Luxury Homes Market is turbocharged...

 

Rise in all-cash transactions turbocharge price gains for luxury homes ~ MONEYWATCH Published: 4/25/2024 Well-heeled home shoppers are increasingly paying cash, helping turbocharge price gains for the most expensive U.S. homes. The median sale price of luxury homes — valued in the top 5% of the market nationally — hit an all-time high $1.23 million in the first quarter, an increase of 8.7% from the same period last year, according to an analysis by Redfin. That's almost twice the increase seen in non-luxury homes.  For homes valued in the middle-third of the market, the median sale price rose 4.6% from a year ago to $345,000, according to the report. Redfin didn't factor in price trends for homes with an estimated value in the bottom third of the market. One reason for the diverging sales data is that wealthy home shoppers are more likely to have the financial flexibility to bypass financing hurdles by paying in cash. The trend is helping accelerate the growth in home sale prices among the most high-end homes at a faster clip than less expensive properties. Consider, some 46.8% of luxury homes were bought entirely with cash in the three months ended February 29, according to Redfin. That's the highest share of all-cash luxury home purchases in at least a decade and it's up from 44.1% from a year earlier. Prices for the most expensive homes have kept climbing even as the inventory of high-end properties has increased sharply this year. All told, the number of luxury homes on the market jumped 12.6% in the first quarter compared to a year earlier, while new listings surged nearly 19%, Redfin said. In contrast, the inventory of homes in the middle-third of the market fell 2.9% in the January-March period from a year earlier. Home prices are growing more unaffordable for the average American, in part because inventory has been low.  Homeowners have been hesitant to sell because they would then face buying another property at today's higher mortgage rates. Some homeowners have also watched their home equity grow in value, making them even more reluctant to walk away from that wealth growth.  Sales of luxury homes rose 2.1% in the first quarter versus a year earlier, while sales of properties in the middle-third of the market fell 4.2%, according to the report. Buying a house is costlier than anytime in at least the last decade, with property buyers hit with the double whammy of rising mortgage rates and home prices, Redfin has said. Visit us

Bend's Best Buy today is $850k on the Westside with 2 stories, 3 bedrooms..... Call me for particulars 541-771-8947

Builder now offering $20,000 to the Buyer to use as they wish !

 Communities:  Acapella, Artisan's Village, Canyon Trails and Willowbrook.  Mary  541-771-8947

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COMING SOON ! Brick front townhome near the River Park in the Old Mill District. Approximately $1m

 Off of Broadway & Colorado/Arizona

Coming soon to the Shevlin Park area in desirous Three Pines...

MLS 220180419 | Mary P Gemba

16 new residential listing just hit the market today. CALL ME if you're shoppin' 541-771-8947 I offer an HOW when we close the deal

Some good buys today featured on today's MLS Tour Sheet. Call me if you're shopping! I offer an HOW at your closing. 541-771-8947

10 mistakes first-time home-buyers might make.....

 Buying your first home is an exciting experience, but it is also a complicated process. Learning all you can about that process before you get started is essential to reaching your end goal — buying a house, you'll be proud to call home at a price you can afford. One of the most important things to learn about is how to avoid costly missteps along the way, so here are ten mistakes to avoid as a first-time home buyer:

1. Not dealing with credit reports ahead of time
   Check your credit reports — even if you are sure you have good credit. Report errors are common, and they can increase your interest rate or even make it difficult to get approved for a loan. Get copies of your reports and make sure they are accurate. If not, get them corrected before they are examined by lenders.
2. Not knowing what you can comfortably afford
   You need a solid budget in place to avoid getting in over your head when buying a house, so tally up your expenses carefully. Subtract the total from your take-home pay and see what's left every month for an accurate appraisal of how much you can afford to pay for your new home.
3. Not getting pre-approved for a loan
   Having a pre-approval in hand when you're ready to make an offer on a home signals the seller that you are a serious buyer, prepared to make a deal and follow through. Not having one, especially in a competitive market, can result in your offer being rejected in favor of one from a buyer who has all their ducks in a row.
4. Failing to shop around for the best mortgage deal
   Many first-time homebuyers pay more than they should for a home loan by getting a mortgage from the first lender they speak to. Get quotes from at least three to compare interest rates, fees, and terms.
5. Under-estimating the costs of home buying
   First-time home buyers are often taken off-guard by expenses that come up during the home-buying process. Expenses to budget include appraisal and home inspection fees, and the biggie, closing costs, which are generally between 2 and 5 percent of the purchase price of the home.
6. Applying for new credit or spending too much before the closing
   Your mortgage is approved and the closing date is set. Now you're home free, right? Not quite. Your lender will check your credit again just before closing, and if you have made large purchases or opened new credit accounts, your credit score could fall. This may result in a higher interest rate or even a mortgage cancellation.
7. Looking for perfection and overlooking potential
   Great homes can be decorated badly, so being able to overlook cosmetic, easy-to-fix details to see a home's potential is key to making your best deal.
8. Failing to consider the neighborhood
   You may love the house, but will you hate the neighborhood? Check it out before you sign on the dotted line.
9. Skipping the inspection
   If you really love a home, it can be tempting to speed up the process by skipping the inspection. This can be an extremely costly mistake, leading to large, unexpected expenses later.
10. Not using an agent
    A good buyer's agent will protect your interests — and only your interests — as you navigate the home-buying process. Having someone solidly in your corner when you're buying a house is invaluable when it comes to avoiding the common pitfalls first-time home buyers often encounter on the road to becoming a new homeowner.

One way to pay your buying broker per one of my mortgage lending gurus...

 

With all of the unknows swirling around, here’s a breath of fresh air — some certainty around buyer agent compensation. Yesterday FHA announced that BAC is not an “interested party contribution” so long as its “reasonable in amount” and consistent with “state and local law or custom”. Translation: Business As Usual for FHA. Buyers can ask a seller pay for your services plus up to an additional 6% of the usual seller credits. Here’s language you can use for an FHA-financed offer with a request for seller-paid BAC: “Per local custom, seller agrees to pay X% of the price to buyer’s agent commission. Additionally, seller agrees to pay up to $X toward buyers closing costs, prepaids, discount points, temporary rate buydown and/or home warranty of buyer’s choice.” “Per local custom” gives underwriters a little added cover to exclude BAC from interested-party contributions. The laundry list allows maximum flexibility to spend credits in most beneficial way for your buyer (without bugging you for an addendum). This week’s YouTube video is as much for you as it is for your clients: Mortgages for Self-Employed | Sole Proprietor Income | Schedule C Analysis Seeing your income through a lender’s eyes is the key to maximizing loan qualifying income while keeping your tax bill low. Those two things sound like they’re at odds, but they don’t have to be. I hope you can find the time to watch — and please share with your self-employed clients.

Julee Felsman & the Workshop Team (She/Her) NMLS# 120831 Branch Manager/SVP of Mortgage Lending (503) 799-3711  |  Email Me  |  Visit My Website 1300 SE Stark Street, Suite 111 Portland, OR 97214

26 new residential listings in Bend on today's HOT LIST Call me if you're shopping 541-771-8947 I offer an HOW at the closing