Tuesday, November 29, 2016

Zillow's 2017 Housing Market Predictions

After Zillow surveyed more than 100 economic and housing experts, the consensus is that home prices nationally will rise 3.6% in 2017. Here are some other predictions from Zillow:
  • More Millennials will buy homes next year than this year which is a pretty easy prediction to make as Millennials get older each year, more of them will be able to buy a home and more of them will choose to buy a home.
  • President-Elect Trump's potential immigration policies could exacerbate the shortage of construction workers which would cause labor costs to rise, longer construction time periods, and higher home prices. (This may be a good opportunity for blue-collar jobs to come back into the arena as great opportunity, vs. the 4 year degree which comes with alot of debt and a lot of competition). 
  • As Millennials buy homes it's expected they will purchase homes further out in the suburbs or exurbs where homes are more affordable. This will result in the percentage of people driving to work to rise for the first time in a decade. This is happening despite the fact that major cities are developing their urban cores or centers with denser development and smaller homes that are more affordable. But, they are not affordable enough. Plus, one thing not being addressed is quality schools in the urban centers. Most Millennials grew up in the burbs in big homes with good schools; so Millennials who are parents already are buying homes and moving back "home" to the burbs.

Thursday, November 3, 2016

Mortgage Rates Going Back to 1900: We are at lowest EVER

I love big picture charts that cover more time than just a couple years. This chart shows you mortgage interest rates from the year 1900. We are essentially at the lowest ever today in 2016, at 3.5%.

Hard to believe just in 2008 rates were 6.5% - that's a $500 DIFFERENCE IN MONTHLY PAYMENT!

Imagine the late 70's and early 80's, at 19%! Buying an $89,000 home back then would be the same monthly payment as buying a $212,000 today! If you are looking to buy now is the time. Don't cry to me when rates go up in the next few years!

Wednesday, November 2, 2016

Comparing Mortgage Payments Over Decades: 1985 vs. 2000 vs. 2016

Many people think they shouldn't buy right now because prices have gone up in the last 5 years, and skyrocketed since the 1980's. However, what most people forget is how much interest rates significantly affect a monthly mortgage payment. Check out this awesome infographic: