Redfin’s 2017 Housing Predictions

Redfin’s 2017 Housing Predictions with New Administration

The Redfin leaders predict what the 2017 housing market will look like, under a new president, administration, and policies.  The Trump administration touts three major policies that could significantly the U.S. real estate market: infrastructure spending, tax cuts and changes to immigration policy.

Recently, action was taken to deregulate the CFPB, or mortgage industry. But, as these policies take shape, they will primarily affect new construction and mortgage rates. They still see strong buyer interest, with more access to credit and a slight increase in inventory, yet home prices will continue to rise at a steady, controlled pace.

Here are 5 of their predictions:

  1. The housing market will continue to grow at a slower pace. Baby boomers will be less relevant as the largest generation of Americans, referred to as Millennials, will continue to become of home-buying age. It’s hard to believe they outnumber the Baby Boomers! The strength of sales by area, will depend on the inventory of starter homes, that will meet the demand from millennial homebuyers. In the Sacramento area housing market, construction is abundant on the South 50 corridors, along with areas of Roseville, Auburn, Elk Grove, Granite Bay, and Rancho Cordova.
  2. 2017 will be the fastest real estate market on record. In 2016, nationally, the typical home stayed on the market 52 days, which is the fastest market since they have been tracking this data. In the Sacramento Housing Market, the median time on the market in December was just 22 days, and in some areas like the Folsom Housing Market, a mere 17 days!
  3. Nationally, new-construction growth will slow due to the lack of workers. Nearly 1 in 4 construction workers are foreign-born, so stricter immigration policies can make the problem worse. This is the number one issue in the Sacramento home construction industry. Their workforce is only at 40% of the pre-housing crash construction boom. This also attributes to the lack of affordable starter homes for first-time buyers.
  4. Mortgage rates will increase slightly, but not too much or too fast. Redfin says no higher than 4.3 percent on the 30-year fixed rate, but we are almost there already. Many experts are predicting the mid to high 4s. Although, there are many factors that can move this needle higher or lower, so this one is truly a “wait and see.” Mortgage rates are tied to Bond Markets, which can heavily be affected domestically and internationally. The history of mortgage rates can be viewed here.
  5. More people will have access to home loans. The government-sponsored mortgage giants Fannie and Freddie will increase the loan limits to $424,100 from $417,000 in most regions of the U.S. Those loans are generally through FHA. You can view the FHA series here. Conventional loans also allow lower interest rates with Private Mortgage Insurance, see the conventional loan product here. With the current efforts to modify Dodd Frank and the CFPB, the qualification requirements could be relaxed. If the HUD effort to decrease the Mortgage Insurance percentage is back on the table, it could have an effect on affordable mortgages.

You can read the entire article on the Redfin website for more of their predictions. The bottom line is “wait and see” what this new administration holds for the mortgage and real estate industry as their policies take shape. Thanks for joining me, feel free to comment, and have a great week.

How to Pick a Mortgage Professional in Sacramento

How to Pick a Mortgage Professional

How to Pick a Mortgage Professional in Folsom, El Dorado Hills and Greater Sacramento

As you know, buying a home can be exciting and hopeful but it can also be emotional. The Mortgage Professional or Loan Officer you select to start the process can be critical. It’s advisable to team up with a Loan Officer in the very beginning, that is local to the greater Sacramento area, whether it is Folsom, Roseville, El Dorado Hills, and so on.

Getting Pre-Approved on a Home Loan in Greater Sacramento

Now, you have the advantage of getting preapproved and knowing just what you can afford. Sometimes, you may have to spend a little time getting your finances in order before you can be pre-approved, and a good Loan Officer can direct you on where to go or what your options are upfront.

Start Shopping for a Home Loan Expert in Sacramento

So, let’s say you are all set, you got preapproved and you know how much you can afford to spend. Great! Now, you can start shopping. You find the home of your dreams and are so excited to make that offer! How does your preapproval help in your home buying experience? Well, honestly, most real estate agents won’t spend a lot of time showing you homes until you are preapproved.

From the Realtor’s perspective, it can waste everyone’s time if you can’t qualify for a loan, or if they are showing you homes you find out later, you can’t afford. It’s also a huge benefit when you finally find that dream home and you go to make an offer.

Your Loan Officer will usually supply you with a preapproval letter for the amount of the offer you intend to make. This shows the seller you should qualify for the loan as long as nothing has changed financially for you. In today’s market, where sellers may be looking at multiple offers, having a strong preapproval can go a long way. A good Loan Officer may also call the listing agent and give them input as to how strong of a borrower you are. Now, you should have a very competitive advantage over other offers.

Now let’s talk about what to look for in a Loan Officer.

First, you want someone you feel like you can trust. Buying a home is a life-changing experience. Next, look for how they communicate…

  • Do you click with them?
  • Do they understand your needs?
  • Are they customer focused?
  • Are they knowledgeable about the Housing Market in your area?
  • Do they work alone or have a team?
  • Do they look for the loan scenario that fits your goals?
  • Do they have access to all of the loan products available?
  • Are they up to date on the guidelines?

Another question to ask yourself is, “If I need Down Payment Assistance, is this Loan Officer able to assist me through that process?”

Selecting a Loan Officer

Selecting a great Loan Officer isn’t like picking your BFF, its more about trust and competency, with a high sense of urgency to get the job done, right, and on time. Every Loan Officer isn’t right for every person. Here at Iron Point Mortgage, in Folsom CA, we have Loan Officers that work with a highly skilled team to get the job done, throughout the Sacramento area. One of them should be the right one for you! Remember, I’m here to help, so give us a call.  Get started right and have a great home buying experience.

Do You Have a Brilliant Website?

Do You Have a Brilliant Website?

Websites Will determine your Success Online in the Competitive Market

Your Website Needs to Capture Leads, Data and Most Importantly Perform Well in Search

If you are a business owner, entrepreneur, in a relationship business industry, or serving customers, your website must attract attention. It not only needs to attract an audience, it needs to give value to those who visit so they stay long enough to hear what you are saying. Whether you are located in Folsom, El Dorado Hills, Rocklin, Lincoln, Loomis or in the Greater Sacramento area, you need a well-designed website. We use Front Street Media, they are a local web design company in El Dorado Hills, CA. Check out their services here.

Even though this video is geared toward the real estate industry, I wanted to share it with anyone who can use the information. After all, the online world can be very scary to many small-business owners, such as real estate agents, but, if you don’t embrace it, you may find yourself struggling to grow your client base. There are several main attributes to look for in an amazing website.

Search Engine Optimization Needs to be First and Foremost

The development of a brilliant website should be built with Search Engine Optimization, or SEO, from the ground up and geared to position your business at the top of the first page, for all the search engines, Google, Bing, Yahoo and others. The Search Engines are changing every day and so keeping on top of every algorithm change is best left to the experts.

After all, the online world can be very scary to many small-business owners, such as real estate agents, but, if you don’t embrace it, you may find yourself struggling to grow your client base. There are several main attributes to look for in an amazing website.

This is a full-time job, as it is a very dynamic industry. The small business owner such as the real estate industry faces a lot of competition to get to the top of page 1 and get found. Remember the phone books, where everyone was changing their name to “AAA” or “Acme” such as AAA Landscaping or Acme Roof Repair… that was so they were at the top of the listings in the Yellow Pages under their category! Well, the world is no longer alphabetical. It’s about quality of quantity.

How Much Content are you Generating for your Website?

It’s about how much content you generate and how engaging your website is. It’s also a continuous improvement project. Adding new content and updating information as changes occur is especially important. I highly recommend sitting down with a good website developer and having the conversation. Relying on word of mouth can only take you so far.

Remember, your website should be a tool to attract new clients, while retaining and keeping in touch with existing customers. If you need any suggestions, give me a call. We get it. And we are always here to help.