61% Of First-Time Buyers Put Down Less Than 6%

1/31/2018

61 % of First-Time Buyers Put Down Less Than 6%

How much do I need for a down payment? Troy Erickson Realtor

According to the National Association of Realtors’ latest Realtors Confidence Index, 61% of first-time homebuyers purchased their homes with down payments below 6% from October 2016 through November 2017.

Many potential homebuyers such as yourself, may believe that a 20% down payment is necessary to buy a home. Do not disqualify yourself before even trying, because statistics have proven that is not the case. The median down payment for all buyers in 2017 was just 10% and that percentage drops to 6% for first-time buyers.

Zillow Senior Economist Aaron Terrazas’ recent comments shed light on why buyer demand has remained strong.

“Looking into 2018, rent is expected to continue gaining. More widespread rent growth could mean
home buying demands stay high, as renters who can afford it move away from the unpredictability
of rising rents toward the relative stability of a monthly mortgage payment instead.”

It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs, and finally attaining their dream homes.

Bottom Line

If you are one of the many first-time buyers who is not sure if you would qualify for a low-down payment mortgage, contact me today. I can connect you with the best lenders around, who can set you on your path to homeownership!

If you have any questions about the loan process and what you may qualify for, just call/text me at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
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Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.

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712,000 Homes In The US Regained Equity In The Past 12 Months!

1/29/2018

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712,000 Homes In The US Regained Equity In The Past 12 Months!

Homes gaining equity | Troy Erickson Realtor

CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today.

The report also revealed:

The average homeowner gained approximately $14,900 in equity during the past year.
Compared to Q3 2016, negative equity decreased 22% from 3.2 million homes, or 6.3% of all mortgaged properties.
U.S. homeowners with mortgages (roughly 63% of all homeowners) have seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8%, year-over-year.

The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.) As you can see, many states now have 95% or more of their homes with positive equity, with Arizona having 92.8%.

Arizona has 92.8% of their homes with positive equity | Troy Erickson Realtor

Significant Equity Is on The Rise

Frank Nothaft, Chief Economist at CoreLogic, believes this is great news for the “housing market.” He went on to say:

“Homeowner equity increased by almost $871 billion over the last 12 months, the largest increase in
more than three years. This increase is primarily a reflection of rising home prices, which drives up home
values, leading to an increase in home equity positions and supporting consumer spending.”

Of the 95.1% of homeowners with positive equity in the U.S., 82.9% have significant equity (defined as more than 20%). This means that more than three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.

The map below shows the percentage of homes by state with a mortgage and significant equity. As you can see, there are 28 states where at least 80.0% of homes have more than 20% equity. In Arizona, 75% of homes have significant equity, while the average in the United States is 82.9%.

Buying a home in Chandler or the East Valley builds equity | Troy Erickson Realtor

Bottom Line
If you are one of the many homeowners who are unsure of how much equity you have in your home and are curious about your ability to move, I would be happy to meet with you to help evaluate your situation.

If you are debating whether or not now is the time to list your home for sale, know that if things continue the way they have been, you will continue to gain equity in your new home! Meet with me today, and I can explain to you exactly what’s going on in your local area!

If you have any questions about how to list your home and buy a new home simultaneously, just call/text me at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
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The Benefits Of Home Ownership Go Beyond The Financial

1/26/2018

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The Benefits Of Home Ownership Go Beyond The Financial

Benefits of owning a home in Chandler or the East Valley | Troy Erickson Realtor

Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this.

Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors:

Consistent findings show that homeownership does make a significant positive impact on educational achievement.
Several researchers have found that homeowners tend to be more involved in their communities than renters.
Early studies of home ownership and health outcomes found that homeowners and children of homeowners are generally happier and healthier than non-owners, even after controlling for factors such as income and education levels that are also associated with positive health outcomes and positively correlated with home ownership.

Bottom Line

Home ownership means something more to people and their families than just the financial considerations. If you are ready to find a place where you can start putting down some roots, I can help you find the perfect home you could be moving into soon!

If you have any questions about the home buying process or new home buyer loans, just call/text me at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
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Time On The Market Drops To New Low In 2017

1/25/2018

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Time On The Market Drops To New Low In 2017

Homes are selling fast in Chandler and the East Valley | Troy Erickson Realtor

According to recently released data from the National Association of Realtors (NAR), the median amount of time a home spent on the market hit an all-time low of only three weeks in 2017.

Strong buyer demand, a good economy, and a low inventory of new and existing homes for sale created the perfect storm to accelerate the time between listing and signing a contract. The time needed to sell a home has dropped substantially since its highest mark of 11 weeks in 2012.

The chart below shows the median weeks on the market from 1987 to today.

Time on market for homes sold is decreasing | Troy Erickson Realtor

Bottom Line
If you are a homeowner who is debating whether or not to list your home for sale, know that national market conditions are primed for a quick turnaround! Meet with me today, and I can explain to you exactly what’s going on in your local area!

If you have any questions about the home selling process or how to get the most money for your home, just call/text me at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
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Buying A Home Is More Affordable Than Renting In 54% Of US Counties

1/22/2018

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Buying A Home Is More Affordable Than Renting In 54% Of US Counties, and Many Areas Within Chandler and the East Valley

Buying a home is more affordable than renting in many areas of Chandler and the East Valley | Troy Erickson Realtor

According to ATTOM Data Solutions’ 2018 Rental Affordability Report, “buying a median-priced home is more affordable than renting a three-bedroom property in 240 of 447 (or 54% of) U.S. counties analyzed for the report.”

For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Daren Blomquist, Senior Vice President of ATTOM Data Solutions had this to say:

“Although buying is still more affordable than renting in the majority of U.S. housing markets, the majority is shrinking as home price appreciation continues to outpace rental growth in most areas.”

However, the report also shows that the average fair market rent rose faster than average weekly wages in 60% of the counties analyzed in the report (266 of 447 counties). With rents rising, many renters should consider buying a home soon.

Bottom Line

Rents will continue to rise, and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, meet with a local professional who can help you determine if you are able to buy a home of your own and lock in your monthly housing expense.

Not only is home ownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing, find out if you are able to buy a home today!

Start your new home search now, and start building up your wealth today. I can help set up a free search on our MLS that will give you access to all available homes for sale, just like if you were a real estate agent. Find a city you want to live in and starting seeing what types of homes you could be moving into soon!

If you have any questions about the home buying process or new home buyer loans, just call/text me at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
Facebook Page

Troy Erickson Realtor has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.

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How Rising Home Prices Will Help You Build Family Wealth In 2018

1/21/2018

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How Rising Home Prices Will Help You Build Family Wealth In 2018

How to build wealth by owning a Chandler or East Valley Home | Troy Erickson Realtor

Over the next five years, home prices are expected to appreciate on average by 3.35% per year and to grow by 24.34% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume you purchase and close on a $250,000 home this month (January 2018). If we only look at the projected increase in the price of that home, how much equity can you earn over the next 5 years?

Building wealth by owning a home | Troy Erickson Realtor

Since the experts predict that home prices will increase by 4.2% in 2018, as homeowners, you will have gained $10,500 in equity in just one year.

Over a five-year period, your equity will increase by nearly $45,000! This figure does not even take into account your monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is home ownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

Start your new home search now, and start building up your wealth today. I can help set up a free search that will give you access to all available homes for sale, just like a real estate agent. Find a city you want to live in and starting seeing what types of homes you could be moving into soon!

If you have any questions about the home buying process or new home buyer loans, just call/text me at 602-295-6807 and I can help answer all of your questions!

"Real Estate is not just a job for me, it's about making a difference in the lives of others"

Troy Erickson Realtor
Call/Text: (602)295-6807
[email protected]
Linkedin Profile
Facebook Page

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