Best Time to Sell? When Competition Is at an All-Time Low

RSS Best Time to Sell? When Competition Is at an All-Time Low

  • Home Builder Confidence Hits All-Time Record September 23, 2020
    Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of […]
    KCM Crew
  • The Cost of a Home Is Far More Important than the Price September 22, 2020
    Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported: “Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.” Whenever there […]
    KCM Crew
  • Is the Economic Recovery Beating All Projections? September 21, 2020
    Earlier this year, many economists and market analysts were predicting an apocalyptic financial downturn that would potentially rattle the U.S. economy for years to come. They immediately started to compare it to the Great Depression of a century ago. Six months later, the economy is still trying to stabilize, but it is evident that the […]
    KCM Crew
  • Homes Across the Country Are Selling Fast [INFOGRAPHIC] September 18, 2020
    Some Highlights Buyers are actively searching for and purchasing homes at a record-breaking pace. According to the latest report from the National Association of Realtors (NAR), in July, 68% of homes were on the market for less than a month. With homes moving from listing day to pending sale in an average of just 22 […]
    KCM Crew
  • How Low Inventory May Impact the Housing Market This Fall September 17, 2020
    Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of homes for sale. Buyers are actively searching for and purchasing homes, looking to capitalize on today’s historically low interest rates, but […]
    KCM Crew
  • The Surging Real Estate Market Continues to Climb September 16, 2020
    Earlier this year, realtor.com announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry by tracking each of the following: Housing Demand – Growth in online search activity Home […]
    KCM Crew
  • Is Now a Good Time to Move? September 15, 2020
    How long have you lived in your current home? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time […]
    KCM Crew
  • Two New Surveys Indicate Urban to Suburban Lean September 14, 2020
    There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide. In a recent Realtor Magazine article, they discussed the issue and addressed comments made by Lawrence Yun, […]
    KCM Crew

Taking Advantage of Homebuying Affordability in Today’s Market

RSS Simplifying the Market™

  • Home Builder Confidence Hits All-Time Record September 23, 2020
    Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of […]
    KCM Crew
  • The Cost of a Home Is Far More Important than the Price September 22, 2020
    Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported: “Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.” Whenever there […]
    KCM Crew
  • Is the Economic Recovery Beating All Projections? September 21, 2020
    Earlier this year, many economists and market analysts were predicting an apocalyptic financial downturn that would potentially rattle the U.S. economy for years to come. They immediately started to compare it to the Great Depression of a century ago. Six months later, the economy is still trying to stabilize, but it is evident that the […]
    KCM Crew
  • Homes Across the Country Are Selling Fast [INFOGRAPHIC] September 18, 2020
    Some Highlights Buyers are actively searching for and purchasing homes at a record-breaking pace. According to the latest report from the National Association of Realtors (NAR), in July, 68% of homes were on the market for less than a month. With homes moving from listing day to pending sale in an average of just 22 […]
    KCM Crew
  • How Low Inventory May Impact the Housing Market This Fall September 17, 2020
    Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of homes for sale. Buyers are actively searching for and purchasing homes, looking to capitalize on today’s historically low interest rates, but […]
    KCM Crew
  • The Surging Real Estate Market Continues to Climb September 16, 2020
    Earlier this year, realtor.com announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry by tracking each of the following: Housing Demand – Growth in online search activity Home […]
    KCM Crew
  • Is Now a Good Time to Move? September 15, 2020
    How long have you lived in your current home? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time […]
    KCM Crew
  • Two New Surveys Indicate Urban to Suburban Lean September 14, 2020
    There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide. In a recent Realtor Magazine article, they discussed the issue and addressed comments made by Lawrence Yun, […]
    KCM Crew

Home Prices: It’s All About Supply and Demand

Simplifying The Market

RSS Simplifying The Market

  • Home Builder Confidence Hits All-Time Record
    Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of […]
  • The Cost of a Home Is Far More Important than the Price
    Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported: “Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.” Whenever there […]
  • Is the Economic Recovery Beating All Projections?
    Earlier this year, many economists and market analysts were predicting an apocalyptic financial downturn that would potentially rattle the U.S. economy for years to come. They immediately started to compare it to the Great Depression of a century ago. Six months later, the economy is still trying to stabilize, but it is evident that the […]
  • Homes Across the Country Are Selling Fast [INFOGRAPHIC]
    Some Highlights Buyers are actively searching for and purchasing homes at a record-breaking pace. According to the latest report from the National Association of Realtors (NAR), in July, 68% of homes were on the market for less than a month. With homes moving from listing day to pending sale in an average of just 22 […]
  • How Low Inventory May Impact the Housing Market This Fall
    Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of homes for sale. Buyers are actively searching for and purchasing homes, looking to capitalize on today’s historically low interest rates, but […]
  • The Surging Real Estate Market Continues to Climb
    Earlier this year, realtor.com announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry by tracking each of the following: Housing Demand – Growth in online search activity Home […]
  • Is Now a Good Time to Move?
    How long have you lived in your current home? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time […]
  • Two New Surveys Indicate Urban to Suburban Lean
    There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide. In a recent Realtor Magazine article, they discussed the issue and addressed comments made by Lawrence Yun, […]

Keeping Current Matters

RSS Keeping Current Matters

  • Home Builder Confidence Hits All-Time Record September 23, 2020
    Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of […]
    KCM Crew
  • The Cost of a Home Is Far More Important than the Price September 22, 2020
    Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported: “Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.” Whenever there […]
    KCM Crew
  • Is the Economic Recovery Beating All Projections? September 21, 2020
    Earlier this year, many economists and market analysts were predicting an apocalyptic financial downturn that would potentially rattle the U.S. economy for years to come. They immediately started to compare it to the Great Depression of a century ago. Six months later, the economy is still trying to stabilize, but it is evident that the […]
    KCM Crew
  • Homes Across the Country Are Selling Fast [INFOGRAPHIC] September 18, 2020
    Some Highlights Buyers are actively searching for and purchasing homes at a record-breaking pace. According to the latest report from the National Association of Realtors (NAR), in July, 68% of homes were on the market for less than a month. With homes moving from listing day to pending sale in an average of just 22 […]
    KCM Crew
  • How Low Inventory May Impact the Housing Market This Fall September 17, 2020
    Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of homes for sale. Buyers are actively searching for and purchasing homes, looking to capitalize on today’s historically low interest rates, but […]
    KCM Crew
  • The Surging Real Estate Market Continues to Climb September 16, 2020
    Earlier this year, realtor.com announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry by tracking each of the following: Housing Demand – Growth in online search activity Home […]
    KCM Crew
  • Is Now a Good Time to Move? September 15, 2020
    How long have you lived in your current home? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time […]
    KCM Crew
  • Two New Surveys Indicate Urban to Suburban Lean September 14, 2020
    There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide. In a recent Realtor Magazine article, they discussed the issue and addressed comments made by Lawrence Yun, […]
    KCM Crew

Economic Slowdown: What the Experts Are Saying

Economic Slowdown: What the Experts Are Saying | MyKCM

More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research:

“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

Bill McBride, the founder of Calculated Riskbelieves we are already in a recession:

“With the sudden economic stop, and with many states shutting down by closing down schools, bars and restaurants…my view is the US economy is now in a recession (started in March 2020), and GDP will decline sharply in Q2. The length of the recession will depend on the course of the pandemic.”

How deep will it go?

Economic Slowdown: What the Experts Are Saying | MyKCM

No one knows for sure. It depends on how long it takes to beat this virus. Goldman Sachs anticipates we will see a difficult first half of the year, but the economy will recover in the second half (see below):Goldman also projects we’ll have “further strong gains in early 2021.”

This aligns with the projection from Wells Fargo Investment Institute:

“Once the virus infection rate peaks, we expect a recovery to gain momentum into the final quarter of the year and especially into 2021.”

Again, no one knows for sure how long the pandemic will last. The hope is that it will resolve sometime over the next several months. Most agree that when it does, the economy will regain its strength quickly.

*QUARTER 1 DATA FROM GOLDMAN SACHS WAS UPDATED FROM 0% TO -0.2% ON 3/17/20 AFTER THE INITIAL RELEASE.

Bottom Line

This virus is not only impacting the physical health of Americans, but also the financial health of the nation. The sooner we beat it, the sooner our lives will return to normal.

Do you have the Jack to pay for Closing Costs?

Have You Budgeted for Closing Costs? | MyKCM

Saving for a down payment is a key step in the homebuying process however, it’s not the only monies you may need to include in your budget. Another factor that’s important to plan for is the closing costs and prepaid items required to obtain a mortgage. I cant tell you how many buyers contact us wanting to buy a $200,000 home putting down 5% and thinking they only need $10,000. There is more to this and getting the right details upfront makes a big difference.

What Are Closing Costs?

According to some experts – bla bla bla,

When you close on a home, a number of fees will be collected. They typically range anywhere from 2% to 5% of the total cost of the home, and can include title insurance, Lender fees, Settlement fees, doc preparation fees, and more.”

Experts further share

You will see lots of documents in front of you prior to closing and also on closing day. By closing you will not have enough time to read all the docs. We recommend that you work closely with your real estate agent, lender, and attorney, if you have one, to get all the documents you need ahead of time.

For closing the most important thing to read is the closing disclosure, which shows your loan terms, final closing costs, and any outstanding fees. You are required to acknowledge this form no later than 3 days three days before closing since, once you (the borrower) are required to sign it. If you have any questions about the numbers or what any of the mortgage terms mean, this is the time to ask—your lender and real estate agent are great resources for getting you all the answers you need.”

Bottom Line

We are here to discuss the home buying process, to be sure your plan includes budgeting for what you need to purchase your dream home – without any surprises! We can even share a few secrets for how to do this with with less cash out of your pocket. Ask us about our Home Express Mortgage Plan.

4 Most Popular Bottom Line Investments in America

4 Most Popular Bottom Line Investments in America | MyKCM

Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks, gold, and savings accounts.

For the sixth year in a row, real estate has come out on top as the best long-term investment! That has not always been the case. Gallup explains:

“Between 2008 and 2010, covering most of the Great Recession period that saw plummeting home and stock values, Americans were as likely to name savings accounts or CDs as the best long-term investment as they were to name stocks or real estate.”

This year’s results showed that 35% of Americans chose real estate, followed by stocks at 27%. The full results are shown in the chart below.

4 Most Popular Bottom Line Investments in America | MyKCM

Bottom Line

Now that the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.

What You Need to Know About Private Mortgage Insurance (PMI) -oooohhh!!

What You Need to Know About Private Mortgage Insurance (PMI) | MyKCM

Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20% on conventional financing, you can never have too much information about Private Mortgage Insurance (PMI).

What is PMI?

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:

“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.” 

According to the National Association of Realtors, the average down payment for all buyers last year was 13%. For first-time buyers, that number dropped to 7%, while repeat buyers put down 16% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.

What You Need to Know About Private Mortgage Insurance (PMI) | MyKCM

Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:The larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Believe it or not there are options on conventional loans with less that 20% down where a homebuyer can look at alternative options on mortgage insurance such as lender paid or upfront vs monthly. FHA, VA & USDA are a different type of loan that also will have a similar type of mortgage insurance however the rules are a little different.

Bottom Line

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions & loan options to help you make the best decision for you and your family.