Lake Greenwood and Greenwood Real Estate Updates

Owning a home of your own has been a part of the American Dream since our country was founded. Today, being a Greenwood homeowner has many great financial benefits as well. Because of this, experts are concerned with the falling homeownership rate, the outcomes of which could be devastating. As ApartmentList.com explained:“Our research indicates that not owning a home has a sizable financial cost, as renters miss out on low mortgage rates and are hit by higher rents.This phenomenon may exacerbate inequality in our society, as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership.”

There is much proof that owning is financially better than renting. For example, a study by the Joint Center of Housing Studies at Harvard University mentions five major financial benefits of becoming a homeowner. These include the facts that housing is typically the one leveraged investment available, that you're paying for housing whether you own or rent, that owning is usually a form of “forced savings,” that there are substantial tax benefits to owning, and that owning is a hedge against inflation. Studies have also shown that homeowners have a net worth 45x greater than that of a renters.

Owning a home has always been and will continue to be better than renting from a financial standpoint. If you are ready to discover your dream home in Greenwood, we are more than willing to help you decide your next steps. For more information on the current Greenwood Real Estate Market, please visit our website or contact us at (864)341-7774 or lakegreenwoodproperty@gmail.com.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed mortgage rate has fallen half a percentage point since the beginning of the year and has remained at or below 3.5% for the last 11 weeks. This has been great for homeowners, because the lower the rate, the  lower their mortgage payment will be. But how long can we expect interest rates to remain low? The chart below show how far rates have fallen this year as well as the average projections for their increase over the next 12 months.

Depending on the size of the loan you secure, a .5% increase in interest rate can increase your monthly mortgage payment significantly. According to the most recent Home Price Index by CoreLogic, national home prices have grown by 6% over the last year and are expected to be 5.4% higher next year. If the predicted increases of home prices and interest rates hold true, families will wind up paying considerably for their next home. If you are considering buying your dream home in Greenwood, it may be in your best interest to  act sooner than later. Let's get together and evaluate your ability to take your next steps. If you would like more information on the current Greenwood Real Estate Market or would simply like to browse our listings, please visit our website or contact us at (864)341-7774 or lakegreenwoodproperty@gmail.com.

Some experts question whether the current pace of residential home sales is sustainable. While some may worry that too many people are buying homes as seen in 2004-2006 and fear we may be headed toward another housing crisis, there is evidence that we are actually experiencing a very healthy real estate market when we carefully look at the numbers.

Some are considering the past three years of home sales in comparison to the three years just prior to the housing bubble as seen in the graph below. Looking at this graph, we can understand where the concern is coming from.

However, this is not the whole picture. The real picture can only be seen when we go further back in history and take out the "boom & bust" years, showing that the pace of sales is actually growing at quite a natural rate.

Also, new home sales are far below historic numbers. According to Trull's Chief Economist, Ralph Mclaughlin, "Adjusted for population, [new home sales] are at about 63% of their fifty-year average level - way better than 2011, but nowhere near heated." In short, yes, the current pace of residential home sales definitely seems sustainable.

If you are interested in buying your dream home in Greenwood or selling a residential property and would like more information on the current real estate market, please visit our website or contact us at (864)341-7774 or lakegreenwoodproperty@gmail.com.

You may think now is not the best time to sell your home as school is back in session and the holidays are just around the corner. However, there are 5 reasons why you could be missing out on a great opportunity for your family.

1. Demand Is Strong

The National Association of Realtor's latest Relators' Confidence Index reveals that buyer demand remains very strong throughout most of the country. Now is as good a time as ever to take advantage of the buyer activity in the current Greenwood Real Estate Market.

2. There Is Less Competition

In most areas, there are not enough homes for sale to satisfy the demand of many buyers in the market. However, the buyers will soon have more inventory to choose from as builders are regaining confidence in the market and many buyers who haven't been able to find their dream home within the existing inventory turn to new construction to fulfill their needs. It is in your best interest not to wait until all this new inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae Announced that home sales are likely to accelerate and surpass 2007's pace. As the market becomes more active, banks will be overwhelmed with loan inquiries, which will cause the lengths of closing-times to grow. Selling now will make the process simpler and quicker than it is expected to be in the near future.

4. There Will Never Be a Better Time to Upgrade

If you are considering purchasing a newer, bigger, more expensive home, now is the ideal time to do so as CoreLogic predicts that prices will appreciate by 5.3% over the next year. Also, according to Freddie Mac, you can lock-in your 30-year housing expense with an interest rate of about 3.46% right now. Interest rates are expected to increase considerably over the next year, which will have a big impact on your housing cost. Acting now to purchase your dream home can save you both in down payment and your mortgage payment.

5. It's Time to Move On

Consider the reasons you decided to sell your home in the first place and decide for yourself if it is worth waiting. Is money more important than time with your family, your health, or the ability to go on with your life the way you think you should? Only you know the answer to that question, and only you have the ability to take control of your situation by putting your home on the market. Perhaps the time has come for your family to start living the life you desire, and that is what is truly important.

If you would like more information, please visit our website or contact us personally at (864)341-774 or lakegreenwoodproperty@gmail.com to discuss your next steps.

Owning your Dream Home in Greenwood has many benefits, including the ability to protect yourself from rising rents and keeping a stable housing cost for the lifetime of your mortgage. Chief Economist at realtor.com, Jonathan Smoke reported that, "low rental vaccines and a lack of new rental construction are pushing up rents, and we expect that they'll outpace home price appreciation in the year ahead." Also, it was reported in the Joint Center for Housing Studies at Harvard University's 2015 Report on Rental Housing that 49% of rental households are cost-burdened. This means almost half of renters spend more than 30% of their income on housing and struggle to save for things such as food, healthcare, and other bills. Meanwhile, in more than 75% of the counties across the nation, it is actually cheaper to buy than to rent a home according to Smoke's article. To avoid getting caught in a financial trap that so many renters are already in during what Smoke refers to as a "Rental Affordability Crisis," it is important to know your options. As we mentioned before in a previous blog, buyers can save for as little as a 3% down payment in many areas of the country, and you may be in better shape to become a homeowner than you realize. If you are considering your options and would like more information on the current Greenwood Real Estate Market, please do not hesitate to visit our website or contact us personally at (864)341-7774 or lakegreenwoodproperty@gmail.com to discuss your next steps.

The numbers of the Housing Affordability Index are falling, and some pundits say the housing market may be headed for a slowdown. Some are concerned that many people looking to buy their Dream Home in Greenwood may be priced out of the market. Below is a snapshot of the index since 2009.

Although the index has fallen over the last four years, it is important to take into account that at that time, there was an overabundance of homes for sale, many of which were distressed property (foreclosure or short sale). This caused prices to drop dramatically and distressed properties to sell at extreme discounts. The index is currently falling because the market is recovering and values are coming back nicely. Below, you can see that, even though prices have increased, historically low mortgage rates have put the market in a better position than every year for the nineteen years prior to the economic crash.

In short, the Housing Affordability Index is in great shape and does not pose a threat to the continued recovery of the Greenwood Real Estate Market.  If you are considering buying or selling your home and would like more information, please visit our website or contact us personally at (864)341-7774 or lakegreenwoodproperty@gmail.com.

     Fannie Mae's Study, "What Do Consumers Know About Mortgage Qualification Criteria?" showed that Americans are misinformed about what is required of them to qualify for a mortgage when buying a home.  There are two myths that may be holding you back from purchasing your dream home in Greenwood. 

     The first myth is that you must have a large down payment to qualify for a home loan.  Americans greatly overestimate the down payment needed, however. Fannie Mae's study revealed that 40% of Americans simply don't know what the minimum down payment is and 36% are misinformed. The reality is that new programs let buyers put down as little as 3%. Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

64.2% purchased their home by putting down less than 20%, and 43.8% were able to put down less than 10%!

     Another myth is that you need a 780 FICO score or higher to buy your home. Fannie Mae's study revealed that 54% of Americans don't know what FICO score is needed to qualify, and 5% are misinformed. Many Americans think that a "good" credit score is 780 or higher, however, the latest Ellie Mae Origination Insight Report, which focuses on recently closed loans, debunks this myth. Below you can see that 54.1% of approved mortgages had a credit score of 600-749. 

     Your dream home may already be within your reach.  If you would like more information on the current Greenwood Real Estate Market or would simply like to browse our listings, visit our website or contact us personally at (864) 341-7774 or lakegreenwoodproperty@gmail.com.

According to Pulsenomics' latest Home Price Expectation Survey, home prices will appreciate 3.5% per year on average and cumulatively by about 18% over the next five years.  This is good news for homeowners and their equity positions.  For example, if you purchased a Greenwood home in January of this year at $250,000, the equity you would earn over the next five years as home prices increase can be seen below.

Since it is predicted that home prices will increase 4.5% this year alone, you would have gained over $11,000 in equity in just one year. In five years, your equity would have grown by over $46,000! Homeownership is a great investment and offers you and your family the ability to build equity you can borrow against in the future.  If you are considering purchasing your dream home in Greenwood, don't hesitate to visit our website or contact us at (864) 341-7774 or lakegreenwoodproperty@gmail.com for more information on the current Greenwood Real Estate Market.

The infographic below shows how far $100 goes in each state when compared to the national average.

As you can see, the majority of Midwestern and Southern states offer a lower cost of living that the Northeastern and Western states. For example, in South Carolina, you can purchase $110.50 worth of goods with $100, while in New York, only $86.43 worth of goods can be purchased with $100.  If you are considering moving south, visit our website to take advantage of the useful information we have available to you. If South Carolina seems like a good fit for you, we invite you to explore our beautiful city of Greenwood where your dream home may be waiting. Please do not hesitate to contact us at (864) 341-7774 or lakegreenwoodproperty@gmail.com with any questions you may have about the current Greenwood Real Estate Market.

The latest Existing Home Sales Report by the National Association of Realtors showed that in the last year, home sales are up in five of the six price ranges they measure. Homes priced between $100-$250K showed a modest increased at 3.4%, pointing to a low inventory of homes available for sale in this price range.  Sales of homes at over $250K increased drastically with the sales of $750K - $1 Million rage showing the largest increase at 16.7%!  As prices in the current Greenwood Real Estate Market continue to accelerate, it makes sense that the percentages of homes in higher price ranges are increasing.  See the graph below for the breakdown of the changes in sales for the past year.

Now is a great time to list your home for sale as houses are definitely selling. If your house has been on the market for some time and is not selling, it may be in your best interest to meet with an agent to discuss whether it is priced appropriately for the competition in today's Greenwood Housing Market.  If you are considering listing your Greenwood Home For Sale, please do not hesitate to visit our website to take advantage of the useful information we have available to you or contact us personally at (864) 341-7774 or lakegreenwoodproperty@gmail.com .