Tag Archives: Pound Ridge Luxury Homes

Existing sales down year over year | Pound Ridge Real Estate

Total existing-home sales, released by the National Association of Realtors, increased 1.9% from October to a seasonally adjusted rate of 5.32 million in November. Despite the monthly rise, sales decreased 7.0% from a year ago in November, the biggest drop since May 2011, indicating the housing market continued to sputter due to the rising mortgage rate and tight inventory. Total existing-home sales include single-family homes, townhomes, condominiums and co-ops.

Meanwhile, the first-time buyer share slightly rose to 33% from 31% last month and 29% a year ago. The November inventory decreased to 1.74 million units from 1.85 million units in October, but was up from 1.67 million units compared to a year ago. At the current sales rate, the November unsold inventory represents a 3.9-month supply, down from a 4.3-month supply last month and up from a 3.5-month supply a year ago.

Homes stayed on the market for 42 days in November, up from 36 days in October and 40 days a year ago. In November, 43% of homes sold were on the market for less than a month.

The November all-cash sales share was 21%, down from 22% a year ago.

The November median sales price of $257,700 was up 4.2% from a year ago, representing the 81th consecutive month of year-over-year increases. The November median condominium/co-op price of $236,400 was down 1.3% from a year ago.

Regionally, while existing-home sales grew 5.5% in the Midwest, 7.2% in the Northeast, 2.3% in the South, sales in the West fell 6.3% in November compared to the previous month. Sales in the West recorded its second lowest reading since December 2010. Year-over-year, sales declined in all four regions, ranging from 2.6% in the Northeast to 15.4% in the West.

The NAR described the two consecutive months of increases is a positive sign for the market. Though builder confidence in December fell to its lowest value since May 2015 due to the rising housing affordabilityconcerns, builder sentiment remains in positive territory.

 

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http://eyeonhousing.org/2018/12/existing-home-sales-increase-in-november/

Home prices are plummeting in Puerto Rico | Pound Ridge Real Estate

Hurricane Maria exacerbated problems for Puerto Rico’s already-struggling real estate market — creating opportunities and pitfalls alike for would-be home buyers.

The storm, which devastated much of the Caribbean last fall, caused home prices to drop 15%, to an average median home price of $116,750, according a recent report from real-estate website Point2 Homes. In some areas though, the storm left the housing market in even more dire straits.

In the town of Humacao, the median home price fell from $250,000 in 2016 to just $97,250 as of March. A similar situation can be seen in other popular parts of the territory, including the capital of San Juan, where prices have dropped nearly 50% over the past two years.

“With the devastation there, it’s going to take as long as the recovery from the Great Recession or possibly even longer for a market like that to recover,” said Daren Blomquist, senior vice president at real-estate data provider Attom Data Solutions.

Home prices could very well continue to track downward across Puerto Rico in the months, or even years, to come. A major natural disaster like Hurricane Maria can trigger a vicious cycle in a housing market that depresses prices, Blomquist said.

Homeowners may find it difficult to afford monthly mortgage payments. Meanwhile, other owners may sell their homes to escape the disaster-stricken area. Those homes, combined with the foreclosed properties, drive home prices down.

Puerto Rico is already well into this cycle: Hurricane Maria resulted in an extra 57,000 mortgages going into delinquency, according to a February report from real-estate data provider Black Knight.

Some housing markets fare this cycle better and recover more quickly. The housing market in Houston took a hit following the flooding produced by Hurricane Harvey last August, but the market has already rebounded, said Danielle Hale, chief economist with Realtor.com.

Why low prices might be here to stay in Puerto Rico

Puerto Rico’s recovery from Maria will look a lot different from Houston’s post-Harvey rebound. Prior to the storm, Houston had a thriving local economy — and it still does, adding 84,500 jobs between April 2017 and April 2018, according to the Bureau of Labor Statistics.

Puerto Rico, meanwhile, was suffering from a major economic crisis that had already caused home prices to fall as residents moved elsewhere in search of better opportunities. “We weren’t looking at a very resilient market before the hurricane,” Hale said.

Indeed, investors were gobbling up swaths of Puerto Rican real estate and distressed mortgages before the storm. Now, it’s unclear if these low prices will attract enough interest from investors. “There is going to be some patience involved on the part of the buyer,” Blomquist said.

There are other factors holding back house prices and sales activity as a result of the island’s financial crisis. Owner-occupants may encounter more difficulty getting a home loan, said James Westfall, broker and owner of Island West Properties, a real estate firm located in Rincon, a town on Puerto Rico’s western coast. “The banks are now a little more hesitant to pull the trigger,” Westfall said.

Buyers need to know what they’re getting into

Not every part of Puerto Rico is facing the same difficulties. The median home price in Rincon, in the western part of the island, fell 4.3% between 2016 and 2018, according to Point2 Homes.

Rincon is known for its surfing and the local economy benefits from the resulting tourist industry, Westfall said. “Investors may be more comfortable going into a town that has that kind of mix,” Westfall said.

Wherever the home is, a prospective buyer should take insurance into account when in the buying process. There are still big challenges to take into account. The cost of insurance in disaster-stricken Puerto Rico could rise, which would offset any dip in pre-hurricane prices.

 

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https://www.marketwatch.com/story/home-prices-are-plummeting-in-puerto-ricowhat-buyers-need-to-know-2018-06-27

Dealing with home emergencies | Pound Ridge Real Estate

Grease Fire in the Kitchen

Grease Fire in the Kitchen

Home emergencies are best planned out before the case of an emergency. Never use water to put out a grease fire – it splashes the grease around and often makes things worse. Instead, look around for a handy metal lid from a nearby pot (a wok lid, for example, is ideal). Cover the fire with the lid until it suffocates and dies down. Then carefully remove the hot lid to observe the damage. If a lid is not around, carefully douse the fire with baking soda. Sorry, but your food is probably finished. Plus: How to Prevent Home Fires

Burst and Broken Pipes

Burst and Broken Pipes

Your home has a main water valve – often in the basement or near the front of the house – that controls the flow of water: If you have a bad leak, you need to turn this valve off immediately to prevent expensive water damage (this is also a good preventative step if you are leaving the house during winter). Then inspect the pipes to find out what is damaged and needs to be replaced. If freezing water caused your pipes to burst, you should also consider pipe insulation.

Furnace Failure

Furnace Failure

Remember to shut down electrical power to your furnace before taking a look inside. If you have a gas furnace, check to see if the pilot light has gone out and needs to be re-ignited. If the pilot light isn’t the problem, look for signs of damaged wiring or burnt out switches and sensors to narrow down the problem. Make sure the fan and motor are also working. If any of these components have failed, call a professional about a repair date. Photo: Neil Lockhart/Shutterstock

Overflowing Toilet

Overflowing Toilet

Toilets typically overflow when they can’t stop running and cannot drain properly. First, stop the flow by turning off the valve in the back of the toilet near the wall, which shuts down water. Quickly mop up standing water before it causes any damage, then look for the source of the problems. First look for issues with the fill tube and float that may keep the toilet running, then look for clogs and other issues that are keeping the toilet from draining.

Broken Windows

Broken Windows

Pull on thick gloves and carefully inspect the damage. Pick up any glass shards and remove any jagged, dangerous edges while noting the extent of the damage. You can seal the window by taking a trash bag and cutting it with scissors to fit the window opening. Tape several layers of this bag plastic to the window’s frame with duct tape. Window repair professionals typically offer same-day repairs if you don’t have enough time for a DIY project.

Power Outage

Power Outage

Pull out your phone for a guiding light and make sure everyone is OK. Then check nearby homes and streetlights: If they still have power, you should check your circuit breakers to see if there was an overload or other problem that caused the shutdown. If everyone has lost power, call up your power company (or visit online) to document the power loss and get information about repair times. If the outage is going to last at least several hours, start making plans to put refrigerator or freezer perishables on ice or toss them out.

Confirmed Mice in the House

Confirmed Mice in the House

Grab a flashlight and carefully inspect the perimeter both outside and inside your home. Look for three things: Droppings (a sign that mice are sticking around), signs of chewing/nests and any tiny crevices that mice may be using. Cover crevices with sealant or wire mesh to prevent further rodent problems and set a series of traps to get rid of mice in the house. If mice continue to appear, call up a professional inspector before they start causing structural damage.

Ant Infestation

Ant Infestation

If you notice trails of ants, remove the ants and thoroughly clean everywhere they’ve been with a vinegar spray to remove their trail scents. Then start looking for cracks and gaps in windows, doors, floorboards and other areas the ants may be emerging from. If you can’t narrow it down, set up ant traps and call a professional to see if you have a nearby nest. Remember, large black carpenter ants are a more serious threat to your home than other species and should be removed quickly.

Smoking Oven

Smoking Oven

Some light smoking is expected with brand new ovens or ovens with spilled oils or food. Clean the oven compartment thoroughly, making sure any oil or chemical residue is removed. For worse smoking problems, switch the oven off and open up windows around the house to encourage air flow (this is also a good time to see how sensitive your smoke detector is). If your oven is overcooking food, make sure the timer controls are working. Plus: Stove Repair

Leaking Water Heater

Leaking Water Heater

Check your temperature and pressure valve, a small faucet toward the top of the hot water heater. If the tank develops pressure issues, water will be evacuated from this valve: It’s not a leak, but it is a sign that you need to check wiring and settings. Real leaks from a broken valve or cracked tank are more serious: Shut down your water supply and consider your options. Repairs typically require fully draining the tank, which at least gives you an excuse to clean out any sediment at the same time.

Ceiling Leak

Ceiling Leak

If the ceiling is dripping, prevent water damage by gathering buckets or plastic sheets under the leak. Then climb to your crawlspace or attic and track down the source of the leak: This could be anything from a broken pipe to a damaged roof underlayment and the leak may be far from the source of the problem, so this requires some patience. If you cannot narrow down the source, call in an experienced professional. Meanwhile, get ready to patch and repair your ceiling. Bottom line is these types of home emergencies are best to be dealt with right away. Plus: 12 Roof Repair Tips
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https://www.familyhandyman.com/smart-homeowner/12-common-home-emergencies-and-how-to-deal-with-them/view-all/

Buyers Rush Past Market Challenges | Pound Ridge Real Estate

Existing home sales increased 1.1% in May, and 55% of homes sold last month were on the market less than a month as buyers overcame low inventory and higher prices. Although May inventory increased 2.1%, it remains 8.4% lower than a year ago and fell year-over-year for the 24th consecutive month. The National Association of Realtors (NAR) reported that at the current sales rate, the May unsold inventory represents a 4.2-month supply, down from a 4.7-month supply a year ago. May existing sales were up 2.7% from the same month a year ago, and reached a seasonally adjusted rate of 5.62 million compared to a downwardly revised 5.56 million in April. Total existing home sales include single-family homes, townhomes, condominiums and co-ops.

May existing sales increased 6.8% in the Northeast, 3.4% in the West and 22% in the South, but declined 5.9% in the Midwest. Year-over-year, the South was up 4.5%, the West by 3.4% and the Northeast by 2.7%, while only the Midwest was down slightly.

Homes stayed on the market for only 27 days in May, compared to 29 days in April, and 32 days a year ago. The May timeframe was the shortest in the history of that series which began in May 2011. The May first-time home buyer share was 33%, down from 34% in April, but up from 30% in May a year ago.

The May all-cash sales share increased to 22% from 21% in April, and was unchanged from a year ago.  Individual investors purchased a 16% share in May, up from 15% in April, and up from 13% a year ago. Some 64% of investors paid cash in May, up from 57% of investors in April.

The May median sales price jumped 5.8% from last year to $252,800, representing the 63rd consecutive month of year-over-year increases. The May median condominium/co-op price of $238,700 was up 4.8% from the same month a year ago.

April pending sales dipped for the second consecutive month, so the May bump in existing sales was good news. New home sales have grown 11.3% this year, and both jobs and incomes continue to grow, suggesting an improving market for new single-family construction.

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http://eyeonhousing.org/2017/06/may-buyers-rush-past-market-challenges/

House hunting in Sweden | Pound Ridge Real Estate

AN ATTIC APARTMENT NEAR THE CENTER OF STOCKHOLM

$2.76 MILLION (23.9 million Swedish krona)

Once an attic used for storage, this two-bedroom, two-bathroom, roughly 2,500-square-foot space was converted into an apartment around 1970 and last renovated in 2013. It is on the seventh and eighth floors of a 1915 building with seven units on a quiet street in Ostermalm, a fashionable neighborhood just east of Stockholm’s city center.

The apartment has crisp white walls, oak floors, high ceilings and a terrace overlooking nearby rooftops. The front door opens onto a hallway that leads to a family room with a balcony and a staircase up to the main living area. The large upstairs living room has built-in bookshelves and large sliding doors opening onto a terrace. Up several steps to the left of the living room is a television room; on the right is an office with a skylight. Both the office and the family room downstairs could be used as bedrooms, said Jan Lundqvist, a broker with Residence, the Swedish real estate firm and Christie’s affiliate that has the listing.

Past the living room are the kitchen and dining area. A small hall leads to two bedrooms. One, the master suite, has a generous walk-in closet and an adjoining laundry room. As is typical in Sweden’s older homes, Mr. Lundqvist said, the bedrooms share a bathroom. (A second bathroom is on the same floor near the entrance, by the stair landing.)

The building’s amenities include bike storage, a parking garage and a communal wine cellar in the basement. Restaurants, tennis courts, parks with jogging trails and public transit are all within walking distance. The Stockholm Arlanda Airport is about a half-hour drive.

MARKET OVERVIEW

Home prices in Sweden have increased sharply since the 2008 global financial crisis, driven by the combination of a strong economy, low mortgage rates, a chronic housing shortage and rapid population growth, specifically an influx of refugees and others moving to urban centers for jobs and schools. But even during the recession Sweden’s real estate market didn’t suffer much, thanks to the shortage of housing and the swift countermeasures taken by the government and central bank, said Olof Manner, head of research for Swedbank, a financial services group based in Stockholm.

Prices are now about 50 percent higher than they were in 2008, he said. “I don’t think we have a bubble,” he said of the market. “But it’s very richly priced.”

Recently, however, the price increases have been slowing, Mr. Manner said. In 2015, prices rose 15 percent over the previous year; in 2016, that number fell to 10 percent. Home prices are now 7 percent higher than they were at this time last year, he said.

He attributed this to several factors: Banks have become stricter about mortgage applicants’ debt-to-income ratios; the government recently changed its mortgage amortization rules to require faster repayment schedules on new loans; fixed mortgage rates have risen slightly; and the novelty of the low rates has worn off.

A continuing challenge, he added, is that there aren’t enough new homes being built to meet demand, and the ones that are built don’t suit the refugee population’s need for small, affordable units.

Elisabeth Hallberg, a broker and manager with Per Jansson, a luxury real estate agency in Stockholm, said it’s a seller’s market. “The problem for the real estate agent is not to find buyers; it’s to find sellers,” she said, estimating that about 70 percent of the transactions she worked on in the past year have had multiple offers, and many had received an offer before the first open house.

The most desirable areas in the city, agents said, are Djurgarden, a parklike area with well-appointed villas, and Ostermalm, where this apartment is. Lars Fogelklou, the chief executive and a founder of Residence, said that in Djurgarden, high-end apartments can sell for between 20 million Swedish krona ($2,312,640) and 100 million Swedish krona ($11,563,200). Agents said prices in Ostermalm range from between 3 million Swedish krona ($346,896) and 10 million ($1,156,320) at the lower end, and up to around 70 million Swedish krona ($8,094,240) or 80 million ($9,250,550) at the higher end, with a few properties reaching 100 million Swedish krona ($11,563,200).

WHO BUYS IN STOCKHOLM

Most of Stockholm’s luxury home buyers are Swedish, some of them Swedes returning from abroad, agents said.

Ms. Hallberg estimated that about 20 percent of her clients are from Switzerland, Germany, the United States, Britain and France. Over the past year, Mr. Fogelklou said, a few of his clients (about 5 percent) have been from China, Germany and the United States; a much larger share (about 40 percent) were expats returning to Sweden.

BUYING BASICS

There are no restrictions on foreigners buying property in Sweden, said Jonas Bergquist, a Stockholm-based partner with Magnusson, a law firm with offices in the Baltic region and Scandinavia.

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6 Food Trucks to Book for Your Wedding | Pound Ridge Real Estate

With so many events – engagement parties, showers, rehearsal dinners, after parties and send-off brunches – associated with your wedding day, food trucks are the perfect mobile way to break out of a catering rut, or the use of white tablecloth bulk for your table’s decoration at your wedding. Six of our favorites offer a variety of cuisines and services perfect for all your events, or even the big day itself.

Melt Mobile

Based in Stamford, this duo of trucks offers seven grilled cheeses, plus sweet dessert melts.

The Menu: Rentals include the full menu (from the original to the jalapeno popper to the pulled pork with caramelized onions and pickles), plus any daily specials.

The Cost: Main service is $25/person; end-of-night service is $400 plus consumption. Bookings more than 1 hour from Stamford incur a $250 travel fee.

Test it Out: Follow Melt Mobile on facebook for a weekly list of locations.

Book it: www.melt-mobile.com

Walter’s Hot Dog Truck

Mamaroneck’s iconic hot-dog stand now has a small fleet of trucks serving its most popular standards.

The Menu: Customers can pick and choose which dishes (hot dogs, fries, potato puffs, ice cream, and homemade Italian ices, to name a few) they’d like to offer.

Cost: Starts at $1000 and varies based on the menu

Test it Out: The truck is at the White Plains Farmers’ Market on Wednesdays (10 a.m. to 4 p.m.) until November.

Book it: www.waltershotdogs.com/truck

The Cookery’s DoughNation

Chef David DiBari’s Dobbs Ferry pizza truck serves original interpretations of Neapolitan-style pies.

The Menu: Five pies: Margherita; Cookery meatball with silky ricotta; four cheese drizzled with chili honey; Brussels sprouts and bacon; and fresh lemon with scamorza and basil.

The Cost: Prices range from $1,200 (up to 50 guests) to $2,700 (up to 200 guests)

Test it Out: Find it at farmers’ markets in Irvington, Hastings-on-Hudson, and Chappaqua.

Book it: www.thecookerysdoughnation.com; only available April to November within 65 miles of Dobbs Ferry.

Frites of NY

Party of Two Catering operates this popular Hudson Valley-based truck specializing in fries tossed with flavorful seasonings or smothered in creative toppings.

The Menu: Choose from three options. The Basic Party (two hours of service, choose three menu items from more than 15 options) and the After Party (one hour of service, choose from seven options) both feature all-you-can-eat topped fries. The Toss Up is a pay-by-the-hour service and only includes tossed fries.

Cost: The Basic Party, $14 per guest; the After Party, $7 per guest; the Toss Up, $5 per guest per hour.

Test it Out: Follow Frites of NY on Facebook to find the truck at events.

Book it: www.fritesofny.com; truck is not permitted in Rockland, Greene or Albany counties.

The Souvlaki Truck

Greek street food (and thick-cut oregano fries) is the big draw for this Yonkers truck.

The Menu: Choose from Vending Style (guests order individually) or Buffet Style (setup of trays), to bring chicken souvlaki, pork souvlaki, lamb gyro, falafel, and fries to your guests.

The Cost: Vending style charges a truck rental fee (starts at $500) plus consumption; Buffet Style, $1,000 up to 50 guests, then $15 per guest.

Test it Out: The truck parks on Central Ave in Yonkers (between Fort Hill Ave and Ardsley Rd) Tuesday through Sunday.

Book it: www.souvlakitruck.com

Bona Bona Truck

The sweetest way to cap the night? How about a few scoops Nick DiBona’s popular, locally made ice cream.

The Menu: Scoops (cups or cones), sundaes, and shakes in flavors like rainbow cookie and cannoli, plus plenty of whipped cream, sauces, and sprinkles.

The Cost: $350 truck-rental fee plus per person fees $6-$13 (depending on the menu)

Test it Out: Follow Bona Bona Ice Cream Truck on Facebook to find it at events.

Book it: www.bonabonaicecream.com; only available within 20 miles of Larchmont

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6 Food Trucks to Book for Your Wedding

Housing in a soft patch | Pound Ridge Real Estate

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Rising mortgage rates, overheating home prices, nothing for sale, pre-election jitters — the list of reasons to lose confidence in the housing market is growing.

In fact, the share of consumers who think now is a good time to buy a home fell 5 percentage points in September in a monthly housing sentiment survey (known as HPSI) by Fannie Mae. The only drop that was bigger was the share of consumers who think mortgage rates will fall.

Potential home buyers attend an open house in the Seattle, Washington.

“The decline in the HPSI over the past two months from the survey-high in July … adds a note of caution to our moderately positive housing outlook,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The starter home tight supply and rising home prices as well as the unsettled political environment are likely giving many consumers a reason to pause or question their home purchase sentiment.”

The September employment report was mixed for housing. Wage growth is strengthening, but not as much as home price growth. Construction jobs increased, suggesting more housing supply in the future, but housing starts for single-family homes are not exactly robust. Construction spending fell in August and July’s numbers were revised down.

“A blah September jobs report gives no impetus for anything on the economy’s to do list: There’s no sign of an overheating economy that would justify a rate hike; no groundswell of construction hiring that would finally hint at a return to a normal pace of housing starts; no big wage gains that would give hope for renewed productivity gains. Just a stubbornly average report at a time when the economy is looking for a jolt of the spectacular,” wrote Redfin’s chief economist, Nela Richardson.

“Housing seems to have hit a soft patch, with residential investment likely posting a second consecutive quarterly decline last quarter despite positive labor market and mortgage rate trends”-Doug Duncan, chief economist, Fannie Mae

Pending home sales, which represent signed contracts to buy existing homes, have fallen for three straight months, according to the National Association of Realtors. Housing demand is strong, but supply is historically weak and getting weaker, as fewer homes come on the market in the fall and winter.

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http://www.cnbc.com/2016/10/07/worried-about-housing-youre-not-alone.html?__source=newsletter%7Ceveningbrief

U.S. housing starts trending up | Pound Ridge Real Estate

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Housing Starts in the United States is expected to be 1150.00 Thousand by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Housing Starts in the United States to stand at 1230.00 in 12 months time. In the long-term, the United States Housing Starts is projected to trend around 1280.00 Thousand in 2020, according to our econometric models.

United States Housing Starts
ForecastActualQ3/16Q4/16Q1/17Q2/172020Unit
Housing Starts118911501170121012301280Thousand
United States Housing Starts Forecasts are projected using an autoregressive integrated moving average (ARIMA) model calibrated using our analysts expectations. We model the past behaviour of United States Housing Starts using vast amounts of historical data and we adjust the coefficients of the econometric model by taking into account our analysts assessments and future expectations. The forecast for – United States Housing Starts – was last predicted on Tuesday, July 19, 2016.
United States HousingLastQ3/16Q4/16Q1/17Q2/172020
Building Permits115311301141115211781315
Housing Starts118911501170121012301280
New Home Sales551475517510510590
Pending Home Sales-0.20.880.720.911.041.26
Existing Home Sales553054725453543954175182
Construction Spending-0.80.40.30.30.2-0.9
Housing Index0.20.410.40.390.380.31
Nahb Housing Market Index595960605953
Mortgage Rate3.65.13.683.733.776.5
Mortgage Applications7.20.480.530.530.530.53
Home Ownership Rate63.563.5363.5363.5363.5363.53
Case Shiller Home Price Index187192192192193211

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http://www.tradingeconomics.com/united-states/housing-starts/forecast

Mistakes most people make when buying homes | Pound Ridge Real Estate

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You can check in for a flight from your phone, deposit a check on your phone and pay for Starbucks from your phone, so why would should shopping for a mortgage be any different?

Although, it is a little behind the curve on the memo.

And while these changes are mostly focused on the technology aspect of buying a home, the mortgage product side is changing just as much.

In a recent interview with HousingWire, Mat Ishbia, CEO of United Wholesale Mortgage,explained why 3% down mortgages are going to be the new normal.

What’s more, in order to help educate new borrowers on mortgages today, David Gunn, mortgage sales effectiveness director for Fifth Third Mortgage, shared five of the biggest mistakes consumers make when buying homes, along with tips to avoid them:

1.Passing up help.

There are more than 200 federal, state and local programs to assist consumers to make their down payments or pay their mortgage closing costs. Some programs are only for first-time homebuyers, others could be for veterans. 

Tip: Make sure to research programs in your region. “It’s hard to research and navigate programs alone,” Gunn said. “They vary from city to city, and might only be available during certain times of the year.”

2. Believing you make too much money to qualify.

Some buyers think assistance programs are only for low-income households. Some programs assist first-time homebuyers no matter their income levels depending on where they purchase a home.

Tip: Look at programs options. For example, Gunn notes that they have a program that helps pay closing costs on homes purchased in designated low-income areas with loans financed through Fifth Third Mortgage, no matter the consumer’s income. 

3. Thinking you don’t have enough money for a down payment.

The Freddie Mac Home Possible Advantage Mortgage allows homebuyers to put down 3%. This will allow the majority of borrowers to enter this program with no cash out of pocket for the down payment.

Tip: Work with your mortgage loan originator to see which programs can help you qualify. “People tell us they can’t afford a house because of the down payment,” Gunn said. “It’s the most common barrier to buying a home. But we find that a buyer needs less money than she thinks to get into a home with a monthly payment that meets her budget.”

4. Clinging to outdated ideas on closing timelines.

Closing times are lengthening. And that can be a good thing. The Know Before You Owe rule enacted by the Consumer Financial Protection Bureau went into effect, and has extended the timeline on most home closings. The rule created documents that detail how much a buyer will pay for closing costs, how much each monthly payment will be, and how payments or rates could potentially adjust. Any change to these terms must be given to borrowers with 3 days to review, which is different from the past when changes could be made to the loan before and during closing without a wait.

Tip: “Be patient,” Gunn said. “And know that all of the changes are made to help you better understand the mortgage terms and help you find the best loan for you.”

5. Relying on a one-size- fits-all loan.

Many homebuyers likely had a 30-year-loan on their last house. But it’s not the default loan anymore. For each purchase, loan originators look at the buyer’s financial situation and goals, and might suggest a loan with a shorter term.

Tip: Work through the financials on several options with your loan originator to see what puts you in the best financial position to meet your family’s goals. “It might be better to get a lower term loan now to build equity, and then move into something bigger in a few years,” Gunn said. “We want what is right for you.”

 

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Avoid these 5 major mistakes most people make when buying homes

Farm real estate values decrease slightly | Pound Ridge Real Estate

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The U.S. Department of Agriculture recently announced Nebraska’s 2015 farm real estate value and cash rent for cropland has decreased by 2 percent.

Allan Vyhnalek, educator at the Platte County Extension Office, said based on the changing prices of corn and soybeans, the decline in real estate value is “absolutely expected.”

In February 2015, the University of Nebraska-Lincoln published a report on farm real estate that gave specific numbers for regions within the state.

The east region, which includes Platte and Colfax counties, saw an overall decrease of 3 percent. Dryland cropland decreased by 9 percent and other types of cropland (pivoted, gravity irrigated, etc) decreased by 3 percent. However, the values of grazing land increased, tillable by 16 percent, non-tillable by 20 percent and hayland by 24 percent.

Due to the 2005 ethanol mandate, Vyhnalek said crop prices jumped to $5 to $7 a bushel for corn and $11 to $15 a bushel for soybeans. When grain prices rose, so did the cost of production and real estate. According to the 2015 UNL real estate report, over the past five years the east region’s real estate values increased by 89 percent.

Statewide, values increased by 116 percent.

Prices for corn are now around $3.41 a bushel with soybeans at $8.85 a bushel, lower than previous years.

Thomas Dobbe, regional vice president of Farm Credit Services of America, said the increased cost of equipment, fertilizer, seeds, etc., could have “acted as a damper” on the real estate market, but it’s too early to tell if this decrease is a fluke or the start of a trend.

“It may be an indication that the market will not go any higher,” Dobbe said, “or a sign that the market is taking a breather. We won’t know if it’s done going up or if it will continue to go up.”

Dobbe and Vyhnalek said the value of an individual plot of land depends more on the quality of its soil and topography than overall trends. Property taxes will continue to increase, and the value decrease is unlikely to affect rental prices.

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