J. Kent Erickson, Broker Associate
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Why Home Prices Are Increasing

Posted by on Jul 30, 2018 in Uncategorized | 0 comments

Why Home Prices Are Increasing There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion. However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase. It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months...

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Existing Home Sales Grow Despite Low Inventory

Posted by on Jul 27, 2018 in Uncategorized | 0 comments

Existing Home Sales Grow Despite Low Inventory [INFOGRAPHIC] Some Highlights: According to the latest Existing Home Sales Report from the National Association of Realtors, sales grew 1.1% in March to an annual pace of 5.60 million. This is the strongest pace since November of 2017. Inventory levels dropped year-over-year for the 34th consecutive month and are now 7.2% lower than March 2017 levels, representing a 3.6-month...

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Short of a War of Stock Market Crash…

Posted by on Jul 25, 2018 in Uncategorized | 0 comments

“Short of a war or stock market crash…” This month, Arch Mortgage Insurance released their spring Housing and Mortgage Market Review. The report explained that an increase in mortgage rates and/or home prices would impact monthly payments this way: A 5% increase in home prices increases payments by roughly 5% A 1% rise in interest rates increases payments by roughly 13% or 14% That begs the question… What if both rates and prices increase as predicted? The report revealed: “If interest rates and home prices rise by year-end in the ballpark of what most analysts are forecasting, monthly mortgage payments on a new home purchase could increase another 10–15%. That would make 2018 one of the worst full-year deteriorations in affordability for the past 25 years.” The percent increase in mortgage payments would negatively impact affordability. But, how would affordability then compare to historic norms?...

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New Study Shows “Best States for Millennials”

Posted by on Jul 23, 2018 in Uncategorized | 0 comments

New Study Shows ‘Best States for Millennials’ A new study by WalletHub used “30 key metrics, ranging from share of millennials to millennial unemployment rate to millennial voter-turnout rate” to find out which states are the ‘Best States for Millennials.’ The Top 5 Best States for Millennials are: Washington, D.C. (also ranks highest in percentage of millennials already living there!) North Dakota (lowest unemployment rate) Minnesota (highest millennial homeownership rate) Massachusetts (highest percentage of millennials with health insurance coverage) Iowa (ranked #1 in lowest housing cost for millennials) Below is a map with the rankings for each of the 50 states: We recently reported on a study that set out to find out “How Much You Need to Make to Buy a Home in Your State,” which may have left you wondering what the average salaries are in each of the five states listed above. According to WalletHub’s research, the top 5 states with the Highest Average Millennial...

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Thinking of Selling Your Home? Why You Need a Pro in Your Corner

Posted by on Jul 20, 2018 in Uncategorized | 0 comments

Thinking of Selling Your Home? Why You Need A Pro in Your Corner With home prices on the rise and buyer demand strong, some sellers may be tempted to try and sell their homes on their own (FSBO) without using the services of a real estate professional. Real estate agents are trained and experienced in negotiation and, in most cases, the seller is not. Sellers must realize that their ability to negotiate will determine whether or not they get the best deal for themselves and their families. Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO: The buyer who wants the best deal possible The buyer’s agent who solely represents the best interest of the buyer The buyer’s attorney (in some parts of the country)...

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