MRED Blog

Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented?

Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:

1. There were plenty of homes for sale
2. Prices were falling
3. Mortgage interest rates were falling

They buyer could find another home easily for probably less money and a lower mortgage rate. There was no downside to not ‘upping the ante’. However, in today’s market, things have dramatically changed.

Take a minute to read the full KCM Blog post for some great information on making an offer.

Part III – Rents Are Skyrocketing

Whether you own or rent, you will have a monthly housing expense. The question is how that expense will change in the future. When you purchase a home, for the most part, you lock-in that monthly housing expense for the length of the mortgage you take (15 or 30 years for example). When you rent a home, your housing expense is impacted by movements in the supply and demand for rental properties.

Historically, residential rental rates increase by 3.2% on an annual basis. However, in the current housing environment, there is an increasing demand for residential rental properties. This increase in demand has dramatically impacted rates. Zillow, in their most recent report, revealed that rental rates in the U.S. increased by 4.5% over the last twelve months. Other studies have projected rental rate increases of 4-5% over the next few years.

The only way to have control of your housing expense is to buy.

Take a minute and read the full KCM blog post about where the market is headed.

Part II – Interest Rates Are Increasing

A big component in the cost of a home is the mortgage interest rate a purchaser pays. Understanding where rates are headed will help in making a decision whether to buy now or wait.

To find out where interest rates are headed, read the full blog post from the KCM Blog

Part I – Prices Are Rising at an Accelerated Rate

The price of a home is the major consideration when deciding whether or not it makes financial sense to purchase a house. Experts are not only projecting that house values will increase in 2013. They are also more optomistic in the level of appreciation they are projecting as the market begins to heat up. Read the full KCM Blog post for examples from:

The Home Price Expectation Survey

Bank of America

Capital Economics

Morgan Stanley

Check out this infographic on the 10 projects that will yield the greatest return on your investment. What would you remodel in your home if you could?

Infographic from the KCM Blog

The magazine’s argument:

• In the last year, home prices increased in 92 of the country’s 100 largest metropolitan areas
• Homes are more affordable than they’ve been in 40 years
• The number of houses for sale is at the lowest level in a decade
• Price increases are projected for most of the country this year

It seems that even the unbiased realize that Housing is Back! Post from the KCM Blog