Home Ownership is Affordable

Ok, so you don't believe it, but here's the truth.  Housing is at it's most affordable in a generation.  According to the National Association of Realtors Housing Affordability Index, there hasn't been a better home buying opportunity in 40 years.  This rise in affordability is attributed to a combination of lower home prices, record low mortgage rates and a slight (ever so slight) rise in family income.

Having said that, qualified families continue to face challenges due to overly stringent underwriting standards.  The unwillingness of banks to lend is holding back buyers and offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers.

Home ownership is still the American Dream and Realtors can make that happen!!!!

Should I Buy or Rent?

There's a question that has been asked time and again. For some people renting seems to be the easy answer. No maintenance, no long term commitment, the flexibility of being able to "get up an go" so to speak. I have to tell you however, owning a home has never been more affordable!

The National Association of Realtors Housing Affordability Index, compares median income, median home price and mortgage rates. An index value of 100 means a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home, (assuming a 20 percent down payment). The index rating for the first six month's of this year has been between 180 and 200.

To give you a better idea on buying vs renting, consider a family with an annual income of $60,000 renting at $1,000 per month. By comparison, a 30-year mortgage payment on a $170,000 home at the current rate of 4.5 percent, again assuming a 20 percent down payment, would be $700 per month. Just think of the savings! Do the math!

Home ownership builds communities. Check out the homes available throughout Northeast Indiana, visit http://www.neiaor.com/ today.

4th of July

Wow, can you believe it's the Fourth of July Holiday Weekend? Summer is moving along. Speaking of moving along, while you're out and about this weekend heading to the lakes, check out all the beautiful homes for sale. One of them just might catch your eye, particularly if you're looking for a new home or a summer place. With hundreds and hundreds of lakes throughout Northeast Indiana there are plenty of opportunities to find just the right place to hang your hat. Don't forget, your Realtors in Northeast Indiana can be found at http://www.neiaor.com/. They are professional, knowledgeable and live here too. So come on, enjoy the weekend, enjoy the sites and set your eyes on home!

Realtors Sharpen Their Skills in Northeastern Indiana

Our  housing market continues to improve in Northeastern Indiana.  It is a slow road to recovery but our Realtor members continue  to educate themselves with more knowledge and training to better meet and serve the needs of their clients.  Survey results from the 2011 NAR (National Association of Realtors) Member Profile shows strong growth in professional training.

35 percent of Realtors currently hold at least one out of six certifications in specialized training, up from 24 percent last year and 16 percent in 2009.  With the increase in distressed property sales, the most popular certification among those surveyed is the Short Sales and Foreclosures Resource Certification, which is held by 21 percent of Realtors, up from 12 percent in 2009.

If your looking for a home visit our website http://www.neiaor.com search all of our current listings, then visit our membership roster and contact the Realtor of your choice.

We're making home ownership a dream come true.

Are You Hung Up on HUD?

Join us for our next Realtor Session on Thursday July 21, 2011 at 11AM at the Association Office in Kendallville.  $5.00 fee includes lunch.  Join Angela Grable as she discusses:

1. Registering to bid on HUD properties
2. How to Bid on a HUD property
3. After your bid has been accepted
4. HUD's bidding periods
5. HUD facts followed by Q&A

Call Cindy at 260-347-1593 to make your reservation.  Seating is limited to 35 so call early.

Walkable Neighborhoods

In this fast paced society, we want everything now and at our finger tips. Come on, you know I'm right! We've learned over time that we Americans truly do favor walkable, mixed-used neighborhoods over those that require more driving. Some folks consider growth communities as those that offer shops, restaurants and local businesses in walking distance from their home.

According to the National Association of Realtors "Community Preference Survey, nearly 80 percent of survey respondents look for neighborhoods with plenty of sidewalks and other pedestrian-friendly features when searching  for a home.

It seems while space is important to home buyers, a lot of folks are willing to sacrifice square footage for less driving. Again 80 percent of respondents would prefer a single-family detached home and a shorter commute, but if that isn't an option, 60 percent of that group would chose a smaller home if it meant less driving.

See how walkable your neighborhood is by following this link: http://www.walkscore.com

Interesting

http://www.inman.com/news/2011/06/15/fannie-matches-freddies-1200-agent-bonus-reos

Vacation Homes

In Northeastern Indiana we have hundreds of lakes.  It is a vacation mecca...and a second home haven for many.  A recent study from the National Association of Realtors (2011 NAR Investment and Vacation Home Survey) showed vacation-home sales accounted for 10 percent of all transactions last year and investment sales were 17 percent of the overall market.  Those are staggering numbers and we're holding our own in our four county region as well as our neighbors in Kosciusko and Elkhart counties.

The median vacation-home price was $150,000 in 2010, while the median investment home price was $94,000.  The typical vacation-home buyer was 49 years old with a median household income of $99,500 and purchased a property that was a median distance of 375 miles from their primary residence.  Investment-home buyers had a median age of 45, earned $87,600 and bought a home within a median distance of 19 miles.

Thirty-four percent of vacation-home buyers said they plan to use the property as a primary residence in the future, as did 10 percent of investment buyers.

Contact one of our REALTORS today.  Visit our website http://www.neiaor.com  search for a home and find one of our dedicated and professional members to assist you.

Best Housing Markets

http://www.realtor.org/RMODaily.nsf/pages/News2011061301?OpenDocument

Qualified Residential Mortgage

Realtors voices must be heard when it comes to the issue of Qualified Residential Mortgage.  If this is allowed the rule will determine the way mortgage lending moves forward.  Analysts at J.P. Morgan Securities suggest that mortgage rates could rise by as much as three percentage points for loans that are subject to risk retention.  This would put the brakes on lending at a time when the housing market needs more people to buy homes.

So what does QRM mean for homebuyers?  The proposal is calling for a minimum 20% down payment.  I can tell you I didn't have 20% to put down the first time I purchased a home way back when.  Can you imagine with today's financial instablity how many folks can even come up with 10%.

If Washington truly wants to kill the housing market they have found the answer.  This initiative will shut out many credit-worthy borrowers.  Contact your Senator today and let he/she know how you feel about this.  Let's save the American Dream!

Realtor Session in June