Real Estate Outlook: Affordability High!

Housing affordability is still at a record high, according to the National Association of Realtors (NAR). It is at the highest level since record keeping began in 1970. This is based on the relationship between median home price, median family income, and average mortgage interest rate.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today's market. "This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home," he said. "For buyers who can qualify for a mortgage, now is a very good time to become a homeowner."

Projections for the remainder of 2012 indicate that this affordability high will continue and rates will remain low. "Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country," Veissi said. "If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth."

If you've been thinking about purchasing a home, clearly, it's the perfect time to buy! Don't wait any longer...
call us today with all of your real estate needs! 616.366.5240 Have a wonderful day!

The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Christine Lassa
http://www.grhomelink.com

New Short Sale Guidelines Set Time Requirement for Quicker Transactions!

Summer is right around the corner, and so is a big change in the short sale process. Beginning June 15, homeowners whose loans are backed by Freddie Mac or Fannie May should receive a decision on short sale offers in 30-60 days!

If more than 30 days are needed, servicers must provide the borrower with a weekly status update and make a decision within 60 days since the offer was received. If a counteroffer is made, the borrower is expected to respond within 5 days, and the servicer must respond within 10 days of receiving the borrower's response. A much speedier process!

This is great news for homeowners in this situation. Not only does it provide more transparency in the once cloudy, short sale process, but it also keeps homes occupied and helps maintain stable communities.

Anthony Lamacchia, a broker who specializes in short sales, commented, "I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers. There is no question that this will help short sales and the market as a whole." Great news!

Call us with all of your Real Estate Needs! 616.366.5240 Have a Wonderful Day! The Northouse Team ~ Five Star Real Estate Jeff Northouse ~ Christine Lassa GR Homelink Website Email Jeff Email Christine

Mortgage Rates Continue to Fall!

So you've been thinking about purchasing a home for a while now, but haven't had the courage to take that first step. Sound about right? Well here's your sign! Mortgage rates continue to fall to an all time low...AKA: it's time to buy!
According to Freddie Mac's Primary Market Mortgage Survey, fixed rate averages fell for the third week in a row. The 15-year, fixed rate mortgage is at an all time low, and the 30-year rate continues to fall to below 4%. The 30-year, fixed rate mortgage is now at 3.88% for the week ending April 12, 2012. This number is down even further from last week's rate of 3.98%, and even lower than last year's 30-year average of 4.91%!!
The 15-year, fixed rate mortgage is even more impressive, having dropped to a record low of 3.11%. Last week, the 15-year average was 3.21% and was 4.13% a year ago. Clearly, this is promising news for prospective buyers! The time is right to buy. If you or anyone you know is thinking about buying a home, please contact Northouse Realty Group today!

Call us with all of your Real Estate Needs! 616.366.5240 Have a Wonderful Day! The Northouse Team ~ Five Star Real Estate Jeff Northouse ~ Christine Lassa GR Homelink Website Email Jeff Email Christine

GR Tops List: Best Cities for Raising a Family!

We've always known Grand Rapids is an AMAZING city for people of all ages, but now the press is catching on. Forbes Magazine just named  Grand Rapids the best city for raising a family. If you've been contemplating where you should settle down, read the article below. Grand Rapids is your answer! Especially since 90% of Grand Rapids’ housing stock is affordable to a family at the median income level...time to buy, anyone?

Grand Rapids, Michigan doesn’t boast a lot of affluence. The metro area population of 774,000 carries a median household of $47,040, good for just 65^th place among America’s 100 largest MSAs. The city’s major claims to fame come from being a national leader in office furniture production, and for being the hometown of a U.S. president, Gerald Ford.

What Grand Rapids does have: the distinction of being the best metro area in the country to raise a family in. Income may be relatively low, but the cost of living is even lower. The local school system ranks in the top third in the country. Commuting to work is a breeze. The housing foreclosure mess didn’t leave Grand Rapids unscathed, chopping about 12% off area home values over the past few years. But that’s still quite modest compared to many other places. Almost 90% of Grand Rapids’ housing stock is affordable to a family at the median income level, the seventh-highest rate in the country. And the local crime rate falls well below the national average.

“The housing bubble never burst because there was never any real bubble,” says Grand Rapids Mayor George Heartwell, pointing out the mostly modest, 2,200 square foot colonials that dot the local landscape. Heartwell is a believer in public-private partnerships: Several neighborhood associations, using grant money in partnership with the city, work to keep things in good repair. Call it steady as she goes. If Miami, Florida, with its glitz and glamour giving way to real estate bust is the hare, Grand Rapids is the tortoise. “Even our most depressed neighborhoods are not blighted,” he says.

“For us, it’s all about access,” says David McCauley, a 48-year-old IT professional who grew up on the east coast and moved to Boise with his family several years ago. “Skiing in 45 minutes, fly fishing in the Boise River, which also has some cool kayaking spots.  Mountain biking is literally out my door, and we live downtown.” As for the kids? “They ride their bikes all over,” says McCauley. “They’re allowed to do things alone, but they’re never really ‘alone’.”The relative strength of Grand Rapids’ housing market is enough to push it past the next two cities on our list, Boise, Idaho and Provo, Utah, both of which are particularly noted for low crime and high school quality. Not to mention the chance to mix urban and outdoor lifestyles.

Many young single types may judge a city based on its bike friendliness, club scene, and coffee houses per square mile, in addition to the economy. And why not? You’re only young once. But once marriage and kids enter the picture, priorities change. School quality suddenly pops up as an issue. And those conditions that matter when you’re single – median income levels, housing affordability and commuting hassles – become even more important once you need to answer to more people than yourself.

We measured and ranked America’s 100 largest metro areas by median income, overall cost of living, commuting delays, crime statistics, school quality, and housing affordability (measured two ways – by the percentage of people in the MSA owning homes, according to the Census Bureau, and by the percentage of homes in the area that are affordable to a family making the local median income, according to the latest joint study by Wells Fargo and the National Association of Home Builders). In addition to the Census Bureau, NAHB and Wells Fargo, data was provided by the FBI (via CQ Press –crime stats), the Texas Transportation Institute (commuting delays),greatschools.org (school quality rankings) and the Center for Regional Economic Competitiveness (Cost of Living Index).

Other metros making the grade: Youngstown, Ohio, where incomes are still depressed but where cost of living is low and schools are good, and Raleigh, North Carolina, with high median income and top school rating.

Of course, these things always come down to personal tastes and preferences. If you’re looking to chase a fortune, party with the stars and feel the energy of millions, go to New York or Chicago. But if you’re happy with a solid job that lets you get home in time to see the kids, and where the value of your house isn’t likely to crumble tomorrow, the small-city life is tough to beat.

Call us with all of your Real Estate Needs! 616.366.5240 Have a Wonderful Day! 
The Northouse Team ~ Five Star Real Estate Jeff Northouse ~ Christine Lassa
www.grhomelink.com

Affordability for Homeowners at Record High

Aging Baby Boomers and Young Adults Will Influence U.S. Housing Market

Aging baby boomers and their echo boomer children will significantly impact trends in the nation’s housing market over the next 20 years. In a new report released by the Bipartisan Policy Center, “Demographic Challenges and Opportunities for U.S. Housing Markets,” researchers at the National Association of Realtors®, The Urban Institute, and the University of Southern California analyze key demographic trends and their likely influence on housing and homeownership in the U.S.

Over the next two decades, the aging baby boomer generation will swell the nation’s senior population by 30 million. That demographic shift will likely help increase the supply of housing, since people over age 65 typically release much more housing than they absorb.

“The Northeast and Midwest are most likely to see a large number of older homeowners selling their homes to younger homeowners as the baby boomers age,” said NAR Chief Economist Lawrence Yun. “This increased supply could mean additional buying opportunities for echo boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020.”

The echo boom generation includes nearly 65 million people born between 1981 and 1995. NAR’s analysis illustrates the potential impact of economic and housing policy on this generation’s demand for housing as they come of age.

“Housing, jobs and the economy are inextricably connected,” said Yun. “A strong recovery with favorable housing market conditions would encourage substantial growth in echo boomer households, which would help absorb the current vacant inventory and stabilize conditions for residential construction. Under a reasonable ‘middle’ recovery scenario, approximately 12 million new households will be formed over the next decade, requiring construction of up to 15 million new housing units.”

NAR President Moe Veissi noted that current market trends favor would-be homeowners of all ages. “As the supply of rental housing continues to fall, rents are increasing,” said Veissi, broker-owner of Veissi & Associates Inc., in Miami. “At the same time, affordability for homeowners is at a record high. For buyers who qualify and are ready to assume the responsibilities of owning a home, opportunity is knocking.”

Bidding Wars Are Back!

Bidding Wars Are Back, Agents Say

DAILY REAL ESTATE NEWS | MONDAY, APRIL 02, 2012

Some real estate markets are reporting that home buyers are having to pay more than asking price to get the home they desire, as the supply of for-sale homes has shrunk, Bloomberg News reports. 

Bidding wars were a common part of real estate in 2006. But when the market turned from a “seller’s market” to “buyer’s market,” more sellers started seeing lowball bids than high bids. Now times are slowly changing, and bidding wars are being reported in several markets, such as in Seattle, Boston, Silicon Valley, Miami, and Washington, D.C., Bloomberg reports. 

The inventory of homes for-sale is near a six-year low. Mixed with the low inventory, the job market has been improving and buyers are being lured to the record level of affordability in the housing market. Existing-home sales and pending home sales are up more than 8 percent compared to a year earlier, the National Association of REALTORS® recently reported. Trulia Inc. also reported that falling home values and low mortgage rates have made home buying a better deal than renting in 98 of the 100 largest metro areas.

“The housing crash is finally giving way to recovery in an increasing number of markets across the country,” Mark Zandi, chief economist for Moody’s Analytics, told Blommberg. “The decline in unsold listings and vacant homes and the increase in rents presage better times ahead for single-family housing.”

Source: “Bidding Wars Erupt as Supply of Available Homes Shrink,” Bloomberg News (March 31, 2012)

Call us with all of your Real Estate Needs! 616.366.5240 Have a Wonderful Day! The Northouse Team ~ Five Star Real Estate Jeff Northouse ~ Christine Lassa GR Homelink Website Email Jeff Email Christine