Freddie Mac: Expect a Housing Slow Down, Not Shut Down

The pace of the housing recovery showed signs of slowing heading into the fourth quarter of the year, due to the federal government shutdown, debt ceiling issues, and the slowing economy, Freddie Mac reports in its U.S. Economic and Housing Market   October.

"The housing recovery keeps chugging along despite a constant barrage of disruptions to the broader economy,” says Frank Nothaft, Freddie Mac’s chief economist. “We're likely going to see the housing recovery slow down, but not shut down, as we close out the rest of this

year due to tight inventories in many markets, rising mortgage rates, and slumping consumer confidence. Fortunately, the housing recovery should continue to absorb the economic shocks in stride and improve next year."

By the end of the year, mortgage rates are expected to average around 4.3 percent and then increase in 2014, according to the Freddie report.

Limited housing inventories continue to be a challenge for the housing market. Inventories remain constrained at a 5-month supply in September. Freddie’s report says inventories of homes available remain tight due to still-present negative equity for many households, a declining supply of distressed sales, and a “severely depressed level of new construction.” 

The U.S. economy is expected to add less than 1 million housing units in 2013 and around 1.15 million in 2014, which Freddie economists note is significantly below normal levels. 

“Expect the ramping up of residential construction to take a while, and while economic growth will improve over the next year, the economy won’t be operating at full potential until sometime after 2015,” Freddie notes in its forecast. 

For more information: http://realtormag.realtor.org/daily-news/2013/10/23/freddie-expect-housing-slow-down-not-shut-down

Missing Households Plague Housing Recovery

Of 25 to 34 year olds, about 75 percent were employed in September; that’s about the same as year-ago levels and near the levels during the recession, The Wall Street Journal reports. 

Young adults who are unemployed are mostly opting to live with their parents and aren’t renting or owning their own place. Indeed, the number of adults under the age of 35 who are living at home is at the highest level since 1981. More than 30 percent of those aged 18 to 34 are living with their parents. The typical average is 28 percent.

As young adults put off home ownership, the number of first-time home buyers continues to be constrained. The National Association of REALTORS® reported Monday that first-time home buyers accounted for 28 percent of home purchases in September -- down from 32 percent in September 2012. 

But when young adults do get off the sidelines, it could prove a big boost to home sales. 

“Assuming consistent population to household ratios and home ownership ratios, the 1.8 million individuals currently living at home would translate into an additional 590,000 households and roughly 200,000 additional home owners -- roughly a boost of about 4 percent to the projected level of sales in 2013,” according to NAR’s Economists’ Outlook blog. 

For more information: http://realtormag.realtor.org/daily-news/2013/10/23/missing-households-plague-housing-recovery

Homeownership's Impact Net Worth

Over the last five years, homeownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. A recent study by the Federal Reserve formally answered this question. 

See more at: http://osceolarealtors.org/homeownerships-impact-on-net-worth/#more-'

Rising U.S. Home Prices Could Boost World Economy

More than five years after collapsing housing prices and rising levels of distressed properties led to a U.S. financial crisis, properties in some areas are returning to pre-recession values. That may bode well for economies outside of the United States too. Because of the global interconnectedness of finance, an improving housing sector here could be a boon for capital markets across Europe and Asia. 

See more at: http://osceolarealtors.org/rising-us-home-prices-could-boost-world-economy/#more-'

Banks scale back on crucial step in home buying

Banks are reportedly losing favor of mortgage pre-approvals, which are often viewed as an important first step in the home buying process. Mortgage preapprovals are a written commitment from lenders outlining the loan amount and interest rate that homebuyers qualify for. They give buyers an indication of how much they can afford on their home purchase, as well as show sellers their commitment to purchase.

See more at: http://osceolarealtors.org/banks-scale-back-on-crucial-step-in-home-buying/#more-'

The Cutest Real Estate Video

Some kids are destined for stardom. They’re usually discovered by big-name record execs or talent agencies. But this time, the talent scout was Coldwell Banker Real Estate, and it seems the firm has found the next great rap duo of our time — in a pair of 3-year-old twins.

Click here for video and more:
http://speakingofrealestate.blogs.realtor.org/2013/09/30/the-cutest-real-estate-video-youll-see-all-day-year-in-life/

10 Easy Steps to Buy a House?

1- Are you ready? 
Realtor Berni contains an enormous amount of valuable information, and such data -- combined with the expertise, experience and training of local areas knowledge -- can be the essential keys to your success.

2- Get a Realtor:
The National Association of REALTORS® (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides REALTORS® with a better understanding of the area in which they are selling.

3- Get a Loan Pre-Approval:
REALTORS® routinely suggest that consumers start the mortgage process well before bidding on a home. Many lenders (the sources of money) and programs, for example, are available right here in the finance section of Realtor.com as well as through recommendations from local REALTORS®. By meeting with lenders -- either online or face to face -- and looking at loan options, you will find which programs best meet your needs and how much you can afford.

4- Look at Homes:
Millions of new and existing homes are sold each year. There's no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.

The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within seconds as new homes become available and properties now for sale are put under contract.

5- Choose a Home:
There's no doubt that choosing a home is a big decision and you want to do it right.

As a buyer, here's what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller's offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer.

6- Get Funding:
Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.

Realtor.com® provides consumers with extensive mortgage information as well as a variety of loan calculators. Local REALTORS® can provide mortgage information, discuss financing options and recommend loan sources. In addition, some REALTORS® also originate loans.

7- Make an Offer:
REALTOR® groups, working with legal counsel, have developed forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role.

While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers -- or additional costs. Terms are extremely important and should be carefully reviewed. 

8- Get Insurance:
No one would drive a car without insurance, so it figures that no homeowner should be without insurance.

The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

9- Close the Loan:
Go to any local courthouse and you can find property records detailing real estate ownership in your community -- sometimes records that date back hundreds of years.

These records are important because they provide today's owners with proof that they have good, marketable and insurable title to the property they are selling. Equally important, such records enable buyers to provide proof of ownership when they sell.

The closing process, which in different parts of the country is also known as "settlement" or "escrow," is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing agent via overnight delivery.

10- What's next?
You've done it. You've looked at properties, made an offer, obtained financing and gone to closing. The home is yours. Is there any more to the home buying process?

Whether you're a first-time buyer or a repeat buyer, there are several more steps you'll want to take.

Those papers you received at settlement are extremely valuable, so hold on to them! In the short-term they can help establish tax deductions for the year in which the property was purchased. In the future, such papers will be important for tax purposes when the property is sold, and in some cases, for calculating estate taxes.

How to Buy a house that includes home repairs?

Buying a new home can be exciting but even the most wonderful new homes come with issues that need to be fixed. What can you as the buyer reasonably ask or demand from the seller? When is the best time to discuss these issues? What is the proper etiquette when buying a house that needs work done to it? It is common for the buyers and sellers to delay getting work done? If you need to delay a repair until after closing, how can you make sure that the work gets done?

Homebuyers who buy an older home or Foreclosure often are frustrated by the difficulty of financing needed repairs and renovations. But a Federal Housing Administration home loan program offers some help. A FHA 203(k) loan allows borrowers to wrap the cost of repairs and improvements into their home financing.

International Home Buyers in Florida 2013

To assess the significance of foreign home buyers in Florida, the National Association of REALTORS®, in cooperation with the Florida REALTORS®, has conducted an annual survey of the experiences of Florida REALTORS® in working with non-resident international clients since 2007. A total of 977 REALTORS® responded to this year’s survey, conducted over the time period July 9 – August 16, 2013. The information gathered concerned REALTOR® experience with non-resident foreign buyers over the previous 12 months

See more at: http://osceolarealtors.org/profile-of-international-home-buyers-in-florida-2013/#more-'

Government Shutdown Updates

October 22, 2013

In this video recorded on Oct. 1, 2013, President-elect Steve Brown describes how the government shutdown could have an impact on some real estate transactions.

See more at: http://osceolarealtors.org/government-shutdown-updates/#sthash.E3xqgKUU.dpuf