When Is the Best Time to Buy a Home in 2019?

There are multiple factors that go into the "when to buy a home discussion." The following factors are among the most critical, and should be evaluated first. Full Article

1. Early in the Year

The calendar is a good barometer for the best time to buy a house.  In general, prices are less expensive at the end of the year, especially in December. Primarily, that's because the inventory that's on the market comes from owners who have to sell, and are more willing to negotiate.  That could mean an owner whose company is transferring him or her to another state, and the owner must move fast. Or, the homeowner is hard up for cash, and can't afford to wait until the traditionally busy spring home selling season.

2. When Interest Rates Are Low

In the past few years, the Federal Reserve has sustained a policy of raising interest rates to keep inflation low, and the economy stable.  In early 2019, 30-year fixed mortgage interest rates rose to between 4.5% and 5.0%, depending on the lending institution. Only two years ago, when interest rates were much lower, home buyers could grab a 30-year fixed-rate mortgage for under 4%.

3. When Your Financial Situation Is Optimal

The best time to buy a new home can also be when you're cash flush, your credit score is strong, and you don't have a lot of large debts.

This could be the case in several scenarios:

• You just finished paying off your student loans, and have extra cash for a home. 
• You just received a big raise or bonus, and you have more money for a good down payment. 
• You just got married, and between two spousal incomes, you have more cash for a new home purchase. 
• You just sold your home of 20 years (for example) and with plenty of cash liquidity in the home, you have plenty of money to buy a new home, without having to resort to a big mortgage. 
• You just finished paying off your kids' college costs, and have extra cash for a home purchase. 
• You just received a big family inheritance, and you have the money to buy a home. 

Of course, here are no absolutes in the above cases, as everyone's personal financial situation is unique.  The larger takeaway still holds though - the more money you have on hand, the better time it is to buy a new home without having to depend too much on a large, interest-heavy mortgage loan.

4. When Inventories Are High

Another great time to buy a home is when there are plenty of homes available on the market, and home sellers need to be price competitive to sell their homes and get them off the market.  Usually home inventories are heaviest in the spring and summer selling seasons, where plenty of families put their homes on the market because foot traffic is heavy and because buyers want to move in before Labor Day, and get their kids ready for school.

5. When the Economy Is Doing Well  

It's worth looking at key economic indicators like housing starts and the U.S. unemployment figures when evaluating the best time to buy a home.  Besides the likely fact that since the economy is doing well, you must be doing well, too, there are other factors in play when studying the economy. That's particularly the case with two key indicators:

New construction. When new home construction is strong, there are more homes to buy, and ample supply almost always relieves pressure on home prices. That's a good time to act if you have the cash and are ready to buy a new home.

Income and employment numbers. When consumer sentiment is strong, consumer income is up, and employment is near maximum levels, buyers typically have more cash to buy a new home, and stronger credit that translates into lower mortgage interest payments. That could be a good time to buy a home, too - when you're cash flush.

Buy a Home When It Feels Right for You  Again, there are no hard and fast rules here - just the likely (but not guaranteed) tendencies, time lines and trends that combine to make it a good time to buy a home.  Leverage the factors listed above and see if they don't spark something deep down inside of you, the great American home buyer, and see if you can't get a great deal on the home of your dreams.

5 Ways Technology Can Change Your Real Estate Business for the Better

With technology increasingly becoming a catalyst for change in all spheres of industry and business, the real estate market has not been immune.

Technology and real estate are not phrases that often appear in the same sentence together, but the advance in technology has seen it infiltrate the lives of all industry stakeholders – real estate agents, home sellers, and homebuyers.

And it’s all for the better.

While the impact of tech on real estate has not been as disruptive as it has been on any of the other major industries, it has been every bit as powerful. This is thanks to the unique nature of this sector.

 You see, in this industry, most of the important decisions are still done by people – not technology. And this is something that is not likely to change.

Good thing is, the impact of technology on real estate has been less about disruption and more about enabling.

As a real estate investor, the challenge in today’s competitive market means that you need to use every weapon available at your disposal to build your business. One of the best ways to do this is by using new technology that is available to every investor.

The following are some of the obvious ways real estate investors can leverage technology to boost their business. Full Article

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1. Property Searches

The internet has leveled the playing field when it comes to searching for property value. In days gone by, it took an expert to establish where and when new properties would become available, not to mention figuring out what the comparable home sales in that particular area might be.

2. Lead Management

If you prefer it old school, certainly, you can use a notebook or Post-It notes to keep track of your leads. But if you prefer to leverage tech to grow your business, stay on top of hot prospects and probably add some few team members down the line, then a CRM will come in handy.

3. Direct Mail Campaigns

If your marketing strategy includes direct mail, it is advisable to make use of a reliable list provider such as Listsource, and upload the list to a mailing service.

4. Buyer List Management

Wholesalers cannot flip contracts without investors. But it can be dispiriting to go in search of new cash buyers every time you have a new property under contract.

5. Improving Tenant Relationships and Proper Asset Management

Technology can also help real estate investors enhance the experience of their tenants from the onset.

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Keeping Current: Forecast Roundup

After backtracking in 2018, total home sales are forecast to grow in 2019 and 2020

Slowing home sales in recent months have caused the four major real estate organizations tracked in this report to rein in their projections for home sales this year. Total homes sales for 2018 are, on average, expected to decline 2.0% from last year. That’s a reversal from just six months ago, when total home sales were expected to rise 2.8% this year.

• In 2017, total home sales rose 1.9% to 6.13 million units, its highest annual level since the Great Recession ten years ago. Existing homes sales were up 1.1% for the year, and new home sales climbed 10.0% relative to 2016. 
• Total home sales through the first ten months of 2018 are running 1.6% lower than the same period last year. Existing home sales are 2.1% below their 2017 YTD units, while new home sales are up 2.9% so far this year.
• The current forecasts for 2018 range from 6.02 million units sold to 5.97 million units sold, or between a 1.6% to a 2.7% drop in sales relative to 2017.
• Growth returns in 2019, according to the forecasts, with projections ranging from 6.00 million units sold to 6.24 million units sold, and an average projection of 6.09 million units. On a percentage basis, that’s an average gain of 2.0%, with a range of 0.6% to 3.6% over 2018 sales
• Total home sales are expected to grow in 2020. The forecast average is 6.24 million units, a gain of 2.4% over 2019. The individual estimates of the increase in 2020 range from 0.8% to 4.3%.

Home prices have fully recovered from the Great Recession, with more growth expected

• In the first quarter of 2016, the U.S. House Price Index surpassed its pre-recession peak levels. The HPI measures the level of prices of homes sold that used agency financing across the country
• Through the third quarter of 2018, the US HPI stood 17.4% above the 2007 peak. 
• The HPI indicates that U.S. home prices increased at an annual rate of 6.3% in the year ending in the third quarter of 2018. That’s a deceleration from the year-ago changes of 7.4% and 6.8% recorded in the first two quarters of 2018.
• Home prices rose over the past year in all but one of the nation’s 100 largest metro areas. Ten MSAs saw home price appreciation at or above 10%, with Boise City and Las Vegas leading with gains of 19.9% and 18.2%, respectively. Home prices in Honolulu dropped 5.1% in the past year.
• The median price of existing homes sold rose 5.1% in 2017 and is projected to rise 4.9% this year, according to the average of the three home price forecasts. In 2019 and 2020, the median price of existing homes sold is expected to rise 4.6% and 2.9%, respectively.
• After increasing 4.9% in 2017, the median price of new homes sold will edge down 0.1% in 2018, according to the average of the three home price forecasts. In 2019 and 2020, the average forecast shows gains of 3.7% and 2.1%, respectively, in the median price of new homes sold.

Economic growth to moderate toward the expansion’s average through 2019 – but slow further in 2020

• The economy grew at a 3.5% annualized rate during the third quarter of 2018.
• Each of the four organizations expects economic growth to moderate but continue at least through 2020. The quarterly projections through the end of 2019 are very similar, with growth rates nearing the current expansion’s average annual rate of 2.3%.
• If that happens, the current expansion will become the longest on record, beating the 120-month expansion that began in March 1991 and ended exactly 10 years later, in March 2001. The current expansion began in June 2009.
• All four organizations project economic growth of less than 2% in 2020. The growth rates for the year range between 1.3% and 1.8%.

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5 Smart Home Technologies to Elevate Your Home in 2019

With technology continuing to be a growing presence in every aspect of life, the home is no exception. While popular smart home technologies such as Amazon Alexa and Echo, Google Home and Apple HomePod provide users with an array of high-tech functions such as playing music and accessing information from the internet, smart home technology today has advanced even further. Homeowners are presented with a versatile selection of new systems including smart thermostats, light bulbs, plugs, locks and doorbells that offer a new level of intelligence to the everyday home.

Read on to discover some of the latest smart devices in home technology that will elevate your home in the new year. Maybe it'll even inspire some holiday gifts for family and friends. Full Article