J. Kent Erickson, Broker Associate
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When Is It A Good Time To Rent? Definitely NOT NOW!

Posted by on Oct 27, 2016 in Uncategorized | 0 comments

When Is It A Good Time To Rent? Definitely NOT NOW! People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent. The Census Bureau recently released their first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today: A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.” The article also cited results from a recent Reis Inc. report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have...

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Where Are Home Values Headed Over the Next 5 Years?

Posted by on Oct 20, 2016 in Uncategorized | 0 comments

Where Are Home Values Headed Over the Next 5 Years? Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. The results of their latest survey: Home values will appreciate by 4.0% over the course of 2016, 3.4% in 2017 and 3.0% in the next two years, and finally 2.8% in 2020 (as shown below). That means the average annual appreciation will be 3.2% over the next 5 years. The prediction for cumulative appreciation slowed slightly from 25.0% to 24.7% by 2020....

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How Does Housing Help Build Family Wealth?

Posted by on Oct 13, 2016 in Uncategorized | 0 comments

How Does Housing Help Build Family Wealth? As the economy continues to improve, more and more Americans are seeing their personal financial situations also improving. Instead of just getting by, many are now beginning to save and find other ways to build their net worth. One way to dramatically increase their family wealth is through the acquisition of real estate. For example, let’s assume a young couple purchased and closed on a $250,000 home in January. What will that home be worth five years down the road?  Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists every quarter. They ask them to project how residential prices will appreciate over the next five years. According to their latest survey, here is how much value that $250,000 house will gain in the coming years....

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Saving to Buy a Home? Do You Know the Difference Between Cost & Price?

Posted by on Oct 6, 2016 in Uncategorized | 0 comments

Saving to Buy a Home? Do You Know the Difference Between Cost & Price? As a seller, you will be most concerned with the ‘short term price’ – where home values are headed over the next six months. As a buyer, you must be concerned not with price but instead with the ‘long term cost’ of the home. Many economists have pointed to Brexit (Britain’s exit from the European Union) as a reason that interest rates will remain low for the next few months. But Trulia’s Chief Economist Ralph McLaughlin warns that this will not always be the case in a recent post: “While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.” The Mortgage Bankers...

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