Real Estate Information

Coos Bay Properties Blog

Jan Delimont

Blog

Displaying blog entries 1-10 of 226

RE/MAX NATIONAL HOUSING REPORT for March 2017

by Jan Delimont

March 2017 RE/MAX National Housing Report

Home Prices at New High in February Amid Record Low Inventory
 
March 17, 2017
 

DENVER – February home prices reached a new high as steady demand combined with record low inventory drove prices up, according to this month’s RE/MAX National Housing Report that surveys 53 metro areas.
 
Last month saw a negligible decline (-0.02%) in home sales from February 2016, which posted the most sales in the nine-year history of the report. Less than half of the markets experienced an increase in sales year-over-year.
 
Meanwhile, active inventory reached a record low for February, dropping 17.9% year-over-year. This marks the 100th consecutive month of year-over-year declines dating back to October 2008.
 
As a result, the Median Sales Price of $212,000 – another February record – was up 6% year-over-year. This is the 11th consecutive month of year-over-year price increases.
 
Homes sold faster last month, with average Days on Market dropping from 75 in February 2016 to 68 last month. 
 
“Inventory, not the rise in interest rates, remains the principal constraint on home sales,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder“The resale market is driven dramatically by the availability of new homes. Most U.S. markets have a high demand for new home construction, and although it’s good to see housing starts trending upward, we still need more.”
 
Closed Transactions
Of the 53 metro areas surveyed in February 2017, the overall average number of home sales decreased 0.02% compared to February 2016. Of the 53 metro areas, 23 experienced an increase in sales year-over-year, with nine experiencing double-digit increases.  The markets with the largest increase in sales included Trenton, NJ +26.2%, Nashville, TN +19.4%, Las Vegas, NV +18.2%, Wichita, KS +14.6% and Birmingham, AL +13.3%.
 
Median Sales Price – Median of 53 metro median prices
In February 2017, the median of all 53 metro Median Sales Prices was $212,000, up 1.4% from January 2017 and up 6.0% from February 2016. Only six metro areas saw year-over-year decreases or remained unchanged, with 16 rising by double-digit percentages. The largest double-digit increases were seen in Fargo, ND +19.9%, Burlington, VT +18.4%, Tampa, FL +15.9%, Indianapolis +14.3% and Dallas/Ft. Worth, TX +13.9%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in February 2017 was 68, up two days from the average in January 2017, but down seven days from the February 2016 average. The three metro areas with the lowest Days on Market were San Francisco, CA at 32, Omaha, NE at 34 and Denver, CO at 38. The highest Days on Market averages were in Augusta, ME at 147 and Chicago, IL at 109. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed. 
 
Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in February 2017 was down 2.2% from January 2017, and down 17.9% from February 2016. Based on the rate of home sales in February, the Months Supply of Inventory was 3.6, compared to January 2017 at 3.8 and February 2016 at 4.0. A 6.0-month supply indicates a market balanced equally between buyers and sellers. In February 2017, 45 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. The remaining eight saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory continued to be in the west, with both Denver, CO and Seattle, WA at 1.0 and San Francisco, CA at 1.1.
 
Contact
For specific data in this report or to request an interview, please contact newsroom@remax.com.

Is a Home Equity Loan Your Best Option?

by Jan Delimont

 

A Home Equity Loan Is a Smart Choice as Rates Rise

In recent years, home equity loans have gone the way of boy bands. So last-century. In an era of low interest rates, home equity lines of credit and cash-out refinances have been the equity-tapping products of choice.

Home equity lines of credit, or HELOCs, have been popular because they usually are built with low introductory rates, which have been scraping the bottom. Cash-out refis have been sought because with mortgage rates at a historical floor, millions of homeowners have been refinancing to lower their rates and tap the equity in their homes.

Plain-and-simple home equity loans, with the security of a locked-in interest rate that never changes, have been yesterday’s news. But as the economy improves and interest rates rebound, you may have to go throwback if you want to access some of your home value.

Regulation stalled home equity loans

At least some of the blame for the missing home equity loans can be placed on regulation. Dodd-Frank, the wide-ranging financial reform act instituted in 2010, mandated that lenders revise statements and disclosures for home equity loans, but not for HELOCs.

It required lenders to implement extensive system changes, and as a result, some companies decided to eliminate home equity loan products. Besides, low interest rates and rising home values kept lenders busy with refinance demand and HELOCs. Banks and borrowers had no interest in the additional paperwork required on home equity loans.

Rising interest rates may change demand

Mortgage rates were under 4% for all but two months for 2015 and 2016, according to Freddie Mac. But the sun appears to be setting on the sub-4% mortgage rate.

Logan Pichel, head of consumer lending for Regions Bank, believes that as rates rise, more people may back down from a move-up mentality. He says homeowners in 2017 and beyond may consider remodeling their existing house — with its already low mortgage rate — instead of buying a bigger home at a higher interest rate.

In that scenario, a home equity loan may be the right solution.

Pichel predicts many homeowners will say, “I am not going to move up into the next bigger house because I’m sitting here today on a 3 1/2% mortgage rate, and if I were to sell my home and go buy another one, I now have a 4 1/2% mortgage rate.” A home equity loan would allow those homeowners to upgrade a kitchen, add a bedroom or build an outdoor living area, for example.

And with rates expected to climb in the months ahead, the relative advantage of a HELOC with a low introductory rate is not as clear because it’s likely to increase when periodic rate resets kick in.

“Our opinion is, we’re going to see fewer move-up buyers and we’re going to see more home equity business as a result of the increase in interest rates,” Pichel says.

Johnna Camarillo, manager of equity lending at Navy Federal Credit Union, agrees.

“I think we’re going to see a shift back to fixed equity loans,” Camarillo says. “Our members tend to be more fiscally conservative, and so they like the security of knowing that ‘my payment is always going to be X number of dollars.’ Especially if they already know that they’ve got a specific purpose for their loan.”

» MORE: Check mortgage rates now.

Fix it and forget it

After that decision, Pichel says, the next move is to choose between a home equity loan and a home equity line of credit. HELOCs usually begin with a slightly lower rate than fixed-rate home equity loans.

But HELOC rates are commonly adjustable and subject to the ups and downs of short-term interest rates, at least at the beginning. Many lenders allow borrowers to carve out a portion of their balance owed and put it into a fixed-rate loan.

“As you see an increase in interest rates, you’ll have a set of individuals that will say, ‘You know what, I’m going to lock in at a fixed rate,’ ” he says.

And some customers, Pichel says, appreciate the discipline of a fixed-rate loan for reasons including:

  • They know exactly what their monthly payment will be, which helps with budgeting.
  • Tapping home equity with a lump sum rather than through a line of credit removes the temptation to pay down and then draw money from the line again.
  • With a set number of payments, borrowers knows their payoff date.

Some customers like knowing the exact numbers. Navy Federal’s Camarillo says there’s a comfort level with knowing the specific amount you’ll owe, how long it will take to pay the loan off and what your payment will be each month.


The article A Home Equity Loan Is a Smart Choice as Rates Rise originally appeared on NerdWallet.

RMLS Market Action - Coos County February 2017

by Jan Delimont

2016 RE/MAX National Housing Report

by Jan Delimont

2016 Was a Very Good Year - RMLS Coos County Market Action

by Jan Delimont

RMLS Market Action - Coos County, September 2016

by Jan Delimont

RMLS Market Action - Coos County, August 2016

by uille

RMLS Market Action - Coos County - July 2016

by Jan Delimont

Displaying blog entries 1-10 of 226

Syndication

Categories

Archives

Quick Search

Listing Alerts

Be the first to know what's coming up for sale in the Coos Bay Oregon real estate market with our New Property Listing Alerts!

Just tell us what you're looking for and we'll email a daily update of all homes listed for sale since your last update. You can unsubscribe at any time.

Get Notifications

Contact Us

Our office is located at:
1750 Sherman Avenue
North Bend OR 97459

(541) 290-1850
Jan@coosbayproperties.com

Contact Us Online

Licensed in the State of Oregon
Jan Delimont, Broker/Owner, RE/MAX South Coast 1750 Sherman Avenue, North Bend OR 97459
541-290-1850
Jan Delimont provides information on real estate and homes for sale
in the Southern Oregon area.

 I list and sell residential real estate including freestanding homes, condominiums and townhomes
as well as investment properties, vacant land and lots for sale in the Southern Oregon real estate area.