The New York Times recently published an editorial entitled, “Homeownership and Wealth Creation.” The housing market has made a strong recovery, not only in sales and prices, but also in the confidence of consumers and experts as an investment. The article explains:

“Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth.”

Many of the points that were made in the article are on track with the research that the Federal Reserve has also conducted in their Survey of Consumer Finances. The study found that the average net worth of a homeowner ($194,500) is 36x greater than that of a renter ($5,400). One reason for this large discrepancy in net worth is the concept of ‘forced savings’ created by having a mortgage payment and was explained by the Times:

“Homeownership requires potential buyers to save for a down payment, and forces them to continue to save by paying down a portion of the mortgage principal each month.” “Even in instances where renters have excess cash, saving a substantial amount is difficult without a near-term goal, like a down payment. It is also difficult to systematically invest each month in stocks, bonds or other assets without being compelled to do so.”

Bottom Line

“As a means to building wealth, there is no practical substitute for homeownership.” If you are a renter who is considering making a purchase, sit with a local real estate professional who can explain the benefits of signing a contract to purchase over renewing your lease!

Contact Steve & Sandra

When you are ready to make the leap into homeownership, or, if you want to add to your portfolio, give us a call, text or email. We are ready to work for you!

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


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At first glance, you might be thinking “bomb shelter”… but it’s really more like the bomb. We're not exactly sure how this would affect resale value, but it certainly coudn't be a negative. It’s one of the slickest upgrades we've seen in a home in a long while. And we're jealous!

Read entire article HERE.

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


BrennerHill.com

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http://lightersideofrealestate.com/community/featured-articles/man-put-window-kitchen-floor-reason-genius

The Mortgage Bankers Association, the National Association of Realtors, Fannie Mae and Freddie Mac are each projecting mortgage interest rates to increase substantially over the next twelve months. What will that mean to the housing market in 2015? Last week, we posted a graph showing that home prices appreciated each of the last four times mortgage interest rates dramatically increased. Today, we want to talk about the impact higher rates might have on the number of home sales. The reason many experts are calling for a rise in rates is because they see a stabilizing economy. With the economy beginning to improve, they expect the employment situation to regain some ground lost during the recession, incomes to grow and for consumer confidence to improve.

What will that mean to home sales next year?

In its November 2014 U.S. Economic & Housing Market Outlook, Freddie Mac explains:

“While higher interest rates generally detract from housing activity, when they occur with strong job and income growth the net result can be increases in household formations, construction, and home sales. Our view for 2015 is exactly that, namely, income and job growth offset the negative effect of higher interest rates and translate into gains for the nation’s housing market.”

Bottom Line

Even with mortgage rates increasing, home sales and home appreciation should be just fine in 2015.

Winter is a great time to buy! If you are looking to purchase a home, give us a call, text or email. Let us help you find a great home while there is less home-buying competition.

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


BrennerHill.com

SeattleFreeHomeInfo.com
Your Instant Home Value

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Our Exclusive Buyer Profile System saves you Time and Money. Simply tell us what you're looking for and get priority access to ALL homes that match your criteria, including Bank Foreclosures, Company Owned Properties and other Distress Sales.

No more wasted time looking at out-dated information in newspapers or searching the Internet. Priority access means you're there first before other buyers, so you can negotiate the lowest possible price and your time is not wasted viewing homes that don't interest you.

Get started HERE!

CNBC’s Diana Olick recently reported that rents in the residential housing sector continued to rise in 2014. She interviewed Jed Kolko, Chief Economist at Trulia, who revealed:

"Rents are rising because of strong demand that supply hasn't kept up with. Nearly all the new households are renters, and young people moving out of their parents' homes will keep fueling rental demand."

Where are rents headed in 2015?

The question now is where rents will be heading over the next twelve months. In a press release last week, Zillow chief economist Dr. Stan Humphries predicted residential rental prices will continue to climb in 2015:

"Home value appreciation will continue to cool down, from roughly 6 percent now to around 2.5 percent by the end of 2015. But rents will see no such slowdown, and will continue to grow around 3.5 percent annually throughout 2015. As renters' costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market."

However, those potential buyers must make a decision quickly because, as Kolko explains:

“Paying more on rent makes it harder for would-be homebuyers to save for a down payment."

Bottom Line

Ryan Severino, a senior economist at Reis, in Olick’s article stated the obvious:

"Landlords should still be able to push asking rent increases on to their tenants."

If you are thinking about buying a home in 2015 instead of continuing to rent, it probably makes sense.

Give us a call, text or today and let us help you find the perfect home or investment property.

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


BrennerHill.com

SeattleFreeHomeInfo.com
Your Instant Home Value

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We are in the peak holiday shopping season. We would like to provide all of our family and  friends with a few reminders about how to be safe and to prevent your gifts and other purchases from being stolen. Shopping during the holiday season can present unique dangers, but following a few prevention measures can help keep your holiday season joyous.

Please keep these safety tips in mind, so that you can enjoy the season without incident:

Shopping Safety Tips

• Always be aware of your surroundings.
• Don't leave purchased merchandise in your parked car where it can be seen. If you take purchases to your car and then continue shopping, always put your purchases in the trunk.
• Police advise you to remove the GPS unit and if necessary, take it with you. That includes even the suction cup, if that can be removed.
• Avoid carrying large amounts of cash. Pay for purchases with checks, credit or debit cards. Carry your cash and wallet in a front pocket to reduce your chances of having your pocket picked.
• NEVER leave car doors unlocked or windows open.
• Avoid wearing expensive jewelry.
• ALWAYS park in lighted areas. Do NOT park in remote areas.
• Shop with a friend.
• Keep receipts in your wallet or purse.
• As you return to your car, be sure to keep your car keys in your hand.
• If you make expensive purchases like jewelry or guns, call our office as we may need to add these to your policy.
• Keep a record of all of your credit card numbers in a safe place at home.
• Beware of strangers approaching you for any reason. At this time of year, con-artists may try various methods of distracting you with the intention of taking your money or belongings.

If you are thinking about selling your home this Spring, watch this video.

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST
Windermere Real Estate
206-769-9577
stevehill@windermere.com

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SeattleFreeHomeInfo.com
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As we finish 2014, it appears the real estate market is once again on solid footing and ready to advance forward over the next few years. The strength of the market can be viewed using two metrics: projected home values and projected house sales.

We recently reported that the Home Price Expectation Survey revealed future home values will continue to appreciate nicely. Today we want to look at projections on the number of home sales (existing and new construction) we will see over the next two years. We researched what the National Association of Realtors (NAR), Freddie Mac and the Mortgage Bankers’ Association (MBA) are projecting for the housing industry going forward. Here is what we found:

All three entities see the number of home sales increasing in both 2015 and 2016. This is further proof the housing market is back.

For all of your real estate questions, please feel free to call, text or email us anytime!

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


BrennerHill.com

SeattleFreeHomeInfo.com
Your Instant Home Value

BrennerHillReviews.com