Feb. 13, 2019

Why Homeownership Matters Now More Than Ever

Why Homeownership Matters Now More Than Ever

Why Homeownership Matters Now More Than Ever | MyKCM

Study after study shows that no matter what generation Americans belong to, the vast majority believe that homeownership is an important part of their American Dream. The benefits of homeownership can be broken into two main categories: financial and non-financial (often referred to as emotional or social reasons.)

For Americans approaching retirement age, one of the greatest benefits to homeownership is the added net worth they have been able to achieve simply by paying their mortgage!

The Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference in net worth between homeowners and renters at this age group was actually 47.5 times greater, with nearly half their net worth coming from home equity!

Why Homeownership Matters Now More Than Ever | MyKCM

Homeowners over the age of 65 are much more financially prepared for retirement and often own their homes outright if they were fortunate enough to purchase their homes before the age of 36.

Their 30 years of mortgage payments have paid off as they gained equity through their monthly payments and as home values appreciated.

It is no surprise that lifelong renters have had a hard time accruing net worth as the latest Census report shows that the Median Asking Rent has been climbing consistently over the last 30 years.

Why Homeownership Matters Now More Than Ever | MyKCMBottom Line

Your monthly mortgage payment is a form of ‘forced savings’ building your net worth with every payment!

Posted in Buying
Feb. 13, 2019

How To List Your Home for the Best Price

How To List Your Home for the Best Price

Posted in Selling
Feb. 8, 2019

5 Reasons to Love Hiring A Real Estate Pro

5 Reasons to Love Hiring A Real Estate Pro [INFOGRAPHIC]

5 Reasons to Love Hiring A Real Estate Pro [INFOGRAPHIC] | MyKCM

Highlights:

  • Hiring a real estate professional to guide you through the process of buying a home or selling your house can be one of the best decisions you make!
  • They are there for you to help with contracts, explaining the process, negotiations, and pricing (both when making an offer or setting the right price for your home).
  • One of the top reasons to hire a real estate professional is their understanding of your local market and how the conditions in your neighborhood will impact your experience.
Posted in Buying, Selling
Feb. 8, 2019

How to Get a Better Perspective on Affordability

How to Get a Better Perspective on Affordability

How to Get a Better Perspective on Affordability | MyKCM

Headlines spotlight the fact that buying a home is less affordable today than it was at any other time in more than a decade. Those headlines are accurate.

Understandably, buying a home is more expensive now than immediately following one of the worst housing crashes in American history. Over the past decade, the market was flooded with distressed properties (foreclosures and short sales) selling at 10-50% discounts. There were so many that this lowered the prices of non-distressed homes in the same neighborhoods. As a result, mortgage rates were kept low to help the economy.

Prices have since recovered. Mortgage rates have increased as the economy has gained strength. This has impacted housing affordability. However, it’s necessary to give historical context to the subject of affordability.

Two weeks ago, CoreLogic reported on what they call the “typical mortgage payment”. As they explain:

“One way to measure the impact of inflation, mortgage rates and home prices on affordability over time is to use what we call the ‘typical mortgage payment.’ It’s a mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. It is calculated using Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment...

The typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…

When adjusted for inflation, the typical mortgage payment puts homebuyers’ current costs in the proper historical context.”

Here is a graph showing the results of CoreLogic’s research:

How to Get a Better Perspective on Affordability | MyKCM

As the graph indicates, the most recent calculation remained 28% below the all-time peak of $1,275 in June 2006. That’s because the average mortgage rate at that time was 6.68%. As seen in the graph, both today’s typical payment and CoreLogic’s projection for the end of the year are less than it was in January 2000.

Bottom Line

Even though home prices are appreciating at a slower rate, home affordability will likely continue to slide. However, this does not mean that buying a house is an unattainable goal in most markets. It is still less expensive today than it was prior to the housing bubble and crash.

Posted in Buying
Feb. 8, 2019

#UPSTATEFLASH EPISODE 1

 

Welcome to our new series #UPSTATEFLASH -Each episode we will be featuring some the great places and introducing you to some of the great people right here in the Upstate of South Carolina.  Enjoy our first episode where we met with the Mayor of Greer, Rick Danner - City of Greer - One of the great places of the Upstate! Click below to watch the interview.

 

EPISODE 1 #UPSTATEFLASH GREER MAYOR RICK DANNER

Posted in #UPSTATEFLASH
Feb. 4, 2019

Whose Mortgage Do You Want to Pay? Yours or Your Landlord’s?

Whose Mortgage Do You Want to Pay?

 

Posted in Buying
Jan. 14, 2019

The Cost Across Time

The Cost Across Time

This takes a look at both interest rates and average monthly mortgages over the last 40 years.  

Posted in Buying
Jan. 4, 2019

Top Renovations to Complete Before You Sell Your House

Posted in Selling
Jan. 2, 2019

Excited About Buying A Home This Year? Here’s What to Watch

Posted in Buying
Dec. 20, 2018

4 Quick Reasons NOT to Fear a Housing Crash

4 Quick Reasons NOT to Fear a Housing Crash

With all the news we are hearing about the Housing Market in the last couple of months, wanted to share this information with everyone.  Great information!