Home Sales Up As First-Time Buyers In Lake Orion Re-Emerge

first-time buyers comprised 33 percent of the market last month, the highest level since July 2012“…

First-time home buyers flooded the market last month, reaching their greatest share in nearly four years, according to NAR’s latest housing report. Existing-home sales climbed across the country in June, except for the Northeast, as the summer continued to see high demand.

home salesExisting-home sales rose 1.1 percent to a seasonally adjusted annual rate of 5.57 million in June, NAR reported. Sales are now up 3 percent compared to a year ago and are at the highest annual pace since February 2007.

“Existing sales rose again last month as more traditional buyers and fewer investors were able to close on a home despite many competitive areas with unrelenting supply and demand imbalances,” says Lawrence Yun, NAR’s chief economist. “Sustained job growth as well as this year’s descent in mortgage rates is undoubtedly driving the appetite for home purchases.”

That said, Yun cautions whether the current sales pace can stretch much higher amid a still very limited number of homes for sale and rising home prices.

First-Time Buyer Rebound

First-time buyers comprised 33 percent of the market last month, the highest level since July 2012 (34 percent at the time), NAR reports.

“The modest bump in June sales to first-time buyers can be attributed to mortgage rates near all-time lows and perhaps a hopeful indication that more affordable, lower-priced homes are beginning to make their way onto the market,” says Yun. “The odds of closing on a home are definitely higher right now for first-time buyers living in metro areas with tamer price growth and greater entry-level supply – particularly areas in the Midwest and parts of the South.”

5 Stats to Gauge the Market

Here is an overview of more key indicators from NAR’s latest housing report:

1. Prices: Median-existing-home prices for all housing types in June was $247,700, increasing 4.8 percent from a year ago. June’s median price surpasses May’s peak median sales price of $238,900.

2. Housing inventory: Unsold inventory is at a 4.6-month supply at the current sales pace, down from 4.7-months in May. Total housing inventory last month dropped 0.9 percent to 2.12 million existing homes available for sale. Inventory is 5.8 percent lower than a year ago.

first time buyers3. Days on the market: Forty-eight percent of homes sold in June were on the market for less than a month. Properties, on average, stayed on the market for 34 days in June, unchanged from a year ago. Short sales were on the market the longest amount of time at a median of 156 days; foreclosures sold in 49 days; and non-distressed homes sold in 30 days.

4. Distressed sales: Foreclosures and short sales accounted for 6 percent of sales in June, down from 8 percent a year ago. In June, four percent of June sales were foreclosures, and 2 percent were short sales. Foreclosures sold, on average, for a discount of 11 percent below market value; short sales were discounted on average 18 percent.

5. All-cash sales: All-cash sales comprised 22 percent of transactions in June, unchanged from a year ago. Individual investors, who account for a bulk of cash sales, purchased 11 percent of homes in June, the lowest share since July 2009.
References: National Association of Realtors, RealtorMag 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
Team Success Listing Website
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First Time Buyers Not Picking “Starter Homes”

first-time buyers want a home that meets their needs now AND in the future…”

The “starter home” trend may be fading in real estate. Prior to the housing bubble, first-time buyers with average incomes would shop for a more affordable, smaller house with the idea of moving on to a larger home in a few years.

Today’s first-time buyers want a home that meets their needs now and in the future. Seventy-five first time buyers percent of first-time buyers say they prefer to skip the starter home and find a house that meets their long-term needs, according to a survey commissioned by Bank of America in early 2016. Thirty-five percent say they even intend to stay in that home until they retire.

First-time buyers nowadays tend to be higher earners, and due to rising home prices and tighter housing inventories they are wanting to buy a home where they can stay put for a long time.

In 2013, first-time buyers purchased homes with an average of 1,845 square feet. The average home in the U.S., meanwhile, is just 1,819 square feet, according to BuildZoom, a real estate construction firm’s analysis of data from the Census Bureau.

“So those home buyers who probably would have been looking for the lowest-end homes 10 years ago during the housing boom are today just not able to buy. And those that are able to buy are looking further upmarket,” says Issi Romem, chief economist for BuildZoom.

Many first-time buyers aren’t planning to upgrade and move on in five years, like they once did. They plan to stay put.

“When they do purchase, they’re planning on living there longer than buyers that we’ve seen in the past,” says Jessica Lautz, NAR’s managing director of survey research. “They’re expecting to live there 10 years.”
References: RealtorMag, USA Today

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
Team Success Listing Website
Find Out Your Home’s Value Instantly

Many Renters Can Afford To Buy A Home, They Just Don’t Realize It Yet …

Many Renters Can Afford To Buy A Home, They Just Don’t Realize It Yet …

Do I need a lot of cash to buy a home?  No, there are low cash required options available.

Won’t my monthly payment be more than I can afford?  There are loan choices that offer lower payments and qualifying for a mortgage is easier than ever.

Isn’t today’s housing market the wrong time to buy?  No, today’s housing market has made available many opportunities for first time buyers and interest rates are still low giving you more buying power.

What’s Your Average Rent?

Did you know that if you spend $825.00 a month in rent, after 3 years you have spent $29,700.00 in someone else’s property? After 10 years you have spent $99,000.00 paying off someone else’s mortgage!

Stop making your landlord rich, learn how easy it is to become a homeowner. Let us help you locate the financing, obtain the down payment and find you a new place to call home!

Donald Horne, Broker / Owner
Team Success Listing LLC
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In Oxford MI, Getting a Grip on Homeowner Maintenance Costs

Getting a Grip on Homeowner Maintenance Costs, an article I found in the current Housing Trends eNewsletter by Anne Miller, discusses routine maintenance costs with home ownership …

So you’ve braced yourself for a hefty down payment and maybe some new furniture. But homeownership expenses don’t end there—routine maintenance costs can really add up. Imagine getting socked with a $10,000 bill for roof repair. Are you prepared for that?

donald horne, team success listingIt’s important to have a handle on some of the day-to-day expenses you may incur to keep a home in good repair. Keep these costs in mind as you tour prospective homes, too, so you don’t fall madly in love with a property that needs expensive TLC.

In 2009, home economics experts from the University of Illinois Extension school suggested socking away 1% to 2% of your home’s value for maintenance costs. Today, homeowners tend to save 2% to 4%, said the university’s Kathy Sweedler, a consumer economics educator. Homes without a mortgage skew higher on savings, which could be because the homes are likely older, she noted.

Rainy-day fund

Sweedler said homeowners—especially first-time buyers—should consider their expenses as falling into two categories: startup costs and ongoing maintenance.

Startup costs include one-time purchases of things you haven’t needed before, like a lawn mower or curtains of a certain size.

Maintenance costs cover things like replacing a roof or a broken appliance.

When you consider how much to budget for maintenance, think about what each season demands, and then average the cost over the full 12 months. Consider what you might need to replace or upgrade over the next three, five or 10 years, and spread those estimates out over months and years, too.

It’s better to put away a little bit each month to cover winterization, for example, than struggle to pay October’s groceries because of the once-a-year bill. Put away an extra $100 a month now, and in five years you’ll have  $5,000 when you need it for new windows.

Sweedler suggested putting that cash into a separate savings account earmarked for home maintenance, so you won’t be tempted to spend it on other things.

First-time buyers

The maintenance budget can prove especially rough on first-time buyers. Renters don’t have to worry about paying for garbage pickup or a new dishwasher—those things fall to the landlord. But as a homeowner, those expenses fall to you. That’s part of the startup math Sweedler meant when considering your monthly maintenance budget.

“For new home buyers, it’s really hard for people to think about what those big costs would be,” Sweedler said. “I don’t think most people are really planning on that fully.”

Talking with the seller and your REALTOR® about the upkeep costs can give you a sense of what to expect once you take the keys. A local home-buying course can help, as can the myriad home-care books on the market.

Return on investment

If socking away extra savings after handing over a down payment feels like a burden, Sweedler suggested looking at it as an investment—not a chore.

“For many people, their home is a large asset, so we do need to, in a sense, reinvest in that asset to keep the maintenance up,” she said. “You want it to be in good shape so you can get full value.”

Plot the future

If you want a more specific saving goal, consider the average lifespan of parts of your home that could prove costly.

Roofs need to be replaced about every 20 years, depending on the material and the wear and tear. This can be a huge cost, depending on the material and square footage, so when you’re shopping for a home you might want to consider the age and condition of the roof before you decide.

Your home’s plumbing and electricity system need to be kept in good repair as well. Features such as the central air-conditioning and heating systems are key to the comfort and livability of your home; they will require maintenance and possibly replacement.

Consider the lifespan of any additional home amenities. For example, pool care costs money. You may opt to pay for a pool service or service it yourself. In the latter case, you will need to purchase supplies. In addition, the pump and filter will need to be replaced occasionally.

When you buy a home, take some time to sit down, make a list of everything you’ll need to keep up and start estimating some long-term saving goals.

based on an original article by: Laura Sherman

Donald Horne, Team Success Listing
Associate Broker for Coldwell Banker Shooltz Realty

How Much Home, in Metamora Michigan, Can You Afford?

This article, How Much Home Can You Afford, from Craig Donofrio in the latest issue from Realtor.com …

Looking at sprawling villas in the suburbs and 2,000-square-foot condos in the middle of downtown is one thing. How much home you can afford may be entirely different.

Of course, there’s nothing wrong with looking. But when it comes down to finding a place that fits perfectly in looks, size and price, you need to know your affordability factor.

donald horne realtorWhat Is Your Family Plan?

It’s not just how much you make; it’s also what you plan to do with it.

Do your best to anticipate what the next five years or so will be like for you and your family. Are you planning to have kids in the next few years? Is your teen graduating from high school? Will they need you to co-sign for a college loan? Are you planning for a wedding?

All these can raise your debt-to-income ratio. Even if you can afford a mortgage with a 40% debt-to-income ratio now, life events like having children can bring that ratio up to and over 50%.

Do your best to map out what the next five years or so will look like and keep an emergency fund for the unexpected.

Plan for the house you can afford today—not what you can afford a few years from now when the raise kicks in.

What Is Your Payment Approach?

Do you want to plan conservatively, moderately or aggressively? The difference can determine the type of home within your ballpark range.

For example, if you make $73,000 a year, have a $40,000 down payment, $350 in monthly debts and want to buy a house in Ridgefield, CT, these are the scenarios to consider:

  • The conservative approach: no more than 28% of your income goes to housing expenses and 36% goes to debts. House affordability range: $303,000
  • The moderate approach: no more than 33% of your income goes to housing expenses and 38% goes to debts. House affordability range: $349,000
  • The aggressive approach: no more than 36% of your income goes to housing expenses and 41% goes to debts. House affordability range: $362,000

The more aggressive the approach, the more budgeting discipline you need.

You also will need better credit, as you will be taking on more debt for a more expensive home. Figure out which works best for you—remember, it’s better to err on the safe side rather than be strapped for cash each month.

Check out the realtor.com® affordability calculator to see what spending approach looks like for you in the area of your choice.

donald horne, realtorWhat Is Your Preferred Location?

You might not have the means to afford a house in a central location. If that’s the case, consider a ZIP code in a neighboring area.

To get a feel for houses in your price range, use our affordability calculator for a nearby area and then check the listings at the bottom of the page.

If you can’t find something you like, you can always go down in price or continue to rent until you have the means to afford that dream home.

What Are Other Homeownership Costs?

Home ownership isn’t as simple as paying the mortgage. You can be sure other expenseswill pop up.

For example, if you can’t make at least a 20% down payment, you will need private mortgage insurance. If you have an FHA loan, you will have to budget for premiums.

There’s also property tax and home insurance on top of closing costs. Repairs, general maintenance, condo fees, utilities and buying new furniture for your new home also need to be anticipated.

The more thorough your budgeting, the more comfortable you’ll be when shopping for a home.

What Is? A Series of Questions From Clients on Real Estate And Mortgages, Part Two

What is? A series of questions from clients on real estate and mortgages, part two … We thought we would answer the popular questions in video form for everyone. Below are the last 3 video answers to the questions most asked of us lately, “what is … ”

4. What is a FHA 203k loan?

5. What is a homestead exemption?

6. This question is usually asked just before the closing.

Hopefully these videos helped you with your questions on the same subjects, if you need more detailed information or have other questions, please contact us direct at 810-338-0628 or email us at donaldhorne.realtor@gmail.com TODAY!

Donald Horne, Team Success Listing
Associate Broker for Coldwell Banker Shooltz Realty

donald horne, realtor

3 Bedroom Split Level, Perfect For First Time Buyers, Lapeer MI

3 bedroom split level, perfect for first time buyers, Lapeer MI
497 S. Mapleleaf Rd.
Lapeer, MI 48446

Lapeer MI, First Time Buyers, Retirees! 1650 sq.ft home with 3 bedrooms and 1.1 baths, many updates including exterior stain-roof-carpet-deck-gutters-furnace & air-hot water heater-appliances. Fireplace in family room, hardwood floors, 2 car attached garage, large .7 acre corner lot, pine trees, paved road. Seller Motivated!

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For more information on this home or to schedule a private showing, contact us direct at 810-338-0628 or dhorne@cbshooltz.net or 248-969-8065…

Donald Horne, Team Success Listing
Associate Broker for Coldwell Banker Shooltz Realty
Sell My Lapeer Home

First Time Buyers in Flint MI, 3117 Yale St, 48503

First time buyers in Flint Michigan, 3117 Yale St, 48503

Unbelievable! 3 bedrooms / 1 bath home with 1121 sq.ft, all appliances, wood floors, partially finished basement. 1.5 car garage, some fencing, Cape Cod style and good size lot (50 x 100). All this for $49,960.00 and move in ready! Just bring the dog!

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Donald Horne, Team Success
Coldwell Banker Shooltz Realty