The economy is showing signs of recovery, including pockets of the housing market.

Now may be the time to buy, and start building your family's weath. 

 

As the economy continues to improve, more and more Americans are seeing their personal financial situations also improving. Instead of just getting by, many are now beginning to save and find other ways to build their net worth. One way to dramatically increase their family wealth is through the acquisition of real estate.
For example, let’s assume a young couple purchases and closes on a $250,000 home in January. What will that home be worth five years down the road?
Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists every quarter. They ask them to project how residential prices will appreciate over the next five years. According to their latest survey, here is how much value that $250,000 house will gain in the coming years.

Over a five year period, that homeowner can build their home equity to over $40,000. And, in many cases, home equity is large portion of a family’s overall net worth.

Bottom Line

If you are looking to better your family’s long-term financial situation, buying your dream home might be a great option.

Did you know that 24% of recent buyers were this...

Some Highlights: 

• 24% of all recent home buyers were single at the time of purchase
• 47% of single men cite the desire to own a home of their own as the primary reason to buy
• 18% of first-time buyers were single women

Want to build your family wealth? Build your home equity...

With residential real estate values rising quite substantially in most parts of the country over the last few years, many homeowners are seeing a major increase in their family’s wealth as equity continues to build in their house.
A recent study by the Joint Center of Housing Studies at Harvard University revealed that home equity grew nicely last year and has grown dramatically over the last five years…

Buyers looking today may not see the same build-up in equity but could still do quite well.
Let’s assume you went into contract in the next six weeks and closed on a $250,000 home in January. If we take the house value projections from the last Home Price Expectation Survey, here is how your equity would grow over the next four years:

Bottom Line

Homeownership has historically been a great way for the average American family to build wealth over time.

A quick snapshot of the housing market

Hesitant about selling your home?

Are one of these your reason?   You may not need to wait...




Last month, the National Association of Realtors (NAR) reported that housing inventory was down 4.7% from the same time last year and that the month’s inventory of homes for sale stood at 4.8 - far below the six months necessary for a normal housing market. Why is there such a shortage of inventory?
The recently released Homeowner Sentiment Survey suggests that the American homeowner may not be fully aware of the opportunities that exist in the current real estate market. The survey, conducted by Edelman Berland for HSF Affiliates, also reports that many homeowners would be placing their home up for sale if they were better informed about today’s market.
Since the housing industry is facing a shortage of housing inventory, the survey’s findings are crucially important.
The survey reported that 23% of current homeowners questioned are considering selling their home, but haven’t yet put it up for sale. That’s almost one out of every four houses. This is the inventory necessary to normalize the balance between “supply & demand” in the current market.

Why are potential sellers hesitating?

The survey shows that 55% of the 23% contemplating selling “would be more likely to put their homes on the market if given more information about the process”. What information do they need?
Here are a few of the challenges that potential sellers perceive to exist according to the survey along with what is actually happening in today’s market:

1. More than half (53%) don’t realize that “the number of homes for sale on the market is lower, giving buyers fewer choices”. As a matter of fact, only 6% of potential sellers believe that listing inventory has recently decreased.

In reality, as we mentioned before, inventory is down from last year.

2. 80% think credit scores make it difficult to get a loan.

In reality, though other studies have shown that many Americans believe that you need a credit score of at least 780 to get a loan when the actual median scores on closed loans are demonstratively lower than that.

3. 76% believe stricter lending requirements make it more difficult to get a mortgage.

In reality, the Mortgage Credit Availability Index shows lending standards have been consistently easing over the last year.

4. 68% think that current homeowners are trapped into their mortgages and are unable to sell their current homes.

In reality, a recent Fannie Mae study revealed that 32% of Americans are dramatically underestimating the current equity in their homes. Many more can afford to make the move they desire.

What’s the answer?

Every family should feel confident when they are buying or selling a home. In order to feel confident they need to truly understand their options and opportunities. HSF Affiliates CEO Gino Blefari put it best when he addressed the findings of the survey:

“Education is essential in today’s market. The stage is set for real estate professionals to connect with consumers, learn their needs and concerns and determine the best way for sellers and buyers to capitalize on the opportunities that exist today.”

A good housing market has a positive economic impact on more than just one house...

Need a financial reason to own a home? Here are 5...

Click on the picture below

Think overpricing your home won't hurt your chances to sell? Think again...

You have one chance to appeal to a buyer.  One.  And that chance is usually presented on-line.  That is why staging for photos is so important.  And why pricing the home correctly at the beginning can set the course for success, or for failure.  Keeping Current Matters explains it well below :


In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.
There is no “later.”
Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.
John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.
Don’t build “negotiation room” into the price.
Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.
Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!
One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.
Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?
The Price is Right
Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home.
You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

4909 Kings Way West, Gurnee IL 60031

New England influenced Providence Village home for sale. Brick & cedar exterior, huge cul-de-sac lot. Vaulted ceilings, hardwood floors, granite kitchen with stainless steel appliances, first floor den plus large unfinished basement. $337,000

To see interior photos, click on the home below

Selling your home? Avoid these buyer turn-offs

It's beginning to feel a lot like winter...

#chiberia is back in full swing! With temps hovering near single digits, we thought that some neat #fireplaces would help warm you up! #winter

For some warm inspiration, click here

260 Cherry Cove Ln, Round Lake Beach IL

Rare offering of a full walkout basement in Country Walk!  Terrific 4 bedroom/3.1 bath home offers fantastic amenities.  Located in Lake Villa Elementary/Grade District 41 & Grayslake North High School District 127.

To see photos of this terrific home, click here

Fun (and completely useless) real estate trivia

Do you know why brass is the best metal for doorknobs?  Or what a red door in Scotland means?  Read these fun #realestate trivia facts to find out!

11 amazing real estate facts

housing market recovery in motion...

Homes.com, a leading online real estate destination and a division of Dominion Enterprises, has released its November Local Market Index, a price performance summary of repeat sales of U.S. properties. Utilizing home pricing data, the Index shows year-over-year gains for single-family properties in all 300 top U.S. markets.

To provide insight into local sector housing trends across the country, Homes.com publishes the Local Market Index for the Top 100 markets and the companion Midsize Markets Report for defined areas ranked from 101-300. Month-over-month increases in index values were seen in 235 of the top 300 markets, down from 253 the previous month. This downtrend is likely due to both seasonal trends and the state of recovery for these markets.

As a complement to the Local Market Index, Homes.com publishes an exclusive Rebound Report, highlighting how the housing recovery process is unfolding across the country. It measures each market’s peak-to-trough decline in index value, which had been attributed to the bursting of the U.S. housing bubble.

Recovery Hits Eighth Consecutive Month.aspx