead-set on buying or just curious, give us a call or send us an email. We would love to hear from you.

Our Way of Saying Thanks

In the real estate profession, our success is only possible because of our wonderful clients. We want to say thanks with a free pie for Thanksgiving.

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Thanksgiving is almost here and we always like to take this time to be grateful for everything that we have in our lives. In our profession, our business would be nothing without you, so we're endlessly thankful for you as our client. Know that we don't take that for granted.

As a small token of our appreciation, we'd like to give you a free, delicious pumpkin pie. All you have to do is fill in some information on our website, and we'll set you up with a free pie that will be available on Tuesday, November 22nd between 3 p.m. and 7 p.m.
Our business is nothing without you, so let us say thanks.
We appreciate you sending in your submission early so that we can have enough time to reserve enough pies—we won't be baking them personally, which is probably for the best!

We hope to hear from you soon and see you on the 22nd to pick up your free pie! I can't tell you how much we appreciate your business and your referrals.

To reserve your pie, click here.

Answering Some Common Distressed Real Estate Questions

We are here to answer some questions about short sales, how they work, the benefits they offer, and how long you have to wait to buy again.

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We are back to answer a few questions about distressed home sales. A lot of people went through foreclosures and short sales during the recession, and a lot of them are now curious about when they can get back into the market. Others bought during the recession and haven’t quite been able to stay above water, so they want to short sell their homes. Let’s discuss the wait period first. People have been asking, “When can I buy a home again?”

If you want to buy a home with conventional financing after going through a short sale, you will have to wait four years. After a foreclosure, you would have to wait seven years. This loan has a limit of $417,000. If you want to buy with an FHA loan, which has a limit of $271,050, you’ll only have to wait three years. This goes for both short sales and foreclosures.

The second question I’ve been getting is “How do I short sell my house?” Unfortunately, this question is becoming all too common. The market is still about 20% off from where it was at the peak in 2007, and if you’re underwater and can’t sell traditionally, a short sale can be a great option.
The Mortgage Forgiveness Debt Relief Act is still in play.
The best thing about doing a short sale right now is that the Mortgage Forgiveness Debt Relief Act is still in play through the end of 2016. Congress could extend this out, but as of now, they have not. You still have several months to take advantage of this act through a short sale, which will forgive you from paying taxes on an owner-occupied residence that you want to short sell.

If you have any questions for me at all, don’t hesitate to reach out. I can answer all your real estate questions and point you in the direction of an experienced loan officer to answer any mortgage-related inquiries. I look forward to hearing from you soon!