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Sea Point Realtors
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seapointrealtors · 56 minutes ago
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New Home Sales Reach Lowest Level Since Start of Pandemic
Home demand has been skyrocketing throughout the pandemic as mortgage rates have been at or near historic lows. But things might finally start to cool off.
In June, new home sales fell to their lowest level since April 2020, according to the Census Bureau. To be clear, new home sales refer to newly built homes, not existing ones that were previously occupied as of June 2020. That is significant insofar as housing market experts have actually expected a 3.4% increase in new home sales.
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Why did new home sales decline?
A 6.3-month supply of new apartments was available in June. That is more than the 5.5 month supply in May. In contrast, last autumn there was only a 3.5-month supply of new buildings.
But newly built houses cost more than ever as builders grapple with rising material costs and a shortage of available labor. In June, the median price of a newly built home increased by 6% compared to the previous year. That’s on top of the 15-20% annual growth we’ve seen in the previous months.
While lumber prices have fallen since the surge earlier this year, many home builders are still trying to offset their costs from the time when supplies were more expensive. And many are forced to throw workers higher wages in order to get them to take a job – a problem that has been noted in many industries, including restaurants.
The final result? For many buyers today, the new building is no longer financially achievable. Those who buy a newly built home require a higher down payment and a more expensive mortgage. And while mortgage rates are low today, they may not be low enough to make up for higher purchase prices.
Of course, the fact that buyers are pushing back and not paying too much for homes could be taken as a sign that demand is finally falling. This is good news at a time when so many buyers are struggling to buy homes because of a lack of inventory.
The basic laws of supply and demand tell us that prices tend to follow suit when demand falls. And so, June new home sales could be the start of a monthly trend.
Now, cost may not be the only thing stopping buyers from buying newly built homes. Some fear that today’s homes are not being built with the same high quality materials that are used in older homes. At a time when many common supplies have been hard to come by, it’s easy to understand why buyers are concerned that builders are sacrificing where they can.
Either way, it will be interesting to see if new home sales continue to decline. If so, it could pave the way to cheaper purchase options for potential homeowners later in the year.
source https://seapointrealtors.com/2021/08/01/new-home-sales-reach-lowest-level-since-start-of-pandemic/
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seapointrealtors · 2 hours ago
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Institutional Property Advisors Brokers $74.1 Million North County San Diego Multifamily Sale | Business
OCEANSIDE, Calif .– (BUSINESS WIRE) – Aug. July 2021–
Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), today announced the sale of The Dylan, a 208-unit apartment complex in Oceanside, California. The property sold for $ 74.1 million, or $ 356,250 per unit.
“Oceanside is a growing city with single-family home prices rising to all-time highs across the submarket,” said Christopher J. Zorbas, Executive Managing Director Investments at IPA. “The growing discrepancy between the monthly cost of living for rent and property should keep apartment buildings vacant and put upward pressure on rental prices for the foreseeable future.” Zorbas, Alexander Garcia, Jr. and Tyler J. Martin represented the seller, 29th Street Capital, and brokered the buyer, 550 Los Arbolitos Owner LLC. “With an average home price in Oceanside of approximately $ 650,000 and an average effective rental price of approximately $ 1,850 per month, monthly rental costs are 42% lower than home ownership,” added Garcia.
The hotel is located near downtown Oceanside and the Oceanside Pier, and is easily accessible from California State Routes 76 and 78 and Interstate 5. Major employment centers such as the Palomar Airport District, Ocean Ranch Corporate Center and Camp Pendleton are nearby. San Diego State University, the University of California San Diego, Mira Costa Community College, and Palomar College are just a short drive away.
Built in 1973, The Dylan consists of one, two and three bedroom apartments. The complex’s amenity package includes two swimming pools, two spas, a fitness room and a business center. “The previous owner tastefully renovated around 50% of the interior,” says Martin. “Further advantages can be achieved by renovating the remaining interiors and by strategically upgrading the interiors that have already been renovated.”
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial property services company in North America. The combination of real estate investment and capital market expertise, industry-leading technology and renowned research offers tailor-made solutions for the acquisition, sale and financing of institutional real estate and portfolios. More information is available at www.institutionalpropertyadvisors.com.
About Marcus & Millichap (NYSE: MMI)
Marcus & Millichap is a leading specialist in commercial real estate sales, financing, research and advisory services with over 2,000 investment sales and financing experts in the United States and Canada. Founded in 1971, the company completed 8,954 transactions in 2020, valued at approximately $ 43 billion. Marcus & Millichap has perfected a powerful real estate marketing system that combines investment specialization, local market expertise, the industry’s most in-depth research, cutting-edge technology and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210730005572/en/
CONTACT: Gina Relva, Public Relations Director
Gina.Relva@marcusmillichap.com
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: RESIDENTIAL CONSTRUCTION & REAL ESTATE COMMERCIAL CONSTRUCTION & REAL ESTATE & REAL ESTATE
SOURCE: Marcus & Millichap
Copyright Business Wire 2021.
PUB: 07/30/2021 3:51 p.m. / DISC: 07/30/2021 3:51 p.m.
http://www.businesswire.com/news/home/20210730005572/en
Copyright Business Wire 2021.
source https://seapointrealtors.com/2021/08/01/institutional-property-advisors-brokers-74-1-million-north-county-san-diego-multifamily-sale-business/
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seapointrealtors · 2 hours ago
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Growth Risks To The Economy Intensify
Percentage changes in personal consumption expenditure
Universal value advisor
Mask requirements are now a reality in many parts of the country. That can’t be good for third quarter economic growth. The first pass in GDP in the second quarter came out with growth of + 6.5% with the consensus north of 8%. Despite that disappointment, the markets seemed to like the number, even if Amazon, the figurehead of the America pandemic, disappointed.
growth
Some road management departments are now seeing Q3 and Q4 with yellowish eyes, as we do. Goldman Sachs, for example, recently set its growth forecast for the second half of the year to a range of 1.5% to 2.0%, while the overall consensus is still close to 7%. And as you will see in our comments below, the consensus has consistently been missed on the bullish side, suggesting us that the slower growth ahead is not yet priced into the markets.
In fact, one look at the GDP growth pattern of 6.5% in the 2nd quarter shows that almost all of that 6.5% was accounted for in the 1st to 2nd quarter handover. Remember, the March drop in helicopter money led to new heights of growth this month. Some of it spilled over into April, but GDP growth rates in May and June were absent. While the 2nd quarter maintained the GDP level of March, which enabled an increase of 6.5% in the 2nd quarter, the transfer to the 3rd quarter remained unchanged. Maintaining June GDP levels would result in non-growth in the third quarter. While we are not in the forecasting business, we understand that the GDP forecast of over 7% for the third quarter is in the left field. The stock market has yet to face this reality. On the flip side, the bond market, which has puzzled many media commentators, appears to have picked up on this growth problem, with yields trending lower across the spectrum.
work
The work landscape remains divided, with states that have opted out of state unemployment benefits of $ 300 / week making much faster progress on the employment front than states that have opted for it. We recognize that there is more at play here than just the federal grant (e.g. childcare problems, school openings, fear of infection, or perhaps the opt-out states opened their economies earlier and / or more fully). Still, federal funding seems to play a big role, according to the data.
For the last week of data (July 24), the state-level Initial Unemployment Claims (ICs) were a mixed mix with the seasonally adjusted number of 400,000, a decrease of -19,000 from last week’s number (419,000, since then revised to 424,000). ). The consensus view was optimistic at 385,000, so a disappointment. The readers of this blog know that we believe that the pandemic biases are not subject to seasonality, so we rely on non-seasonally adjusted data. In that regard, there has been a huge downward movement from 406K to 345K in the state ICs (since the revision to 411K). That’s a -61K move in the right direction. Forty-three states reported fewer ICs, 10 more, but seven of those 10 reported fewer than 1,000 increases. Only in TN (+1,439), NV (+2,434) and CA (+10,937) did the increase exceed 1,000. CA is an outlier for both ICs and Continuing Claims (CCs) that receive benefits for more than a week (more on CA below).
We believe that in the aftermath of September 6, if federal subsidies are removed, opt-in states will see a much faster decline in unemployment.
The table shows the percentage changes in unemployment over the past three weeks after the date of deregistration, based on data from May 15. In this week’s table we added a row to exclude CA from opt-in states, as the CCs there have increased by a gigantic + 234K in the past two weeks.
Percentage changes of the CCs after the deregistration date
Universal value advisor
Here are some other aggregated observations:
State CCs July 17: 3,247,071 100.0%
Opt-In State CCs July 17: 2,453,666 75.6%
Opt-out State CCs July 17: 793,405 24.4%
Total change in CCs 10.-17. July: -28428
Total change opt-in 10.-17. July: +56967
Total change cancellation 10.-17. July: -85395
Convinced? In the week of July 17, the opt-out states reduced their unemployment by -85,000 with 24.4% of the total CCs, while the opt-in states (75.6% of the CCs) increased their unemployment rate by almost +57,000 !!
OK – let’s exclude CA. The data now show that the opt-ins (ex-CA) reduced their unemployment by a significant -15.4%, still behind the -26.5% of the opt-outs, but better than the -11.3% the previous week. We expect the opt-ins to catch up quickly in the coming weeks. As for CA’s data for the past two weeks, the only plausible explanation we can fathom, and this is just speculation, is that the rapid surge in ICs and CCs is due to the Delta variant. If this turns out to be the cause and CA is a leading indicator, think about what this could mean for the third and fourth quarter growth path!
inflation
The notion that the inflation we are currently experiencing is somehow “systemic” still plays well in the financial media. At the press conference after the last Fed meeting (July 27-28), Chairman Powell, while vaguely insisting on the dates and determinants of future Fed monetary policies, insisted (and consistently) that the Fed is still in the current inflation war as “temporary.” On Friday, July 30th, the personal consumption expenditure (PCE) price deflator, the Fed’s most closely monitored inflation indicator, was reported at + 0.5%, slightly lower than consensus expectation of +0. 6%. The “core value” (less food and energy) was + 0.4%. On a Y / Y basis, the headline was + 4.0% while the “core” was 3.5%. As mentioned above, this is the Fed’s primary inflation guide.
The blue line in the diagram above shows the percentage changes compared to the previous year in this metric from January 2019 to June 2021. The right-hand side looks pretty scary: March 2021: + 12%; April: + 30%; May: + 20%; June: + 14%. But move your eye to the left on the blue line. There have been 10 consecutive months with negative Y / Y values. The financial media don’t talk about it.
Most of these Y / Y fluctuations are due to “base effects,” meaning the downturn in this inflation meter from a year ago in the denominator of percentage change skews the true picture. We added a second line to the chart (orange) that uses 2019 data as the denominator. The resulting percentage changes relate to a period of two years, so we have extrapolated them for the year. That is, if the resulting number is 4%, it means that starting with the month of 2019, multiplying the price twice by 1.04 (once for 2020 and once for 2021) would give today’s price level. This method eliminates the “base effect” problem. Now look at the right side (orange line). Not that scary at all: March: 4.2%, April 4.4%, May: 4.2%, June: 4.6%. For comparison: The percentage changes compared to the previous year in this PCE measure were 4.5% in December 2019, 4.7% in January 2020 and 4.7% in February 2020. Today’s prices then rise after removing the “base effects “At the same rate as before the pandemic. Back then, nobody spoke or wrote about inflation. If these “base effects” disappear in the next few months, the fear of inflation will also disappear. The Fed knows that.
Other dates
There is other data to convince us that GDP growth will remain unchanged for the next six months.
· Housing: This seems to have peaked. Remember, despite the levels, when the M / M data is lower, growth will slow.
New home sales in June were 676,000 – 12.1% below the 769,000 originally reported in May (since then revised down significantly to 724,000). The consensus estimates, of course, use the latest data available (769,000 in this case) and thought that a 3.5% increase from 769,000 to 796,000 was in sight. The miss was a gigantic -15.1%. (See what we mean by over-optimistic estimates?)
Sales of existing homes were slightly higher in June at 5.86 million units (annual rate) than in May (5.78 million), but they still represented a decline of -26% in the last six months. The reason has, as everyone knows, mostly to do with rapidly rising prices, with median prices rising + 23.4% Y / Y and a hell of an annual rate of + 38.0% over the past six months.
As a result, mortgage loan applications have declined -21% in 2021.
· Construction: Both residential and non-residential construction show negative M / M, with non-residential construction in its own recession.
· Delivery bottlenecks: Indications of delivery delays and backlog data from the most recent regional Federal Reserve Banks (KC, Richmond, Philly, NY and Dallas) show a clear relaxation in the supply chains.
· Moratoria: The eviction moratorium is supposed to expire on Saturday, July 31st. Eight million tenants (15% of the total) are in arrears with rent, while 1.55 million mortgage holders (2.9% of active mortgages) are in arrears. Payments for student loans have also not been required for some time.
Let’s consider the best possible outcome: mortgages get extended payment terms and tenants have to increase the rent until the rent is repaid (no evictions). In either case, consumers have less net dollars left than they did when the moratoriums were in place, as they have to start making mortgages and (higher) rent payments again. This certainly cannot be positive for the economic growth scenario.
· Delta variant: We noticed above in this blog that mask obligations were again imposed on a significant part of the population. The attached map shows the US regions most affected. This is just another downside to future economic growth (but maybe a positive one for Amazon!).
State risk level for Delta variant
Brown School of Public Health
Conclusions
The data and trends suggest much weaker economic growth in the second half of 2021.
The opt-out states have so far made greater progress in reducing unemployment than the opt-ins. Without the CA, however, as the September 6th amendment end date approaches, opt-ins are starting to catch up. We expect this trend to intensify in August and (especially) September.
The Fed is closely monitoring the PCE deflator. Our analysis shows that the four-month rise in the PCE index is indeed temporary.
From an economic growth perspective, the end of moratoriums on rent, mortgage payments and student loan payments can only be negative.
The wearing of masks has returned. CA’s employment data has deteriorated rapidly. We don’t know why, but if it is the Delta variant, economic growth could be severely affected.
(Joshua Barone contributed to this blog.)
source https://seapointrealtors.com/2021/08/01/growth-risks-to-the-economy-intensify/
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seapointrealtors · 2 hours ago
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Pending Home Sales Dropped in June, Which Means the Housing Market Could Be Cooling Off
There was a lot of demand to buy a new home as mortgage rates stayed near record lows for most of the year. However, according to the National Association of Realtors, outstanding home sales fell 1.9% in June compared to May. And that could be a sign that the housing market is finally calming down.
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Will buyers soon enjoy lower property prices?
Pending home sales refer to contracts to buy a home that have been signed but not yet finalized, and are a measure of the strength of the housing market. Home prices are at record highs at this point, but that has been a deterrent for many buyers.
In May, home prices rose 17% from May last year, according to the S&P Case-Shiller National Home Price Index. This represents the largest annual gain on record and could explain why pending home sales have declined last month.
Of course, the low real estate portfolio was also an issue. In fact, a major reason home prices have spiked this year is that there weren’t enough properties for buyers to choose from. So what happened is buyers were fighting over the same limited homes, trying to outbid each other, and driving house prices up.
Now Realtor.com reports that the number of newly listed properties in June increased by 5.5% compared to June 2020. Overall, however, the population is still well below the normal level. And that makes it a very difficult market for today’s buyers to find their way around.
Should You Buy a Home Now?
With current home prices and market competition, now is not an ideal time to buy, even if mortgage rates are so competitive. But if inventory slowly increases and buyers become more conservative about how much to pay for a home, things could improve later in the year.
Now, if you have a compelling reason to buy a home – say your lease is about to expire and you don’t want to extend it for another year – then you may want to keep searching for a home. Otherwise, it might be worth it to sit tight for a while.
There is a great chance that mortgage rates will remain competitive well into 2022 and possibly beyond. In other words, if you step away from today’s tough housing market and wait and see, you won’t necessarily miss the chance of setting a competitive home loan interest rate. What you can do, however, is to save yourself a world of stress and avoid paying for a home that would normally sell for much less.
Additionally, waiting for more inventory to hit the market means less likely to settle for a house that you aren’t really in love with. That alone makes the wait worthwhile.
source https://seapointrealtors.com/2021/08/01/pending-home-sales-dropped-in-june-which-means-the-housing-market-could-be-cooling-off/
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seapointrealtors · 4 hours ago
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A Housing Market Crash Is Coming. Here’s How to Prepare
How do we know the meteoric rise in US house prices cannot be sustained? Common sense and history. Common sense tells us that something will give. As more people sell their homes and stocks open up, supply may keep pace with demand, driving prices down. Or it could be that prices are reaching a tipping point and homebuyers looking to save money by snagging a low interest rate lose interest when sky-high prices eat up all possible savings.
However, if someone tells you they can predict exactly when the property market is going to collapse, double-check what they are selling. Trying to figure out when the housing landscape will flatten is a guessing game, with so many moving parts that it changes daily. But here’s what we can tell you with confidence.
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The near future looks clear
Again, nothing is guaranteed on real estate, but the Federal Reserve plans to keep the base rate – the rate at which banks lend each other money – low through 2022. When the prime rate is low, consumer rates stay low. That alone should be enough to keep homebuyers interested. On top of that, the U.S. economy will grow 6.8% in 2021, according to Fannie Mae’s Economic and Strategic Research Group forecast, and you continue to have a robust market for the near future.
There is also the subject of inventory. Due to a shortage of materials and labor, the builders are nowhere near the level of the building before the pandemic. As long as there is little inventory, the homes for sale are likely to continue to sell at higher than expected prices.
But where do these prices end? Real estate investors have no interest in paying top dollar for real estate that they want to generate profitably. And there are only so many homebuyers who have enough money to pay the difference between the asking price and the mortgage lender’s willingness to loan. Ultimately, the pure cash buyers are being liquidated, and the people who keep looking for homes need a stabilized market to become homeowners.
In other words, there is nothing in the immediate vicinity that suggests that property prices will fall immediately. In fact, Zillow Economic Research predicts that property values ​​will rise 10.5% from current levels by the end of 2021.
The evidence is this: history repeats itself
No matter how rosy things are for home sellers today, a quick look back at history reminds us that everything that goes up has to come down. The trick is to remember why each crash happened – and identify similarities in our current market.
Panic of 1837
The real estate market of the 19th century experienced several boom phases, followed by slumps of varying intensity. The panic of 1837 is attributed to speculative lending practices, unsustainably high land prices, and an economic downturn. That was a big crash.
After the panic of 1837 (and the relative recovery), the market has seen more dramatic ups and downs. Just as it turned out that house prices would never stop rising, something would shake the economy and house prices would fall. The stock market crisis of 1873 is a perfect example. Things were buzzing, homeowners were sure their homes would make them rich, and the bottom fell through when the stock market collapsed.
1929 Wall Street Crash and Great Depression
After a decade of skyrocketing property prices, values ​​plummeted when the stock market crashed in 1929. Suddenly wealthy families had next to nothing. The crash also ushered in the global economic crisis, which further decimated property values. Only in 1960 did prices recover nationwide.
2008 real estate bubble
In the early 2000s, almost anyone with a pulse was getting approved for a mortgage, and house prices were rising rapidly. By 2006, their payments to home buyers who took out adjustable rate mortgages had increased some 60%. In 2007 the market slowed and then collapsed completely when hundreds of thousands of homes were foreclosed and lenders filed for bankruptcy.
And these are just a few examples of how property prices have risen to historical levels and then fell back to more realistic levels.
Experts weigh in
Most experts say the chances are slim that the US will experience a collapse on the order of the 2008 crash. There are many reasons for this, including legislative changes in lending practices.
Sometimes what we call “crashes” is really that. But more often, they mean a slowdown in the market and a setback in home prices. History shows that the real estate market peaks about every 18 years, followed by a crash (small or large). This cycle is normal and to be expected. In this case, real estate investors grab the best deals and first-time buyers have the opportunity to become a homeowner.
Five ways to protect yourself
If you are looking to get into the housing market in the near future, this is some advice to keep in mind.
1. Don’t get caught up in the shopping spree
If you are paying a lot more than a home is worth, you will likely be underwater when the market pops up on its own.
2. Don’t buy more than you can afford
Put simply, if you had to watch every penny to make a mortgage payment, you should be looking at less expensive real estate.
3. Make the largest down payment you can afford
The higher your down payment, the higher your home equity. (Equity is the difference between what you owe on your mortgage and the value of your home – or how much of your home you directly own). That equity is sometimes all that stands between a homeowner and a foreclosure when the going gets tough.
4. Create your emergency savings account
As a rule of thumb, set aside enough to cover expenses for three to six months in order to be prepared for emergencies. Depending on your level of comfort, you may want to shoot for a larger emergency fund.
5. Consider refinancing
If you currently own a home, decide if now is the right time to move. If you can wait, there’s no reason not to take advantage of the current low interest rates by refinancing your existing mortgage.
Residential values ​​are indicative of many things, including the economy as a whole, geopolitical activity and, as we have learned, a global pandemic. As long as you know that the value of the market can’t go up forever, you can plan the day of the crash – even if that crash is more of a soft landing.
source https://seapointrealtors.com/2021/08/01/a-housing-market-crash-is-coming-heres-how-to-prepare/
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seapointrealtors · 6 hours ago
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Hot real estate market affecting rents and home prices in summer
On this episode of Commerce Street, experts spoke about how the seller market is affecting rent, mortgage assistance programs, and options for first-time home buyers.
SAN ANTONIO – “Are you able to compete in this market?”
That’s the question real estate agent Sarah Briseno Gerrish says that any first-time home buyer must face a real estate market that has made it increasingly difficult to find homes over the past two years.
On this episode of Commerce Street, an original business podcast from KENS 5, experts talked about how the seller’s market is affecting rental and mortgage assistance programs, how first-time home buyers can still get the home of their dreams, and the benefits of buying a home has right now.
Listen to our full conversation with Sarah Briseno Gerrish, Board Member of the San Antonio Board of Realtors, on Apple Podcast, Google Podcast, Spotify, or the podcast player below. (Article goes below).
Around spring 2021 came stories of bidding wars, aggressive offers, and even gifts like cookies and muffins delivered to sellers to sweeten the deal.
The San Antonio Board of Realtors says we have entered a “seller’s market” at that time. There were many reasons for this … historically low interest rates, remote working that caused people to look for other housing, and people moving in from other states, including California, for work opportunities and a lower cost of living.
KENS: Tell me about your real estate experience here in the city of San Antonio.
Briseno Gerrish: I am a second generation real estate agent and have been in our industry for 20 years. So I’ve certainly seen San Antonio in different real estate cycles.
KENS: How would you say the last couple of years, or really the last year and a half compared to what you’ve seen over time?
Briseno Gerrish: Right now we’ve had low inventory for a few years and that is probably related to several factors. We still have record-low interest rates, and to be honest, only further construction has not kept pace with demand. And so these articles really show why our market is so fast moving right now.
KENS: You also work with a lot of first-time buyers. What are some of the reasons people are choosing to buy now?
Briseno Gerrish: I believe, however, that there are currently still many people who want to benefit from historically low interest rates. And there are only people willing to move from renting to buying. San Antonio is still a relatively affordable market compared to other major Texas metropolitan areas. So, I mean, it’s an attractive time to buy.
KENS: Do you find that many buyers are from outside of San Antonio or from San Antonio? A bit of the mix?
Briseno Gerrish: It’s fair to say it’s a mix. There are people outside of Texas seeing our prices and they are amazed at the amount of square feet of land you can buy because we have a lower cost of living. So we’re still relatively cheap, even though our prices are rising. But I would say there is a mix of people who come from abroad and then only from the local area who just move around in the metropolitan areas of Texas.
KENS: What do people love or enjoy most when you show them homes in San Antonio?
Briseno Gerrish: That’s a good question. So the joy of owning your own home is always exciting. And you know, everyone has different experiences. But just so that that particular buyer can envision their own space and decorate it in their own safe space, are you looking at their dream home. That’s a happy, magical part of itself. I think this is one of the most rewarding for people. And it’s their own property. You don’t have to be accountable to anyone and you can decorate as you wish. So it’s an exciting time for people.
KENS: We heard last year that the market was hot. If you want to buy, you need to shop quickly. Are we still seeing this or has it slowed down at all?
Briseno Gerrish: So we are in what is known as a seller’s market. So it basically means that there are more buyers than there are actually houses for sale. And because there are more buyers than there are actually houses for sale, you start to see that it happened. Multi-offer situation, buyers are making aggressive offers and things are moving really fast.
KENS: What tips do you usually have? Not exactly first-time homebuyers, but just about all homebuyers.
Briseno Gerrish: And so I would say the first tip I have for you is to go with a broker. You can find a broker at Sabor.com to find a knowledgeable broker who knows today’s market to put together an aggressive plan because that is exactly what you need to do in today’s market. There are things you could do with your offering. You can see that many are foregoing assessment progress, shorter option or review periods. You start seeing the list price above just to stand out from the crowd. And it’s a multi-offer situation. But if you consult with your broker, you can come up with a plan that is best for you.
KENS: So let’s tune in a little bit to what we’re seeing in terms of rentals in San Antonio. How is the market currently looking compared to other years? Did the rents cost more or less? What will we see
Briseno Gerrish: So I would say that the inventory shortage on the purchasing market definitely has an impact on the rental market. You have some people who may not want to compete in this fast-paced market or just want to sit out or wait for it to cool down. And so this time of year is traditionally the busy time for sales and rentals. And so people start to see them say, ‘Well, let me sit in this marketplace and keep renting.’ And so you see rents just as the buying market is moving fast and rents and rents are also rising.
KENS: Is it typical for San Antonio that apartments go super fast?
Briseno Gerrish: I would say it seems to be going a little faster now. I think we’ve always had a healthy real estate market, but the rental and purchase market is certainly going faster.
KENSL Well, you mentioned that this is a busy time of year for people to move. Why this?
Briseno Gerrish: Usually when school is over and the kids are home this is a time to take your next step and try to settle in before the school year starts. It just seems like a typical time.
KENS: What are some of the things that someone who decides OK should I hire? Rent on. Should I buy what are some of the things that you recommend to people?
Briseno Gerrish: Well, I think when you talk to your broker, you will formulate a plan. Are you able to keep up with this in this market? Do you have your closing costs, right? Or do you have your deposit ready? And are you ready to pull that trigger? Because it’s so fast? You need to be aggressive once you identify a property that you want to get an offer on. So it is worth considering whether you want to compete at this price with this process as it is a longer process. It’s a little roller coaster ride, an emotional roller coaster ride when you are dealing with multiple offers. And you may have to do it a couple of times. But here, too, there are many people who benefit from the low interest rates. And that’s just a time to decide if this is the market for you or to keep renting. I would just say all you have to do is formulate a plan that your broker has.
KENS: So we tune in a little bit to the people who are making their first decision to buy a home. What are some of the things to think about or some of the tips that you have?
Briseno Gerrish: Well I think it’s important to make a list of the non-negotiable things and see if that’s even possible in today’s marketplace just because things are moving fast and there just isn’t a lot of choice. And so you can see in this market that people are perhaps a little more flexible than in most markets. And that’s something to choose from, do you know if this is the time for you? I think that’s the most important thing. Obviously when you take out a mortgage you want to get your finances in order and make sure you have your pre-approval and are ready. And I think the most important thing is to know today’s market, to be ready. It will likely be a lengthy process to finally get a home. But I think it’s worth it in the end once you’ve reached the finish line.
ERICA: Have you noticed any changes in the mortgage loan area?
Briseno Gerrish: So in today’s fast-moving market, you see a lot of buyers who forego a valuation in order to compete with multiple offers in this situation. And so that has a lot to do with your loan and your down payment. And that’s one type of discussion you should have with your broker and lender to help you formulate that plan. However, the most important step is figuring out what type of loan is best for you and what your options are.
KENS: How is this seller’s market affected by mortgage assistance programs?
Briseno Gerrish: So there are still down payment support programs. It just depends on some of these programs. If there are additional contingencies, just keep that in mind, as many sellers today are looking for offers with the fewest contingencies. Not to say it’s not impossible, but many sellers have to choose since this is their market. So this is just something to consider in today’s market.
KENS: So just for you personally, if you think back to the past year or so, what did you enjoy most during that time, or what did you enjoy overall about being a real estate agent in San Antonio?
Briseno Gerrish: I think what I learned more about this process is that I think this moment is a bit longer because the process from actually looking at it to actually closing it and getting the keys is a bit more satisfying. It’s just part of the process of getting together. So it’s a longer trip. It’s a bumpier trip. But the finish line feels better.
KENS: Where are the best places to find information about what first-time home buyers in San Antonio should be aware of?
Briseno Gerrish: I would say the best resource is to go to SABOR.com and there are plenty of resources to buy selling tips and identify your broker to see who works best with you.
Below we have more tips for first-time home buyers and ways to make your offering stand out:
RELATED: ‘Inventory at an All Time Low’ | Record low supply and people moving away from the west coast create housing battlefield in SA
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source https://seapointrealtors.com/2021/08/01/hot-real-estate-market-affecting-rents-and-home-prices-in-summer/
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seapointrealtors · 7 hours ago
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TurnCap extends reach to real estate development
Add two more names to the list of real estate developers in northeast Ohio. TurnCap, a Beachwood bridge lender, is getting into real estate development that coincides with the launch of Caledonia Development.
TurnCap has demonstrated its intentions by Caledonia Development to appoint Nathan Wynveen as Chief Executive Officer effective Monday, August 2nd.
Previously, Wynveen was the managing director of Hemingway Development, a Cleveland real estate company founded a decade ago by Jim Doyle Sr. and contractor Greg Geis, CEO of Streetsboro-based Geis Construction, and his brother Fred Geis, who told his staff that they were in Cleveland a decade ago he is retired for a year.
“I had a great opportunity to work in development at Hemingway,” and learn from Doyle and the Geis brothers, Wynveen said in an interview last week. TurnCap provides a way to keep track of additional developments and learn from TurnCap’s principles while starting his own ventures.
Chantel Moody, a TurnCap partner, said the fund has spent the past few years building a real estate development and investment arm that complements its “bread-and-butter” bridge loan business.
Attorney Jon Pinney, a managing partner of TurnCap, has worked with family offices on projects and other clients have followed real estate transactions in the past. Pinney was particularly active in retail real estate, and he and other directors decided to “get back on” at TurnCap because they saw opportunities as the nation recovers from the pandemic-induced recession.
Wynveen will focus on Northeast Ohio while another client, named later, will focus on transactions outside of the city. While Wynveen has a strong background in industrial real estate brokerage and development, Moody says its scope will broaden as TurnCap looks for opportunities like redeveloping empty big box stores, former bank branches and closed freestanding restaurants.
While TurnCap’s original fund was focused on lending, the bridging loans range from $ 10 million to $ 50 million. Alternative investments and developments it pursues can be up to $ 1 million.
For his part, Wynveen said the deal was an opportunity to ally its own efforts with veterans in real estate law, private equity and lending. The projects he claims to be pursuing include a mixed-use project and a warehouse of several hundred thousand square meters. He declined to give details about them and their locations until they are further advanced.
Hemingway founder Doyle said he was excited about the path Wynveen is taking to start his own real estate developments. One of Hemingway’s goals was not just to develop real estate, but to create a pipeline for the next generation of real estate developers.
“(Wynveen) is just getting started, but it’s the same as when Michael Panzica left to start Panzica Development. They were Hemingway’s anchors,” said Doyle. Panzica has started residential construction projects and purchased apartments in Little Italy and Ohio City since exiting Hemingway in early 2020.
Doyle said he continues to work on real estate deals, mostly expansions, but is slowing down the pursuit of additional projects, as is Fred Geis. Doyle pursued development as a second career after a long stint in the real estate lending business.
Doyle said getting into real estate development is a natural step for TurnCap as several national mortgage brokerage firms have successfully ventured into direct development.
TurnCap is a virtual who’s who of Cleveland real estate. In addition to Pinney, the managing partner of the law firm Kohrman, Jackson & Krantz in Cleveland, and Moody, Ned Huffman and Jim Doyle Jr are banking groups – and Preston Hoge, who previously worked for Bellwether Enterprise and CBRE Group Inc.
Prior to joining Hemingway, Wynveen began his commercial real estate career as a broker in the Cleveland office of Newmark Brokerage.
Rico Pietro, a director at Cushman and Wakefield Cresco brokerage, said Wynveen was “a talented guy. He is known project. “
source https://seapointrealtors.com/2021/08/01/turncap-extends-reach-to-real-estate-development/
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seapointrealtors · 8 hours ago
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Homebuyers turn to baby boomer parents to help with purchases
For Jessica Yourdon, a 36-year-old social media coordinator from San Antonio, the wedding last fall brought the promise of their first home. But with the pressure to pay for both a wedding and a home at the same time, Yourdon and her husband had to rely on their parents’ financial help to cover the down payment on their new three-bedroom ranch – a move some pundits have taken saying is becoming more common as house prices skyrocket across the country.
“It was really hard to accept that they wanted to give me money and said, ‘You are our daughter. We love you and it’s our job to take care of you, ‘”Yourdon said. “When the time came, my husband and I were speechless when she said she wanted to do this.”
Yourdon wasn’t the first in her family to receive financial aid to buy a house recently. Her brother also received money to pay a down payment on a house, which Yourdon described as one of the biggest hurdles facing young adults trying to become a homeowner.
Because millennials are struggling with rising home prices due to high demand and limited supply, they buy homes less frequently and later than generations before them.
In addition to becoming homeowners at lower prices, millennials are more likely to turn to others for help compared to previous generations. A 2018 study by financial services firm Legal & General found that 43 percent of people under 35 got help from parents or family members when buying a home.
“It shows that there is a belief and commitment to the real estate market and parents are willing to make a meaningful gift for their child to buy in the market,” said Melissa Cohn, mortgage lender at William Raveis Mortgage. “You think it’s a safe investment.”
According to the latest S&P CoreLogic Case-Shiller Index, home prices were 16.6 percent higher last May than last year, the largest increase in 30 years. Smaller cities in particular have seen explosive growth, with people moving away from the coasts and into smaller metropolitan areas more often – driving up home prices.
Lock out
A July 2018 report by the Washington, DC-based Urban Institute found that millennials’ ownership rates averaged 8 percentage points lower than baby boomers of the same age. That gap is even wider among minority households, whose home ownership rate was 15 percentage points lower than that of white millennials.
Millennials also face disproportionately high student loan debt and, on average, marry later in life, delaying home ownership. They also face high rental costs, which make the promise of home ownership unattainable, according to the Urban Institute report.
Robert Dietz, chief economist for the National Association of Home Builders, said millennials are having trouble buying homes not only because of rising prices – in part because of the increased cost of building materials like wood – but also because of exclusive zoning laws that prohibit the construction of large properties about small starter houses.
Those laws often come in the form of minimum lot sizes, Dietz said, which makes it harder to build small homes, which often appeal to millennial buyers looking to make their first home purchase.
“Communities often use minimum lot size requirements as a NIMBY-is tool to reduce development effort,” said Dietz, using an acronym for the phrase “not in my backyard”. “The result is that when they have a limited number of lots because they need to be bigger, builders are more likely to build the bigger houses overcrowded.”
The effects of these guidelines, according to Dietz, have made “entry-level apartments, especially apartments intended for first-time buyers and first-generation home buyers, more difficult to build”.
Wealth accumulation
But while many millennials struggle to break into the housing market and pay off their debts, those born to the baby boom generation – around 57 to 75 years old – have amassed money for years, giving them control over 53 percent of the country’s total wealth . Baby boomers also, on average, have a far larger share of the country’s wealth than millennials of the same age – 21 percent versus 4.6 percent of millennials.
How do the baby boomers ensure the longevity of their income? By giving it to their millennial children.
“You think of the wealth the boomers have amassed and that kind of void. We see more and more parents who want to help their children – their adult children – financially, [to] financially, ”said Angie O’Leary, Head of Wealth Planning at RBC Wealth Management. “And some of the ways you can do that is by helping them with real estate.”
According to O’Leary, the baby boomers control a large chunk of the country’s wealth for three main reasons: They have a sizable amount of money in retirement plans, have invested heavily in the stock market over the past 30 to 35 years, and have bought bigger homes with more cash value. These factors put many baby boomers in a solid financial position to pass their fortunes on to their children, O’Leary said.
National trend
Real estate agents from New York to Nashville, Tennessee say that while they have always worked with clients whose parents gave them money to pay a down payment or to win a bidding war, they have seen this more frequently in recent years. As the pandemic spiraled the housing market, with property prices now at historically high levels, some believe this trend will continue.
Caroline Blankfort, a Nashville-based real estate agent, has worked with at least 15 clients in the past three years whose parents gave them money to buy a home. Blankfort, who also worked as an agent in New York, said she saw these gifts more often in Nashville, where the market is becoming more competitive as the city grows in popularity.
Parents often give money to their children to pay a down payment or start up costs for a home, Blankfort said.
“It’s still a bit of change that some people don’t plan when they work and save,” said Blankfort. “And then when it’s time to buy a house, it’s like, ‘Oh, wait, wait, I’m not ready for it yet.'”
Cohn, the mortgage lender at William Raveis Mortgage, has been in the industry for nearly 40 years and said the number of baby boomer gifts has increased significantly in recent years. Some of these gifts, Cohn said, have exceeded $ 1 million, although the specific amounts vary from family to family.
Cohn said she expected these types of gifts to rise as long as house prices stay high. The only factor that could potentially deter parents from giving money to their children would be if gift tax laws changed. The annual lockout amount for 2021 is $ 15,000, which means an individual will not have to pay tax if the gift is that amount or less. If the amount is over $ 15,000, the donor must file a gift tax return with the Internal Revenue Service.
“I think the only way they would opt out would be if they were no longer able to give a tax-free gift,” said Cohn. “If that doesn’t change, I see no reason why it should change.”
source https://seapointrealtors.com/2021/08/01/homebuyers-turn-to-baby-boomer-parents-to-help-with-purchases/
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seapointrealtors · 8 hours ago
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Casola Stained Glass Studio in Fort Myers carries on European style
Ken Casola and the artisans he employs at Casola Stained Glass Studio in Fort Myers are among the last European stained glass artisans in the United States. Casola acquired the skills and artistry used to create the panels of an 18-meter-wide church window in Palm Beach Gardens, for example, from a man who had made stained glass for seven decades before they met.
Brad Parliman entered Casola’s stained glass studio in 1985 looking for a part-time job. In addition to offering his manpower, he also offered an apprenticeship for Larry Casola’s son, whom Larry had to bribe by offering fully paid tuition fees in return for helping in the family business. Ken was then 17 years old. Little did he know how lucky he was that Parliman came into his life.
Larry Casola was self-taught. He had started the business in Long Island, New York, as a hobby or part-time job as a firefighter. He was skilled as a stained glass craftsman, mostly making small residential windows, but occasionally a larger project, like the large window for the New York City Fire Academy.
As a child, Larry was captivated by the picture-book pictures in the stained-glass windows of his New York family church. The windows were so colorful that decades later he was inspired to learn how to make them himself.
When Larry retired at the age of 41, moved his family to Cape Coral and opened the Casola Stained Glass Studio, a dream came true. But, says his son Ken, he couldn’t imagine that the business he started would one day create the kind of stained-glass windows that sparked his imagination as a kid.
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Given the status of Casola Stained Glass today, Ken Casola admits that the company was happy that Brad Parliman stepped in on that day in 1985 and mentored that reluctant teenager from whom he “learned how to make stained glass properly. ”
One door closes and another opens
Casola’s apprenticeship at Parliman effectively continued into the 1990s when “the old man” was in his 90s and eventually had to stop working. He had become a beloved and adored member of this close-knit Italian family, so Ken or his father would pick him up every day after work and bring him to the store.
Larry Casola is also retired, as is Ken’s mother, Elaine, an accomplished artist who used to do all of the design work for the company.
But Ken is not alone. In the mid-1990s, around the time Parliman was getting too old to work, even better luck came.
Alexander Sidorov was an iconographer in his native Russia. He emigrated to England, where he worked in a large studio for 10 years and learned how to make stained glass. He then worked in Germany for a few years before moving to the USA and switching to Casola, who happily says: “He’s been making my works of art ever since.”
“I also have another artist. His name is Erik Jiménez and he paints a lot for me too. ”Like the others, Jiménez came up one day looking for a job and although he knew nothing about working with stained glass, he had“ an amazing portfolio … he was just a great artist . So he learned from Sidorov and has been painting for me since the early 2000s. “
The process
Let’s say you are pastor of a church and you have a vision of Christ that you want to recreate on stained glass. Or you are a restaurant owner who wants to see your logo in stained glass. Or you are a homeowner who wants to design a decorative glass to hang as a work of art in your home. You can share your design idea with Ken Casolo, who describes the process of creating a church window as an example.
Since the glass is for a church, Alex Sidorov sketches the desired image on a sheet of paper. After all the desired revisions have been made and the customer is satisfied with the drawing, Sidorov paints it in watercolor.
“All works of art are true to scale,” explains Casola, “so we have already measured the window at this point. When the painting is approved, we will blow it up to full size. This full-size drawing is called a cartoon. It is made in black and white with pencils, charcoal, or a magic marker. Then I take the cartoon and copy it by hand using carbon paper. These are the stencils that I will put on the glass and cut out. To be honest, “he adds,” it took a long time to get really good cutting in the glass. Brad Parliman was extremely patient with me. “
Casola gets its best glass from Europe, more precisely from France, Germany and Poland.
“It’s hand-blown glass; its colors have a lot of life, a lot of shine. ”Casola goes on to explain that with“ painting the glass ”he refers to the order that the artists make of the outlines or lines of the picture (s) on the glass. After this first application of paint, the glass is burned in an oven at around 1,300 degrees.
Next, the artist colors the track lines and the glass is fired again in the kiln. This application of matt paint and kiln can be repeated up to six or seven times. “It’s a long process and another reason why some consider the end product to be expensive. But the more realistic you want the picture to be, “explains Ken,” the more often you have to shade and fire it. “
After the finished pieces of glass are fitted into the full-size pattern, Casola attaches the leads that hold everything together. And although the window is not exposed to the outside elements, he makes the window waterproof by rubbing the edges of the leads with putty. “That makes the window very, very strong.”
The stained glass window is then built into a wooden or metal frame that is screwed into the window frame installed by the contractor. This inner frame also protects Casola’s artwork, which cost the church “thousands and thousands of dollars”, by not touching the outside, tempered, or hurricane glass.
Casola also restores ancient stained glass. After about a century, he explains, the windows in very old churches have to be carefully lifted out of their frames, the old lead must be painstakingly removed and replaced with new one. Losing a window when you remove it is shockingly easy because the lead that holds it all together has essentially turned to dust.
A closing door
Casola admits to passing on “a lot of knowledge”. His son and daughter have pursued their own careers, but he hopes one day to be able to join someone in their craft so that the art of stained glass “properly” is not lost forever.
“Today,” he says, “there are big studios that just want to make money.”
As a perfectionist, he’d rather do without a job than put his name on sloppy work. He fears that when the real artisans are gone, all stained glass will be machine cut out of colored plastic. Much is already there. Most of the “stained glass” you see on front doors today comes from factories in China that keep punching out the same things.
“I can’t compete with them on price. That’s why I explain to people who are only looking for a small piece for their front door that everything I do is tailor-made and personalized, ”says Casola.
The personal perpetuates
How personal Casola’s work is can best be seen in the following story.
Casola was commissioned a few years ago by St. Mark’s Episcopal Church in Palm Beach Gardens to build a sixty-foot-wide and eight-foot-high window to illustrate the story of Jesus feeding the crowd bread and fish. Each section of this massive window was donated by a different family, and each family had an influence on the design of their own section. One of the families consulted with Casola about the memory of their daughter, who was killed in the September 11, 2001 attack on the World Trade Center.
“I thought about it a little,” recalled Ken, “and I said, ‘Why don’t we make your daughter an angel?’ They were just so happy. The mother was crying. So that’s what we did. If you look at this part of the window, you can see the girl’s face in two wings, hovering over her parents. “
Immortalizing a girl and her parents in the stained glass window of her own church is as personal as it gets.
For more information on Casola Stained Glass Studio: 11000 Metro Parkway No. 11, Fort Myers; 239-470-2881; Churcharts.com.
Cynthia Williams (cwilliams1020@gmail.com)
source https://seapointrealtors.com/2021/08/01/casola-stained-glass-studio-in-fort-myers-carries-on-european-style/
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seapointrealtors · 8 hours ago
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A major mortgage refinance fee just disappeared, which could save borrowers $1,500 or more. Is it time for you to refinance?
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Mortgage giants Fannie Mae and Freddie Mac “will remove the adverse market refinancing fee on loan deliveries effective August 1, 2021,” states the Federal Housing Finance Agency. That means if you refinance your mortgage now you won’t pay that fee, which will likely save you money, experts say. You need to know that if you want to refinance yourself now, and Here you can compare today’s best refi prices.
What was the adverse market refinancing fee?
The adverse market refinancing fee was a 50 basis point fee charged by Fannie Mae and Freddie Mac to the lenders when they delivered the refinanced mortgages to the two mortgage companies; the fee was then often passed on to the borrower. The fee was introduced because: “When the pandemic brought high unemployment, regulators feared that a foreclosure crisis would follow. The FHFA added a refinancing fee to top up Fannie Mae and Freddie Mac’s rainy daily allowances so they could afford an increase in foreclosures, ”said Holden Lewis, home and mortgage expert at NerdWallet.
There was no foreclosure crisis, however: “Only 2% of Fannie Mae and Freddie Mac loans allow that number to decline,” said Greg McBride, senior financial analyst at Bankrate. And now Frannie and Freddie have revoked the fee, which, according to the FHFA, “will help families cut their housing costs”. Find the best mortgage refinancing rates near you here.
How much can you save on a refi since there is no disadvantageous market refinancing fee?
“The removal of the fee will reduce refinancing costs for homeowners who have Fannie or Freddie loans over $ 125,000,” says McBride. He estimates that a borrower who refinances a $ 300,000 loan will see either a 3/4 percentage point lower interest rate, which equates to about $ 20 a month, or over $ 1,500 less closing costs. (Some lenders added or added the 0.5% fee to the closing cost – on a $ 300,000 loan, this would add a $ 1,500 closing cost – others added the mortgage rate to get the fee back). “The fee waiver will benefit people who refinance themselves with mortgages backed by Fannie Mae and Freddie Mac,” said Lewis. Find the best mortgage refinancing rates near you here.
Should you refinance now?
McBride suggests this is a great opportunity to refinance and cut back on monthly payments sensibly, especially given the rising cost of so many other things: “The elimination of the FHFA fee makes refinancing even more compelling,” says McBride. And not only the cut in the fee could save you money, but also the super low rates that are now being offered for refinancing (Here you can compare today’s best refi prices).
Lewis says other reasons for a refi are “to reduce the loan period from say 30 years to 15 years in order to pay less interest over time” and “to get rid of FHA mortgage insurance, which in most cases cannot be canceled” . As a rule of thumb, says Lewis, if you can get the interest rate cut by three-quarters of a percentage point and plan to stay in the house for at least a few years to recoup any costs associated with a refi, a refinance is worth it. All of these groups can benefit from the cancellation of the refinancing fee, especially since interest rates are at their lowest level since February. Compare today’s best refi prices here.
source https://seapointrealtors.com/2021/08/01/a-major-mortgage-refinance-fee-just-disappeared-which-could-save-borrowers-1500-or-more-is-it-time-for-you-to-refinance/
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seapointrealtors · 9 hours ago
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THIS OLD HOUSE | Coeur d’Alene Press
Publisher’s Note: This Old House is a series of press articles about local houses that have their own stories to tell.
COEUR d’ALENE – When Felicity Cavanagh first set foot in the century-old house on the corner of Coeur d’Alene Avenue and 7th Street, she knew it was special.
“It just took my breath away,” she said.
She walked on the same maple floors as the original occupants of the house, turned the same glass door handles, and entered rooms lit by the original leaded glass windows.
It was once the home of PW Johnson, a boat builder, councilor, and senator for Idaho State.
“He was a really interesting man,” said Cavanagh. “He’s so attached to the community.”
Johnson designed and built at least half of the 50 steamers that once sailed Lake Coeur d’Alene.
He is also credited with building the first electric dredger in the United States, which changed the face of downtown Coeur d’Alene on the waterfront.
His invention literally created the space in which the Coeur d’Alene Resort stands today.
Johnson designed the house on E. Coeur d’Alene Ave. 622, which was built by Johnson’s own shipbuilders in 1910.
The house has changed hands twice in the past 48 years. Every time was between friends.
Felicity and Kevin Cavanagh wandered around in a trailer for years before settling in Coeur d’Alene. They used to live only two doors away from their current home.
The previous owners bought the house in the 1970s. At that time there was a beauty salon, insurance office and studio on the ground floor.
The second floor was divided into several studios with separate entrances.
The couple have lovingly restored the house. They lived in it for about 40 years before offering to sell it to the Cavanaghs, who continued the work.
Now, however, it might be time to move on.
“We love Coeur d’Alene and we love this house, but we are dying to travel again,” said Felicity Cavanagh.
The home was recently listed for $ 2.2 million.
The property has numerous documents from its storied past, including the original abstract title that dates back to July 2, 1864 when it was only a property.
A photo shows Johnson and his wife in the driveway next to their model T.
Johnson reportedly designed the carriage house on the property with a 180 degree turnstile so he never had to drive backwards. The turnstile is no longer, but the carriage house remains – now a one bedroom cottage with a fully equipped kitchen.
If the buyer doesn’t want the documents, Cavanagh said, they will be donated to the Museum of North Idaho.
No additions have been made to the house, which sits on two lots a few blocks from Lake Coeur d’Alene. Each room hints at a rich history.
A colored tile mosaic over a fireplace depicts a gondola in Venice, based on a photo Johnson took of his wife and daughter.
The solarium, in which Johnson’s wife grew exotic plants, now includes a laundry room.
The finished basement has a billiard room, a Finnish-style sauna and a shop. The kitchen and bathrooms have been modernized, but retain the charm of the construction period.
At the top of a narrow staircase is an 800 square meter attic where troops slept on camp beds during World War II.
Records show that a food elevator is hidden in one of the walls, but Cavanagh has not yet found it.
Johnson’s own desk is in the study next to the entrance. His personal safe is also hidden at home – and it still works. The safe stays in the house.
“It’s priceless,” said Cavanagh.
The same could be said of most aspects of the home.
In the summer, the Cavanaghs eat all their meals on the spacious porch of their home.
In winter they put homemade cakes on the radiator to keep them warm.
You do all the housework and gardening yourself. It feels less of a chore when a home is this popular.
“That’s just a gem,” said Felicity Cavanagh. “I love every inch of it.”
INFORMATION: Realtor Kathleen Tillman, 208.699.2210,
Kathleen@KathleenTillman.com
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source https://seapointrealtors.com/2021/08/01/this-old-house-coeur-dalene-press/
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seapointrealtors · 10 hours ago
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Lost a Bidding War on a Home? Here’s How to Recover
This is a great way to pick up the parts if you lose a home that you wanted to buy to another buyer.
It is a difficult time buying a home. Housing stock has plummeted to record lows, which means there aren’t many properties to choose from. Mortgage rates are now very attractive, so many buyers want to take advantage of them.
But the combination of limited inventory and buyer interest creates the conditions for a lot of competition when preparing offers. If you find a home that you want to buy, there is a good chance it will lead to a bidding war in which you and at least one other buyer try to outdo each other in the hopes that your offer will be accepted.
Bidding wars can be extremely stressful for buyers (although they are great for sellers as they usually drive home prices up). And walking away from a recent home as a loser is a blow that can be hard to take – especially when the home ripped off from another buyer among you looks like your dream home. But if you lost your last bidding war, here are a few ways to deal with it.
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1. Find out why you lost
Perhaps you lost your last bidding war because another buyer came at a much higher price that you couldn’t get. Or maybe you lost to a buyer who could pay for the house in cash while you need a mortgage to buy an apartment of your own.
In general, your real estate agent can find out why your listing was unsuccessful and it is worth getting this information. That way, in case you end up in a different bidding war, you can see if you can do something differently.
For example, suppose you wanted a home for $ 500,000 but you refused to go above $ 525,000, and another buyer grabbed that home for $ 540,000. The lesson from this could be that if you are looking for a home on the order of $ 500,000, you may have to pay up to 10% more for your listing to be accepted the next time.
Of course, if another seller won by paying for cash and that’s not an option for you, then there’s not much you can do about it. But then at least you’ll know that the price you offered to pay wasn’t the problem.
2. Put your house search on pause
Because the housing stock is so small these days, bidding wars are widespread. If you can’t deal with someone else just yet, click Pause on your home search. Stocks could open up over the course of the summer, especially if things continue to improve in light of the pandemic. And if you’re in a situation where you’re saving money month after month, a short wait could give you the leeway to place a higher bid the next time you see an offer.
Losing a bidding war can be difficult in many ways – especially if you thought you made a good offer or a series of offers. But try your best to view it as a learning experience – one that can eventually lead to your acceptance of an offer and your own place.
source https://seapointrealtors.com/2021/08/01/lost-a-bidding-war-on-a-home-heres-how-to-recover/
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seapointrealtors · 12 hours ago
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China new home price growth slows in July – private survey
A woman rides a tricycle with a child near a residential complex in Beijing’s Tongzhou district, China, February 25, 2016. REUTERS / Jason Lee
BEIJING, Aug. 1 (Reuters) – China’s new home price growth slowed for the first time in five months in July, with smaller cities being hit particularly hard by higher mortgage rates, resale price caps and other moves to curb speculation private sector survey showed on Sunday.
According to data from the China Index Academy, one of the largest independent real estate research companies in the country, new construction prices in 100 cities rose 0.35% in July compared with 0.36% in June.
This year, Chinese authorities have taken measures to contain the red-hot real estate market, including caps on borrowing from property developers and strict bans on illegal cash flows into the sector.
“New home growth slowed in July amid tough policies and tighter lending,” said group director Cao Jingjing.
Home sales growth is expected to remain mild as restrictions are unlikely to be relaxed, the survey said.
In July, the Chinese Ministry of Housing urged five cities, including the eastern city of Jinhua and the southeastern city of Quanzhou, to stabilize their property markets, while the central bank ordered Shanghai lenders to raise mortgage interest rates.
Prices in China’s smaller Tier 3 and Tier 4 cities rose 0.21% month-over-month from 0.29% in June. Second category cities, which include some provincial capitals, gained 0.29%, slowing from the 0.31% increase in June.
However, price growth in China’s largest cities such as Shanghai and Beijing continued to accelerate, up 0.54% from its 0.48% growth in June, suggesting continued demand for real estate in the country’s most economically dynamic cities.
But new home prices in Shenzhen’s southern tech center fell 0.26%, the first drop since February. Local media warned in May that due to the rise in property prices, Shenzhen could be a test bed for China’s plans to introduce a nationwide property tax.
On an annualized basis, new home prices in China rose 3.81% in July and slowed from a 3.89% increase in June.
Resale properties also showed slower month-over-month price growth in July, while existing home prices in Shenzhen fell 0.43% month-over-month.
Local governments in some hot real estate markets may implement price references for resale properties to help stabilize prices, the survey found.
Land sales by area in 300 cities declined 25% month-over-month in July and declined 38% on an annualized basis, according to separate survey data.
The National Bureau of Statistics will release official data on China’s house prices in mid-August.
Reporting by Liangping Gao and Ryan Woo; Editing by Edmund Klamann
Our Standards: The Thomson Reuters Trust Principles.
source https://seapointrealtors.com/2021/08/01/china-new-home-price-growth-slows-in-july-private-survey/
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seapointrealtors · 12 hours ago
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Get to know Leonard and Newland Real Estate Services
Meet: Jeff Leonard, real estate agent and co-owner of Leonard & Newland Real Estate Services, Newcomerstown office since November 8, 2019
Realtor in the Newcomerstown office: Jeff Leonard, Co-Owner, Broker; Lewis Wayne Newland, Co-Owner, Broker; Chery Carr, Realtor; Jennifer Sterns, Broker; Jessica Moore, Realtor; Kristi Arth, broker; Maria Dallacheisa, broker; Sarah Young, property manager, broker; Steve Daily, Office Manager, Broker.
Location: 117 W. Main Street, Newcomerstown.
Phone: 740-297-8689
Facebook: Leonard & Newland Real Estate Services
Website: www.leonardandnewland.com
Services: A full service real estate services company dedicated to selling your property or helping you buy real estate. We specialize in residential and commercial properties.
Jeff, please tell us about the Leonard & Newland Real Estate office on Main Street in Newcomerstown.
“My partner, Wayne Newland, and I both worked for other real estate companies for several years and decided to start our own real estate company and work for ourselves. So we founded the office in Zanesville in August 2017. After we were successful there and expanded our team, the Cambridge office became a reality. I live in Cambridge and I am very committed to the community so this has been a very good location for me. I am a member of Cambridge City Council and am involved with Cambridge Main Street, a very active organization whose aim is to revitalize and preserve our historical roots and to promote economic development in downtown Cambridge.
“Over time, more agents joined the Leonard and Newland Real Estate Service group, and many were from the Newcomerstown area. At first they worked from the Cambridge or Zanesville offices. We held a meeting with Newcomerstown two years ago. One evening dinner was being arranged at the Touraine Club and Wayne and I asked what we could do to improve the services they were providing to their community. Well, it was unanimous – they all wanted an office in Newcomerstown. I’m lucky enough to be able to rent an apartment from Dan Styer, a longtime attorney for many years, and that worked out very well for us. “
What kind of services does Leonard & Newland Realty offer their customers?
“All real estate agents at Leonard & Newland are quick to react and customer-oriented from the beginning of your apartment search to the completion of your new property purchase or sale of your property. We have extensive knowledge and expertise in the field of real estate services. We not only serve Newcomerstown, but also the surrounding counties. So if you are looking outside of the county we are still your real estate company. In addition to commercial real estate, our areas of expertise also include residential real estate, land and plots of land.
“Right now is an exciting time for both buyers and sellers. But despite the excitement, buying or selling can be one of the most stressful transactions you will ever face. Our team has the skills and abilities to help our customers , a positive property search and a smooth closing of this property or its sale at a great price. We at Leonard & Newland strive to provide you with excellent customer service and to help you make your new home dreams come true. Our agents want it be an integral part of one of the greatest moments of you and your family. “
You recently bought buildings on Main Street – why did you choose to invest in the Village of Newcomerstown?
“Leonard & Newland invests and manages our own commercial properties, and recently Dan Styer put several buildings up for sale on Main Street. Our location has been added to the listing. Wayne and I love Newcomerstown. It is a
great community with a lot of potential. In the end it was an easy decision; We decided to buy and renovate the apartments above the four buildings. We are currently investing money in a new roof for the building and the necessary things in terms of heating, cooling, electricity and more. Over time, the cosmetic part will come into play. We pride ourselves on being part of Newcomerstown’s Main Street.
“We know Mayor Pat Cadle, Newcomerstown Council and Our Village – Newcomerstown’s Committee are joining forces to write scholarships and make Main Street look like Cambridge. As part of Main Street, Cambridge, I will be a supporter of this movement I hope to offer suggestions and ideas. Mayor Cadle has been very supportive of welcoming Leonard & Newland Real Estate Services to Newcomerstown and, in turn, we want to give something back to this community. I’m kidding about the cheeseburger I had at the Touraine Club A couple of years ago it was the most expensive I’ve ever had as I never dreamed that Wayne and I would end up buying a whole block, but it was one great move for us and we like to think for the whole church. Empty buildings are filling up on Main Street, we are selling real estate and for that we are grateful to God, the church and our customers. “
What would you like to highlight for us?
“Let me reiterate how lucky Wayne and I are to own Newcomerstown. We hope to continue investing in our buildings and be at the forefront of revitalizing downtown Newcomerstown. We currently have a large sellers’ market. Our listings are sold within 24 to 48 hours. When a decision is not made relatively quickly; a house can be bought by another buyer.
“This is a great scenario for our agents, but not so much for the clients we serve. We will know as soon as possible how quickly we think a home will sell so you will have the information needed to make a decision.” We also encourage customers to pre-approve so they know you’re good for a home loan and what price range you want to stay in. With homes selling so quickly, we’re looking for listings in Newcomerstown If you are interested in buying or selling, please call our office at 740-297-8689, we will be happy to help you get home ‘and while we’re at it, it will be a positive and joyful experience. ”
source https://seapointrealtors.com/2021/08/01/get-to-know-leonard-and-newland-real-estate-services/
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seapointrealtors · 12 hours ago
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800 block of Wheeling Avenue shows changing times in downtown
Editor’s Note: This is the third in a series of stories that illuminate the story behind many buildings in downtown Cambridge. This article focuses on buildings on the 800 block of Wheeling Avenue.
Many of the buildings in downtown Cambridge are the original buildings constructed in the city’s early days and have historical significance, either for the role they played in the development of Cambridge or for the remarkable people who made it they attended or held events there.
The 800 block of Wheeling Avenue shows how times have changed downtown. When the shops and salons gave way to banks and bus terminals, the business district emerged.
The Guernsey County Courthouse
Law and order were introduced in Cambridge on September 11, 1883, when the newly completed courthouse was opened to the public.
The total cost of completing the courthouse was $ 102,510.78.
An inauguration for the building was held by JW Yost on August 4, 1881, when construction began.
The courthouse has been renovated in recent years. Work was going on on the ceilings and windows. The original woodwork has been preserved.
The soldier memorial in front of the courthouse was inaugurated on June 9, 1903 to honor the patriotism and sacrifice of the soldiers who served in the civil war.
At one point there were fountains in front of the courthouse. Marybeth Sills, director, Cambridge Main Street who provided the historical information, couldn’t find a date the fountains were there, but estimates it was in the 1940s-1950s based on photos.
A little known fact about the courthouse today is that if you look closely into the flower bed on the side of the front stairs, you will discover what ——– Keepers calls a little farm on our flower bed. Peppers, tomatoes and corn are planted between the flowers.
The Craig Building
The Craig Building once stood at 802 Wheeling Ave, which is now the City Municipal Building and grassy lot. The building housed what was known as the Upper Kresge while the Lower Kresge sat in the 700 block down the hill. It also served as the home for Wan-Mar Beauty Shop, Freda Beauty Shop, Morton’s Hat and Dress Shop, Kuhn’s Jewelry, Allison Body Sale (auto store), and several other stores.
“It was a beautiful building. It was one of the tallest buildings in downtown Cambridge with a beautiful brick tower on the side,” said Sills. There were also apartments. It was wonderful. It was demolished in the 1980s. “
According to Sills, Sam Craig bought the property in 1848 and built the building in 1904, Kresge’s moved into the building in 1926 and merged with Lower Kresge’s in 1959.
Sills also noted that Craig, who moved to Cambridge from Old Washington to run the business, was elected secretary of the New Anti-Slavery Society and operated the Underground Railroad’s Cambridge Station from the property.
In 1959, Hallmark of Cambridge came to the Craig.
The building was bought by Cambridge Savings and Loans in 1985, who found the renovations were too much and will razed the building to the ground in 1988, Sills said.
The current parish building was erected in its place and housed several banks before it was sold to the city.
The Cort Theater
The Cort Theater was one of four theaters that once called downtown.
The theater was next to the Craig in the Caruthers Building at 804 Wheeling Ave.
The theater was named after John Cort, the first president of the Fraternal Order of Eagles, an international organization founded by a group of six theater owners.
Schaffer insurance
Although Schaffer Insurance has always been located at the 800 block in downtown Cambridge, it was not always in its current location at 820 Wheeling Ave., built in 1914. In the 1960s it was 838 Wheeling Ave.
Originally the location was a gift shop, Pollack’s Hardware, The Casual Shop, Tyson’s Menswear and Dry Cleaning and was once the home of the Daily Jeffersonian.
The Daily Jeffersonian
After The Daily Jeffersonian was at 820 Wheeling Ave, he moved across the street to a building that no longer stands. The former location was in today’s parking lot of the newspaper. When the building was demolished, the blocks with the name The Daily Jefferson engraved on them were the only thing that was saved from the building. The blocks were placed in front of the current Daily Jeffersonian building at 831 Wheeling Ave.
Before becoming the Daily Jeffersonian, the building was Jay’s Laundry Service and Cambridge One Hour Cleaners.
Total workforce action
Before Action Total Staffing on Wheeling Ave. 824 was active, the building was used by doctors and real estate agents. Over the years the building has housed offices for Arnold Norris, Podiatrist, Dyson Real Estate, Mitchell Moffet, Dentist, Herbert Thompson, Real Estate Agent, and Ray Frasher, Insurance Agent.
The club billiard pool hall
The Club Billiard Pool Hall is also located at 824 1/2 Wheeling Ave., on the lower level.
The pool hall, which is currently closed due to COVID-19, is still a popular meeting place in the city center.
The American Restaurant and The National Hotel
The American restaurant that used to be on Wheeling Ave. 843, and the National Hotel, which was right next door at 835, were the places to visit.
Both stores were in what is now the People’s Bank.
The steps next to the building led down to the Donohue Bicycle Shop at 857.
“In its heyday in the late 1950s and early 1960s, the National was a beautiful, state-of-the-art hotel,” said Sills. “It was one of the greatest hotels in downtown Cambridge at the time. It was the place to stay and the American restaurant, I heard, was really good. It was always full.”
“There were many beauty parlors, dental offices, medical offices, apartments, banks, and the hotel and restaurant in that block. There was also the Guernsey Savings and Loan, Attorney Frank Leyshon’s office, Cambridge Pharmacy and Donahue’s (locksmiths) and the town bakery “
Wesbanco
The current location for Wesbanco’s Drive Through, according to Sills, was once the location of several car dealerships and Goodyear Tires, where tires, new and used cars and service repairs could be purchased. The location also served as a doctor’s office
The Union Bus Terminal was also located there.
“This is an interesting block to show how times have changed because you are missing several historic buildings. There are now more modern buildings in their place that were constructed in the 50s, 60s and 70s,” said Sills. “There was a lot of office space. That was the heart of the offices, so to speak, it was a business district.
source https://seapointrealtors.com/2021/08/01/800-block-of-wheeling-avenue-shows-changing-times-in-downtown/
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seapointrealtors · 13 hours ago
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Think twice before taking out a home equity loan
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Are you thinking of buying a new vehicle or installing an in-ground swimming pool? Maybe you need cash for tuition, increasing debt, or an extreme makeover for your pet. You might want to upgrade your home by remodeling it or by creating more space. These uses and more can be financed with a home equity loan or a home equity line of credit (HELOC). But does it make sense to use the money – no matter under what circumstances? Maybe, maybe not.
According to CoreLogic’s Homeowner Equity Insights report for the first quarter of 2021 (https://www.corelogic.com/press-releases/nationwide-homeowner-equity-gains-hit-1-9-trillion-in-q1-2021 – corelogic-reports /), “US homeowners with mortgages (about 62% of all real estate) have increased their equity by nearly $ 1.9 trillion since the first quarter of 2020, a year-over-year increase of 19.6% “. The report also showed that the average New Mexico homeowner gained $ 26,000 in equity over the same period. CoreLogic is a leading global provider of real estate information, analytics and data-driven solutions.
While the benefit of home borrowing can be very beneficial in the right circumstances, the downside of tapping into home equity is that a person could ultimately lose their home. This is why you should take great care in deciding whether or not to use your equity at all, not to mention that the money is going to be used for a good cause.
Before we examine how these products can best be used, let’s first define the term equity. Equity is the difference between the market value of a property and the amount owed for it. For example, let’s say a homeowner in the Las Cruces area owns a property valued at around $ 200,000. After subtracting the $ 125,000 owed on the first (and only) mortgage, the difference of $ 75,000 is the homeowner’s equity. If the property had no mortgage, the equity would be the full $ 200,000.
A home loan is essentially a second mortgage. A HEL can also be a first mortgage if it is the only loan against the property. The “number” assigned to a mortgage (ie first, second, third, etc.) is determined by the order in which the mortgage document is recorded in the county registry office. With a HEL, you receive a lump sum in cash and pay it back in fixed monthly installments over a fixed term, just like with a classic mortgage loan. The most common length of the HEL is around 20 years.
Typically, a home loan is best used for one-time goals that require full payment and that have ongoing benefits. A good example is home improvement financing that will add value and fairness to your home. Another reason to tap into equity in your home can be to repay high-interest loans or credit card balances. However, this might not be a great idea if you turn right and top up your credit cards again. Such people are called credit card abusers by the credit industry.
In contrast, a home equity line of credit gives homeowners the option to use their equity without having to borrow the money. Instead, you can only borrow the amount you need when you need it. The HELOC also offers borrowers more repayment options and only requires that you pay interest on the amount of money raised. With the actual loan, you pay interest on the entire loan amount – whether you use it or not. HELOCs are also well suited for short-term financing needs. This line of credit is also a great choice for people who own their homes free and free of other loans so they can access cash by simply writing a check against their equity.
Both loan types are available in fixed and variable interest versions. On average, prices for both HELs and HELOCs are around the country’s key interest rate. The base rate is the rate at which banks lend their most creditworthy customers. Getting your HEL or HELOC from a reliable source is also important, according to the people at the Federal Trade Commission.
According to a recent FTC consumer warning posted on www.ftc.gov, “You could lose your home and money if you borrow from unscrupulous lenders who offer you an expensive loan based on the equity that You have in your home ”. . ”The Consumer Alert indicates that certain lenders are targeting older, low-income homeowners or credit problems – and then attempting to exploit them through fraudulent practices. According to our country’s leading consumer protection agency, here are a few methods unscrupulous lenders use to denounce customers:
Loan Reversal: This practice encourages homeowners to repeatedly refinance their loans, often to borrow more money. Every time you refinance, the lender charges additional fees and interest points – which simply increases the debt.
Insurance packaging: This is where lenders add credit life, health, and casualty insurance premiums to the loan that the borrower may not want or need.
Decoy tactics: In this scenario, the lender offers a consumer certain loan terms and costs at the time of application, and then urges the borrower to accept higher fees when the time comes to actually sign the loan papers.
Stock stripping: Here, the lender issues a loan based on the equity of the property, rather than the borrower’s ability to repay the loan. If the borrower cannot make the payment, they can lose their home.
Non-traditional products: It is not uncommon for lenders to offer loans where the minimum payment does not cover the principal and interest due, causing the balance of the loan and monthly payment to eventually go up. This type of loan, when coupled with a floating rate, can cause monthly payments to skyrocket as interest rates rise.
Fraudulent Loan Service: In this case, lenders will not provide accurate or complete bank statements or loan disbursement information. This practice makes it almost impossible for a borrower to determine exactly how much they paid or how much they owe.
The Federal Trade Commission also suggests that borrowers request an explanation for unclear dollar amounts, terms, or terms. Federal law is very specific about what credit and repayment period information must be submitted in writing before consumers apply for credit or sign contracts. Additionally, the FTC suggests that consumers learn more about equity loans by contacting banks and credit unions in their area. They also advocate that consumers speak to someone they trust before making decisions or signing agreements.
If you believe that an unscrupulous lender has taken advantage of you or someone you know, or if you want to learn more about fraudulent lending practices, contact the FTC directly. They can be easily reached at www.ftc.gov or by calling (877) FTC-HELP (1-877-382-4357).
See you when you close!
Gary Sandler is a full-time real estate agent and President of Gary Sandler Inc., Realtors in Las Cruces. He is happy to answer questions and can be reached at 575-642-2292 or Gary@GarySandler.com.
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source https://seapointrealtors.com/2021/08/01/think-twice-before-taking-out-a-home-equity-loan/
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seapointrealtors · 14 hours ago
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Home Loans: When Should You Refinance Your Mortgage?
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If you are wondering if it is time to refinance your mortgage, the first thing you need to know is how much you can save and how much it will cost you to refinance.
Ideally, refinancing will save you money in both the short and long term by reducing your monthly payment and lowering your interest rate. However, you need to make sure that the savings are large enough so that you do not lose money after paying the closing costs of refinancing your mortgage.
Related: Check out your personalized refinance rates with a better mortgage
What is Mortgage Refinancing?
Mortgage refinancing is the replacement of your existing mortgage with a new mortgage with different terms. Usually one of these terms is a lower interest rate. Sometimes it is a different number of years to pay off. Less often it is a fixed instead of a variable interest rate or vice versa.
It can also be another type of loan, such as a conventional mortgage instead of a Federal Housing Administration (FHA) mortgage. In either case, the goal is to make your new mortgage more beneficial to you, e.g. B. Lower monthly payments than your existing mortgage.
When is a good time to refinance my mortgage?
Freddie Mac, a quasi-government agency that supports the mortgage market, said homeowners refinanced $ 2.6 trillion in mortgage debt last year thanks to record-low mortgage rates. Interest rates remain exceptionally low, so it pays to analyze the numbers and see how much you can save by refinancing now. Here are some signs that the time may be right.
You can cut your rate by at least 0.5%. There is no hard and fast rule that determines which interest rate decline makes refinancing worthwhile. You need to calculate how much you would save based on each lender’s offer. But if current prices are lower than your existing price, it’s a good time to do the math and look for options. The typical homeowner who refinanced himself in 2020 has lowered his rate by 1.2 percentage points, according to Freddie Mac. Borrowers with very good to excellent credit ratings receive the best conditions.
You can pay off your mortgage faster. Refinancing into a shorter mortgage term can potentially save you more by combining a lower interest rate with fewer years of payment.
For example, if you borrowed $ 300,000 and your interest rate on a 30 year mortgage is 3.5%, your monthly payment will be $ 1,350 and you will be paying $ 185,000 in interest over 30 years.
If you refinance that amount into a 15 year loan at 2.1%, your new monthly payment will be $ 1,900 and you will pay $ 49,000 in interest over the next 15 years (plus the approximately $ 10,000 interest you paid in the first year to have). Your 30 year mortgage). You will save $ 126,000 in the long run, minus approximately $ 3,000 in closing costs.
The question is whether you can comfortably afford the higher monthly rate for the shorter mortgage: in this example, an additional $ 550 per month for 180 months.
You want another mortgage. If you have a variable rate mortgage but prefer to set a fixed rate, this is a valid reason to refinance. If you originally took out an FHA loan because your credit wasn’t good, but now your score is much higher, you may want to refinance to a conventional loan to stop paying FHA mortgage insurance premiums.
You want to pay off part of the equity. According to Zillow, home values ​​were up 15% year over year in June. If you’ve been looking for a source of money to spend on home repairs, remodeling, or paying off high-yield debt, then paying off refinance can make sense if you can get your mortgage rate down.
Related: View your personalized refinance rates with a better mortgage
When is refinancing a bad idea?
It’s tempting to want to refinance when you see how low current market rates are and how many others are. However, if you take your own circumstances into account, you may find that refinancing is not a good choice for you if any of these situations apply.
You significantly extend your repayment term. For example, let’s say you have a 30 year mortgage. When you refinance into another 30 year loan, you put yourself in a situation where you pay a 35 year mortgage instead. Since you usually pay interest in the first few years of a 30-year loan, this type of refinancing can become expensive in the long run, even if it lowers your monthly installment in the short term.
When your break-even period is too long. If refinancing in a shorter term is out of the question, you should calculate your break-even point. Divide your closing costs by your monthly savings to see how long it will take to get ahead of the game by refinancing. For example, if you paid $ 3,000 to refinance a new 30-year mortgage that saves you $ 200 a month, it would take you 15 months to break even. If you were planning to sell your home in a year’s time, you would lose money refinancing it.
You don’t have a good plan on how you are going to use refi money to withdraw. Just because you can get a cash out refinance doesn’t mean you should. If your goal is to be mortgage free someday and your cash out refinance doesn’t significantly improve your finances or quality of life, you may want to just skip it.
You are unemployed. If you are unemployed, in most cases you will not be able to get refinancing. If you have an FHA or VA loan, you can still qualify for a streamlined refinance. If you are struggling to make payments on your conventional loan, you can qualify for a loan modification. However, without a stable source of income, you will likely not be able to refinance your traditional loan.
How do I refinance my mortgage?
Refinancing will likely feel easy since this is not your first time applying for a mortgage. You already know how the process will play out.
However, you don’t have to stick with your current lender. You can and should look around and obtain at least three offers. It makes sense to go for the option that will save you the most money.
Something that may have changed since your last mortgage application is that many lenders have moved their processes more online. You may be able to avoid paper documents by uploading the information requested by the lender through a secure online portal. You may even be able to sign your graduation papers online and have them certified by a remote notary, depending on where you live and how your lender is doing things.
What to Expect When Refinancing
After submitting your application, you will need to provide the lender with documents such as recent bank statements, tax returns, W-2s, and pay slips that prove that you can repay the new loan. Then you will wait.
In June, the average time to complete a refinance was 48 days, according to ICE Mortgage Technology.
interest charges
At some point in the refinancing process, you will need to lock your interest rate on. Your lender should be able to tell you how long you can expect your loan to be terminated based on current company processing times.
You want to make sure your installment lock lasts long enough to get you through the deal. You will likely want to lock your interest rate early in the application process to avoid the risk of an interest rate spike that would affect your decision to refinance.
Additional fees
Refinancing typically costs less than 1.3% of the loan amount, including taxes, according to ClosingCorp, a company that conducts cost analysis on real estate deals. The average closing cost for a refinance for a single family home in 2020 was $ 3,398 including tax.
You can expect these fees when refinancing:
Registration fee
Lending fee
Credit Report Fee
Points to buy down your prize (optional)
Home valuation fee
Pest inspection fee
Property transfer taxes (if applicable in your jurisdiction)
Title search and title insurance fee of the lender
Land surveying (sometimes)
Escrow / Closure Service Fee
Notary fee
If the numbers are in your favor, a refinance can be a great way to save money. While the process can have its administrative headache, it ends up being worth the wait (and work).
Related: View your personalized refinance rates with a better mortgage
source https://seapointrealtors.com/2021/08/01/home-loans-when-should-you-refinance-your-mortgage/
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seapointrealtors · 16 hours ago
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Mortgage Rates Today, July 31, & Rate Forecast For Next Week
Today’s mortgage and refinancing rates
Average mortgage rates fell slightly yesterday. And the mostly slow drift towards lower interest rates continues.
Mortgage rates could fall further next week. At least there’s nothing in my crystal ball to suggest they won’t. But with so much uncertainty at the moment, I work more on hunches than on reason.
Find and lock a cheap rate (July 31, 2021)
Current mortgage and refinancing rates
program Mortgage rates Effective interest rate* change Conventionally fixed for 30 years 2,686% 2,686% Unchanged Conventionally fixed for 15 years 1.99% 1.99% Unchanged Conventional 20 years old 2,375% 2,375% Unchanged Conventionally fixed for 10 years 1,851% 1,876% Unchanged 30 years permanent FHA 2,563% 3.214% Unchanged 15 years fixed FTA 2.34% 2.94% Unchanged 5/1 ARM FHA 2.5% 3,207% Unchanged 30 years of permanent VA 2.25% 2,421% Unchanged 15 years fixed VA 2.125% 2,445% Unchanged 5/1 ARM-VA 2,497% 2,385% Unchanged Prices are provided by our partner network and may not reflect the market. Your rate can be different. Click here for an individual price offer. View our rate assumptions here.
Find and lock a cheap rate (July 31, 2021)
COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To learn how the coronavirus could affect your home loan, click here.
Should You Lock A Mortgage Rate Today?
It was a great July for mortgage rates. Based on the Mortgage News Daily numbers, they started the month at 3.18% (for a 30-year fixed-rate mortgage) and ended it at 2.84%. That is a decrease of 34 basis points (abbreviated BPS – one basis point is one hundredth of 1%), which is worth it in any book.
24 of these basis points were the result of the panic attack on the bond markets in the middle of the month. But that still leaves 10 that were just the market that followed its current trend. And historically, a 10 bps drop would be cause for celebration.
Regular readers will know that none of this makes sense to me. And in normal times, mortgage rates would go up.
But I am starting to feel like a cross between Cassandra (the ancient Trojan prophet, whose statements were always correct but never believed) and King Cnut, who famously ordered the tide to cease and feet to get wet.
Today, for the first time in months, I am changing my personal rate lock recommendations. But I hate to do this because I (and most other professional mortgage rate watchers) believe that at some point these rates will rise. So keep a close eye on this daily column. Because the following recommendations can change at any time:
LOCK when close in 7th Days
LOCK when close in fifteen Days
HOVER when close in 30th Days
HOVER when close in 45 Days
HOVER when close in 60 Days
With so much uncertainty right now, however, your instincts could turn out to be as good as mine – or better. So let yourself be guided by your gut instinct and your personal willingness to take risks.
What is moving the current mortgage rates
It is difficult to say what is driving current mortgage rates. Usually they rise when the economy improves and fall when the economy worsens. They also tend to rise when inflation is high and fall when inflation is weak.
But these rules do not currently apply. And it’s hard to say why.
Of course, many financial journalists offer explanations. But to me they read like rationalizations and contain too many contradictions to make a conclusive statement.
To understand this, you must first recognize that bond prices and yields move in opposite directions. So when a lot of people want to buy bonds, their prices go up, which is just supply and demand. But this reduces their income. Because if you pay more for a fixed income security, your return will be lower. In other words, the more you pay to get the same income, the lower your rate of return (income) will be.
So today’s low bond yields are due to more people buying bonds. And that also applies to mortgage interest. Because they are determined by the returns on mortgage-backed securities (MBSs), which are a type of bond.
Why Buy Bonds?
Investors want to balance their portfolios with higher yields, riskier assets like stocks and lower yields, safer assets like bonds. At the safest end of that spectrum are US Treasuries, Notes, and Bonds. But MBS are also considered to be fairly safe.
Investors are currently stocking up on safe investments, which is why the returns on Treasury products and MBS are so low. That is understandable when you think that the economic recovery is likely to slow down. But the strange thing is that they also buy stocks. The US stock market index hit an all-time high on Monday. And people tend to buy stocks when economic confidence is high.
Meanwhile, even many of those who are currently buying bonds expect yields to rise. Yesterday NASDAQ.com stated:
Record-low real yields, however, are often viewed as a worrying sign as they reflect a pessimistic view of future economic growth, leaving many bond bears unimpressed as they expect a big rebound in economic growth this year. Fifteen of the 23 banks and money managers recruited by Reuters said they still expect 10-year US yields to be around 2% by the end of 2021.
– NASDAQ.com, “Global Bonds July Has Best Month Since 2020 COVID Meltdown,” July 30, 2021
The expected 2% return on 10-year US Treasuries by the end of this year would be quite a jump. Because yesterday this yield closed at 1.23%. Chances are that mortgage rates would rise by a similar proportion. And when that happens, those rates could go up to 4% or higher. Until December 31st!
Just read the Nasdaq quote again. Do you notice any contradictions? Yes, bond bears are a strange breed. But also like that.
Economic reports next week
Just like this week, there are plenty of important economic reports coming up next week. But this week has largely been dismissed by investors. And maybe it will be the same with the coming ones.
Most likely to cause a stir is the official monthly report on the employment situation from Friday. That has been a bit disappointing in the last few months. And better numbers could finally convince bond investors next week that the economic recovery is continuing, which should drive mortgage rates higher.
None of the other economic reports listed below are likely to cause much movement in the markets unless they include shockingly good or bad data. Additionally, regular readers know that investors have ignored most of the economic reports in the past few months. Therefore, the effects of the following may differ from the usual ones:
Monday – July Manufacturing Index from the Institute for Supply Management (ISM). Plus construction expenses in June
Tuesday – July car sales. Plus factory orders for June
Wednesday – ADP Private Sector Employment Report for July. Plus July ISM service index
Thursday – Weekly new applications for unemployment insurance until July 31st
Friday – July report on the employment situation, consisting of payrolls outside agriculture, unemployment rate and average hourly wage
Look out for Friday’s employment report.
Find and lock a cheap rate (July 31, 2021)
Mortgage rates forecast for next week
With little confidence I guess Mortgage rates could be a little lower this week. However, this is solely due to the general direction of travel over the past few months. And an excellent job report on Friday could drive those rates up.
Mortgage and refinancing rates usually move in parallel. And a gap that had grown between the two was largely closed with the recent abolition of the disadvantageous market refinancing fee.
This is how your mortgage rate is determined
Mortgage and refinance rates are generally determined by prices on a secondary market (similar to the stock or bond markets) that trade mortgage-backed securities.
And that depends heavily on the economy. So mortgage rates are typically high when things are going well and low when the economy is in trouble.
Your part
But you play huge roles in determining your own mortgage rate in five ways. You can significantly influence it by:
Find your best mortgage rate – they vary widely from lender to lender
Boost Your Credit Score – Even a small increase can make a big difference to your rate and payments
Save the Biggest Down Payment possible – lenders like you to have real skin in this game
Keep Your Other Borrowings Modest – The lower your other monthly obligations, the higher the mortgage you can afford
Choose Your Mortgage Carefully – Are You Better Off With a Conventional, FHA, VA, USDA, Jumbo, or Other Loan?
The time you spend getting these ducks in a row can result in you winning lower prizes.
Remember, it’s not just a mortgage rate
Make sure to count all of the upcoming home costs when figuring out how much a mortgage you can afford. So concentrate on your “PITI” This is yours P.rincipal (pays back the amount borrowed), IInterest (the price of borrowing), (property) TAxles and (homeowners) IInsurance. Our mortgage calculator will help you with this.
Depending on your type of mortgage and the amount of your down payment, you may also need to pay for mortgage insurance. And that can easily reach three digits every month.
But there are other potential costs as well. So you have to pay community contributions if you choose to live with an HOA. And wherever you live, you have to expect repair and maintenance costs. There is no landlord to call if something goes wrong!
Eventually, you will find it hard to forget about closing costs. You can see this in the specified annual percentage rate (APR). Because this effectively spreads it out over the life of your loan and makes it higher than your pure mortgage rate.
However, you may be able to get help with these closing costs and your down payment, especially if you are a first-time buyer. Read:
Down payment assistance programs in each state for 2021
Mortgage rate methodology
The mortgage report receives interest rates from several credit partners on a daily basis according to selected criteria. We’ll find an average interest rate and an APR for each type of loan shown on our chart. By averaging a number of rates, this will give you a better idea of ​​what you might find in the market. In addition, we determine average interest rates for the same types of credit. For example FHA fixed with FHA fixed. The result is a good snapshot of the daily rates and how they change over time.
source https://seapointrealtors.com/2021/08/01/mortgage-rates-today-july-31-rate-forecast-for-next-week/
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seapointrealtors · 16 hours ago
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China new home price growth slows in July
BEIJING, Aug. 1 (Reuters) – China’s new home price growth slowed for the first time in five months in July, with smaller cities being hit particularly hard by higher mortgage rates, resale price caps and other moves to curb speculation private sector survey showed on Sunday.
According to data from the China Index Academy, one of the largest independent real estate research companies in the country, new construction prices in 100 cities rose 0.35% in July compared with 0.36% in June.
This year, Chinese authorities have taken measures to contain the red-hot real estate market, including caps on borrowing from property developers and strict bans on illegal cash flows into the sector.
“New home growth slowed in July amid tough policies and tighter lending,” said group director Cao Jingjing.
Home sales growth is expected to remain mild as restrictions are unlikely to be relaxed, the survey said.
In July, the Chinese Ministry of Housing urged five cities, including the eastern city of Jinhua and the southeastern city of Quanzhou, to stabilize their property markets, while the central bank ordered Shanghai lenders to raise mortgage interest rates.
Prices in China’s smaller Tier 3 and Tier 4 cities rose 0.21% month-over-month from 0.29% in June. Second category cities, which include some provincial capitals, gained 0.29%, slowing from the 0.31% increase in June.
However, price growth in China’s largest cities such as Shanghai and Beijing continued to accelerate, up 0.54% from its 0.48% growth in June, suggesting continued demand for real estate in the country’s most economically dynamic cities.
But new home prices in Shenzhen’s southern tech center fell 0.26%, the first drop since February. Local media warned in May that due to the rise in property prices, Shenzhen could be a test bed for China’s plans to introduce a nationwide property tax.
On an annualized basis, new home prices in China rose 3.81% in July and slowed from a 3.89% increase in June.
The story goes on
Resale properties also showed slower month-over-month price growth in July, while existing home prices in Shenzhen fell 0.43% month-over-month.
Local governments in some hot real estate markets may implement price references for resale properties to help stabilize prices, the survey found.
Land sales by area in 300 cities declined 25% month-over-month in July and declined 38% on an annualized basis, according to separate survey data.
The National Bureau of Statistics will release official data on China’s house prices in mid-August. (Reporting by Liangping Gao and Ryan Woo; editing by Edmund Klamann)
source https://seapointrealtors.com/2021/08/01/china-new-home-price-growth-slows-in-july/
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seapointrealtors · 17 hours ago
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What to Expect From the Post-Pandemic Real-Estate Market
With real estate prices soaring, investors wonder if this is a good time to buy.
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July 30, 2021 4 min reading time
The opinions of entrepreneurs’ contributors are their own.
The Covid-19 pandemic has caused incredible upheaval in the real estate industry. From the rise in inner-city vacancy rates and the subsequent drop in prices to increasing pressure on house prices in rural and suburban areas, there are only a few areas of the real estate industry that Covid has not touched.
As the world begins to recover from the severe economic disruption caused by the pandemic, many real estate investors want to know what will happen next. While we cannot make specific predictions, we can follow the trends that have brought us to this point and follow them through to their logical conclusion.
Related: 3 Golden Rules For Starting A Real Estate Investment Business
Effects of Covid on office properties
One of the biggest impacts Covid has had on the business world has been the shift from working in the office to working remotely. Companies discovered that their employees could work productively from home and, in some cases, outperformed their pre-pandemic performance. Most supervisors, however, expressed a desire to see their teams in person. As vaccination rates have risen, many companies like Morgan Stanley are demanding return to full-time work as long as their employees are fully vaccinated.
What does this mean for office property investors? Many companies may want to reduce their office space to less than one desk per person. This would compensate for the many hybrid work regulations that are expected to come into effect after the pandemic. Businesses looking for office space may need smaller subdivisions in buildings. You can avoid higher quality office space in favor of cheaper space.
The outlook for office space is mixed, but as the pandemic eases further, that situation may change. It will depend on whether certain parts of the country can reverse their lagging vaccination rates and whether employees feel safe returning to work.
Commercial real estate investors are advised to pay attention to the relocation of sought-after locations, especially when it comes to office properties. Many working people have fled the country’s urban centers to the suburbs. It is entirely possible that many of these professionals will not be returning to the city despite recent developments. Office properties in suburbs and outskirts can become more attractive as an investment.
Related: Here are the winners and losers of real estate in the new normal
Commercial real estate after Covid
Many types of commercial property have been negatively affected by the pandemic. Globally, the demand for some types of commercial real estate, particularly office, retail and hotel space, is declining. The decline in commercial property sales has put pressure on sales prices and reduced the amount owners can expect to sell their properties. This could result in lower credit ratings for borrowers and result in loss of money for lenders. On the other hand, industrial properties, data centers, cell phone towers and healthcare properties have had a positive effect on price and demand.
Residential real estate investors
The residential real estate market boomed during the pandemic. Many people decided that if they were to get walled in at home during the pandemic, they wanted to be in a bigger and more practical space for home work and school. As mentioned earlier, when their workplaces were closed to in-person attendance, many skilled workers moved to the suburbs and switched to working online.
Apartment rents are starting to normalize in post-pandemic cities, so this could be a good time to invest in these properties.
In the United States, residential property prices rose 17% between March 2020 and March 2021, according to the National Association of Realtors. All regions of the country posted double-digit gains during this period.
The market was incredibly tight, with not enough houses in the market to meet demand, so prices kept going up. Many millennials and first-time home buyers have been excluded from the market.
The signs point to a possible correction in the housing market and investors should be wary of buying houses at significantly inflated prices. Trying to time the market and capture the final stages of the price surge could be extremely risky and result in financial losses.
Related: 8 Proven Ways To Make Money With Real Estate
A cautious but optimistic outlook
Investors should be aware that delayed vaccination rates in certain parts of the country, such as the Midwest and the South, may result in further restrictions and bans in the future. Investments in these areas should be made carefully. Caution is also advised in the residential real estate sector, where a correction is foreseeable.
As always, real estate investors should understand that they need to be careful when investing their money in certain properties.
source https://seapointrealtors.com/2021/08/01/what-to-expect-from-the-post-pandemic-real-estate-market/
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