Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Dec. 3, 2021

FHA 2022 Loan Limits Increase

FHA 2022 Loan Limits Increase

 

FHA 2022 Loan Limits Increase

FHA Announces New Single Family Title II Forward and Home Equity Conversion Mortgage 

Loan Limits for 2022 FHA ANNOUNCES NEW SINGLE FAMILY TITLE II FORWARD AND HOME EQUITY CONVERSION MORTGAGE LOAN LIMITS FOR 2022. "The increase in loan limits, commensurate with the increase in home prices, will allow qualified individuals and families to continue to access FHA-insured mortgages to achieve affordable home financing FHA’s 2022 minimum national loan limit "floor", of $420,680 is set at 65 percent of the national conforming loan limit. Any area where the loan limit exceeds this "floor" is considered a high-cost area, and the NHA requires FHA to set its maximum loan limit "ceiling" for high-cost areas at $970,800, which is 150 percent of the national conforming loan limit.

 

 

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Dec. 1, 2021

2022 Conforming Limits Rise 18 Percent to $647,200

 

2022 Conforming Limits Rise 18 Percent To $647,200

 

 

2022 Conforming Limits Rise 18 Percent to $647,200

 

The new conforming loans limits for mortgages that can be acquired by Fannie Mae and Freddie Mac were announced this morning by the Federal Housing Finance Agency (FHFA). As expected, the changes reflect the nearly unprecedented price gains over the last year. Between the third quarter of 2020 and 2021 the expanded-data index  had grown by an average of 18.05 percent. The limit for single-family residential units in most U.S. counties, effective January 1, 2022, will be $647,200. This is an increase of $98,950 from the $548,250 limit this year. FHFA says that due to rising home values, conforming limits will increase in all but four U.S. counties or county equivalents.

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Nov. 29, 2021

Higher Home Values Mean Higher Property Taxes

Higher Home Values Mean Higher Property Taxes

 

Higher Home Values Mean Higher Property Taxes

 

 Homebuyers who think property taxes will match the amount the seller had paid often find out rising home values might make them very wrong. Paying your property taxes: Whoever pays early can see some savings.  There’s a discount for paying in November and that starts to peter out as you get closer to the deadline: You’ll see a 4% savings if you file by November, 3% in December, 2% in January and 1% in February. Marty Kiar, Broward County’s property appraiser, regularly gets tearful calls from new homeowners who mistakenly thought they’d be paying the same amount in taxes as the person who owned a house before them. "Save our Homes" is a Florida law that caps the annual increase that a homesteaded property can rise in value to either 3% or the change in the National Consumer Price Index, whichever is less.  You can check online tax estimator to make sure you can afford the taxes for your new home before you buy.

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Nov. 27, 2021

The Pain of Panes: New Windows in Short Supply

The Pain of Panes: New Windows in Short Supply

 

 

The Pain of Panes: New Windows in Short Supply

 

Two-thirds of builders cited a glass shortage for windows, shower doors, etc. Why the current supply problem? A lot of it is manufactured in China, Mexico and India. Nearly two-thirds of home builders cited windows as their biggest material shortage, according to a recent survey from John Burns Real Estate Consulting. Rounding out the top four in additional shortages are lumber, engineered wood products and concrete. Window delays could range from four to 15 weeks, though some are stretching up to 45 weeks. Why the shortage of glass? An international logistics backlog led to shortages of glass and other materials, experts say.

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Nov. 21, 2021

Investors scooped up record $64B in homes nationally in Q3

Investors scooped up $64B in homes nationally in Q3

 

Investors scooped up record $64B in homes nationally in Q3

The third quarter was investors' most prolific one on record, accounting for a full 18.2% of homes that sold across the U.S.

That's according to Seattle-based Redfin Corp. (NASDAQ: RDFN), which found real estate investors snapped up 90,215 homes worth a combined $63.6 billion in Q3.

Daryl Fairweather, chief economist at Redfin, said the data doesn't discern how much of investor purchases are by institutionally backed groups or mom-and-pop investors, although she noted second-home purchases remain elevated.

 

Lower-middle priced units (75% to 100% of the regional median): Grew 9.3% year over year, up from 2.3% in September 2020.
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Nov. 19, 2021

Home Selling Sentiment at Record High

Home Selling Sentiment At Record High

 

 

Home Selling Sentiment at Record High

 

Consumer attitudes toward both buying and selling improved in October, although the number who feel it is a good time to buy a home remains at record lows.

 

This is 3 percentage points higher than in the September survey, but 60 points lower than a year ago.

 

Asked the same question about selling a home, 77 percent said it was a good time, a 60 percent net.

 

While homebuying and home-selling sentiment remain at historically low and high levels, respectively, more consumers now expect that their personal financial situation will not improve over the next 12 months.

 

Duncan continued: "In October, consumers also reported greater concern about the direction of the economy, with 'right track' sentiment reaching its lowest level since October 2013.

 

 

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Nov. 18, 2021

Housing Starts Flatten, Permits Promise Future Improvement

Housing Starts Flatten, Permits Promise Future Improvement

Residential construction numbers were mixed in October.

Permits for residential construction were issued at a seasonally adjusted annual rate of 1.650

million compared to 1.586 million in September, an increase of 4.0 percent.

Permitting activity was at the top of the range of forecasts from analysts polled by Econoday.

Single-family permits were up 2.7 percent from September, but down 6.3 percent from the prior October at 1.069 million units.

Over the first 10 months of 2021 there were permits issued for 1.439 million residential units, an increase of 20 percent from 1.199 million at the same point in 2020.

 

On an unadjusted basis, construction was begun on 131.000 residential units in October compared to 133,300 in September.

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Nov. 9, 2021

Most Lenders Will Now Consider On-Time Rent Payments

Most Lenders Will Now Consider On-Time Rent Payments

 

 

Most Lenders Will Now Consider On-Time Rent Payments

More mortgage applicants will find it easier to get approved now that Freddie

Mac joined Fannie Mae in making on-time rent payments a lending consideration.

Fannie Mae and Freddie Mac back more than half of all U.S. mortgages, and Freddie just followed Fannie in announcing

a system to allow on-time rent payments to be a consideration when applicants apply for a home loan.

In August, Fannie Mae announced its own system for including credit scores in mortgage lending decisions.

The new policy went into effect Sept. 18.

 

Regardless of the system, the rent-check option is expected to open homeownership to more people, notably those in protected classes under the Fair Housing Act.

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Oct. 22, 2021

Soaring Home Prices Rolling Appraisals, Upending Sales

Soaring Home Prices Rolling Appraisals, Upending Sales

 

Soaring Home Prices Roiling Appraisals, Upending Sales

In Aug., 13% of appraisals came in below a home’s contract price.

It was higher in May (19.7%), but is still up compared to sales early last year (7.3% in Jan. 2020).

The disparity underscores the risks buyers face in the current market, especially those stretching their dollars to win a bidding war.

 

Many buyers prepare for the possibility of a lower appraisal by making down payments of just 5% to 10% and holding their extra cash in case they need it to make up any difference should the appraisal fall below the sales price, says Phoenix-area Realtor Nicole Dudley.
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Oct. 19, 2021

FHA And VA Loan Buyers Struggle To Compete For Homes

FHA And VA Loan Buyers Struggle To Compete For Homes

 

FHA, VA and other government-backed loans are often favored by first-time and low-income buyers.

But in bidding wars, cash offers or conventional financing seem less problematic to sellers.

While 89% of sellers say they’re likely to accept an offer from a buyer with conventional financing, only 30% would be willing to accept one using a Federal Housing Administration (FHA) or Veterans Affairs (VA) loan,

 

The average time to close on an FHA or VA purchase loan in the first three months of this year was 57 and 58 days, respectively, compared to 51 days for conventional loans.

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