The rumors are swirling right now about the housing market.  Is it strong?  Is it cooling?  Is it still a seller’s market or is it a buyer’s market?  What does any of this mean to you?  Let’s debunk a couple of myths.  First of all, the market is still hot.  It’s not as white hot as it was but as with anything great and boring full force ahead, that can’t be sustained for too long before it slows.  For the past decade or so we have been spoiled with a white hot market and we all got used to it so now that that freight train is tapping the breaks it’s creating these rumors we’re all hearing.  The truth is, the market is strong AND home prices are still appreciating in value.  The rate of appreciation is declining but….still appreciating.  It seems that the word decline is a trigger word so whenever anyone hears declining there’s pandemonium.  End of myth 1.  

With any thriving economic market you tend to see rising interest rates.  The economy is healthy which means, rates will continue to rise.  This reality isn’t necessarily a deterrent for most buyers.  For a couple of reasons.  One being that consumers feel confident in the fact that they will have jobs to pay for their mortgages.  Another is that there are more and more financing programs available for buyers that, while still protecting them and their ability to repay, allows them to attain financing when in prior years they may not have been able to do so.  Varying buyer profiles becoming more widely accepted, in addition to consumer confidence continues to boost our economy further.  This is paired with the fact that interest rates are still incredibly low historically.  There have only been 2 times in history where rates have held steady at or below 5% and one of those times is right now.  So although, once again we have grown accustom to the recent rates of well below 5%, the fact that our economy is strong enough to support higher rates is great news for us all.  

In short, it’s still a great time to invest in real estate.  You’re going to have to pay living expenses anyway.  Why not utilize that investment and make it work for you?  Gain equity through a purchase versus renting.  If you already own a home maybe cash out some equity to pay off debts, diversify your investments in other sources or achieve additional goals like sending kids off to college or traveling.  Sell your current home and move into something that fits the life that you have now versus the circumstances you had before.  It’s always a great idea to know your options and make sure that you’re maximizing what you spend your money on.  You work to live, not live to work and no one should be throwing money into something that doesn’t work for them.  

By: Nichole Jackson – Options Financial Residential Mortgage

We keep talking about the market and what is happening. We have mentioned that the market is hot right now, but you have either just moved, love your home, or have no where to go if you do move. There are a lot of people in your same position. Did you know that the home improvement stores, paint stores and landscapers are very busy? People have decided to hang on to their home and do those improvements they have been putting off or remodeling to make their home more to their liking so they don’t have to move. This means that the usual spring time market that people wait for to put their home on the market or find the home of their dreams isn’t happening. The time is ripe for selling. If you hear a neighbor or friend talking about selling their house, please remember to send them our way. We will take good care of them.

As Bob Dylan once sang, the times, they are a-change’n. Isn’t that the truth? Lou and I were reflecting back to the time when we bought our first house. The house was only $46,000 in 1980 but the interest rate was over 16%, making our monthly payment with taxes and insurance over $900/month. Today, the first time homebuyer will pay somewhere around $300,000 and the interest rate will be about 4% (or for some, even lower!), making their payment with estimated taxes and insurance of about $1,900/month. And hopefully, salaries have crept up in the last 37 years! In 1980, we didn’t have any inspections what-so-ever, we didn’t even know they existed! We bought the house and hoped for the best. Today, the home-buyer will get a general inspection and most likely a sewer-scope, radon test, and add any other specialty inspections that the home inspector deems necessary. It’s not uncommon to get specialized inspectors to examine the furnace, chimney, fireplace, foundation, roof, electrical, or even figuring out the discoloration that could potentially be mold! We’ve mentioned how the current housing market is very tough for first time buyers. One of our strengths and favorite things to do is to work with first time buyers. We like to help and explain the process and make the journey a fun one! One of our preferred lenders, Joel Morgan of Options Financial has said that working with the Taubers is like working with your parents (only in a good way!). We are here to help you every step of the way, and we love what we do!

Spring is finally here and now is the time to be planting your garden. Do you love your home but have no place for a garden or perhaps not the knowledge to grow a great garden? Consider a community garden. They are popping up all over the city and you probably have one closer than you think. They are a fantastic option to have instead of growing a garden in your own yard. It is also a place to meet other gardeners who share a common passion and who can even share the work load when you go on vacation.