Starter and Trade-Up Homes are in High Demand

Current market conditions are favorable for certain buyers and sellers. Here are the latest details.

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The real estate market remains red-hot. In fact, Zillow estimates that homes sold more quickly in 2017 than ever before. And 2018 seems on-pace to beat 2017. However, one segment of the real estate market seems to be lagging.

I’m talking about luxury homes.

Prices in the top 5% of the real estate market increased just 5.1% in 2017, almost 2% lower than the rest of the market. What's going on?

Affordability does not seem to be an issue: more Americans can afford a top-level home than ever before. Instead, it might come down to two other factors.

First, uncertainty surrounding the new tax bill could be affecting luxury homes more strongly, and this might be the reason why some potential buyers are choosing to sit and wait until the details of the tax plan become more clear. Second, there is simply a greater supply of luxury homes compared to other types of homes.

Demand and supply are more evenly matched at the top of the market.

In other words, demand and supply are more evenly matched at the top of the market, while in other segments, demand far outstrips supply.

If you've been thinking about trading up to a luxury home, now might be the perfect time to do so. The red-hot demand for starter and trade-up homes means you could sell your home for top dollar and at record speed. The limited price growth and greater inventory at the luxury end means you could have your pick, and find a special, unique, and customized home that perfectly suits your preferences.

If you have any questions about the current Morley real estate market, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Avoid These Mistakes During the Loan Process

Melissa Rau of Top Flite Financial is here to discuss some do’s and don’ts you should follow when it comes to your loan application.

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I’m here today with Melissa Rau of Top Flite Financial to discuss the do’s and don’ts you should pay attention to in order to get your loan to the closing table as smoothly as possible.

First, the do’s:

1. Do stay current on all accounts. Don’t let your payments go more than 30 days late, as that can negatively impact your credit score and have an effect on the loan decision in the end.
2. Do continue to use your credit as you normally would. Any pattern changes raise red flags, such as extra charges and big payments on different cards.
3. Do call your mortgage professional with any questions you have. 

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Don’t apply for new credit without talking to a loan professional.

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Now, here’s what you need to avoid doing:

1. Don’t apply for new credit without talking to a loan professional.
2. Don’t open any new accounts, buy a new car, or any new furniture for a home that you don’t own yet.
3. Don’t pay off any collections. That can have a negative impact on your credit.

Click here to view more Do's and Don'ts during the loan process.

Use this information so that in the end, when you think you’re getting approved to close, we won’t find changes in your credit during our soft-pull, which will impact the decision to approve you.

If you have any more questions about the loan process or you're thinking of buying or selling a home, don't hesitate to reach out to me. I'd be glad to help you.