58% of Homeowners See a Drop in Home Values Coming

According to the recently released Modern Homebuyer Survey from ValueInsured58 percent of homeowners think there will be a “housing bubble and price correction” within the next 2 years.

 

After what transpired just ten years ago, we can understand the concern Americans have about the current increase in home prices. However, this market has very little in common with what happened last decade.

The two major causes of the housing crash were:

  1. A vast oversupply of housing inventory caused by home builders building at a pace that far exceeded historical norms.
  2. Lending standards that were so relaxed that unqualified buyers could easily obtain financing thus enabling them to purchase a home.

Today, housing inventory is at a 20-year low with new construction starts well below historic norms and financing a home is anything but simple in the current mortgage environment. The elements that precipitated the housing crash a decade ago do not exist in today’s real estate market.

The current increase in home prices is the result of a standard economic equation: when demand is high and supply is low, prices rise.

If you are one of the 58% of homeowners who are concerned about home values depreciating over the next two years and are hesitant to move up to the home of your dreams, take comfort in the latest Home Price Expectation Survey.

Once a quarter, a nationwide panel of over one hundred economists, real estate experts and investment & market strategists are surveyed and asked to project home values over the next five years. The experts predicted that houses would continue to appreciate through the balance of this year and in 2018, 2019, 2020 and 2021. They do expect lower levels of appreciation during these years than we have experienced over the last five years but do not call for a decrease in values (depreciation) in any of the years mentioned.

Bottom Line

If you currently own a home and are thinking of moving-up to the home your family dreams about, don’t let the fear of another housing bubble get in the way as this housing market in no way resembles the market of a decade ago.

Find out how much your home is worth.

72 Price Reductions in #Frisco This Week

72 Price Reductions this week in ‪#‎Frisco‬!

 

5450 Burket Dr in Starwood had the biggest reduction, 20%, down to $999,900.

If you want to know of price reductions to beat the competition before the major real estate websites, or just want to stay on top of home prices and sales in #Frisco, complete the form below or leave a comment!

74 Homes Closed Escrow (SOLD) in This Week in #Frisco

74 homes closed escrow (SOLD) last week in #Frisco. 46 of those sold in under 30-days on market!

A homes on Plantation Ln sold for 7.3% over asking price.  Keep up-to-date on homes that sell in #Frisco!

Know what is selling, when and for how much. If you own a home in Frisco, you need to know this information! 

 

Texas law requires all license holders to provide the Information About Brokerage Services Form to prospective clients.

 

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Derrick Houston
Rogers Healy and Associates
214.385.1221
Licensed In: TX
License #: 0592037
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91 Listings New to MLS This Week in #Frisco

91 new listings in ‪#‎Frisco‬ this week!

A 3 bedroom, 3 bath home on Sand Hill Dr has over 3,100 sq ft with wood floors, study-sunroom and covered front porch. 

Buyers and Homeowners! Stay on top of the market and get new listings in #Frisco immediately sent to you. Before even Zillow, Trulia and other real estate websites with all photos, details, school information and more!

 

What is your home worth?
Search All Homes For Sale
Frisco Homes for Sale
Homes Close to Where You Work
Derrick Houston
Rogers Healy and Associates Real Estate
214.385.1221
Licensed In: TX
License #: 0592037
Contact Me

     

When Is It A Good Time To Rent? Definitely NOT NOW!

People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.

The Census Bureau recently released their first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

When Is It A Good Time To Rent? Definitely NOT NOW! | Simplifying The Market

A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”

The article also cited results from a recent Reis Inc. report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually. 

Where are rents headed?

Jonathan Smoke, Chief Economist at realtor.com recently warned that:

“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”  

Bottom Line

NAR’s Chief Economist, Lawrence Yun had this to say in the latest Existing Home Sales Report:

 "With rents steadily rising and average fixed rates well below 4 percent, qualified first-time buyers should be more active participants than what they are right now."

One way to protect yourself from rising rents is to lock in your housing expense by buying a home. If you are ready and willing to buy, let's meet up to determine if you are able to today!