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A Recession Does Not Equal a Housing Crisis

by Christie Cannon

 

A Recession Does Not Equal a Housing Crisis [INFOGRAPHIC] | MyKCM
 

Some Highlights:

  • There is plenty of talk in the media about a pending economic slowdown.
  • The good news is, home values actually increased in 3 of the last 5 U.S. recessions, and decreased by less than 2% in the 4th.
  • Many experts predict a potential recession is on the horizon. However, housing will not be the trigger, and home values will still continue to appreciate. It will not be a repeat of the crash in the 2008 housing market.

Moving with Kids...

by Christie Cannon

Top Priorities When Moving with Kids

Top Priorities When Moving with Kids | MyKCM
 

According to the Pew Research Center, around 37% of U.S students will be going back to school soon and the rest have already started the new academic year. With school-aged children in your home, buying or selling a house can take on a whole different approach when it comes to finding the right size, location, school district, and more.

Recently, the 2019 Moving with Kids Report from the National Association of Realtors®(NAR) studied “the different purchasing habits as well as seller preferences during the home buying and selling process.” This is what they found:

When Purchasing a Home

The major difference between the homebuyers who have children and those who do not is the importance of the neighborhood. In fact, 53% said the quality of the school district is an important factor when purchasing a home, and 50% select neighborhoods by the convenience to the schools.

Buyers with children also purchase larger, detached single-family homes with 4 bedrooms and 2 full bathrooms at approximately 2,110 square feet.

Furthermore, 26% noted how childcare expenses delayed the home-buying process and forced additional compromises: 31% in the size of the home, 24% in the price, and 18% in the distance from work.

When Selling a Home

Of those polled, 23% of buyers with children sold their home "very urgently," and 46% indicated "somewhat urgently, within a reasonable time frame." Selling with urgency can pressure sellers to accept offers that are not in their favor. Lawrence Yun, Chief Economist at NAR explains,

“When buying or selling a home, exercising patience is beneficial, but in some cases – such as facing an upcoming school year or the outgrowing of a home – sellers find themselves rushed and forced to accept a less than ideal offer.”

For sellers with children, 21% want a real estate professional to help them sell the home within a specific time frame, 20% at a competitive price, and 19% to market their home to potential buyers.

Bottom Line

Buying or selling a home can be driven by different priorities when you are also raising a family. If you’re a seller with children and looking to relocate, let’s get together to navigate the process in the most reasonable time frame for you and your family.

A Latte A Day...

by Christie Cannon

 

A Latte a Day Keeps Homeownership Away [INFOGRAPHIC] | MyKCM
 

Some Highlights:

  • The pumpkin spice latte is launching soon, so you may be tempted to spend your extra cash on a daily caffeine fix, but that small expense can add up to a big number – fast!
  • Saving for a down payment takes a little discipline, so limiting your extra purchases (like a latte a day from your favorite coffee shop) will help you get there faster.
  • Depending on where you live, putting away just a small amount each day will get you to the average down payment you may need for homeownership faster than you think.

Increase Your Family's Net Worth

by Christie Cannon

A Great Way to Increase Your Family’s Net Worth

A Great Way to Increase Your Family’s Net Worth | MyKCM
 

Every three years, the Federal Reserve conducts its Survey of Consumer Finances. Data is collected across all economic and social groups. The latest survey data covers 2013-2016.

The study revealed that the median net worth of a homeowner is $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.

Owning a home is a great way to build family wealth.

As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.

That is why Gallup reported Americans picked real estate as the best long-term investment for the sixth year in a row. According to this year’s results, 35% of Americans chose real estate. Stocks followed at 27%, then savings accounts and gold.

Bottom Line

If you want to find out how you can use your monthly housing cost to increase your family’s wealth, let’s get together to help you through the process.

Developer of Frisco's $2 billion Wade Park is Out of the Deal!

by Christie Cannon

 

 

A New York-based lender that took control of one of Frisco's highest-profile properties says it's slowly moving forward with plans for the huge project.

But original owner Thomas Land & Development won't be part of the Wade Park development, according to officials with Gamma Real Estate, which loaned $150 million on the Wade Park site.

"After he was in default on the loan from Gamma Real Estate for more than a year, Stan Thomas' entity conveyed the property by deed in lieu of foreclosure," said Gamma Real Estate president Jonathan Kalikow. "Stan Thomas has no remaining interest in Wade Park."

Kalikow said his firm has been working to revive the 175-acre development on the Dallas North Tollway.

It's been more than two years since work halted on the $2 billion project that was planned to include high-rise offices, hotels, apartments and retail space.

Ground was broken for high-rise mixed-use development in 2014, with the first phase of construction scheduled to open in 2016. But the project ran into delays and finally ground to a halt.

Since 2017, the prominent Frisco property has sat with a big hole in the ground and a few half-finished buildings. In February, ownership of the property changed to a new partnership.

But Atlanta-based developer Thomas said he's continued to work on resurrecting the deal.

"We are real, real close," Thomas said this week. "Hopefully I can tell you something in the next week or two."

Kalikow said the Wade Park development will no longer include Thomas Land & Development.

"We are in the process of determining the best path forward," Kalikow said. "It is not a path that includes Stan Thomas. We have been in communication with Frisco. Things are in progress."

Real estate brokers and developers say that representatives have quietly shopped the Wade Park property around to see if another builder or investor would like a crack at the deal.

Wade Park was once the biggest part of Frisco's highly touted $5 billion mile.

While other major developments nearby — including the Dallas Cowboys' Star complex, Frisco Station and The Gate — have moved ahead with construction, Wade Park has been stalled.

Kalikow said Gamma Real Estate is still committed to the project, which is considered one of Frisco's most prime properties.

"Absolutely," he said. "We want to have all our ducks in a row."

Frisco officials say they are talking with the firm.

"We're very encouraged to learn Wade Park has a new property owner," Frisco Mayor Jeff Cheney said in a statement. "During the first week in August, city staff met face-to-face with Gamma Real Estate executives, who are representatives of the new owner, stating they're committed to cleaning up the property and ensuring the site is secure. 

"The Gamma team also tells us they're working with potential developers," Cheney said. "This property is in a prime location and we're hopeful Gamma Real Estate will be successful in securing a new developer who will transform the area to its fullest potential."

 

ARTICLE PROVIDED BY: THE DALLAS MORNING NEWS

Buying A Home: Do You Know The Lingo?

by Christie Cannon

 

Buying a Home? Do You Know the Lingo? [INFOGRAPHIC] | MyKCM
 

Some Highlights:

  • Buying a home can be intimidating if you’re not familiar with the terms used throughout the process.
  • To point you in the right direction, here’s a list of some of the most common language you’ll hear when buying a home.
  • The best way to ensure your home-buying process is a positive one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher.’

The Benefits of Growing Equity in Your Home

by Christie Cannon

The Benefits of Growing Equity in Your Home

The Benefits of Growing Equity in Your Home | MyKCM
 

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.

Displaying blog entries 1-7 of 7

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Photo of Christie Cannon Real Estate
Christie Cannon
Keller Williams Realty
4783 Preston Road #300
Frisco TX 75034
972-215-7747
Fax: 214-853-4774
Keller Williams Frisco - The Christie Cannon Team - http://www.christiecannon.com

 

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