Tag Archives | Michigan Real Estate

    Michigan Real Estate news. Keeping you up to date on the latest in Michigan Real Estate including the Grand Rapids Real Estate Market and surrounding West Michigan Area. New listings, relocation information, homes, condos, land, new construction and more. Berkshire Hathaway HomeServices, brought to you by the John Rice Real Estate Team.

    The Benefits of Growing Equity in Your Home

     

    The Benefits of Growing Equity in Your Home

    The Benefits of Growing Equity in Your Home | Simplifying The Market

    Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners.

    1. Move-Up Opportunity

    With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic,

    “In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.”

    This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home.

    2. Gain in Seller’s Profit

    ATTOM Data Solutions recently released their Q2 2019 Home Sales Report, indicating the seller’s profit jumped at one of the fastest rates since 2015. They said:

    “A look at the national numbers showed that U.S. homeowners who sold in the second quarter of 2019 realized an average home price gain since the original purchase of $67,500…the average home seller gain of $67,500 in Q2 2019 represented an average 33.9 percent return as a percentage of the original purchase price.”

    Looking at the amount paid when they bought their homes, and then the amount they received after selling, we can see that some homeowners were able to walk away with a significant gain.

    3. Out of a Negative Equity Situation

    Negative equity occurs when there is a decline in home value, an increase in mortgage debt, or both. Many families experienced these challenges over the last decade. According to the same report from CoreLogic,

    “U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $485.7 billion since the first quarter 2018, an increase of 5.6%, year over year.

    In the first quarter of 2019, the total number of mortgaged residential properties with negative equity decreased…to 2.2 million homes, or 4.1% of all mortgaged properties.”

    The good news is, many families have moved beyond a negative equity situation, and no longer owe more on their mortgage than the value of their home.

    Bottom Line

    If you’re a current homeowner, you may have more equity than you realize. Your equity can open the door to future opportunities, such as moving up to your dream home. Let’s get together to discuss your options and start to put your equity to work for you.


    Source: Michigan Real Estate Updates

    5 Real Estate Reality TV Myths Explained

     

    5 Real Estate Reality TV Myths Explained

    5 Real Estate Reality TV Myths Explained | Simplifying The Market

    Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of shows like “Property Brothers,”Fixer Upper,” and “Love It or List It,” all in one sitting.

    When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, you may need a reality check.

    Reality TV Show Myths vs. Real Life:

    Myth #1: Buyers look at 3 homes and decide to purchase one of them.
    Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors, the average homebuyer tours 10 homes as a part of their search.  

    Myth #2: The houses the buyers are touring are still for sale.
    Truth: Everything is staged for TV. Many of the homes shown are already sold and are off the market. 

    Myth #3: The buyers haven’t made a purchase decision yet.
    Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy. 

    Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.
    Truth: Of course, this would be great! Open houses are one strategy to increase exposure to buyers in your area, but they are only one piece of the overall marketing of your home. Keep in mind, many homes are sold during regular showing appointments as well. 

    Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.
    Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives and goals.

    Bottom Line

    Having an experienced professional on your side while navigating the real estate market is the best way to guarantee you can make the home of your dreams a true reality.  Let’s connect and you can share more about what you are looking to achieve.


    Source: Michigan Real Estate Updates

    American Confidence in Housing at an All-Time High

     

    American Confidence in Housing at an All-Time High

    American Confidence in Housing at an All-Time High | Simplifying The Market

    Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.

    Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed:

    • The share of Americans who say it is a good time to buy a home increased from the same time last year.
    • The share of those who say it is a good time to sell a home increased from the same time last year.
    • The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year.
    • The share of Americans who say mortgage rates will go down over the next 12 months increased dramatically (24 percentage points) from the same time last year.

    The day after the index was released, Freddie Mac also announced the 30-year fixed-rate mortgage rate fell to its lowest level in three years.

    Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae explained the uptick in the index:

    “Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges. Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.”

    Bottom Line

    Consumers are feeling good about the real estate market. Since Americans are not worried about their jobs, see mortgage rates near an all-time low, and believe it is a good time to buy, the housing market will remain strong for the rest of the year.


    Source: Michigan Real Estate Updates

    Thornapple River Waterfront Forest Hills Schools

    This is a rare opportunity offering an incredible location with sought-after Thornapple River frontage on “the pond” in Forest Hills School. With “great bones”, spacious room sizes and fabulous floor plan, this home offers the perfect opportunity to renovate the space into the home you have always dreamed of.

    140 Ft of private Thornapple River frontage. Nestled in the cove this 4 bedroom 3.5 bath home gives you all the enjoyment of being on the wide open stretch of the Thornapple River ranked top in the area for water sports, yet the location provide tranquility not found anywhere else on the river. With quality fit and finish throughout this masterfully crafted walkout ranch provides vaulted cathedral ceiling featuring beautiful wood beams, parquet floor, solid wood cabinetry, over 700sqft of Trex composite decking, 2 fireplaces, 2 docks, gorgeous river views, multi-zone heating and cooling, updated mechanicals, gorgeous landscaping, main floor master, main floor laundry, a brilliant floor plan with large spacious rooms, ample storage space, 2 wet bars, attached 3 stall garage and more. 

    Gorgeous Thornapple River Private Frontage – Forest Hills Schools 5 Bedrooms

    Forest Hill Schools – Private Thornapple River frontage. This gorgeous Town & Country cedar home is surrounded by the natural beauty of hardwoods. Located on the open 6 mile stretch of the Thornapple River (all sports.) This home offers the best of rustic-lux. With soaring vaulted plank ceilings, stone fireplace, majestic views out every window, and quality finishes throughout every inch breathes the essence of home. The main floor master with luxuriously appointed on-suite, the additional bedrooms, finished garage loft space, and walk-out lower level each offer custom touches combining form, function and fun. Experience the peace of this location while appreciating its easy proximity to everyday amenities such as shopping, dining, entertainment, and more.

    Mid-Year Housing Market Update: Three Things to Know Today

    Mid-Year Housing Market Update: Three Things to Know Today

    Mid-Year Housing Market Update: Three Things to Know Today | Simplifying The Market

    Shifting trends and industry-leading research are pointing toward some valuable projections about the status of the housing market for the rest of the year.

    If you’re thinking of buying or selling, or if you just want to know what experts are saying is on the horizon, here are the top three things to put on your radar as we head into the coming months:

    1. Home prices are appreciating at a more normal rate: Home prices have been appreciating for about ten years now. Experts at the Home Price Expectation Survey, Mortgage Bankers Association, Freddie Mac, and Fannie Mae are forecasting continued growth throughout the next year, although it should be leveling-off to normal appreciation (3.6%), as we move into 2020.
    2. Interest rates are low: Over the past 30 years, the average mortgage rate in the United States has been 8.27%, and rates even peaked as high as 18% in the 1980s. Today, at 3.81%, the rate is considerably lower than the historical 30-year average. Although experts predict it may climb into the low 4% range in the near future, that’s still remarkably lower than our running average, suggesting a great time to get more for your money over the life of your loan.
    3. An impending recession does not mean there will be a housing crash: Although expert research studies such as those found in the Duke Survey of American CFOs and the National Association of Business Economics, are pointing toward a recession beginning within the next 18 months, a potential recession isn’t expected to be driven by the housing industry. That means we likely won’t experience a devastating housing crash like the country felt in 2008. Expert financial analyst Morgan Housel tweeted:

    “An interesting thing is the widespread assumption that the next recession will be as bad as 2008. Natural to think that way, but, statistically, highly unlikely. Could be over before you realized it began.”

    In fact, during 3 of the 5 last U.S. recessions, housing prices actually appreciated:Mid-Year Housing Market Update: Three Things to Know Today | Simplifying The Market

    Bottom Line

    With prices appreciating and low interest rates available, it’s a perfect time to buy or sell a home. Let’s get together to discuss how you can take the next step in the exciting journey of homeownership.

    Source: Michigan Real Estate Updates

    What Experts are Saying About the Current Housing Market

    What Experts are Saying About the Current Housing Market

    What Experts are Saying About the Current Housing Market | Simplifying The Market

    We’re halfway through the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the experts predict for the second half of 2019.

    Here’s what some have to say:

    Danielle Hale, Chief Economist at realtor.com

    “Lower mortgage rates, higher wages and more homes for sale have helped counteract rising home prices, and ultimately, made it so that buyers are able to afford more than last year.”

    “Our outlook implies 4% growth for the remaining months of the year, predicated on…more supply than last year, the decline in mortgage rates, moderating home price appreciation and improving affordability.”

    Lawrence Yun, Chief Economist at NAR

    “Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”

    Doug Duncan, Chief Economist for Fannie Mae

    “Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market.”

    Kaycee Miller in a Realtor Magazine article

    “At the moment, some observers suggest the housing market is indeed headed for a slowdown. But no need to panic — experts say the financial and economic factors that were in play during the big crash a decade ago don’t exist today.”

    Bottom Line

    The housing market will be stronger for the rest of 2019. If you’d like to know more about your specific market, let’s get together to chat about what’s happening in our area.


    Source: Michigan Real Estate Updates

    Stunning Golf Course Luxury

    This stunning walkout ranch, masterfully crafted by West Michigan Award Winning builder BDR, boasts custom quality throughout. The gated community of Watermark offers the superb blend of privacy and convenience. The impressive exterior features gorgeous landscape and cascading water features, with the beautiful backdrop of the private pond and meticulously landscaped 6th green; providing stunning views all year long. Step inside to appreciate the sense of quality and grace that captures the essence of home. With main floor master suite, main floor laundry, 4 fireplaces, 4 bedrooms 3.5 baths, office, craft room, den, wet bar, screened-in porch, open patio and more -this home offers the perfect layout for everyday enjoyment and artful entertaining.

    The Surprising Profile of the Real Estate Investor

     

    The Surprising Profile of the Real Estate Investor

    The Surprising Profile of the Real Estate Investor | Simplifying The Market

    Over 10% of all residential homes are purchased by investors, and that number continues to rise. Who are these investors?

    Many have speculated that the large institutional conglomerates such as Blackstone, American Homes 4 Rent, and Colony Starwood dominate investor purchases. However, a special report on investor home buying by CoreLogic, Don’t Call it a Comeback: Housing Investors Have Been Here for Years, shows this is not the case.

    Ralph McLaughlin, CoreLogic’s Deputy Chief Economist and author of the report, explained his findings at the recent National Association of Real Estate Editors conference in Austin:

    “Investor buying activity in the U.S. is at record highs. And our records go back confidently, about 20 years…

    What’s going on and why? Well, it turns out, it’s not the big institutional guys that are leading the increase in home buying. It’s actually the smaller guys. It’s those that have bought between one and ten properties over this 20-year period, they’re the ones that are really leading the increase in investor home buying.”

    Here is the breakdown of the percentage of purchasers by type of investor over the last six years according to the report:The Surprising Profile of the Real Estate Investor | Simplifying The MarketAs the graph shows, the percentage of “Mom & Pop” investors is currently dominating the number of homes purchased by investors, as the percentage of homes purchased by both professional and institutional investors is falling.

    Bottom Line

    Most houses purchased by an investor are bought by small investors looking to diversify their financial portfolio by adding a real estate component. If you are investing in real estate as either a landlord or someone who fixes-up and flips the house, let’s chat about the ways you can build or liquidate your current portfolio of properties.


    Source: Michigan Real Estate Updates

    Forest Hills Central – Popular Beard Farm Location 5 Bed 3.5 Bath 3 stall

    This beautifully designed 2 story home located in the popular Beard Farm development within the Forest Hills Central school district is perfectly located on a deep wooded lot; offering superb location and excellent floor plan. Featuring 5 spacious bedrooms, 3.5 baths, attached 3 stall garage and nearly an acre wooded lot. Several upgrades can be found throughout the house including new roof, newer furnace, freshly painted neutral color palette, upgraded R-34 insulation. Offering move-in ready living or an excellent opportunity to build upon the existing floor plan in a development surrounded by several larger homes that have recently been renovated. Well designed and quality constructed this home will not disappoint! Enjoy all the area has to offer including the Forest Hills Trails system offering miles of trails connected to the development, excellent access to major highways, shopping, entertainment, and more.