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US Real Estate News for Global Investors 11-17-2021

Posted By Yoshi Takita on November 20, 2021 in Global Real Estate

Retirement May Be Changing What You Need in a Home Retirement May Be Changing What You Need in a Home | MyKCM The past year and a half brought about significant life changes for many of us. For some, it meant entering retirement earlier than expected. Recent data shows more people retired this year than anticipated. According to the Schwartz Center for Economic Policy Analysis, 2021 saw a retirement boom: “At least 1.7 million more older workers than expected retired due to the pandemic recession.” If you’ve recently retired, your home may not fit your new lifestyle. The good news is, you’ve likely built-up significant equity that can fuel your next move. According to the latest Homeowner Equity Insights report from CoreLogic, homeowners gained more than $50,000 in equity over the past 12 months alone. That, plus today’s sellers’ market, presents a great opportunity to sell your house and address your evolving needs. You Can Move Closer to the Ones You Love The 2021 Home Buyers and Sellers Generational Trends report from the National Association of Realtors (NAR) provides a look at the reasons people buy homes. For those reaching retirement age, the number one reason to buy is the opportunity to be closer to loved ones, friends, or relatives. If you find yourself farther from your loved ones than you’d like to be, retirement and the equity you’ve built in your home may enable you to move closer to the people in your life who matter most. You Can Find the Right Home for Your Needs Not only can your equity power a move to a new location, but it can also help you purchase the right size home. Lawrence Yun, Chief Economist at NAR, says many homebuyers 55 and older choose to downsize – or buy a smaller home – when they make a purchase: “Clearly from the age patterns, young people want to upsize, and the older generation is looking to downsize. . . .” Whatever your home goals are, a trusted real estate advisor can help you to find the best option for your situation. They’ll help you sell your current home and guide you as you buy your next one while you move into this new phase of life. Bottom Line If you’ve recently retired and your needs are changing, you’re not alone. Let’s connect so you can get a better sense of how to find a home that will match your situation.

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US Real Estate News for Global Investors 11-18-2021

Posted By Yoshi Takita on November 19, 2021 in National Association of Realtors (NAR)

Home Sales About To Surge? We May See a Winter Like Never Before. Home Sales About To Surge? We May See a Winter Like Never Before. | MyKCM Like most industries, residential real estate has a seasonality to it. For example, toy stores sell more toys in October, November, and December than they do in any other three-month span throughout the year. More cars are sold in the U.S. during the second quarter (April, May, and June) than in any other quarter of the year. Real estate is very similar. The number of homes sold in the spring is almost always much greater than at any other time of the year. It’s even labeled as the spring buying season. Historically, the number of buyers and listings for sale significantly increase in the spring and remains strong throughout the summer. Once fall sets in, the number of buyers and sellers typically drops off. Last year, however, that seasonality didn’t happen. The outbreak of the virus and subsequent slowing of the economy limited sales during the spring market. These sales were pushed back later in the year, and last fall and winter saw a dramatic increase in home sales over previous years. The only thing that held the market back was the extremely limited supply of homes for sale. What About This Winter? Some experts thought we’d return to the industry’s normal seasonality this winter with both the number of purchasers and houses available for sale falling off. However, data now shows that neither of those situations will likely occur. Buyer demand is still extremely strong, and it appears we may soon see a somewhat uncharacteristic increase in the number of homes coming to the market. Buyer Demand Remains Strong The latest Showing Index from ShowingTime, which tracks the average number of monthly showings on available homes, indicates buyer activity was slightly lower than at the same time last year but much higher than any of the three previous years (see chart below):Home Sales About To Surge? We May See a Winter Like Never Before. | MyKCMA report from realtor.com confirms buying activity remains strong in the existing home sales market: “New housing data shows 2021's feverish home sales pace broke a yearly record in October, . . . with last month marking the eighth straight month of buyers snatching up homes more quickly than the fastest pace in previous years. . . .” Buyer activity for newly constructed homes is also very strong. Ali Wolf, Chief Economist for Zonda, recently reported that Stuart Miller, the Executive Chairman of Lennar, one of the nation’s largest home builders, said this about demand: “There is still a great deal of demand at our sales centers with people lining up and not enough supply.” The only question heading into this winter is whether the number of listings available could come close to meeting this buyer demand. We may have just received the answer to that question. Sellers Are About To List – Right Now Instead of waiting for the normal spring buying market, new research indicates that homeowners thinking about selling are about to put their homes on the market this winter. Speaking to the release of a report on this recent research, George Ratiu, Manager of Economic Research for realtor.com, said: “The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.” Here are some highlights in the report: Of homeowners planning to enter the market in the next year: 65% - Have just listed (19%) or plan to list this winter 93% - Have already taken steps toward listing their home, including working with an agent (28%) 36% - Have researched the value of their home and others in their neighborhood 36% - Have started making repairs or decluttering The report also discusses the reasons sellers want to move: 33% - Have realized they want different home features 37% - Say their home no longer meets their family's needs 32% - Want to move closer to friends and family 23% - Are looking for a home office Data shows buyer demand remains unusually strong going into this winter. Research indicates the supply of inventory is about to increase. This could be a winter real estate market like never before. Bottom Line If you’re thinking of buying or selling, now is the time to have a heart-to-heart conversation with a real estate professional in your market, as things are about to change in an unexpected way.

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US Real Estate News for Global Investors 11-12-2021

Posted By Yoshi Takita on November 12, 2021 in Global Real Estate

Should I Update My House Before I Sell It? [INFOGRAPHIC] Should I Update My House Before I Sell It? [INFOGRAPHIC] | MyKCM Some Highlights If you’re deciding whether you should make updates before you sell your house, lean on your agent to be your guide. If the market is flooded with houses for sale, updates may be necessary for your house to stand out. In our current sellers’ market, the added expenses might not be worth it. Let’s connect so you have expert advice on which updates are important in today’s market.

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US Real Estate News for Global Investors 11-11-2021

Posted By Yoshi Takita on November 11, 2021 in Global Real Estate

VA Loans: Helping Veterans Achieve Their Homeownership Dreams VA Loans: Helping Veterans Achieve Their Homeownership Dreams | MyKCM The purpose of Veterans Affairs (VA) home loans is to provide a pathway to homeownership for those who have sacrificed so much by serving our nation. As the Veterans Administration says of the program: “The objective of the VA Home Loan Guaranty program is to help eligible Veterans, active-duty personnel, surviving spouses, and members of the Reserves and National Guard purchase, retain, and adapt homes in recognition of their service. . . .” For over 75 years, VA home loans have provided millions of veterans and their families the opportunity to purchase their own homes. 2020 Data on VA Home Loans 1,246,817 home loans are guaranteed by the Veterans Administration The average VA loan amount totals $301,044 178,171 of those using a VA Loan are first-time homebuyers Top Benefits of the VA Home Loan Program As we reflect on their sacrifice and honor our nation’s veterans, it’s important to ensure all veterans know the full extent of benefits VA home loans offer. As Jeff London, Director of the VA Home Loan Program, says: “VA loans offer an extraordinary opportunity for veterans because of lower interest rates, lower monthly payments, no or low-down payments, and no private mortgage insurance.” Those who qualify for a VA home loan are eligible for the following: Borrowers can often purchase a home with no down payment. In 2020, 350,094 individuals using a VA Loan were able to purchase their homes without putting money down. Many other loans with down payments under 20% require Private Mortgage Insurance (PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs. Finally, VA-Backed Loans often offer the most competitive terms and interest rates. Bottom Line One way we can honor and thank our veterans this year is to ensure they have the best information about the benefits of VA home loans. Homeownership is the American Dream. Our veterans sacrifice so much in service to our nation and deserve to achieve their homeownership goals. Thank you for your service.

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US Real Estate News for Global Investors 11-10-2021

Posted By Yoshi Takita on November 10, 2021 in Global Real Estate

What’s Happening with Home Prices? What’s Happening with Home Prices? | MyKCM Many people have questions about home prices right now. How much have prices risen over the past 12 months? What’s happening with home values right now? What’s projected for next year? Here’s a look at the answers to all three of these questions. How much have home values appreciated over the last 12 months? According to the latest Home Price Index from CoreLogic, home values have increased by 18.1% compared to this time last year. Additionally, prices have gone up at an accelerated pace for each of the last eight months (see graph below):What’s Happening with Home Prices? | MyKCMThe increase in the rate of appreciation that’s shown by CoreLogic coincides with data from the other two main home price indices: the FHFA Home Price Index and the S&P Case Shiller Index. The last year has shown tremendous home price appreciation, which is resulting in a major gain in wealth for homeowners through rising equity. What’s happening with home prices right now? All three indices mentioned above also show that while appreciation is in the high double digits right now, that price acceleration is beginning to level off (see graph below):What’s Happening with Home Prices? | MyKCMYear-over-year appreciation is still close to 20%, but it’s clearly plateauing at that rate. Many experts believe it will drop below 15% by the end of the year. Keep in mind, that doesn’t mean home values will depreciate. It means the rate of appreciation will slow, yet stay well above the 25-year average of 5.1%. What about next year? The recent surge in prices is the result of heavy buyer demand and a shortage of homes available for sale. Most experts believe that as more housing inventory comes to market (both new construction and existing homes), the supply and demand for housing will come more into balance. That balance will bring a lower rate of appreciation in 2022. Here’s a look at home price forecasts from six major entities, and they all project future appreciation: Fannie Mae Freddie Mac Mortgage Bankers Association Home Price Expectation Survey Zelman & Associates National Association of Realtors What’s Happening with Home Prices? | MyKCMWhile the projected rate of appreciation varies among the experts, due to things like supply chain challenges, virus variants, and more, it’s clear that home values will continue to appreciate next year. Bottom Line There have been historic levels of home price appreciation over the last year. That pace will slow as we finish 2021 and enter into 2022. Prices will still rise in value, just at a much more moderate pace, which is good news for the housing market.

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US Real Estate News for Global Investors 11-9-2021

Posted By Yoshi Takita on November 09, 2021 in Global Real Estate

How Sellers Win When Housing Inventory Is Low How Sellers Win When Housing Inventory Is Low | MyKCM In today’s housing market, the number of homes for sale is much lower than the strong buyer demand. As a result, homeowners ready to sell have a significant advantage. Here are three ways today’s low inventory will set you up for a win when you sell this season. 1. Higher Prices With so many more buyers in the market than homes available for sale, homebuyers are frequently getting into bidding wars for the houses they want to purchase. According to the latest data from the National Association of Realtors (NAR), homes are receiving an average of 3.7 offers in today’s market. This buyer competition drives home prices up. As a seller, this certainly works to your advantage, potentially netting you more for your house when you close the deal. 2. Greater Return on Your Investment Rising prices mean homes are also gaining value, which increases the equity you have in your home. In the latest Homeowner Equity Insights Report, CoreLogic explains: “In the second quarter of 2021, the average homeowner gained approximately $51,500 in equity during the past year.” This year-over-year growth in equity gives you the ability to sell your house and then put that money toward a down payment on your next home, or to keep it as extra savings. 3. Better Terms In a sellers’ market like we have today, you’re in the driver’s seat if you make a move. You have the power to sell on your terms, and buyers are more likely to work with you if it means they can finally land their dream home. So, is low housing inventory a big deal? Yes, especially if you want to sell on your terms. Moving now while inventory is so low is key to maximizing your opportunities. Bottom Line If you’re interested in taking advantage of the current sellers’ market, let’s connect today to determine your best move.

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US Real Estate News for Global Investors 11-8-2021

Posted By Yoshi Takita on November 08, 2021 in Global Real Estate

Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | MyKCM With the average 30-year fixed mortgage rate from Freddie Mac climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts project rates will rise further in the coming months, that conversation isn’t going away any time soon. But as a homebuyer, what do rates above 3% really mean? Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years:Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | MyKCMAs the graph shows, even though today’s rate is above 3%, it’s still incredibly competitive. But today’s rate isn’t just low when compared to the most recent years. To truly put today into perspective, let’s look at the last 50 years (see graph below):Two Graphs That Show Why You Shouldn’t Be Upset About 3% Mortgage Rates | MyKCMWhen we look back even further, we can see that today’s rate is truly outstanding by comparison. What Does That Mean for You? Being upset that you missed out on sub-3% mortgage rates is understandable. But it’s important to realize, buying now still makes sense as experts project rates will continue to rise. And as rates rise, it will cost more to purchase a home. As Mark Fleming, Chief Economist at First American, explains: “Rising mortgage rates, all else equal, will diminish house-buying power, meaning it will cost more per month for a borrower to buy ‘their same home.’” In other words, the longer you wait, the more it will cost you. Bottom Line While it’s true today’s average mortgage rate is higher than just a few months ago, 3% mortgage rates shouldn’t deter you from your homebuying goals. Historically, today’s rate is still low. And since rates are expected to continue rising, buying now could save you money in the long run. Let’s connect so you can lock in a great rate now.

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US Real Estate News for Global Investors 11-5-2021

Posted By Yoshi Takita on November 05, 2021 in Global Real Estate

Numbers Don’t Lie – It’s Still a Great Time To Sell [INFOGRAPHIC] Numbers Don’t Lie – It’s Still a Great Time To Sell [INFOGRAPHIC] | MyKCM Some Highlights Heading into the end of the year, you might wonder if it’s still a good time to sell your house. Here’s what the latest data from the National Association of Realtors (NAR) says. Housing supply is lower than last year, and home prices are up nationwide. Meanwhile, the average home is selling fast and receiving several offers. Listing now puts your house in the spotlight, meaning it could sell quickly – and for more than you’d expect. Feeling motivated? If you’re ready to sell and capitalize on today's market, let’s connect.

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US Real Estate News for Global Investors 11-4-2021

Posted By Yoshi Takita on November 04, 2021 in Global Real Estate

Why a Wave of Foreclosures Is Not on the Way Why a Wave of Foreclosures Is Not on the Way | MyKCM With forbearance plans coming to an end, many are concerned the housing market will experience a wave of foreclosures similar to what happened after the housing bubble 15 years ago. Here are a few reasons why that won’t happen. There are fewer homeowners in trouble this time After the last housing crash, about 9.3 million households lost their homes to a foreclosure, short sale, or because they simply gave it back to the bank. As stay-at-home orders were issued early last year, the fear was the pandemic would impact the housing industry in a similar way. Many projected up to 30% of all mortgage holders would enter the forbearance program. In reality, only 8.5% actually did, and that number is now down to 2.2%. As of last Friday, the total number of mortgages still in forbearance stood at 1,221,000. That’s far fewer than the 9.3 million households that lost their homes just over a decade ago. Most of the mortgages in forbearance have enough equity to sell their homes Due to rapidly rising home prices over the last two years, of the 1.22 million homeowners currently in forbearance, 93% have at least 10% equity in their homes. This 10% equity is important because it enables homeowners to sell their homes and pay the related expenses instead of facing the hit on their credit that a foreclosure or short sale would create. The remaining 7% might not have the option to sell, but if the entire 7% of those 1.22 million homes went into foreclosure, that would total about 85,400 mortgages. To give that number context, here are the annual foreclosure numbers for the three years leading up to the pandemic: 2017: 314,220 2018: 279,040 2019: 277,520 The probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures that impacted the housing crash 15 years ago. It’s actually less than one-third of any of the three years prior to the pandemic. The current market can absorb listings coming to the market When foreclosures hit the market back in 2008, there was an oversupply of houses for sale. It’s exactly the opposite today. In 2008, there was over a nine-month supply of listings on the market. Today, that number is less than a three-month supply. Here’s a graph showing the difference between the two markets.Why a Wave of Foreclosures Is Not on the Way | MyKCM Bottom Line The data indicates why Ivy Zelman, founder of the major housing market analytical firm Zelman and Associates, was on point when she stated: “The likelihood of us having a foreclosure crisis again is about zero percent.”

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US Real Estate News for Global Investors 11-3-2021

Posted By Yoshi Takita on November 03, 2021 in Global Real Estate

Experts Project Mortgage Rates Will Continue To Rise in 2022 Experts Project Mortgage Rates Will Continue To Rise in 2022 | MyKCM Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.14%. What does this mean if you’re thinking about making a move? Waiting until next year will cost you more in the long run. Here’s a look at what several experts project for mortgage rates going into 2022. Freddie Mac: “The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.” Doug Duncan, Senior VP & Chief Economist, Fannie Mae: “Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.” First American: “Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.” If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home. As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections:Experts Project Mortgage Rates Will Continue To Rise in 2022 | MyKCMWhether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals. Bottom Line If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher.

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