Homeownership Still More Affordable Than Renting In Most US Counties

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home affordability, home prices, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, rent vs. buy, renters, The best real estate agent in Jacksonville

Most people think that renting a home is a more affordable option than buying. But, as it turns out, in the majority of counties across the US, the opposite is actually true.

According to the 2021 Rental Affordability Report from ATTOM Data, which analyzes rental, wage, and home price data in markets across the country, owning a median-priced three-bedroom home is more affordable than renting a three-bedroom home in nearly two-thirds (63 percent) of counties in the US—even though home prices are increasing at higher rates than rental prices in 83 percent of those counties.

“Home-prices are rising faster than rents and wages in a majority of the country. Yet, home ownership is still more affordable, as amazingly low mortgage rates that dropped below 3 percent are helping to keep the cost of rising home prices in check,“ Todd Teta, Chief Product Officer at ATTOM Data Solutions, said in the report. “It shows how both the cost of renting has been relatively high compared to the cost of ownership and how declining interest rates are having a notable impact on the housing market and home ownership.”

The Takeaway:

So, what does this mean for you? If you’ve been holding off on buying a property because you thought renting was the more affordable option, you may be able to transition to homeownership for less than you’re paying in rent—making now a great time to explore buying your own home. Give us a call to discuss today! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

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New Federally Backed Loan Limits May Help Homebuyers In 2021

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Home prices have been steadily increasing in 2020—and as home prices increased, many buyers found they needed larger mortgages in order to purchase homes. But because there’s a limit on conforming loans, many buyers either had to explore alternative loan options (which often carry a higher interest rate) or look for homes in a lower price range (which, with inventory low in markets across the country, proved extremely difficult).

Luckily, access to larger conforming loans is on the horizon.

On November 24, the Federal Housing Finance Agency announced they would officially be increasing the conforming loan limits for Fannie Mae and Freddie Mac-backed mortgages in 2021. Currently, the limit for conforming loans for single-family units for most areas of the United States is $510,400. That limit will increase to $548,250 in 2021—an increase of 7.4 percent.

In higher cost markets (like areas of California and New York), the limit for conforming loans will be higher at $822,375—which is 150 percent of the baseline conforming loan limit of $548,250.

The Takeaway:

What does that mean for you? Increasing the limit for conforming loans will allow buyers to increase their purchasing power and keep up with rising prices—so if you’ve been thinking about buying a home, 2021 is looking like a great time to make a move. Let’s get started! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Home Pricing Truths

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The pricing conversation is always a challenge. You want top dollar for your home, and your real estate agent will, too. After all, a better commission comes from a better price. But a lot of psychology and strategy goes into home pricing, and if you don’t go in with your eyes wide open, you could end up heartily disappointed.

Here are some tough truths about home pricing. While they can vary a little depending on unique market conditions, they should all be in the back of your mind as you prepare to list.

1. Some agents will try and “buy the listing.” Sad but true: Some agents will tell you what you want for the home is accurate, even if it’s too high. Figuring they can manage disappointment and reductions down the line, the less-than-ethical agent will try and cut off the more honest competition by telling you the price you think you should get for the listing is the price you should shoot for.

2. Nobody cares what you paid for the home. No buyer in the history of real estate has ever agreed to pay more for a home because of the profit a a seller hopes to get. Yes, you may have sunk $150,000 in renovations into the basement, but the market will dictate the pricing, not what you “think is right.”

3. Lowball pricing is risky. Yes, you can generate a lot of interest by undercutting other listings on the market, but people may still attempt to negotiate. While you may stay firm on your price, you could find yourself making contract compromises you’d rather not make.

4. Precise pricing suggests you’re less wiling to negotiate. List a home for $403,750 versus $400,000 and you’re basically broadcasting a kind of inflexibility. This may or may not be part of your pricing strategy, but whatever you do, don’t do it unconsciously.

5. Seasonal timing can influence pricing. Are you the only comparable home on the market in January? You might be able to get a little more, especially if schools are good.

6. Infomercial pricing can make a difference. Have a million dollar home? Swallow your pride and try your hand in the $990K+ range. Slipping under the seven-figure mark can cast a slightly wider net for buyers.

Most homes sell within 3% of a market-savvy asking price, so go with an agent who is willing to explore the deep local conditions. Curious how much your home might be worth right now? We are happy to put together a no-obligation pricing matrix for you: Kevin and Jennifer Hanley, REALTORS Keller Williams Realty Atlantic Partners Southside http://www.HanleyHomeTeam.com