In Trulia’s 2014 Rent vs. Buy Report, they explained that homeownership remains cheaper than renting throughout the 100 largest metro areas in the United States; ranging from an average of 5% in Honolulu, all the way to 66% in Detroit, and 38% Nationwide! The other interesting findings in the report include:
Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting.
Some markets might tip in favor of renting later this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering.
Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.
Buying a home makes sense. Rental costs have historically increased at a higher rate of inflation. Lock in a mortgage payment now before home prices and mortgage rates rise as experts expect they will. ____________________________________________________________
PENDING HOME SALES PICK UP IN JULY!!! .. WASHINGTON (August 28, 2014) — Pending home sales rebounded in July and have now risen in four of the last five months, according to the National Association of Realtors®. All major regions experienced healthy gains except for the Midwest, which saw a slight decline. The Pending Home Sales Index,* a forward-looking indicator based on contract signings, climbed 3.3 percent to 105.9 in July from 102.5 in June, but is still 2.1 percent below July 2013 (108.2). The index is at its highest level since August 2013 (107.1) and is above 100 – considered an average level of contract activity – for the third consecutive month. Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 20121,” he said. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.” Yun adds, “More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.” The PHSI in the Northeast jumped 6.2 percent to 89.2 in July, and is 8.3 percent above a year ago. In the Midwest the index marginally fell 0.4 percent to 104.6 in July, and is 6.4 percent below July 2013. Pending home sales in the South increased 4.2 percent to an index of 119.0 in July, and is now 1.0 percent below a year ago. The index in the West rose 4.0 percent in July to 99.5, but remains 6.0 percent below July 2013. Yun expects existing-homes sales to be down 2.1 percent this year to 4.98 million, compared to 5.09 million sales of existing homes in 2013. The national median existing-home price is projected to grow between 5 and 6 percent this year and 4 and 5 percent next year. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. # # # 1Total housing inventory in July 2014 was 2.37 million existing-homes available for sale, the highest since August 2012 (2.40 million). *The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current U.S. population. NOTE: Existing-home sales for August will be reported September 22, and the next Pending Home Sales Index will be September 29; release times are 10:00 a.m. EDT. MORE LIKE THIS!!! Pending Home Sales Surge in May
Realtors® should embrace being a salesperson according to Matthew Ferrara, a real estate consultant.
Many people come up with creative titles that don’t accurately portray what they do. “I’m constantly astonished at the lengths we will go to avoid calling ourselves ‘salespeople’,” he says. “If you’re a great salesperson, you’re helping someone to achieve their dreams and goals. You’re fulfilling a value that people are looking for.”
Ferrara said one of the best salespersons he ever met was a Cadillac salesperson. He talked with her about the Cadillac and she told him that she couldn’t get the payment to where he needed it to be. She didn’t want to take him on a test drive because she was afraid he wouldn’t be happy because he couldn’t afford the car. Instead, she suggested he test drive an Acura.
“She was a terrific salesperson because she didn’t want to create a disappointed customer and she wasn’t going to sell me something that was way beyond my price point,” Ferrara explained.
“As Realtors®, you often have to tell clients that the timing might not be right for them to buy a home, but when their car loans are paid off, it would be a better time to buy,” he said. “You need to give them the information to allow them to make the decision.”
“You need to take pride of ownership of being a salesperson,” he continued. “They will want to refer us because we take our job seriously. I don’t want a reluctant surgeon to operate on me. When you tell your client, ‘You’re going to love working with me because I’m a great salesperson and nothing makes me happier than smiling faces around the closing table,’ they’ll want to refer you. You won’t have to prospect anymore because you will become magnetic.”
A great salesperson has:
Value to others. The salesperson and the client are partners in achieving both of their goals.
A strong personal belief about what they do. Great salespeople believe what they do is noble. They’re excited to be at an open house meeting people or making a listing presentation.
A sense of service. The sales process is not a trick, the service comes as a result of an authentic and transparent sales process.
“More people are entering the field of real estate today because they can control their destiny,” Ferrara said. “Nothing gets done without salespeople. They make the economy run.”
Home prices in 20 major metropolitan areas ticked 1% higher in June on a non-seasonally adjusted basis,matching expectations, according to the S&P/Case-Shiller home prices index. From the same period the year prior, home prices were up 8.1%,slightly shallower than the 8.4% increase the Street expected.
Mary Ann Graboyes
King of Prussia,PA
649 North Lewis Road, 19468
20th and Walnut, Philadelphia, PA