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Do You Know How Much Equity You Have in Your Home?

by Amy McLeod Group

Do You Know How Much Equity You Have in Your Home? | Keeping Current Matters

CoreLogic’s latest Equity Report revealed that 91,000 properties regained equity in the first quarter of 2017. This is great news for the country, as 48.2 million of all mortgaged properties are now in a positive equity situation.

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

One million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.”

Frank Martell, President and CEO of CoreLogic, believes this is a great sign for the market in 2017 as well, as he had this to say:

Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home equity is one of the main drivers of improved mortgage performance. Since home equity is the largest source of homeowner wealth, the increase in home equity also supports consumer balance sheets, spending and the broader economy.”

This is great news for homeowners! But, do they realize that their equity position has changed?

According to the Fannie Mae’s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize that they may have more equity than they first thought.

This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share ofthose saying it’s a good time to buy.

78.8% of homeowners have significant equity (more than 20%) in their homes today!

This means that many Americans with a mortgage have an opportunity to take advantage of today’s seller’s market. With a sizeable equity position, many homeowners could easily move into a housing situation that better meets their current needs (moving to a larger home or downsizing).

Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae spoke out on this issue:

“High home prices have led many consumers to give us the first clear indication we’ve seen in the National Housing Survey’s seven-year history that they think it’s now a seller’s market. However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market…” 

Bottom Line 

If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2017! Meet with The McLeod Group Network, we can help you evaluate your situation and assist you along the way!

 

Buying Is Now 33.1% Cheaper Than Renting in the US

by Amy McLeod Group

Buying Is Now 33.1% Cheaper Than Renting in the US | Keeping Current Matters

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!

Other interesting findings in the report include:

  • Interest rates have remained low and, even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
  • With rents & home values moving in tandem, shifts in the ‘rent vs. buy’ decision are largely driven by changes in mortgage interest rates.
  • Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, meet with The McLeod Group Network - we can help you find your dream home. 971.208.5093 or mcleodgroupoffice@gmail.com. 

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Father's Day Wishes!

by Amy McLeod Group

Dad

He never looks for praises
He’s never one to boast
He just goes on quietly working
For those he loves the most
His dreams are seldom spoken
His wants are very few
And most of the time his worries
Will go unspoken too
He’s there…a firm foundation
Through all our storms of life
A sturdy hand to hold to
In times of stress and strife
A true friend we can turn to
When times are good or bad
One of our greatest blessings,
The man that we call Dad

Happy Father's Day! 

Courtesy of Amy McLeod, The McLeod Group Network

Exploring Salem Oregon: Make Music Day

by Amy McLeod Group

Wednesday, June 21, 2017
10:00 AM to 10:00 PM

Make Music Day is a free, one-day event featuring live music performances, opportunities to make music and other musical activities that take place around the world on June 21, the longest day of the year. Over 100 bands will perform in various free venues across the city.

Downtown Salem
900 Court St. NE
Salem, OR 97301

503-689-8372

Courtesy of Amy McLeod, The McLeod Group Network

The TRUTH Behind the RENT vs. BUY Debate

by Amy McLeod Group

The TRUTH Behind the RENT vs. BUY Debate | Keeping Current Matters

In a blog post published last Friday, CNBC’s Diana Olnick reported on the latest results of the FAU Buy vs. Rent Index. The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers at FAU use a “‘horse race’ comparison between an individual that is buying a home and an individual that rents a similar-quality home and reinvests all monies otherwise invested in homeownership.”

Having read both the index and the blog post, we would like to clear up any confusion that may exist. There are three major points that we would like to counter:

1. The Title

The CNBC blog post was titled, “Don’t put your money in a house, says a new report.”The title of the press release about the report on FAU’s website was “FAU Buy vs. Rent Index Shows Rising Prices and Mortgage Rates Moving Housing Markets in the Direction of Renting.”

Now, we all know headlines can attract readers and the stronger the headline the more readership you can attract, but after dissecting the report, this headline may have gone too far. The FAU report notes that rising home prices and the threat of increasing mortgage rates could make the decision of whether to rent or to buy a harder one in three metros, but does not say not to buy a home.

2. Mortgage Interest Rates are Rising

According to Freddie Mac, mortgage interest rates reached their lowest mark of 2017 last week at 3.89%. Interest rates have hovered around 4% for the majority of 2017, giving many buyers relief from rising home prices and helping with affordability.

While experts predict that rates will increase by the end of 2017, the latest projections have softened, with Freddie Mac predicting that rates will rise to 4.3% in Q4.

3. “Renting may be a better option than buying, according to the report.”

Of the 23 metros that the study reports on, 11 of them are firmly in buy territory, including New York, Boston, Chicago, Cleveland, and more. This means that in nearly half of all the major cities in the US, it makes more financial sense to buy a home than to continue renting one.

In 9 of the remaining metros, the decision as to whether to rent or buy is closer to a toss-up right now. This means that all things being equal, the cost to rent or buy is nearly the same. That leaves the decision up to the individual or family as to whether they want to renew their lease or buy a home of their own.

The 3 remaining metros Dallas, Denver and Houston, have experienced high levels of price appreciation and have been reported to be in rent territory for well over a year now, so that’s not news…

Beer & Cookies

One of the three authors of the study, Dr. Ken Johnson has long reported on homeownership and the decision between renting and buying a home. The methodology behind the report goes on to explain that even in a market where a renter would be able to spend less on housing, they would have to be disciplined enough to reinvest their remaining income in stocks/bonds/other investments for renting a home to be a more attractive alternative to buying.

Johnson himself has said:

“However, in perhaps a more realistic setting where renters can spend on consumption (beer, cookies, education, healthcare, etc.), ownership is the clear winner in wealth accumulation. Said another way, homeownership is a self-imposed savings plan on the part of those that choose to own.” 

Bottom Line

In the end, you and your family are the only ones who can decide if homeownership is the right path to go down. Real estate is local and every market is different. Let’s get together to discuss what’s really going on in your area and how The McLeod Group Network can help you make the best, most informed decision for you and your family. 971.208.5093 or mcleodgroupoffice@gmail.com. 

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4 Reasons to Buy This Summer!

by Amy McLeod Group

4 Reasons to Buy This Summer! | Keeping Current Matters

Here are four great reasons to consider buying a home today, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 7.1% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.9% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you? 

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. Let The McLeod Group Network help you start your search! 971.208.5093 or mcleodgroupoffice@gmail.com. 

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Exploring Salem Oregon: 2017 Cherry City Music Festival

by Amy McLeod Group

When: June 15, 16 & 17 2017
5:00 PM to 11:00 PM

Where: Downtown Salem
900 Court St. NE
Salem, OR 97301

503-364-1403

After ten years of celebrating music in Salem, Cherry City Music Festival moves from blossom to fruit season, June 15-17, 2017. Three days of concerts playing in venues across town. Free admission unless otherwise noted per location.

Event Schedule

Courtesy of Amy McLeod, The McLeod Group Network

Salem-Keizer OR Home For Sale: 11351 Pioneer Rd, Lyons, OR 97358

by Amy McLeod Group

Salem-Keizer OR Home For Sale
11351 Pioneer Rd, Lyons, OR  97358

Welcome home to 11351 Pioneer Rd, your canyon retreat! Enjoy the cabin feel of this 2 bed, 2 bath home with cedar log siding, a flowing floor plan, tons of natural light, built ins, and easy care flooring, all on one level. The open layout of the living room, dining room and kitchen is perfect for entertaining! Listen to the sweet songs of nature while relaxing on the newer Trex style deck, plus the community swimming hole is only one block away, just in time for those hot summer days! Great storage shed for all your tools and toys. Oh, you are going to fall in love, move right in and enjoy all this Lyons, OR home has to offer! 

The McLeod Group Network has distinguished themselves as a leader in the Salem Oregon real estate market. As a full service, real estate team - focused on working with our Seller and Buyer clients to help achieve their real estate goals!

We bring a keen eye for the details of buying or selling a Salem Oregon home and seemingly boundless determination and energy, which is why our clients benefit from our unique brand of real estate service. Rooted in Tradition, focused on the Future –The McLeod Group Network will help make the most of your Salem Oregon real estate experience. With over 40 years of combined experience, you can rest assured that your real estate transaction will be handled and cared for with the utmost respect and attention to detail. Give us a call today 503-798-4001 and discover the difference we can make during your family's move.

If Your Home Hasn’t Sold Yet… Definitely Check the Price!

by Amy McLeod Group

If Your Home Hasn’t Sold Yet… Definitely Check the Price! | Keeping Current Matters

The residential housing market has been hot. Home sales have bounced back solidly and are now at their fourth highest pace over the past year. Demand has remained strong ­throughout spring as many real estate professionals are reporting bidding wars with many homes selling above listing price. What about your house?

If your house hasn’t sold, it could be the price.

If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prosp­­ective buyers that will even see your house. See chart below.

If Your Home Hasn’t Sold Yet… Definitely Check the Price! | Keeping Current Matters

Bottom Line

The housing market is hot. If you are not seeing the results you want, sit down with The McLeod Group Network and revisit the pricing conversation. 971.208.5093 or mcleodgroupoffice@gmail.com. 

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Salem-Keizer OR Home For Sale
363 C Street, Independence, Oregon 97351

Great possibilities in this charming historic home in Independence! Cozy up to the fireplace in the sun drench living and dining room offer built-in hutches, corner cabinets and multiple window views. The sunny kitchen has ample cabinet and counter space, stove and dishwasher. Generously sized bedrooms with hardwood floors. Fabulous deck overlooks your private garden oasis! Old fashioned garage and outside sheds with potential for artists’ studio. Property sold AS-IS or Rehab Loan. Seller to do NO repairs.

The McLeod Group Network has distinguished themselves as a leader in the Salem Oregon real estate market. As a full service, real estate team - focused on working with our Seller and Buyer clients to help achieve their real estate goals!

We bring a keen eye for the details of buying or selling a Salem Oregon home and seemingly boundless determination and energy, which is why our clients benefit from our unique brand of real estate service. Rooted in Tradition, focused on the Future –The McLeod Group Network will help make the most of your Salem Oregon real estate experience. With over 40 years of combined experience, you can rest assured that your real estate transaction will be handled and cared for with the utmost respect and attention to detail. Give us a call today 503-798-4001 and discover the difference we can make during your family's move.

Displaying blog entries 1-10 of 47

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Photo of The McLeod Group Real Estate
The McLeod Group
Keller Williams Capital City
1900 Hines St SE #220
Salem OR 97302
971-208-5093
Fax: 503-270-5701

**Disclaimer: Amy McLeod, and her team, do not initiate, process, or service mortgages.  And provide this information only as a service.  You should confirm information here with your Licensed Mortgage Lender.