Latest Posts

What are the Benefits of Becoming a Homeowner?

What are the Benefits of Becoming a Homeowner?

Read More

Why A Normal Market is Just What We Need

Why A Normal Market is Just What We Need

Read More

2019 Will Be a Great Year for Buyers AND Sellers

2019 Will Be a Great Year for Buyers AND Sellers

2019 Will Be a Great Year for Buyers AND Sellers | MyKCM

Many homeowners believe that rising interest rates and home prices have scared away buyers and therefore have not listed their houses for sale. However, the truth is that buyers who were unable to find a home last year are out in force, and there are even more coming!

NerdWallet’s 2018 Home Buyer Report revealed that:

“Approximately one-third (32%) of Americans plan to purchase a home in the next five years. Millennials are most likely to have such a purchase in their five-year plan (49%), versus 35% of Generation X and 17% of baby boomers.”

As we can see, buyers are optimistic! According to the report, here are the top reasons Americans plan to buy:

2019 Will Be a Great Year for Buyers AND Sellers | MyKCM

The most common reason Americans prioritize buying is that they believe it’s a good investment!

If you’re a homeowner looking to sell, 2019 is the perfect year to put your house on the market. But why?

  1. Buyers want to buy
  2. No competition!

At least 3 of the renowned organizations that report on real estate market trends predict that homeowners are going to wait until 2020 to list their homes, leading to a nice increase in sales (as shown in the graph below).

Don’t wait for a competitive market; be ahead of the curve and sell your house at the best possible price!

Bottom Line

There are plenty of buyers entering the market! Whether you’re a first-time homebuyer or a current homeowner looking to move-up to your next home, let’s get together to discuss your real estate needs!

Read More

First Comes Love... Then Comes Mortgage? Couples Lead the Way

First Comes Love… Then Comes Mortgage? Couples Lead the Way

Read More

How To List Your Home for the Best Price

How To List Your Home for the Best Price

Read More

How to Get a Better Perspective on Affordability

How to Get a Better Perspective on Affordability

Read More

3 Things You Need in a Shifting Real Estate Market

3 Things You Need in a Shifting Real Estate Market

Read More

Do You Prefer the Charm of an Existing Home?

Do You Prefer the Charm of an Existing Home?

Read More

Selling Your Home? Make Sure the Price is Right!

Selling Your Home? Make Sure the Price is Right!

Read More

Buying a Home Young is the Key to Building Wealth

Buying a Home Young is the Key to Building Wealth

Read More

The Best Time to List Your House? TODAY!

The Best Time to List Your House? TODAY!

Read More

Want to Get the Most Money from The Sale of Your Home? Use These 2 Tips!

Want to Get the Most Money from The Sale of Your Home? Use These 2 Tips!

Read More

Belief in Homeownership as an Investment is Far from Dead

Belief in Homeownership as an Investment is Far from Dead

Read More

How to Save Thousands of Dollars in Interest on Your Mortgage

How to Save Thousands of Dollars in Interest on Your Mortgage

Read More

Homeownership Remains a Huge Part of the American Dream

Homeownership Remains a Huge Part of the American Dream

Read More

Why Houses DO NOT Sell in a Strong Market

Why Houses DO NOT Sell in a Strong Market

Read More

Don't Get Caught in the Rental Trap in 2019

Don’t Get Caught in the Rental Trap in 2019

Read More

What If I Wait a Year to Buy a Home?

What If I Wait A Year to Buy a Home?

Read More

4 Reasons to Buy A Home This Winter!

4 Reasons to Buy A Home This Winter!

Read More

Schedule an Appointment

Read More

24% of Renters Believe Winter is the Best Time to Buy a Home

24% of Renters Believe Winter is the Best Time to Buy a Home

Read More

Buyers: Don't Be Surprised by Closing Costs!

Buyers: Don’t Be Surprised by Closing Costs!

Read More

Females Are Making It a Priority to Invest in Real Estate!

Females Are Making It a Priority to Invest in Real Estate!

Read More

Home Sellers in Q3 Netted $61K at Resale

Home Sellers in Q3 Netted $61K at Resale

Home Sellers in Q3 Netted $61K at Resale | MyKCM

According to a recent report by ATTOM Data Solutions, home sellers who sold their homes in the third quarter of 2018 benefited from rising home prices and netted an average of $61,232.

This is the highest average price gain since the second quarter of 2007 and represents a 32% return on the original purchase prices.

After the Great Recession, many homeowners were left in negative equity situations but home price appreciation in the recovery period since then has given homeowners something to smile about.

The results from ATTOM fall right in line with data from the latest edition of the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers. Below is a chart that was created using NAR’s data to show the percentage of equity that homeowners earned at the time of sale based on when they purchased their homes.

Home Sellers in Q3 Netted $61K at Resale | MyKCM

Even though those who purchased at the peak of the market netted less than those who bought before and after the peak, the good news is that there was a double-digit profit to be had! Many homeowners believe that they are still underwater which has led many of them to not even consider selling their houses.

Bottom Line

If you are curious about how much equity you’d earn if you sold your home, let’s get together to perform an equity review and determine the demand for your home in today’s market!

Read More

Are Homeowners Renovating to Sell or to Stay?

Are Homeowners Renovating to Sell or to Stay?

Read More

Why Has Housing Supply Increased as Sales Have Slowed Down?

Why Has Housing Supply Increased as Sales Have Slowed Down?

Read More

2 Myths Holding Back Home Buyers

2 Myths Holding Back Home Buyers

Read More

Are You Spending TOO Much on Rent?

Are You Spending TOO Much on Rent?

Are You Spending TOO Much on Rent? | MyKCM

Chances are if you are renting you are spending too much of your income on your monthly housing expense. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their rent or mortgage payment. This percentage allows the household to save money for the future while comfortably covering other expenses.

According to new data released from ApartmentList.com49.5 million renters in the United States were cost-burdened in 2017, meaning they spent more than 30% of their monthly incomes on rent. This accounts for nearly half of all renter households in the country and is up 3.1 million from 2007.

When a household is cost-burdened by their monthly housing expense, they are not as easily able to save money for the future. This is a big factor for many renters who dream of owning their own homes someday.

But there is hope for those who are able to save at least a 3% down payment! The percentage of income needed in the US to buy a home is significantly less than renting at 17.1%!

The chart below compares the historic percentage of income needed to rent and buy from 1985-2000 to the first quarter of 2018. As you can see, the cost of renting has climbed above historic numbers while the cost of buying dropped over the same period of time.

Are You Spending TOO Much on Rent? | MyKCM

Bottom Line

If you are one of the many renters who is spending too much of their monthly income on rent, consider saving money by getting a roommate, moving into a less expensive apartment, or even moving in with family. These are all ways to save for a down payment so that you can put your housing costs to work for you!

Read More

Will Home Prices Continue to Increase?

Will Home Prices Continue to Increase?

Read More

5 Tips for Starting Your Home Search

5 Tips for Starting Your Home Search

Read More

What's Going On With Home Prices?

What’s Going On With Home Prices?

What’s Going On With Home Prices? | MyKCM

According to CoreLogic’s latest Home Price Insights Report, national home prices in August were up 5.5% from August 2017. This marks the first time since June 2016 that home prices did not appreciate by at least 6.0% year-over-year.

CoreLogic’s Chief Economist Frank Nothaft gave some insight into this change,

“The rise in mortgage rates this summer to their highest level in seven years has made it more difficult for potential buyers to afford a home. The slackening in demand is reflected in the slowing of national appreciation, as illustrated in the CoreLogic Home Price Index.  

National appreciation in August was the slowest in nearly two years, and we expect appreciation to slow further in the coming year.”

One of the major factors that has driven prices to accelerate at a pace of between 6-7% over the past two years was the lack of inventory available for sale in many areas of the country. This made houses a prized commodity which forced many buyers into bidding wars and drove prices even higher.

According to the National Association of Realtors’ (NAR) latest Existing Home Sales Report, we are starting to see more inventory come to market over the last few months. This, paired with patient buyers who are willing to wait to find the right homes, is creating a natural environment for price growth to slow.

Historically, prices appreciated at a rate of 3.7% (from 1987-1999). CoreLogic predicts that prices will continue to rise over the next year at a rate of 4.7%.

Bottom Line

As the housing market moves closer to a ‘normal market’ with more inventory for buyers to choose from, home prices will start to appreciate at a more ‘normal’ level, and that’s ok! If you are curious about home prices in your area, let’s get together to chat about what’s going on!

Read More

2 Factors to Watch in Today's Real Estate Market Whether Buying or Selling

2 Factors to Watch in Today’s Real Estate Market Whether Buying or Selling

Read More

How Does the Supply of Homes for Sale Impact Buyer Demand?

How Does the Supply of Homes for Sale Impact Buyer Demand?

Read More

The Cost of NOT Paying PMI

The Cost of NOT Paying PMI

The Cost of NOT Paying PMI | MyKCM

Saving for a down payment is often the biggest hurdle for a first-time homebuyer as median incomes, rents, and home prices all vary depending on where you live.

There is a common misconception among homebuyers that a 20% down payment is required, and it is this limiting belief that often adds months, and sometimes even years, to the home-buying process.

So, if you can purchase a home with less than a 20% down payment… why aren’t more people doing just that?

One Possible Answer: Private Mortgage Insurance (PMI)

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. The monthly cost of your PMI depends on the home’s value, the amount of your down payment, and your credit score.

Below is a table showing the difference in monthly mortgage payment for a $250,000 home with a 3% down payment and PMI vs. a 20% down payment without PMI:

The Cost of NOT Paying PMI | MyKCM

The first thing you see when looking at the table above is no doubt the added $320 a month that you would be spending on your monthly mortgage cost. The second thing that should stand out is that a 20% down payment is $50,000!

If you are buying your first home, $50,000 is a large sum of money that takes discipline and sacrifice to save. Many first-time buyers save for 5-10 years before buying their homes.

To save $50,000 in 10 years, you would need to save about $420 a month. On the other hand, if you save that same $420 a month, you could afford a 3% down payment in less than a year and a half.

In a recent article by My Mortgage Insider, they explain what could happen in the market while you are waiting to save for a higher down payment:

“The time it takes to save a (larger) down payment could mean higher home prices and tougher qualifying down the road. For many buyers, it could prove much cheaper and quicker to opt for the 3% down mortgage immediately.”

The article went on to say,

“Since renters typically devote a higher percentage of their income to housing than homeowners, providing flexible down payment options can help renters with solid earnings purchase a home – and gain a fixed-rate mortgage with principal and interest payments that will not increase over the life of the loan.”

If the prospect of having to pay PMI is holding you back from buying a home today, Freddie Mac has this advice,

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Based on results of the most recent Home Price Expectation Survey, a homeowner who purchased a $250,000 home in January would gain $50,000 in equity over the next five years based on home price appreciation alone (shown below).

The Cost of NOT Paying PMI | MyKCM

Bottom Line

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and help you make the best decision for you and your family.

Read More

Is the Real Estate Market Finally Getting Back to Normal?

Is the Real Estate Market Finally Getting Back to Normal?

Read More

Home Prices: The Difference 5 Years Makes

Home Prices: The Difference 5 Years Makes

Read More

4 Reasons Why Fall Is a Great Time to Buy a Home!

4 Reasons Why Fall Is A Great Time to Buy A Home!

Read More

What Does the Future Hold for Home Prices?

What Does the Future Hold for Home Prices?

Read More

Rents Are on The Rise: DonÂ’t Get Caught in The Rental Trap!

Rents Are on The Rise: Don’t Get Caught in The Rental Trap!

Read More

Top 3 Myths About Today's Real Estate Market

Top 3 Myths About Today’s Real Estate Market

Read More

Rent or Buy: Either Way You're Paying a Mortgage

Rent or Buy: Either Way You’re Paying A Mortgage!

Read More

What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?

What Does the Recent Rash of Price Reductions Mean to the Real Estate Market?

Read More

5 Real Estate Reality TV Myths Explained

5 Real Estate Reality TV Myths Explained

Read More

Supply and Demand Will Determine Future Home Values

Supply & Demand Will Determine Future Home Values

Read More

The Wave of Millennial Homebuyers Continues to Swell

The Wave of Millennial Homebuyers Continues to Swell

Read More

Supply & Demand Will Determine Future Home Values

Supply & Demand Will Determine Future Home Values

Supply & Demand Will Determine Future Home Values | MyKCM

Will home values continue to appreciate throughout 2018? The answer is simple: YES! – as long as there are more purchasers in the market than there are available homes for them to buy. This is known as the theory of “supply and demand,” which is defined as:

“The amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.”

When demand exceeds supply, prices go up. Every month this year, demand (buyer traffic) has increased as compared to last year and for the first five months of 2018, supply (the number of available listings) had decreased as compared to last year. However, a recent report by the National Association of Realtors (NAR) revealed the first year-over-year increase in supply in three years.

Here are the numbers for supply and demand as compared to last year since the beginning of 2018:

Supply & Demand Will Determine Future Home Values | MyKCM

The increase in the June numbers doesn’t mean that prices won’t continue to appreciate. In that same report, Lawrence Yun, NAR’s Chief Economist, explained:

“It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels.

Furthermore, it remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up.”

Bottom Line

The reason home prices are still rising is that there are many purchasers looking to buy but very few homeowners ready to sell. This imbalance is the reason prices will remain on the uptick.

Read More

5 Reasons to Hire a Real Estate Professional Before Entering the Market!

5 Reasons to Hire a Real Estate Professional Before Entering the Market!

Read More

The #1 Reason to Put Your House on The Market TODAY!

The #1 Reason to Put Your House on The Market TODAY!

Read More

You Need an Agent Who Will Always Put You First

You Need an Agent Who Will Always Put You First

Read More

Selling Your Home? Here's 2 Ways to Get the Best Price!

Selling Your Home? Here’s 2 Ways to Get the Best Price!

Read More

Lack of Listings Slowing Down the Market

Lack of Listings Slowing Down the Market

Read More

First-Time Home Buyers Continue to Put Down Less Than 6%!

First-Time Home Buyers Continue to Put Down Less Than 6%!

Read More

4 REAL Reasons Why We Buy a Home!

4 REAL Reasons Why We Buy A Home!

4 REAL Reasons Why We Buy A Home! | MyKCM

We often talk about why it makes financial sense to buy a home, but more often than not, the emotional reasons are the more powerful or compelling ones.

No matter what shape or size your living space is, the concept and feeling of home can mean different things to different people. Whether it’s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones.

1. Owning your home offers you the stability to start and raise a family

Between the best neighborhoods and the best school districts, even buyers without children at the time of purchase may have these things in mind as major reasons for choosing the locations of the homes that they purchase.

2. There’s no place like home

Owning your own home offers you not only safety and security, but also a comfortable place that allows you to relax after a long day!

3. You have more space for you and your family

Whether your family is expanding, an older family member is moving in, or you need to have a large backyard for your pets, you can take this all into consideration when buying your dream home!

4. You have control over renovations, updates, and style

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Tired of paying an additional pet deposit in your apartment building? Or maybe you want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t do just that in your own home?

Bottom Line

Whether you are a first-time homebuyer or a move-up buyer who wants to start a new chapter in your life, now is a great time to reflect on the intangible factors that make a house a home.

Read More

House-Buying Power at Near-Historic Levels

House-Buying Power at Near-Historic Levels

Read More

How Long Do Most Families Live in a House?

How Long Do Most Families Live in a House?

Read More

Why Should You Use a Professional to Sell Your Home?

Why Should You Use A Professional to Sell Your Home?

Read More

Buying This Summer? Be Prepared for Bidding Wars

Buying This Summer? Be Prepared for Bidding Wars

Read More

Are You Wondering If You Can Buy Your First Home?

Are You Wondering If You Can Buy Your First Home?

Are You Wondering If You Can Buy Your First Home? | MyKCM

There are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they get married or start a family, some might think they are too young, and still, some others might think their current incomes would never enable them to qualify for a mortgage.

We want to share what the typical first-time homebuyer actually looks like based on the National Association of Realtors’ most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first-time buyer:

Are You Wondering If You Can Buy Your First Home? | MyKCM

Bottom Line

You may not be much different than many people who have already purchased their first homes. Let’s meet to determine if your dream home is within your grasp today.

Read More

You Do NOT Need 20% Down to Buy Your Home NOW!

You DO NOT Need 20% Down to Buy Your Home NOW!

Read More

Top 5 Reasons You Shouldn't FSBO

Top 5 Reasons You Shouldn’t FSBO

Read More

Parents Say Kids' Opinions Matter Big When Buying a Home

Parents Say Kids’ Opinions Matter Big When Buying a Home

Read More

When Is a Good Time to Rent? Not Now!

When Is a Good Time to Rent? Not Now!

Read More

Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years

Homeowners & Appraisers See the Most Eye-to-Eye on Price in 3 Years

Read More

4 Reasons Why Summer Is a Great Time to Buy a Home!

4 Reasons Why Summer Is a Great Time to Buy a Home!

Read More

Will Home Prices Fall as Mortgage Rates Rise?

Will Home Prices Fall as Mortgage Rates Rise?

Read More

5 Reasons Why to Sell This Summer!

5 Reasons Why to Sell This Summer!

Read More

Selling Your House On Your Own Could Cost You

Selling Your House on Your Own Could Cost You

Read More

Renters Under 50 Want to Buy a Home!

Renters Under 50 Want to Buy a Home!

Read More

Access: An Important Factor in Getting Your House SOLD!

Access: An Important Factor in Getting Your House SOLD!

Read More

What If I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home?

Read More

Home Inspections: What to Expect

Home Inspections: What to Expect

Read More
Contact
Agent Picture

Bayou Region Real Estate

(985) 601-3136

info@bayouteam.com

Find Your Dream Home