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Who are Homeowners

by Michel Delos Santos

Just Believe Your Own Eyes

by Michel Delos Santos

Just Believe Your Own Eyes

 

Just Believe Your Own Eyes

Posted: 26 Feb 2014 04:00 AM PST

Many believe the housing market is in a full out recovery. Others are questioning that assumption. To find out, maybe the only thing we need to do is just open our eyes.

When my wife and I visited Miami ten years ago, we were amazed at the number of building cranes that lined the streets along the beachfront. There was a wave of buyers descending on the city with pockets full of money. Everywhere you looked, there was a new condo complex going up and each building being constructed required a crane on the property. Back then, the city of Miami looked like the set of a Transformer movie with what seemed like hundreds of these huge mechanical machines marching through the city.

Then the housing crisis hit.

Miami property values dropped by over 50%. The buying frenzy cooled.

The cranes disappeared.

Today, Miami's house prices are beginning to rebound quite nicely. We purchased a condo in South Beach two years ago and have been happy to experience a nice bump in value already. However, this week we realized the Miami market is definitely back. Why do we know this?

The cranes are back. 

From the balcony of our waterfront home we can look at the city skyline. This week we saw a familiar sight. Building cranes dotted that skyline. New buildings are being built. There is a new buzz in Miami. Things are the way we remember them being ten years ago.

It seems the market is back!

5 Best New Smyrna Beach Homes for Sale with a Pool Beachside

by Michel Delos Santos

* 5 Best New Smyrna Beach Homes for Sale with a Pool Beachside*

 

 

  1. 815 E 17th Ave, 2/1, $269,900.
  2. 2404 S Atlantic Ave, 4/2, $329,000.
  3. 1 Carley Circle, 4/3, $329,000.
  4. 4427 Saxon Drive, 3/2, $349,500.
  5. 20 Hillside Dr, 4/3/1, $469,900.
Please click on title to preview these homes.

 

New Smyrna Beach Real Estate Video Newsletter

by Michel Delos Santos

View Mike Delos Santos's Market Videos

Mortgage Rates Projected to Rise as Tapering Continues

by Michel Delos Santos

 

Mortgage Rates Projected to Rise as Tapering Continues

 

Mortgage Rates Projected to Rise as Tapering Continues

Posted: 18 Feb 2014 04:00 AM PST

It is projected that if the Fed continues to cut back on bond purchases that long term mortgage rates would start to climb. Many experts felt that Janet Yellen, who replaced Ben Bernanke as Fed Chair, was going to be less inclined to continue tapering bond purchases at the level established.

However, in her testimony in front of the Financial Services Committee last week, Yellen made it quite clear that she will in fact continue the current pace of tapering:

“In December, the Committee judged that the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions warranted a modest reduction in the pace of purchases, from $45 billion to $40 billion per month of longer-term Treasury securities and from $40 billion to $35 billion per month of agency mortgage-backed securities. At its January meeting, the Committee decided to make additional reductions of the same magnitude. If incoming information broadly supports the Committee's expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings.” 

What does that mean to a prospective purchaser? Currently, Freddie Mac’s 30 year rate is at 4.28%. Here are the projected interest rates for this time next year:

 

A Flood of Listings Coming to Market?

by Michel Delos Santos

A Flood of Listings Coming to the Market?

 

A Flood of Listings Coming to the Market?

Posted: 12 Feb 2014 04:00 AM PST

 

We have previously talked about the diminishing supply of housing inventory and how it is impacting the real estate market. The situation might be about to change dramatically according to a recent survey by Lending Tree.

The survey revealed three interesting findings. Of those surveyed:

  1. 63% have a positive outlook on the economy this year
  2. 69% have a positive outlook on housing this year
  3. 71% said they are considering selling their home this year

While the first two findings are good news, the third was rather amazing.

71% of homeowners are considering selling their home in the next 12 months!

While we realize that 70% of the housing inventory in this country could never be turned over in a year, it is interesting that people are again thinking about moving. There has been a pent-up selling demand over the last few years because families lost both equity in their homes and confidence in the economy. Rising prices have returned equity to many and an improving economy is again rebuilding consumer confidence.

Bottom Line

Only time will tell. However, even if a small portion of that 71% actually decide to sell, this year’s real estate market could be very interesting as we move forward.

Displaying blog entries 1-6 of 6

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