Many people claim that the best time to buy a home is in the spring or summer. At Coastal Realty Connection, we don’t believe in waiting for your dreams to come true! Besides, there are many benefits to buying right now. Here are four great reasons to consider buying a home this winter instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way You’re Paying a Mortgage
As a paper from the Joint Center for Housing Studies at Harvard University explains: “Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
4. It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings. To learn more, contact Coastal Realty Connection today to start the process of finding your dream home!
Is there hope for the growth of the real estate market? Should we be optimistic about the future of real estate? How does real estate relate to the 2016 presidential election?
In this video Ken Kirkman, General Manager of Landfall Realty in Wilmington, NC, answers these questions and more in a speech to Landfall property owners. For insights on the current sentiment and economic outlook for 2016, check out the full speech. For a free market analysis of buying or selling in our local market, contact Coastal Realty Connections today.
The latest report from Freddie Mac shows that the 30-year fixed-rate mortgage averaged 3.61% last week, slightly down from the week before (3.66%), and nearly 20 points lower than a year ago (3.80%).
This is great news for homebuyers who are dealing with rising prices due to a low inventory of homes for sale in many areas of the country. Freddie Mac expressed their optimism for the rates to remain low throughout the spring in a recent blog post:
“We expect mortgage interest rates to stay well under 4% as we head into the heart of the spring homebuying season. We’re predicting it to be the best one in 10 years, which should provide even greater opportunities for first-time homebuyers.”
Below is a chart of the weekly average rates in 2016, according to Freddie Mac.
Rates have again fallen to historic lows yet many experts still expect them to increase in 2016. One thing we know for sure is that, according to Freddie Mac, current rates are the best they have been since last April.
Sean Becketti, Chief Economist for Freddie Mac recently explained:
“Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates.”
Bottom Line
If you are thinking of buying your first home or moving up to your ultimate dream home, now is a great time to get a sensational rate on your mortgage. Let Coastal Realty Connections put their expertise and excellent customer service to work for you. Contact us today. info@coastalrealtyconnections.com / 910-279-9398.
Billionaire: Buy a Home… And if You Can, Buy a Second Home!
Three years ago, John Paulson gave a keynote address at the CNBC/Institutional Investor Conference. In his speech, he told those in attendance that he believes housing will continue its strong recovery for the next 4 to 7 years, saying that:
“The housing market has bottomed. It’s not too late to get involved. I still think buying a home is the best investment any individual can make. Affordability is still at an all-time high.”
When asked how the average person could take advantage of the current real estate market at the time, Paulson said:
“Buy a home and, if you can, buy a second home.”
Two years ago, Paulson reiterated his statement, saying:
“I still think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you’re the owner-occupier of.”
Who is John Paulson and why should you listen to him?
Paulson is the person who, back in 2005 & 2006, made a fortune betting that the subprime mortgage mess would cause the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell.
What do others think of Paulson?
According to Forbes, John Paulson is:
“A multibillionaire hedge fund operator and the investment genius.”
According to the Wall Street Journal, Paulson is:
“A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”
So… Is what he said still true?
The core reasons behind Paulson’s statements still ring true today, but why does he believe homeownership is such a great investment?
Paulson broke down the math of homeownership as an investment:
1. “Today financing costs are extraordinarily low.”
The latest numbers from Freddie Mac show us that you can still get a 30-year mortgage at historically low rates of under 4%.
2. “And if you put down, let’s say, 10 percent and the house is up 5 percent,” as many experts predict, “then you would be up 50 percent on your investment.”
How many are seeing a 50% return on a cash investment right now?
Paulson goes on to compare the long term financial benefits of owning versus renting:
3. “And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”
Bottom Line
Whenever a billionaire gives investment advice, people usually clamor to hear it. This billionaire gave simple advice – if you don’t yet live in your own home, go buy one.
Let the team at Coastal Realty Connections help you find the right primary or second home. Specializing in coastal real estate from New Bern, North Carolina to the beaches of Brunswick County. Contact us today and let us put our knowledge to work for you.
According to Coldwell Banker’s annual Home Listing Report, Ocean Isle Beach costs the most, while Elizabeth City is the most affordable housing market. The report uses average listing price of a four-bedroom, two-bathroom home over 2,700 US markets. The report shows that an average home price for a four-bedroom, two-bathroom home in North Carolina is $232,748. Within our area the beach communities of Ocean Isle Beach, Sunset Beach, Oak Island, Topsail Beach area, Wilmington and Winnabow all fall above the average.
When thinking about retirement, choosing a location can be an overwhelming decision. How do you narrow down the choices? The very best place to retire for you might be on a beach…or in the mountains…or near family…or in the same house you’ve lived in for years. It’s a personal decision that no one else can make for you. However, if you haven’t already settled on a retirement destination, an objective analysis of your options can help narrow your search.
In order to get started, we suggest that you start by thinking about the lifestyle you are looking for. Remember to take into account that you may not need to be close to “work” anymore. The time you used to spend commuting and working will be “free time” now. So if you don’t have to be close to work, what services and recreation do you really need to be close to? The beach, golf courses, nature, marina access and grand kids are some of the responses we hear when talking to clients ready to retire. Some of the other topics that may be of equal importance are climate (4 seasons), proximity to an airport, healthcare, cost of living and tax benefits. All of these points of interest are reasons that so many “Baby Boomers” are choosing to move to North Carolina.
Once you have selected the area of the country, trying to find the perfect spot that offers everything you want may still prove to be difficult. Geared towards retirees, many developers have opted to design planned communities which offer location, amenities and an active lifestyle. Define “active”, it means something different to almost everyone which is why you will find planned neighborhoods with equestrian centers, marinas, golf courses, spas, airplane runways, racquet clubs, golf cart only islands, dog parks, community gardens, dining and shopping. With all of these options, no wonder people can be overwhelmed. From my experience the most common question when discussing retirement location is “how will I meet new friends”? Leaving an area where you have worked and raised a family, the relationships and ties to that area can be hard to relinquish. One thing is certain though, moving into a planned community will give you so many opportunities to make new life-long friends. Social clubs and events are the best part of planned communities and the best way to find people with similar interests. Retirement is called the “golden years” for a reason! It should be the best time, totally dedicated to you and what you love to do, even if it is sitting on your porch reading a book.
Now you have decided on the area and type of lifestyle you want, it is time to visit that area and explore the possibilities. Be flexible and adventurous! Get out and meet the locals. Ask them what they enjoy most about living there. If you golf, schedule a tee time and request to play with members so that you have another opportunity to get information from someone that has been in your shoes. It is also important to talk to a local REALTOR. This is where you will get the best area info, tax rates, home values and the “ins and outs” of the area. REALTORS can also represent your interests as the buyer, when visiting planned communities. What most buyers don’t realize is that when you walk into an onsite sales office, those sales agents represent the seller, not you. Protecting your interests and personal information is the best and main reason that people elect to use REALTORS for buying homes. Don’t we all want our own personal advocate? A REALTOR has a duty to the client they are representing and that relationship can greatly benefit a buyer. Be open and honest about your goals for your new home and listen to suggestions and comments from your REALTOR. Once you have brought your REALTOR up to speed, jump in the car and visit some of the communities that meet your criteria. Don’t be afraid to ask questions or say no to something that doesn’t interest you. As you visit these neighborhoods, walk through model homes and share your thoughts on design, lay out, size and location. Sometimes seeing what you don’t want will solidify in your mind what you do want. Visit the amenities in the community, ask about the Home Owners Association Bylaws and Dues so you have an idea of your financial commitment above and beyond the price of your home. When you think you have found the perfect community learn about the proximity to the services that are most important to you. If you still have the warm and fuzzies then start looking more specifically at homes or house plans that you can customize. This is really where all the fun begins!
Driving into a neighborhood on a beautiful blue-sky day with the windows down you may smell freshly cut grass, feel the gentle breeze, and see attractive, well-maintained homes as well as friendly neighbors waving “hello.” This may be your expectation of the perfect neighborhood. But even if you experience what you hope for on the day you visit a real estate listing for sale, it is wise to understand, research and follow up on additional variables that make the neighborhood either a good fit or bad match for your overall happiness and long-term best interests.
With the purchase of a new home, you are buying more than a house. You are buying the lifestyle that comes with the neighborhood you choose. Multiple neighborhood factors deserve attention before you select a specific home. Do your homework and you increase your odds of making smart choices. Cut corners and you are setting yourself up for costly mistakes.
Balance and Prioritize Your Expectations
Finding your perfect neighborhood is actually a key piece of a larger puzzle. How to Install Exodus on kodi
Without the rest of the puzzle pieces clearly defined, finding your perfect neighborhood, and ultimately your perfect home, becomes a random series of property searches that likely wastes both your time and money.
Clearly, smart home buying decisions start with a smart home buying plan. Start your smart home buying plan by defining the four following factors, which can then be balanced and prioritized into finding your perfect neighborhood:
Lifestyle goals –Do you prefer close and convenient proximity to work, recreation, shopping, schools and dining or are you are willing to drive a little further? Do you prefer an active urban lifestyle or suburban lifestyle that offers more privacy and wide-open spaces? Do you want low maintenance or do you enjoy completing projects around the house?
Home features – Think about the kitchen, flooring, stairs, number of bedrooms and bathrooms. Is a spectacular view or fenced yard important to you? Do you prefer new construction or are you okay with a property someone else has lived in? Make a list of the important features of a home and prioritize into “Must Have,” “Nice to Have,” and “Unacceptable” categories.
Financial goals and resources – Buying a home is a big purchase and a big decision. More than just the price of the home, the cost of mortgage interest as well as various responsibilities of homeownership such as taxes, maintenance and repairs, must all be carefully considered. In turn, the investment potential for value appreciation should also weighed into your analysis.
Buying timeframe – How soon do you plan to buy? Do you need to sell first? Are there other variables that must be in place before you can even start looking? Also, try to project how long you will live in your new home. Although it is impossible to predict the future, an awareness of your plans will help you in finalizing your priorities and making smart choices
Twelve Criteria for Finding the Perfect Neighborhood
Below are 12 criteria to include in your home buying priority list. Reviewing each and determining which have the greatest significance to you will allow you to narrow your search, and gain the peace of mind in knowing that when you come across the “perfect home,” it will be a neighborhood that meets your lifestyle goals as well.
1. Choose a Neighborhood Personality that Matches your Preferences
We are often drawn to particular people by their looks – but developing a deep, mutually beneficial relationship usually goes well beyond appearances. A good match is often more about personality, the way someone acts and reacts, what they do with their time and how they do it, the things they enjoy and dislike, as well as their priorities, goals and aspirations.
In the same way, a neighborhood has a personality, and once you transition from being a home buyer to a homeowner, the neighborhood’s personality directly impacts your lifestyle. Experiencing that personality means going to the neighborhood park, golf course, pool or community center to view or participate in the activities and evaluate the resources and amenities. Eat in the restaurants, shop in the stores, drive and walk through the streets. When you visit, you will notice the friendly wave of residents walking their dogs or working in a nicely maintained yard. Understanding a neighborhood’s personality is a critical step in making a smart home buying decision.
2. Matching your Expectations to the Neighborhood’s Physical Characteristics
Is the terrain hilly or flat – for walking, running or cycling? Are there sidewalks and street lights? Is the architecture and home designs to your liking? Is the property on city water and sewer or well water and septic? In addition, the upkeep of the neighborhood will significantly impact your home’s resale value, as well as how you feel about your surroundings. If you are looking in a particular price range, be sure to draw comparisons from neighborhood to neighborhood.
Some neighborhoods with a homeowners association (HOA) have firm building codes as to the size, architectural attributes and yard upkeep, making the homes more similar in style and appearance. Communities without an HOA may be more charming in the variety of homes and architecture, yet may have more risk in terms of how your neighbors maintain their property. Other HOA factors may include regulations for storage of additional vehicles such as boats and RV’s, as well various onsite improvements to your property. Annual HOA fees and special assessments must also be carefully reviewed. Our knowledable agents can help you evaluate the pros and cons of your short-list.
3. Grading the Educational System
Children, if you have them, or plan on starting a family, obviously play a big part in your home buying decision. Some public schools can be highly rated and others can fall short of what you expect. If you prefer to send your children to a private school, access to that school may be a determining factor in where you live.
Whether public or private, the proximity and quality of a neighborhood’s schools can make a difference in your lifestyle, as well as the resale value of the home.
4. Beach, Parks and Recreational Opportunities
Most people enjoy some form of recreation, whether at a gym, participating in outdoor sports or exploring a hike-and-bike trail. When recreation is a key priority for you, observe what amenities are readily available in a particular neighborhood. Walking, running, biking, golf, swimming and tennis are a few activities in which many people participate. If these amenities are noted in the neighborhood description and you intend to pursue them, be sure to evaluate whether or not the facilities are in good condition. Is there more than one tennis court if you play regularly? How close are you to the beach? Does the nearest beach have public access and ample parking? Is parking at the local beach complimentary or is there a fee?
In addition to your needs, consider your children as well. Are the streets flat enough or is there an area where your child can learn to ride a bike or engage in biking if it is a favorite pastime? Is there a community park where they can enjoy outdoor activity while meeting other neighborhood children? Does the park have shade for you? Obviously, you may have your own pool or backyard playscape for your children so you may not need these, but be sure to include it on your priority list if it’s important.
5. Menu of Dining Options
Eating out can be fun, and is often necessary with today’s busy lifestyles. When you choose your new home, your need for nearby restaurants will depend on your routine. Picking up food near the office on the way home from work can be a viable option, but it’s also nice to take your spouse, family or visitors for a good meal at a local eatery.
Do your research on the types of restaurants that are close by. Do they suit your lifestyle? It may be that there are only chain restaurants and you prefer dining at a neighborhood treasure known for its signature dishes or uniquely fresh food. Alternatively, it could be the opposite and you enjoy a Starbucks coffee, a McDonald’s breakfast or an Italian feast at the Olive Garden on a regular basis.
6. Quality and Proximity of Shopping and Local Businesses
Convenience and quality may be considered equal when you need an onion for your stew or an excellent bottle of wine. When setting your priorities for which neighborhood you choose, be sure to visit or at least make note of the grocery stores, the dry cleaners and other businesses that offer the products and services that you make use of on a regular basis. Observe whether your favorite chain of grocery, convenience store or gas station is in the vicinity, and if not, visit the existing store or service in the area.
The service industry, including hair and nail salons, attorneys, pet services and banking is another resource you can investigate. You may prefer a more intimate shopping experience with custom clothing and accessories, gift items and sporting equipment than a mall or other superstore may offer. A neighborhood bordered by shopping centers may be the perfect place for one home buyer, yet a negative aspect for another
7. Entertaining Possibilities
Enjoying your lifestyle may mean venturing out for a movie or live music and possibly dancing. Austin, well known for its live music, offers venues all over town. Indoor and outdoor locations provide live entertainment ranging from country music to contemporary hip-hop. A neighborhood nearby to outdoor live music may not be as appealing to some, especially with the increased traffic concern, but others may enjoy the free concert. Explore this and other potential entertainment options, including movie theaters.
8. Overall Proximity Preferences: How close do you want to be?
While location is touted as the most important aspect of choosing a home or neighborhood, individuals have their own perception of location and what is imperative. The school district will determine certain aspects of a location, but often there are several neighborhoods to decide on from within an Independent School District.
If school is not high on your priority list, other factors may be its proximity to downtown or the airport, work, family or medical facilities. Would you want to stay in that neighborhood if your job moved you farther out? Shopping and dining preferences may also play a factor in the location of the neighborhood.
9. Getting there – Road Status and Drive Times
In our modern world of nearly every household possessing one, two or three cars, the condition of the roads and their capacity to handle the traffic make an impact. We can help answer your questions about traffic patterns during our time together.
Public transportation is available in some parts of New Hanover and Brunswick Counties. Biking in cities like Southport and downtown New Bern & Southport is an easy way to get around.
10. Safety First
A low crime rate, low incidence of accidents, and how well neighbors watch out for each other defines a community as being safe. Neighborhood Watch plans, a crime prevention program that stresses education and common sense in crime prevention exist all over Austin. Even a community that does not have such a plan in place may employ other methods to stop crime. A gated community offers an additional assurance of safety and is an amenity to consider when choosing a neighborhood.
11. Healthy Choices
Whether you or a household member needs frequent care, an occasional check-up or emergency care, it’s reaffirming to know that you can access quality care in the neighborhood. Knowing that there is a nearby dermatologist for your teenage daughter or an emergency clinic for your accident-prone son may help determine the neighborhood you choose. You may also desire a dentist, orthodontist, optometrist or chiropractor close enough for easy appointments.
For retirees if staying plugged into work is important find out if there are social needs that your expertise can be used to promote, such as tutoring, Habitat for Humanity programs, local food pantries or other things that will keep motivated and having fun.
12. Cultural Pursuits
The cultural amenities of a neighborhood itself may be limited, but having venues and institutions nearby that educate, uplift and inspire is a valuable convenience. Whether you enjoy live performances of the symphony or an excellent play or musical at the local theater, can impact your list of options. In the same vein of culture are science, history and art museums, as well as libraries and houses of worship. For your priority list, it’s important to note which specific cultural amenities you wish to pursue, and map them out as to where they are in relationship to the neighborhoods you are considering. Many community colleges offer year-around cultural events.
Find Your Perfect Neighborhood
When searching for the perfect neighborhood, keep track of your comparisons so you can evaluate the volume of material more clearly. It’s exhausting to view several areas and nearly impossible to remember the features of each at the end of the day. Also, priorities can change. If you initially established that a golf course community was what you wanted, yet the only location you found in your price range was unacceptable for other reasons, maybe another home with a golf club less than five miles away will be appealing. In other words, first defining, and then adjusting priorities as you search the market is the key to finding the perfect house in the perfect neighborhood.
Begin your search here and contact us for personalized support in finding the best neighborhood and price.
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When thinking about retirement, choosing a location can be an overwhelming decision. How do you narrow down the choices? The very best place to retire for you might be on a beach…or in the mountains…or near family…or in the same house you’ve lived in for years. It’s a personal decision that no one else can make for you. However, if you haven’t already settled on a retirement destination, an objective analysis of your options can help narrow your search.