Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Existing Home Sales Jump, Builder Confidence Holds Steady

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Home buyers kicked the spring home shopping season into gear and boosted sales of pre-owned homes in March. Existing home sales rose 5.10 percent in March according to the National Association of Realtors®. 5.33 million pre-owned homes were sold in March against expectations of 5.30 million sales and February’s reading of 5.07 million sales on a seasonally adjusted annual basis.

Demand for homes remains strong in spite of rapidly escalating prices in many areas. Short supplies of available homes continue to drive demand and home prices. Sales rose only 1.50 percent year-over-year, but during the first quarter of 2016, existing home sales rose by 4.80 percent as compared to the first quarter of 2015. Sales were 11.11 percent higher in the Northeast, which was a notable improvement over lagging sales in recent months.

There was a 4.50 month supply of available homes in March and the median price of an existing home rose 5.70 percent to $222,700. NAR Chief Economist Lawrence Yun noted that the annual increase in home prices was more than twice the rate of average wage increases. First-time home buyers represented 30 percent of buyers in March; this was the same percentage as February. First-time and moderate income buyers continue to face challenges due to rapidly rising home prices competition for available homes.

NAHB: Home Builder Confidence Unchanged in March

According to the National Association of Home Builders Housing Market Index for March, home builder confidence remained at 58 for the third consecutive months. Any reading over 50 indicates that more builders are confident about current market conditions than not.

Builder confidence in current market conditions fell two points to 63 while builder confidence rose 1 point to 62 for market conditions in the next six months. Builder confidence in buyer traffic for new home developments also rose one point to 44. Readings for buyer traffic have not exceeded 50 for approximately 10 years. NAHB Chief Economist Robert Dietz characterized home builder sentiment as “cautiously optimistic.”

Challenges facing home builders include a short supply of labor; the number of job vacancies reached a post-recession high in February. All four regional builder confidence readings declined in April; the Northeast lost two points for a reading of 44. The Midwest and South each lost one point for readings of 57 and 58 respectively. The Western region posted a loss of two points for a reading of 67.

How to Determine the Right Mortgage for You: The Pros and Cons of Each Type

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How to Determine the Right Mortgage for You: The Pros and Cons of Each TypeFinding the right mortgage can be a struggle. There’s a wide array of mortgage products on the market, and you don’t always need to get a mortgage through your bank – and with so many options, it’s hard to know which one is your best bet.

Your ideal mortgage will depend on your own individual financial situation, but when you understand how different kinds of mortgages work, it’s easier to choose the right one. Here’s what you need to know about mortgage types.

Fixed-Rate Mortgages: Home Financing At A Guaranteed Rate

A fixed-rate mortgage is exactly what it sounds like: A mortgage with a fixed interest rate. With a fixed-rate mortgage, your interest rate is locked for the life of the mortgage loan and cannot change.

When interest rates are at historical lows, a fixed-rate mortgage is an ideal financing option. By purchasing a fixed-rate mortgage at a low interest rate, buyers lock in low payments and are protected from sudden rate increases. However, fixed-rate mortgages are more difficult to qualify for when interest rates are high.

Variable-Rate Mortgages: Lower Rates And Larger Loans

A variable-rate mortgage is a mortgage wherein the interest rate fluctuates over time. Typically, the interest rate will stay constant during a set period of time near the start of the mortgage, and then start to vary. These mortgage rates rise and fall in line with the prime lending rate.

The major advantage of a variable-rate mortgage is that its lower initial rates and payments allow buyers to qualify for larger homes. Buyers can also take advantage of falling interest rates without having to refinance. However, variable-rate mortgages can quickly become expensive if interest rates see a sharp rise – and while some mortgages put caps on the maximum annual increase, these caps don’t usually apply to the first rate change.

Interest-Only Jumbo Mortgages: Flexible Terms For Wealthy Buyers

An interest-only jumbo mortgage is a specialty mortgage designed specifically for wealthy buyers purchasing luxury homes. The major advantage of this kind of mortgage is that borrowers can make interest-only payments for the first 10 years of the loan. However, interest-only mortgages are typically only available to well-heeled buyers who can afford a hefty down payment and prove that they have large cash reserves.

Finding the right mortgage can be a challenge. That’s why it helps to consult with a mortgage advisor who understands the terms and rates, and can negotiate a great deal for you. For more information, contact your trusted real estate professional.

5 Easy Ways to Brighten up Your Curb Appeal

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5 Easy Ways to Brighten up Your Curb AppealIt can be easy to forget, but the first thing people will see when they come to your home is the outside, so it’s important to have a well-maintained and picturesque property that represents the inside of your home positively. If you’re looking for a few ways to boost your outdoor space, here are a few tips to help with curb appeal.

Plant A Flower Bed

Whether you decide on a tiny plot or a much larger space, a splash of flowers is great for adding a warm, homey atmosphere to your front yard. This can easily be done by going to your local nursery, picking out some easy-to-maintain perennials and watching the blooms begin to appear.

Trim The Hedges

It’s entirely possible that you have a few trees or shrubs in your yard that have gotten a little bit unruly, but a little time with the snippers for some shaping and the look of your yard will be automatically improved! If you have any shrubs or small trees that have seen better days, you may want to remove and replace.

A Fresh Coat Of Paint

It’s quite common to hear how much a layer of paint can improve things but this is especially true when it comes to your front door. While a tired and dull looking door can reflect poorly on the house within, a new coat of paint will add instant shimmer to your exterior.

Keep It Tidy

Whether you have kids who love to play in the yard or you’ve been doing a little lawn maintenance, leaving out toys or shovels and wheelbarrows can really take a lot away from your property’s look. While you may only be planning on keeping these items out for the short term, a quick pick up at the end of each day makes a marked difference.

Make A Stone Pathway

It may not be something you need, but a whimsical walkway with flattened stones can add a nice touch to your property and make it stand out. If you’re feeling ambitious, you may even want to add a bench or a birdbath to make for a unique escape for your family.

There are a lot of simple fixes you can utilize that will instantly boost the look of your home’s exterior. If you’re fixing up the outside of your home in the hopes of putting your property on the market, contact your trusted local real estate professional for more information.

Investor Thoughts: What Home-buyers Can Learn from a Real Estate Investor’s Stand-point

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Investor Thoughts: What Home-buyers Can Learn from a Real Estate Investor's Stand-pointThere are plenty of things to consider when purchasing a home, from the size of place that you’re looking for to the amount of home you’re able to afford. While it’s certainly worth knowing what you want going in, here are a few factors that investors often think about when it comes to making or breaking the appeal of a real estate purchase.

Will The Location Last?

‘Location, location, location’ is a popular expression for a reason, and it’s among the first things that any person purchasing a property will consider when they think about long term-investment potential. It can be easy to think that a currently trendy community or beachfront property will always be a great investment, but trendy places go out of style and sea levels can rise. An investor will want a location that’s ideal, but they’ll also consider what the area’s future might hold.

Are You In A Bubble?

If you’ve found the perfect home to live in and are considering an offer, you may not be too worried about it’s selling potential a few years on. However, if you’re buying in a bubble, your price may be inflated, and this can cause problems if you want to make a profit in five years’ time. Real estate is on the up and up all over the world, so a true investor will consider if the market value will continue to rise or if it’s readied for a considerable economic setback.

Will It Survive The Trends?

The market for condos is certainly booming right now with the rising price of real estate, but many people are also choosing to move away from urban centers to buy a little bigger and start a family. Whether it’s an open concept or a sizeable townhouse, it can be tempting to buy the type of home that is hot right now, but these trends may not be so popular in the coming years. Instead of going for flash, consider what will always be in style or can at least be easily renovated.

The most important thing when purchasing a home is buying a place that you can feel good about, but real estate investors know that there are a number of important factors to consider. If you’re currently on the market for a new home and are weighing your options, contact your trusted local real estate professional for more information.

What’s Ahead For Mortgage Rates This Week – April 18, 2016

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What's Ahead For Mortgage Rates This Week - April 18, 2016

Last week’s scheduled economic releases included reports on retail sales, inflation and the Federal Reserve’s Beige Book report. Weekly reports on mortgage rates and new jobless claims were also released. The Consumer Financial Protection Bureau announced a limited program for reducing principal on eligible mortgages held by Fannie Mae and Freddie Mac. This program is intended to resolve remaining “underwater” mortgages on homes worth less than their current mortgage amounts.

Retail Sales Fall, Inflation Rises

Retail sales fell in March to close out a weaker than expected first quarter 2016. Retail sales fell 0.30 percent in March as compared to expectations of a 0.10 percent increase and February’s flat reading. Analysts said consumers were reluctant to spend in spite of improving job markets and household finances. Retail sales rose by 1.70 percent year-over-year, a reading categorized as “weak” by analysts.

Hiring for lower wages and fewer hours worked was seen as contributing to consumers’ reluctance to spend, especially on big-ticket items including vehicles. Retail sales excluding auto sales were 0.20 percent higher than in February, but did not meet the expected reading of 0.50 percent and incrementally exceeded February’s reading, which was unchanged from January.

Inflation rose by 0.10 percent in March against expectations of 0.20 percent and February’s negative reading of -0.70 percent. Core inflation readings that exclude volatile food and energy sectors mirrored the Consumer Price Index with 0.10 percent growth against an expected reading of 0.20 percent and February’s Core Consumer Price Index reading of 0.30 percent. Lagging inflation is largely attributed to lower fuel prices, but this doesn’t impact the Core CPI reading.

Fed Beige Book: Economy Recovering at Modest to Moderate Rate

According to the Federal Beige Book report for March, business contacts surveyed by the Federal Reserve suggested that increases in wages and oil prices should bump up the economy, but the Fed expects economic expansion to increase at a “modest to moderate” rate for the long term. Employers noted difficulties in hiring for low and high skilled jobs in some areas, and retailers were optimistic about sales for the rest of 2016.

In general, the Fed has adopted a cautious approach to raising its target federal funds rate. Fed Chair Janet Yellen repeatedly cited concerns over global risks for scaling back Fed rate increases from four to two in 2016.

Mortgage Rates, Jobless Claims Fall

Freddie Mac reported the lowest mortgage rates for 2016; rates were also their lowest since May 2013. The average rate for a 30-year fixed rate mortgage fell one basis point to 3.58 percent; the average rate for a 15-year fixed rate mortgage fell two basis points to 2.86 percent. The average rates for a 5/1 adjustable rate mortgage also slipped two basis points to 2.84 percent. Discount points were 0.50, 0.40 and 0.50 percent respectively.

In unrelated mortgage news, the Consumer Financial Protection Bureau announced a limited program for reducing mortgage balances for eligible mortgages owned by Fannie Mae and Freddie Mac that exceed home values. Mortgage lenders will notify eligible homeowners by December 31.While limited in scope, this program is expected to prevent foreclosure of eligible properties that cannot be sold or refinanced.

Jobless claims fell to 253,000 new claims last week, which was lower than the expected reading of 270,000 new jobless claims and the prior week’s reading of 266,000 new claims. Coupled with the Beige Book findings that employers are facing shortages of qualified workers, this low reading appears to further support improving economic conditions.

What‘s Ahead

Next week’s scheduled economic releases include the National Association’s Home Builders Housing Market Index along with Commerce Department reports on housing starts and building permits. The National Association of Realtors® will also release its Existing Home Sales Report.

2016 Kitchen Decor Trends to Inspire Your Renovations

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2016 Kitchen Decor Trends to Inspire Your RenovationsA kitchen upgrade may seem like the sort of renovation that will cost a pretty penny, but there are a lot of funky things you can do that will add an easy accent and make for a current look. If you’re planning some home improvements in 2016, here are some upcoming trends you may want to try out.

Cue The Contrasting Cabinets

It can be a major undertaking to change the style of your kitchen cabinets, and that’s probably why many people are considering a little switch instead of a major upheaval. By keeping your top cabinets the same and adding a funky new color or material to the bottom half, you can create a striking appearance. Keep in mind that if you don’t want to change out your cabinets entirely, you can go for a bold paint color instead.

Bring Color Into Stainless Steel

From teakettles to mixers, brightly colored kitchen appliances have certainly seen a retro rebirth in recent years, but the stainless steel trend is also experiencing a bit of an upgrade. While the material remains popular, many people are becoming interested in different stainless steel color options like black and sunset bronze which offer a unique look for an old mainstay.

A Multi-Use Island

Space in the kitchen can become an issue when it comes to dinner parties, and that’s why the diverse utility of a kitchen island is maintaining its popularity. Instead of the prominent counter for holding fruit bowls and extra papers, think of a funky, fashionable drink cart or side table that can be used for prepping extra food and will have many other purposes once the party is over.

The Non-Committal Kitchen Shelf

While kitchens have become more of a gathering space for family and friends in recent years, this has led to the popularity of a less-formal kind of kitchen. Instead of a lot of counter space and pots and pans in their place, create a bookshelf or cabinet that mixes the living room and kitchen together, full of dishware, books, utensils and other popular household items. It’s a piece that will easily transform your space.

There are a lot of unique fixes on the horizon for 2016 that will instantly modernize your kitchen and easily improve its look. If you’re currently renovating and are looking to put your home on the market, contact your trusted real estate agent for more information.