How Quickly Can You Save Your Down Payment?

How Quickly Can You Save Your Down Payment? | Simplifying The Market

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

How Quickly Can You Save Your Down Payment? | Simplifying The Market

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

How Quickly Can You Save Your Down Payment? | Simplifying The Market

Bottom Line

Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! Let’s get together to help you evaluate your ability to buy today.

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Existing Home Sales Slow to Start Spring [INFOGRAPHIC]

Existing Home Sales Slow to Start Spring [INFOGRAPHIC] | Simplifying The Market

Existing Home Sales Slow to Start Spring [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • Existing Home Sales slowed to an annual pace of 5.21 million home sales in March.
  • Low inventory levels are still impacting home sales! The current month’s supply of homes for sale is 3.9-months.
  • Median home prices were up 3.8% over last March at $259,400. This marked the 85th consecutive month with year-over-year price gains.

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Renters Paying Substantially More While Owning Costs Less

Renters Paying Substantially More While Owning Costs Less | Simplifying The Market

In a recent Insights Blog, CoreLogic reported that rent prices have skyrocketed since 2005. Meanwhile, the typical mortgage payment has actually decreased.

“CoreLogic’s national rent index was up 36% in December 2018 compared with December 2005, while the typical mortgage payment was down 4% over that period.”

Renters Paying Substantially More While Owning Costs Less | Simplifying The Market

Why the difference between the costs of renting versus owning?

It makes sense that rents have risen. However, how did mortgage payments decrease? CoreLogic explained:

“It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018.

The national median sale price in December 2005 – $190,000 – was lower than the $220,305 median in December 2018, but because of higher mortgage rates in 2005 the typical monthly mortgage payment was slightly higher back then – $941 – compared with $904 in December 2018.”

Additionally, a recent report by the National Association of Realtors (NAR) showed that purchasing a home requires less of your monthly paycheck.

According to the Economists’ Outlook Blog, NAR’s February 2019 Housing Affordability Index showed that the “percentage of income needed” to pay the typical mortgage has decreased the last three months.

  • November – 17.3%
  • December – 16.9%
  • January – 16.2%
  • February – 15.9%

Bottom Line

What does this all mean to the current housing market? We think First American said it best in a post last week:

“The mortgage rate-driven affordability surge has arrived just in time… Rising affordability has already benefited home buyers and, if the lower rate environment persists, we’re in for a great spring home-buying season.”

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New Study Reveals One Surprising Reason for the Inventory Shortage

New Study Reveals One Surprising Reason for the Inventory Shortage | Simplifying The Market

There has been a great amount written on millennials and their impact on the housing market. However, the headlines often contradict each other. Some claim this generation is becoming the largest share of first-time home buyers, while others claim millennials don’t want to own a home, blaming them for the dip in homeownership rate.

While it is true that millennials have achieved milestones like getting married, having kids, and buying homes later in life than their parents and grandparents did, they are not solely to blame for today’s housing market trends.

Freddie Mac’s Insight Report explored the impact of the Silent and Baby Boomer Generations on the housing market.

If millennials are unable to find a home to buy at a young age like their predecessors, then who is living in those homes?

The answer: Seniors born after 1931 are staying in their homes longer than previous generations, instead choosing to “age in place.”

Freddie Mac found that,

“this trend accounts for about 1.6 million houses held back from the market through 2018, representing about one year’s typical supply of new construction, or more than half of the current shortfall of 2.5 million housing units estimated in December’s Insight.

Older Americans prefer to age in place because they are satisfied with their communities, their homes, and their quality of life.”

According to the National Association of Realtors, inventory of homes for sale is currently at a 3.5-month supply, which means that nationally we are in a seller’s market. A ‘normal’ housing market requires 6-7 months inventory, a level we have not achieved since August 2012.

“The most important fundamental in today’s housing market is the lack of houses for sale. This shortage has been identified as an important barrier to young adults buying their first homes.”

Bottom Line

If you are one of the many seniors who desires to retire in the same area you’ve always lived, you’re not alone. Will your current house fit your needs throughout retirement? If you have any questions about demand for your house, let’s get together to discuss the opportunities available today!

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With Inventory Low: Will Your Dream Home Need Some TLC?

With Inventory Low: Will Your Dream Home Need Some TLC? | Simplifying The Market

According to a new survey from Move.com, the wave of first-time homebuyers hitting the market this summer has resulted in an interesting statistic. Nearly 60% of buyers searching for a home this spring are willing to consider buying a fixer-upper, with 95% believing that the projects needed will increase their new home’s value!

Realtor.com’s Chief Economist, Danielle Hale, pointed to low-inventory at the entry-level price range for the increase in willingness to renovate.

“The combination of rising home prices and limited entry-level homes for sale is prompting many home shoppers to consider homes that need renovating.

Replete with inspiration at their fingertips – like Pinterest, Instagram, and various home renovation TV shows – some home shoppers are comfortable tackling home renovation jobs to find a home that balances their needs with their budget.”

Just over half of all respondents who said they would be willing to buy a home in need of some TLC, would also spend more $20,000 to make the home fit their needs.

The most common ‘expected’ renovation is a kitchen remodel which can run anywhere from $22,000 for a minor remodel to $66,000 for a major remodel.

This isn’t a new trend by any means. According to the Joint Center for Housing Studies at Harvard University, home improvement project spending reached a new high in 2018.

“Americans spent $336.9 billion on remodeling projects, up 7.4% from the $313.6 billion a year earlier.”

Home renovation television shows have given many buyers hope that they could renovate a home they can afford into their dream home!

Bottom Line

If you are one of the many Americans considering buying a home this spring, let’s get together to help you find a house with the potential to be your dream home!

 

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Selling Your House: Here’s Why You Need A Pro In Your Corner!

Selling Your House: Here’s Why You Need A Pro In Your Corner! | Simplifying The Market

With home prices on the rise and buyer demand still strong, some sellers may be tempted to try to sell their homes on their own rather than using the services of a real estate professional.

Real estate agents are trained and experienced in negotiation while, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families.

Here is a list of just some of the people with whom the seller must be prepared to negotiate with if they decide to For Sale by Owner (FSBO):

  • The buyer, who wants the best deal possible
  • The buyer’s agent, who solely represents the best interests of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The termite company, if there are challenges
  • The buyer’s lender, if the structure of the mortgage requires the sellers’ participation
  • The appraiser, if there is a question of value
  • The title company, if there are challenges with certificates of occupancy (CO) or other permits
  • The town or municipality, if you need to get the CO permits mentioned above
  • The buyer’s buyer, in case there are challenges with the house your buyer is selling

Bottom Line

The percentage of sellers who have hired real estate agents to sell their homes has increased steadily over the last 20 years. Let’s get together to discuss all that we can do to make the process of selling your house easier for you.

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5 Reasons Why Millennials Buy a Home [INFOGRAPHIC]

5 Reasons Why Millennials Buy a Home [INFOGRAPHIC] | Simplifying The Market

5 Reasons Why Millennials Buy a Home [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
  • The top reason millennials choose to buy is to have control over their living space, at 93%.
  • Many millennials who rent a home or apartment prior to buying their own homes dream of the day when they will be able to paint the walls whatever color they’d like or renovate an outdated part of their living space.

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Buyer Demand Surging as Spring Market Begins

Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.

However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).

Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.

Buyer Demand Surging as Spring Market Begins | Simplifying The Market

Why the increase in demand? Increased buying power.

According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.

“Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”

Bottom Line

It appears the spring buyers’ market is going to be much stronger than many had projected. Whether you are selling or buying, this is important news.

 

*The methodology behind the indices:

The ShowingTime Showing Index

“The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.”

The National Association of REALTORS® Buyer Traffic Index

“In a monthly survey of REALTORS®, NAR asks respondents ‘Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales?’ NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.”

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Discount Brokers in Nutley, 5 Things You Need To Know When Selling in Nutley NJ

If you have come here looking for a Discount Brokerage to sell your home in Nutley STOP! and Go here!

We are not a discount Brokerage in Nutley New Jersey, We Are a FULL SERVICE REAL ESTATE MARKETING COMPANY in Nutley NJ and we do have a 99% Success Rate When Selling Your Home in Nutley New Jersey

Nutley is located 12 miles from NYC and is a great town for first time home buyers moving from NYC to NJ, Close to all Major roads as well as the New Medical School in Nutley New Jersey, and the new future home of Quest Diagnostics, The average home price is $35ok – $450k you can get a nice 3 bedroom 2 bath home in one of Nutley’s gorgeous sections. Nutley has several sections, The Washington Section, The Yantcaw Section, The Radcliffe Section, The Spring Garden Section and the Lincoln section of Nutley New Jersey. Here are some of the latest homes I have sold in Nutley recently.

5 Enclosure in Nutley New Jersey Was Sold for $539,000.00

This  home is a 4 Bedroom 2 Full Bath & 2 Half Bath Located in the Yanticaw Section of Town, This home was built in 1886 and totally renovated in 2018

SOLD BY MATTHEW DE FEDE of REALTY EXECUTIVES ELITE HOMES

To see More of This Home Click Here

5 Enclosure St Nutley NJ 07110

What Discount Brokers Won’t  Do For You

1. Photograph Your Home, You will have to pay extra for real good photos

2.Will Not Supply You With A Virtual Tour, You would also have to play for that

3. Market The Property Daily, They just put the home on the MLS

4. Will not negotiate your deal and handle home inspection issues etc.

5. Will Not Pick Up The Phone On A Sunday Night at 8pm When You Have a Question.

 

23 Taft St. in Nutley New Jersey

This home was a 3 Bedroom 1.5 Bath Home in The Lincoln Section of Nutley New Jersey

SOLD BY MATTHEW DE FEDE of REALTY EXECUTIVES ELITE HOMES

To see More of This Home Click Here

23 Taft in Nutley New Jersey

Living In Nutley New Jersey

 

Franklin Avenue & High Street

Franklin Avenue & High Street

Established in the late 17th century by Dutch and English settlers on the west bank of the Passaic River, Nutley has retained its small town atmosphere through the centuries. Competently governed by a board of commissioners and home to one of the nation’s premier pharmaceutical companies, Hoffmann-La Roche, it is a stable and progressive community, whose residents voluntarily staff the emergency and rescue squad and most of the fire department.

Through the years, the town has had its share of notable residents, including Annie Oakley, Martha Stewart, well-known artists, a countess, a Swiss baron, a baroness and members of Jackie Kennedy’s family. It is basically a residential community and boasts a park in every neighborhood. The New York skyline is visible from any hill in town and Manhattan is just a short bus ride away. An excellent school system is maintained at a cost far lower than surrounding communities and major colleges and universities are within easy commuting distance.

The Nutley Oval

The Nutley Oval

Perhaps Nutley’s charm and appeal is most evident by the fact that families stay in town from generation to generation and grandchildren and great grandchildren walk the same streets their ancestors trod. Nutley is conveniently located just eleven miles straight out from NYC. The township is comfortably saddled between the Passaic River, Route 3, the GSP and the township of Belleville to the south.

NUTLEY TOWNSHIP WEBSITES
NutleyNJ (Official Township Web Site.)
NJ Hometown
www.Nutleynet.com
www.oldnutley.org
www.nutleyschools.org/
www.nutleytown.com/
www.nj.com/nutley/
www.northjersey.com/towns/Nutley.html
List of Civic Members
Check out these websites for statistics about Nutley: www.zip-codes.com and www.yahoo/neighborhoods.com

IMPORTANT TELEPHONE NUMBERS AND ADDRESSES
• Town Hall: 1 Kennedy Drive, Nutley, NJ 07110 – Phone: 973-284-4951 / Fax: 973-284-4901 – Website
• Emergency and Rescue Squad: 119 Chestnut Street, Nutley, NJ 07110 – Phone: 973-667-7487*
• Police and Fire Departments: 228 Chestnut Street, Nutley, NJ 07110 – Phone: 973-284-4940*
• Board of Education: 375 Bloomfield Avenue, Nutley, NJ 07110 – Phone: 973-661-3500 – Website
• Nutley Free Public Library: 93 Booth Drive, Nutley, NJ 07110 – Phone: 973-667-0405 – Website
*In the event of an emergency, dial 911.

Yantacaw Park

Yantacaw Park

Kingsland Manor

Kingsland Manor

The Black Prince Distilleries

The Black Prince Distilleries

Are Low Interest Rates Here to Stay?

Are Low Interest Rates Here to Stay? | Simplifying The Market

Interest rates for a 30-year fixed rate mortgage have been on the decline since November, now reaching lows last seen in January 2018. According to Freddie Mac’s latest Primary Mortgage Market Survey, rates came in at 4.12% last week!

This is great news for anyone who is planning on buying a home this spring! Freddie Mac had this to say,

“Mortgage interest rates have been steadily declining since the start of 2019. These lower mortgage interest rates combined with a strong labor market should attract prospective homebuyers this spring and could help the housing sector regain its momentum later in the year.”

To put the low rates in perspective, the average for 2018 was 4.6%! The chart below shows the recent drop, and also shows where the experts at Freddie Mac believe rates will be by the end of 2019.

Are Low Interest Rates Here to Stay? | Simplifying The Market

Bottom Line

If you plan on buying a home this year, let’s get together to start your home search to ensure you can lock in these historically low rates today!

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