The Roselli Team - Your Real Estate Experts

 As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon? Mortgage Rates Will Likely Increase, but Remain Low Many experts are projecting a rise in interest rates. The latest   Quarterly Forecast   from   Freddie Mac   states : “ We forecast that   mortgage rates will continue to rise through the end of next year.   We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.” However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below   historical averages . Rates remaining low is good news for homebuyers who are looking to maximize their   purchasing power . The same report from   Freddie Mac  

What To Expect as Appraisal Gaps Grow In today’s real estate market, low inventory and high demand are driving up home prices. As many as   54%   of homes are getting offers over the listing price, based on the latest   Realtors Confidence Index   from the   National Association of Realtors   (NAR). Shawn Telford,   Chief Appraiser   at   CoreLogic ,   elaborates : “The frequency of buyers being willing to pay more than the market data supports is increasing.” While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the   appraisal   for the house. It’s called an   appraisal gap , and it’s happening more in today’s market than the norm. According to recent data from   CoreLogic ,   19%   of homes had their appraised value come in below the contract price in April of this year. That’s   more than double   the percentage in each of the two previous Aprils. The chart below uses the latest insights from NAR’s Realtors Co

Selling a house is a time-consuming process – especially if you decide to do it on your own, known as a   For Sale By Owner (FSBO) . From conducting market research to reviewing legal documents, handling negotiations, and more, it’s an involved and highly detailed process that requires a lot of expertise to navigate effectively. That’s one of the reasons why the percentage of people selling their own house has declined from 19% to   8%   ( S ee graph below ): To help you understand just how much time and effort it takes to sell on your own, here’s a look at a few of the things you need to think about before putting that “For Sale” sign up in your yard. 1. Making a Good First Impression While it may sound simple, there are a lot of proven best practices to consider when prepping a house for sale. Do you need to take down your personal art? What’s the right amount of landscaping to boost your curb appeal? What wall colors are most appealing to buyers? If you do this work on your own, you

The pandemic created a tremendous interest in   vacation homes   across the country. Throughout the last year, many people purchased second homes as a safe getaway from the challenges of the health crisis. With many professionals working from home and many students taking classes remotely, it made sense to see a   migration away   from cities and into counties with more vacation destinations. The   2021 Vacation Home Counties Report   from the   National Association of Realtors   (NAR) shows that this increase in vacation home sales continues in 2021. The report examines sales in counties where “ vacant seasonal, occasional, or recreational use housing account for at least 20% of the housing stock ” and compares that data to the overall residential market. Their findings show: Vacation home sales   rose by 16.4%   to 310,600 in 2020, outpacing the 5.6% growth in total existing-home sales. Vacation home sales are   up 57.2% year-over-year   during January-April 2021 compared to the 20%

Building financial wealth and stability remains one of the   top reasons   Americans choose to own a home, and as a homeowner, your wealth often grows without you even realizing it. In a recent paper published by the   Urban Institute,   Home Ownership is Affordable Housing , author Mike Loftin illustrates how homeowners increase their equity and their wealth simply by making monthly mortgage payments: “The principal portion that reduces the loan balance builds the homeowner’s equity. In doing so, the principal payments behave like an automatic savings account. The principal payment is not money going out; it is money staying in.” But home equity – the difference between the value of your home and what you currently owe – isn’t just built through your monthly principal payments. Home price appreciation plays a vital role in growing your equity and, ultimately, your wealth. As   Freddie Mac   explains : “Homeownership has cemented its role as part of the American Dream, providing famili

You may have been told that it’s important to get   pre-approved   at the beginning of the   homebuying   process, but what does that really mean, and why is it so important? Especially in today’s   market , with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer. Being intentional and competitive are musts when buying a home right now. Pre-approval from a lender is the only way to know your true   price range   and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market. With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the   National Association of Realtors   (NAR), homes are receiving an avera

The real estate market is soaring today. Residential home values are rising, and that’s a big win for homeowners. In 2020, there was a double-digit increase in home values – a trend that’s expected to head toward similar levels this year. However, skyrocketing prices are causing some to start questioning affordability in the current housing market. Many are quick to emphasize the fact that homes today are less affordable than they were last year.   Black Knight , a leading provider of data and analytics across the homeownership life cycle,   just reported   on the issue. The findings show the historical averages of the national   payment to income ratio , which they define as “ the share of the median income needed to make the monthly payments on the median-priced home. ” Their study reveals: The average over the last 25 years was 23.6% The average over the last 5 years was 20.1% The average today stands at 20.5% Right now, housing payments are slightly less affordable than the five-ye

We’re in the ultimate sellers’ market right now. If you’re a homeowner thinking about selling, you have a huge advantage in today’s housing market. High buyer demand paired with very few houses for sale makes this the optimal time to sell for those who are ready to do so. Whatever the move you want to make looks like, here’s an overview of what’s creating the prime opportunity to sell this summer. High Buyer Demand Demand is strong, and buyers are actively searching for homes to purchase. In the   Realtors Confidence Index Survey   published monthly by the   National Association of Realtors   (NAR), buyer traffic is considered “very strong” in almost every state. Homebuyers aren’t just great in number right now – they’re also determined to find their dream home. NAR shows the average home for sale today receives five offers from hopeful buyers. These increasingly frequent bidding wars can drive up the price of your house, which is why high demand from competitive homebuyers is such a w