SACRAMENTO HOMES ARE A BARGAIN COMPARED TO HISTORIC NORMS

sacramento Homes are a Bargain Compared to Historic Norms

Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM

We ran across this great post – courtesy of the good folks at Keeping Current Matters and thought you might enjoy the read.

A loaf of bread used to be a nickel. A movie ticket was a dime.  Not anymore. Houses were also much less expensive than they are now. Inflation raised the price of all three of those items, along with the price of almost every other item we purchase.

The reason we can still afford to consume is that our wages have also risen over time. The better measure of whether an item is more expensive than it was before is what percentage of our income it takes to purchase that item today compared to earlier. Let’s look at purchasing a home.

The COST of a home is determined by three major components: price, mortgage interest rate, and wages. The big question? Are we paying a greater percentage of our income toward our monthly mortgage payment today than previous generations? Surprisingly, the answer is no.

Historically, Americans have paid just over 21% of their income toward their monthly mortgage payment.

Though home prices are higher than before, wages have risen as well. And, the most important component in the cost equation – the mortgage rate – is dramatically lower than it was in the 1970s, 1980s, 1990s, and 2000s.

Today, according to the latest Home Affordability Index just released by the National Association of Realtors, Americans are paying 17.4% of their income toward their mortgage payment. That is much lower than the 21% average previous generations have paid.

Last Chance! Homes are a Bargain Compared to Historic Norms | MyKCM

Bottom Line

The cost of purchasing a home today is a bargain compared to previous generations when we look at it from a percentage of income basis. However, with mortgage rates expected to increase and home prices continuing to appreciate, that will not always be the case. Whether you are buying your first home or looking to move-up to a more expensive home, purchasing sooner rather than later probably makes sense.

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

 

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

Buying a Home Young is the Key to Building Wealth

Buying a Home In Sacramento

Buying a Home Young is the Key to Building Wealth

Buying a Home Young is the Key to Building Wealth | MyKCM

We ran across this great post – courtesy of the good folks at Keeping Current Matters and thought you might enjoy the read.

Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.

“Today’s older adults became homeowners at a younger age than today’s young adults. Half the older adults in our sample bought their first house when they were between 25 and 34 years old, and 27 percent bought their first home before age 25.”

The full breakdown is in the chart below:

Buying a Home Young is the Key to Building Wealth | MyKCM

The study goes on to show the impact of purchasing a home at an early age. Those who purchased their first homes when they were younger than 25 had an average of $10,000 left on their mortgage at age 60. The 50% of buyers who purchased in their mid-twenties and early-30s had close to $50,000 left, but traditionally had purchased more expensive homes.

Buying a Home Young is the Key to Building Wealth | MyKCM

Many housing experts are concerned that the home ownership rate amongst millennials, those 18-34, is much lower than previous generations in the same age range. The study results gave a great reason why this generation should consider buying instead of signing a renewal on their lease:

“As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations.

While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.”

Bottom Line

If you are one of the many young people debating whether buying a home this year is right for you, let’s get together to discuss your options!

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

 

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

Sacramento Real Estate Trends

Sacramento Real Estate

Sacramento County Real Estate Trends and Market Statistics

Here are the latest Real Estate Trends and Market Conditions for the following Area’s. Click on each to see what’s going on in Your neighborhood

Sacramento County

City of Sacramento

Carmichael

Arden Arcade

Elk Grove

Natomas

College Greens / Rosemont

Where is the Housing Market Headed?

December continued the recent trend of the summer. More homes came on the market, 29.8% more as compared to last year but 21.1% less than last month to be precise, while less homes actually sold – 26.3% from last year and a whopping 18.7% from last month. Seasonally we generally see that kind of jump and fall off respectively but usually not as extreme. The homes that actually closed escrow was 26.3% less than last year and new contracts were about 11.0% less than last year. Inventory is up close to 80%% from last year giving buyers more to choose from than in recent memory.

Technically it’s still a seller’s market at 2.0 month’s supply of homes but any agent worth their salt is going to tell you that in most instances the leverage is with buyers not sellers. Yes we are still getting multiple offers on right priced premium homes. Prices are up 4.4% from last year and 1.4% to last month but gone are the days a seller could slap on a high price and expect to get offers. Now, unless the home is right priced buyers are not even looking at over priced homes.

If you are thinking about selling in the next 12 months NOW is the time to call us.

The better prepared your home is before it hits the market the quicker it will sell and sell for more. Call for a Strategic Marketing Consultation and we’ll show you specifically how we get more for your home in less time. We’ll also talk about any repairs and improvements that you can make to maximize your return. More importantly, we’ll tell you what changes NOT to make saving you both time and money. If you are thinking about selling in the next 12 months, call us today for your Strategic Marketing Consultation. We will cover your goals and our unique approach to getting you the most amount of money in the shortest number of days with the fewest hassles

About the authors:

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home ownership come true.

See our profile on Zillow or Redfin here

When You are Ready here are 3 ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

IS THE RECENT DIP IN INTEREST RATES HERE TO STAY?

Interest Rates

Is the Recent Dip in Interest Rates Here to Stay?

Is the Recent Dip in Interest Rates Here to Stay? | MyKCM

We ran across this great post – courtesy of the good folks at Keeping Current Matters and thought you might enjoy the read.

Interest rates for a 30-year fixed rate mortgage climbed consistently throughout 2018 until the middle of November. After that point, rates returned to levels that we saw in August to close out the year at 4.55%, according to Freddie Mac’s Primary Mortgage Market Survey.

After the first week of 2019, rates have continued their downward trend. As Freddie Mac’s Chief Economist Sam Khater notes, this is great news for homebuyers. He states,

“Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy.”

In some areas of the country, the combination of rising interest rates and rising home prices had made some first-time buyers push pause on their home searches. But with more inventory coming to market, continued price growth, and interest rates slowing, this is a great time to get back in the market!

Will This Trend Continue?

According to the latest forecasts from Fannie Maethe Mortgage Bankers Association,and the National Association of Realtors, mortgage rates will increase over the course of 2019, but not at the same pace they did in 2018. You can see the forecasts broken down by quarter below.

Is the Recent Dip in Interest Rates Here to Stay? | MyKCM

Bottom Line

Even a small increase (or decrease) in interest rates can impact your monthly housing cost. If buying a home in 2019 is on your short list of goals to achieve, let’s get together to find out if you are able to today.

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

 

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

FORBES 2019 REAL ESTATE FORECAST: WHAT HOME BUYERS, SELLERS AND INVESTORS CAN EXPECT

Super interesting read in Forbes Magazine by Aly J Yale. Thought you might enjoy…

2019 Real Estate Forecast: What Home Buyers, Sellers And Investors Can Expect

An illustration of a house sinking into the water.GETTY

There’s no doubt about it: the 2018 housing market has seen its ups and downs.

The year started with sky-high home prices, historically low mortgage rates and a definitive upper hand for sellers. In recent months though, home price growth has faltered, rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer.

Will these trends continue? Will housing experience the same wild ride in the new year? Here’s what experts predict will happen in 2019 real estate market:

Mortgage rates will continue rising.

“Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8% — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow

Millennials will keep buying home — despite those rising rates.

“The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.” — Odeta Kushi, senior economist for First American

“Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers. While first-time buyers will struggle next year, older Millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of Millennials who close in 2019. Looking forward, 2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.” — Danielle Hale, chief economist for Realtor.com

This graphic shows the role Millennials will play in the 2019 and 2020 housing markets.COURTESY OF REALTOR.COM

Home buying power will decrease — but that could be a good thing.

“Most homebuyers budget a monthly payment. As rates rise, a fixed monthly payment translates into less borrowing capacity and buying power is down about 10% since the same time last year. As there are less buyers at each price point, the appropriate market response is a slowdown in sales and an easing in price momentum.” — Tendayi Kapfidze, chief economist for LendingTree

Overall home sales will drop.

“As we look toward 2019, we are anticipating home sales to decline around 2%. We’re expecting it to be another slightly slower year as buyers continue to wrangle with higher mortgage rates after contending with several years of rapid price growth.” — Ruben Gonzalez, chief economist at Keller Williams

Inventory troubles will ease, but not too much.

“The wave of first-time home buyer demand will be met by somewhat higher inventory levels than in 2018. However, while the days of multiple offers and bidding wars may be history in some markets where inventory is increasing, inventory will likely still remain tight nationally through 2019.” — Kushi

“In the majority of markets, the number of homes being put on the market or newly constructed has increased slightly, while the pace of sales has slowed slightly, which has helped stop the inventory decline. But the inventory increases or slowing price increases necessary for a more widespread sales gain are not forecasted to happen in 2019. While the situation is not getting worse for buyers, it’s also not improving notably in the majority of markets.” — Hale

C

This graphic shows housing inventory predictions for 2019.COURTESY OF REALTOR.COM

Home price growth will continue to slow.

“Right now, for 2019, we believe home price appreciation will likely slow to near 3%. This is based on the assumption that the recent pattern of increasing inventory levels will be sustained in the upcoming year.”— Gonzalez

Buyers will see less competition, but that might not help first-timers.

“Buyers who are able to stay in the market will find less competition as more buyers are priced out but feel an increased sense of urgency to close before it gets even more expensive. Their largest struggle next year will be reconciling wants, needs and budget versus the heavy competition of 2018. Although the number of homes for sale is increasing, which is an improvement for buyers, the majority of new inventory is focused in the mid- to higher-end price tier, not entry-level.” — Danielle Hale, Realtor.com

National rents will rise, but apartment construction could ease renters’ pains.

“As higher rates limit the number of homes that potential buyers can afford, some would-be buyers will be too financially stretched to buy and will continue renting. As a result, recent (and very slight) drops in rent will reverse and turn positive again. The shift will be muted, however, by continued steady investment in apartment construction, which will prevent rent growth from shooting too far above income growth.” — Terrazas

NYC rent hikes will continue — thanks to Amazon.

“Overall, I think the beginning of 2019 will be relatively flat, with price increases in Q3, Q4 and into 2020. The period between the old 421A and the beginning of affordable New York was a window of time where there wasn’t a tremendous amount of rental development. During that time it was difficult to build rental developments due to the escalating land and construction costs, no tax incentives, etc., creating a shortage of new product. Today, not only have some regulations changed, but the economy is doing well, unemployment rates are down, a lot of jobs are being created here in New York – not only by Amazon but everything that comes along with Amazon and all of the corporations looking to be close proximity to their headquarters. When we see the economy doing well, we can expect rental prices to increase.” — Andrew Barrocas, CEO of MNS

Individual and institutional investors will battle it out.

“Well-funded institutional buyers have tremendous advertising budgets and their spend makes it impossible for the average real estate investor to compete. It takes a serious financial investment to fund a marketing campaign that accurately targets and identifies acquisition opportunities. That alone gives institutional investors an instant advantage. Additionally, interest rates are increasing, which not only impacts buyers who cannot afford to move, but also individual investors looking to borrow money to buy and hold rental properties. Their cost to borrow increases while inventory decreases and competition grows. This type of combination middle-market is one individual investors do not want to see.” — Brian Spitz, founder of Big State Home Buyers

Commercial property managers will hop on the shared space bandwagon — or bring in top amenities to make up for it.

“As co-working continues to be a disruptor in commercial real estate, the largest traditional landlords have opened their own flexible and co-working options to compete, such as Sage Realty’s Swivel and Boston Properties’ Flex. Landlords who are remaining or returning to the traditional commercial office space are facing increased demand for amenities like sleek lobbies, tech services, etc. To meet these demands and gain a competitive edge, landlords are opening up to fintech/insurtech solutions like replacing security deposits with surety bonds to make tenants lives easier.” — Julien Bonneville, CEO of The Guarantors

Technology will continue to disrupt the industry.

“Technology disruption of the real estate industry driven by Silicon Valley and institutional investors will reach a point where it’ll threaten the traditional real estate industry. Technological innovation is here and rapidly advancing in the real estate industry and preparing for disruption. iBuying, blockchain, artificial intelligence and machine learning are changing the ways buyers, sellers and investors interact with each other and the properties they are interested in.” — Spitz

This graphic shows the top technologies experts predict will be adopted in 2019.COURTESY OF FIRST AMERICAN

The Moral of the Story

All in all, housing is set for a slow-down next year, but as Kapfidze explained, that’s not necessarily a bad thing.

“The medium and long-term prospects for housing are good because demographics are going to continue to support demand,” he said. “With a slower price appreciation, incomes have an opportunity to catch up. With slower sales, inventory has an opportunity to normalize. A slowdown in 2019 creates a healthier housing market going forward.”

I’m a freelance writer and journalist with more than a decade of reporting, editing and local news coverage under my belt. In addition to Forbes, I also contribute to industry publications like The Mortgage Reports, MReport and DS News. I graduated from the Schieffer Colleg…

 MORE

Connect with me on Twitter at @AlyJwriter.

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

2008 VS. NOW: ARE SACRAMENTO HOME OWNERS USING THEIR HOMES AS ATMS AGAIN?

SACRAMENTO HOME OWNERS

2008 vs. Now: Are Owners Using Their Homes as ATMs Again?

We ran across this great post – courtesy of the good folks at Keeping Current Matters and thought you might enjoy the read.

2008 vs. Now: Are Owners Using Their Homes as ATMs Again? | MyKCM

Over the last six years, we have experienced strong price appreciation which has increased home equity levels dramatically. As the number of “cash-out” refinances begins to approach numbers last seen during the crash, some are afraid that we may be repeating last decade’s mistake.

However, a closer look at the numbers shows that homeowners are being much more responsible with their home equity this time around.

What happened then…

When real estate values began to surge last decade, people started using their homes as personal ATMs. Homeowners would refinance their houses and convert their equity into instant cash (known as “cash-out” refinances). Because homes were appreciating so rapidly, many homeowners tapped into their equity multiple times.

This left homeowners with little-or-no equity left in their homes, so when prices started to fall many homeowners found their houses in a negative equity situation (where the mortgage amount was greater than the value of the home). When some of these homeowners saw that there was no value left in their houses, they just stopped paying their mortgages altogether.

Banks eventually foreclosed on those homes and the foreclosures drove prices down even further and put more homes in the negative equity category. This cycle continued, leading to the worst housing crash in almost one hundred years.

What’s happening now…

Again, Americans are seeing their home equity grow. Today, over 48% of all single-family homes in the country have over 50% equity, and yes, some families are tapping into that equity. However, this time around, homeowners are not making irresponsible decisions. According to the latest information from Freddie Mac, the total equity being “cashed out” is a fraction of what it was leading up to the crash. Here are the numbers:

2008 vs. Now: Are Owners Using Their Homes as ATMs Again? | MyKCM

Bottom Line

The recklessness that accompanied the build-up in equity prior to the last crash does not exist today. That makes this housing market much more secure than the one we had heading into 2008.

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

 

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

Where Are Interest Rates Headed in 2019?

Sacramento Real Estate

Where Are Interest Rates Headed in 2019?

We ran across this great post – courtesy of the good folks at Keeping Current Matters and thought you might enjoy the read.

This weeks wild stock market performance was due in part to the Fed Chairman last week saying rates would hold in 2019 and another Fed board member saying Monday they would go up. Take you pick. What it means to me is no one really knows for sure. What we do know is rates are still at historic lows and prices are flattening out. When is the best time to buy? When YOU are ready. Call us at 916-660-5823 for details

Where Are Interest Rates Headed in 2019? | MyKCM

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.

Where Are Interest Rates Headed in 2019? | MyKCM

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!

Let’s take a look at a historical view of interest rates over the last 45 years.

Where Are Interest Rates Headed in 2019? | MyKCM

Bottom Line

Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

 

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

HOMEOWNERS AGED 65+ HAVE 48X MORE NET WORTH THAN RENTERS

Sacramento Homes

Homeowners Aged 65+ Have 48x More Net Worth Than Renters

We ran across this great post – courtesy of the good folks at Keeping Current Matters and thought you might enjoy the read.

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | MyKCM

Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. Their latest survey data covers responses from 2013-2016.

The study revealed that the median net worth of a homeowner was $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013).

These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter.

There are many who see that statistic and point toward how broad the range of respondents are for the Federal Reserve survey. Their study includes all economic and social groups and also includes all age groups. The argument is that older respondents have a higher likelihood of being homeowners, while the home ownership rate among younger survey takers is much lower.

Recently, 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!

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | 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.

Homeowners Aged 65+ Have 48x More Net Worth Than Renters | MyKCM

Bottom Line

As a homeowner you put your monthly mortgage payment to work for you, building your net worth with every payment.

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

 

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

7 Essential Steps to Follow When Buying A Home

7 essential steps to buying a home

7 Essential Steps to Follow When Buying a Home

What 7 steps are MUST Dos When Buying a Home. Lets find out now…

7 essential steps to buying a homeHi Im Mike with the Rigley Realty Group. Whether buying or selling, for the best real estate information subscribe to our channel and hit the bell to be notified when we post a new video every Wednesday

Want to know what 7 steps should never be skipped when buying a home and why? Lets find out now…

  • Pull your credit and check your score.

Your credit report and corresponding score are your golden tickets to buying a home. They showcase your credit responsibility and worthiness. Your credit score can seriously impact your mortgage rate. The higher your credit score, the lower your interest rate will be. This means you’ll end up owing a lot less money over the life of the loan.

  • Review your budget

If you’re working on a clean bill of credit health, give your budget a hard assessment. Use the 28-36 rule to see where your money is going. This is when your maximum household expenses shouldn’t exceed 28 percent of your gross monthly income. Your debt, like credit cards and loans, shouldn’t exceed 36 percent.

Your debt-to-income ratio, or DTI, is important to lenders for determining how much home you can afford and if you’re a good candidate to receive a mortgage. You might discover you need to make some adjustments, like spending less on travel and clothing, for example, to make room for a mortgage payment.

Pre-approved and pre-qualified is not the same thing. It takes a couple of extra steps to get pre-approved but it shows your seller that you are a good candidate for purchase. This especially helps in a multiple offer situation

With only a few exceptions you will need a down payment and money for closing costs. Down payments can be as little as 3% and closing costs run between 2-5%. Where’s that money coming from. Gifts form friends or relatives? Seller paid concessions? Your savings? Don’t wait until the last minute to get this important piece figured out

  • Hire a great Realtor

Not all Realtors are the same. Do you know what they call the Realtor who has zero experience and just barley passed the exam? That’s right – Realtor! All kidding aside it takes more experience and education to get a hair dressers license than it does a real estate license. Be sure to see our video on what questions to ask your realtor before you hire them

  • Don’t skimp on inspections

Expensive but not nearly as expensive as finding out later your new home has termites or is structurally unsound. Exercise your right to complete all the inspections you want or need to feel comfortable before you buy

  • Have a plan “B”

I like to not focus on plan B because it takes my focus on plan A and that getting you the home of your dreams at a price you can afford. Do I have a plan B, C, D etc? Heck yea but its plan A that gets my attention

Well, there’s 7 steps that you should not short cut on your way to buying a home. Hope this helps. Still not sure what to do or need more information? Click on the contact us link below or call today and we’d be more than happy to schedule a Strategic Marketing Consultation with you

Also, want to get daily updates and interesting real estate tips and tricks? Like our Facebook page by clicking the Facebook link below

What do you think? Leave your comments in the section below

If this video was helpful, be sure to subscribe, share with a friend and hit the like button so I know to make more videos like this one!

I’ll see you on the next one

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

About the authors:

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here

 

Like us on Facebook www.facebook.com/RigleyRealtyGroup

How to Come up With a Down Payment

How to come up with a down payment

Want to buy a home but not sure how to get the down payment? Find out how…

How to come up with a down payment

Hi Im Mike with the Rigley Realty Group. Whether buying or selling, for the best real estate information subscribe to our channel and hit the bell to be notified when we post a new video every Wednesday

Saving for a home can be daunting. Here are a few suggestions that might help:

  • It doesn’t always have to be 20%. There are plenty of loan programs where you can get in with no money down and 100% financing. These include VA and USDA homes. You’d be surprised at what USDA considers “rural”
  • While Kickstarter and GoFundMe may not be the right place there are sites like FeatherTheNest.com that allow you to set up a gift registry much like a wedding or baby registry where contributions to your down payment can be made to a linked account.
  • Family gifts or loans. Family members can gift you funds to close. Be sure to check with your lender before the gift is made so the funds can be properly sourced. If it’s a loan that needs to be paid back it might influence how much your lender is willing to loan so make sure you disclose the terms.
  • State and local down payment assistance programs. Here in California its possible to get up to $15,000 in assistance. Many times without having to pay it back.
  • Tapping into retirement accounts. Its your money. Yes you will more than likely have to pay your retirement account back but it’s one way of getting those funds to work for you now and latter.
  • Then there is always save for it. I know right! What a concept. Live below your means and save for your down payment. Almost doesn’t seem American to do it that way. Just kidding. Tried and true saving can be the most rewarding of all the other ways. Give it a try.

Still not sure what to do or need more information? Click on the contact us link below or call today and we’d be more than happy to schedule a Strategic Marketing Consultation with you

Also, want to get daily updates and interesting real estate tips and tricks? Like our Facebook page by clicking the Facebook link below

What do you think? Leave your comments in the section below

If this video was helpful, be sure to subscribe, share with a friend and hit the like button so I know to make more videos like this one!

I’ll see you on the next one

Looking to buy a Home in Sacramento? You’ve come to the right place. Search all homes in Sacramento and surrounding areas from the comfort of your own home. Call Mike and Jennifer Rigley at 916.660.5823

Need help finding that perfect place to call home?

Looking for a top Sacramento realtor? Call the Rigley Realty Group  today at 916-660-5823 or log on to www.RigleyRealtyGroup.com to start your on-line home search now. Call us today – you’ll be glad you did.

About the authors:

Mike and Jennifer Rigley are one of Sacramento’s top ranked Real Estate Teams and 5 Star Ranked Real Estate Professionals. Selling Real Estate Full time since 2004 with well over 1,500 successful closings Mike and Jennifer Rigley are here to help your dreams of Home Ownership come true.

Mike and Jennifer Rigley of the Rigley Realty Group come with over 15 + years experience helping buyers, sellers and investors realize their Real Estate dreams. Including:

  • 35+ Year Sacramento Residents
  • Over 1,500 homes sold since 2003 – 10x the average agent
  • Team Approach for Maximum Client Satisfaction
  • Ranked in the Top 25 of all agents & companies county wide in both the number of listings & sales since 2004
  • Top 500 Teams All Companies in California for Production
  • Sacramento Magazine 5 STAR Agent

See our profile on Zillow or Redfin here

When You are Ready, Here are three ways we can help:

Start your home search Click Here

Get a Broad Range Value of your Home Click Here

Contact Mike or Jennifer Directly via Email Click Here