Navy Fellas Realty Group

Real Estate, Residential sales and purchase

NAHB: Builder Confidence in Market Conditions Dips in July

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According to the National Association of Home Builders, July builder sentiment dipped to an index reading of 64 as compared to June’s revised reading of 66, the original reading was 67. Analysts expected the reading for July to increase to 68. Builders cited increasing lumber prices as a concern affecting builders’ outlook on housing market conditions for new single-family homes. Any reading over 50 for the NAHB Housing Market Index indicates that more builders than fewer are positive about housing market conditions, but July’s reading was the lowest in eight months. NAHB said that home builder confidence in market condition “remains strong.”

Three month rolling averages were mixed. The Northwestern region gained one point for an index reading of 47, the Midwest gained one point to a reading of 66 and the Southern region dropped three points to a reading of 66. The Western region had the highest level of builder confidence but lost one point for a reading of 75.

Shortages of homes for sale and buildable lots have impacted builder confidence for several months. As the number of available homes dwindles, demand and home prices have risen. Real estate pros view building more home as the only solution for easing the shortage of homes for sale Lower readings on builder confidence in market conditions could indicate slowing in the construction of new homes.

Lumber Tariff Raises  New Home Prices, Could Cost Jobs

While home builder confidence jumped in the aftermath of the election, builders said that a tariff on Canadian lumber is affecting home prices and construction jobs. In a statement released with July’s Housing Market Index readings, NAHB said that the lumber tariff tacked on an average of  $1236 to the average home price. NAHB leaders also said that as materials costs continue to rise, affordability will become an issue and that construction layoffs could potentially exceed 8000 jobs.

NAHB Chairman Granger MacDonald said about the lumber tariff, this is hurting housing affordability even as consumer interest in the new-home market remains strong” While current interest in new homes is healthy, home builders will have to manage costs to keep home prices affordable and competitive.

Buying a Home in a Fire Risk Area: Here’s What You Need to Know

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Buying a Home in a Fire Risk Area: Here's What You Need to KnowOutside of the significant financial responsibility of delving into home ownership, there can also be a lot of other risks involved that you may not have thought about before investing in a home. You’ll need to protect your home against theft or burglary, and homeowner’s insurance to protect your home and belongings. But there are other less common occurrences you may not have thought about. If you happen to be living in an area that’s at high risk of fire, here are some things to consider beforehand.

Defining “High Risk”

It’s easy to be swept away by a beautiful home and forget about what the natural landscape around it consists of. Many homes across the United States are built in areas close to trees and shrubs, which can be dangerous in times of high temperatures, so it’s important to do your research. While hot spots can occur in many different areas, California and the southwest region are particularly vulnerable in times of drought.

What It Means For Your Mortgage

Nearly all homes can be adversely affected by a fire so it’s important to realize that buying in a high-risk area will not impact your ability to get a mortgage. It can, however, impact some of the costs associated with investing in your home. While homeowner’s insurance is a requirement of buying a home and it will generally cover you in the incidence of a fire, it can be a bit pricier. Fortunately, you may be able to guard against some of the additional costs by purchasing a home with materials that are more fire resistant.

In The Event Of Fire

If the worst happens and your home incurs damage from a fire, you’ll want to assess the extent of the damage before making a decision on how to proceed. For a home that is minimally impacted, you may want to use insurance to repair the property. However, if the property is significantly or completely destroyed, a payout may be required in order to pay off the mortgage. Before purchasing a home in a fire-prone area it’s best to be aware of all aspects of your insurance policy so you can be prepared.

It’s a more significant risk to buy a home in a fire-prone area, but you can be prepared for the worst by knowing your options. If you’re currently considering purchasing a new home, contact your local real estate professional for more information.

What’s Ahead For Mortgage Rates This Week – July 17, 2017

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Inflation Rate Stays Flat in June

Inflation was flat in June, but achieved a 0.00 percent reading as compared to May’s – 0.10 percent reading. Analysts expected a June reading of +0.10 percent reading month-to-month. The Federal Open Market Committee of the Federal Reserve has established a benchmark reading of 2.00 percent inflation year-over-year as an indication of economic recovery. In recent months, the Fed has increased its target federal funds rate at each meeting of the FOMC. A slowdown in inflation and other economic indicators may cause the Fed to halt rate increases until conditions improve.

Fed Chair Testifies before House Financial Services Panel

During testimony last week, Fed Chair Janet Yellen addressed questions about Federal Reserve board members’ interaction with Wall Street. Ms. Yellen explained that the Fed values clear communications with Wall Street as a productive relationship. Chair Yellen also noted that the Fed may taper off on interest rate increases soon; she said that further rate increases may not be warranted at present.

Stating that “monetary policy is not a preset course,” Chair Yellen said that the Fed is aware of problems associated with forecasting higher than actual inflation gains, but also said that the Fed believes that inflation will achieve the 2.00 percent annual goal established by the Fed.

Ms. Yellen hinted that her tenure as Fed Chair may be reaching its conclusion; she did not answer media inquiries about whether she would stay on if asked. She said she was concentrating on current issues instead of focusing on potential developments.

Mortgage Rates Rise, New Jobless Claims Lower

Mortgage rates rose again last week; the average rate for a 30-year fixed rate mortgage exceeded four percent for the first time since May with an average rate of 4.03 percent. Fifteen-year fixed rate mortgages had an average rate of 3.29 percent. Average mortgage rates for 15 and 30-year fixed rate mortgages rose seven basis points over last week’s average rates. The average rate for a 5/1 adjustable rate also rose seven basis points to 3.28 percent. Discount points averaged 0.50 percent for all three mortgage types.

247,000 new jobless claims were filed last week as compared to expectations of 245,000 new claims filed and last week’s reading of 250,000 new claims. First-time jobless claims stayed below 300,000for 123 consecutive weeks. This run is the longest since the 1970s.  Analysts said that low jobless claims indicate a very low rate of layoffs.

Consumer sentiment dropped by two index points from 95.10 to 93.10 percent. Rising mortgage rates and concerns about current events likely contributed to wavering consumer sentiment.

What‘s Ahead

This week’s scheduled economic readings include NAHB Housing Market Indices, Commerce Department reports on housing starts and building permits issued and weekly releases on mortgage rates and new jobless claims.

Selling Your Home This Summer? Here’s Why You’ll Want to Recruit the Neighbors to Help

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Selling Your Home This Summer? Here's Why You'll Want to Recruit the Neighbors to HelpWith the power of social media, it’s easier than ever to use Twitter and Facebook and your own home website to sell your home online. However, there are a lot of different buyers on the market and that means it’s important to keep all your options open when it comes to marketing your home. If you’re wondering how you can harness the power of your neighbors to get the word out, here are some tips you may want to consider.

It’s Extra Marketing

If you have a good relationship with the people in your area, it’s possible that they’ll be happy to get the word out for you and assist you in the sale of your home. Whether they happen to have friends who might be interested in a property in the area or are willing to otherwise point out your place, a positive relationship can lead to opportunities that may come from the most unexpected places!

Selling The Home’s Reliability

In all likelihood, your neighbors will be well aware of situations adversely impacting the community or any past situations that have affected your home, whether there’s been a break in or a roofing issue. It’s often the case that potential buyers will consult with your neighbors to hear more about your home’s history. Since you won’t want an interested party to hear any bad news from your neighbor, it’s important to be upfront and discuss any adjustments or renovations you’ve made with your neighbors so you can be on the same page if an issue comes up.

Keeping Them In The Loop

In the sanctity of your own home, it can be easy to forget about the neighbors just next door. But don’t forget that the stream of people coming to look at your home can have an impact on those who live around you. Instead of neglecting to prepare your neighbors for additional visitors, go door-to-door and bring some baked goods or other treats to inform them of upcoming open houses. Not only will they appreciate the gesture, they might be happy to push some interested parties in your direction.

There are many ways to market a home sale, but it’s important not to forget about how your neighbors can assist you in getting your home off the market and sold. If you’re currently preparing to sell your home, contact your local real estate professional for more tips and advice.

Upgrade My Life, Alexa: 4 Great Reasons to Invest in a Home Smart Assistant

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Upgrade My Life, Alexa: 4 Great Reasons to Invest in a Home Smart AssistantIn an age of rapidly changing technology, doing things like programming in temperature changes and monitoring your home security from afar are becoming common. Fortunately, having a smarter home is even easier these days with Alexa, which was created by Amazon in 2014 as a smart home assistant. If you’re looking for an instant home upgrade that will utilize the smartest technology on the market, here’s why Alexa might be a great option for you.

Hands-Free Convenience

Whether you’re doing laundry or cutting up vegetables, being able to do a lot of tasks around the home hands-free can be a great benefit. Fortunately, with Alexa, users can use their voice to get things done whether it’s activating an app, turning on their music or even getting the weather report. 

Control The Temperature

Having to set up the temperature in your home so it goes down at night and heats up throughout the day can be a challenge, particularly since the outside temperature is always changing. Fortunately, Alexa allows you to make adjustments to the temperature wherever you are. Whether you want to increase, decrease or set the temperature, the command is as easy as: “Alexa, set the temperature to 67.”

Adjusting The Lights

In addition to the temperature, Alexa also gives you the ability to adjust the lights in your home using a variety of different commands. Whether you want to turn the lights on or off, dim the lights or even adjust their color temperature, you just need to call Alexa’s name. Conveniently, you can even create groups of lights that will turn on at a specific command!

Making Simple Purchases

Whether you want to order take-out for dinner from places like Domino’s or purchase home necessities that you’re running low on, all you need to do is engage Alexa with the appropriate command. While some users have encountered early issues using Alexa to order products, it tends to work well for household items that you order frequently.

There are many home upgrades available on the market, but Amazon’s Alexa is a great choice for those who want a product that’s easy to use and technologically adaptable. And when you’re ready to upgrade to a more tech-friendly home, contact one of our real estate professionals for more information.

3 Home Renovation Lessons That You Won’t Want to Learn the Hard (or Expensive!) Way

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3 Home Renovation Lessons That You Won't Want to Learn the Hard (or Expensive!) WayMost people make a number of home upgrades when the time comes to put their home on the market. This can include minor fix-ups or significant improvements that come with a high cost. However, it’s important to determine what will improve the value of your home and what renovations you can ignore before you move forward with any updates. If you’re wondering how to plan for your renovations, here are three things to ponder before getting started.

Make (And Stick!) To A Budget

If there’s a certain offer price you’re looking for in your home, it’s important to go into home renovations with a clear head and decide beforehand how much you’re willing to spend. You certainly won’t be able to do everything, but by doing the little fix ups, adding a coat of paint and removing some outdated design features, you can likely spend less for a lot more value. The only thing to keep in mind is that once you’ve decided on a budget, you should aim to stay within it.

Choose Complementary Improvements

From year to year, what’s popular in the design market changes and it can be tempting to try and test out the trends in the hopes of garnering a higher price. However, simply because something is trendy does not mean that it’s going to flatter the aesthetic of your home. Instead of choosing improvements that are trendy but out of place, opt for changes that will complement the home you have and add value at the same time.

Re-Consider The Extra Room

Many homeowners in recent years have been strong believers in quantity over quality, and this means many have invested in renovations to add an additional bedroom or a den. It might seem like an extra room is ideal no matter what, but if you’re cutting into your kitchen, living room or extra space, it can completely change the aesthetic of your home. With open floor plans becoming more popular, you may want to stick with fewer rooms that will garner more interest.

There are so many renovations that can instantly improve the value of your home, but it’s important to determine what will complement your home and how much you want to spend before committing to anything. If you’re planning on putting your home on the market in the near future, contact your local real estate professionals for more information.