Northwest Arkansas Houses & Homes For Sale

Mortgage Rates, January 13, 2022

Thu, 20 Jan 2022 07:07:26 -0800

Mortgage Rates, January 13, 2022

"Mortgage rates surged in the second week of the new year. The 30-year fixed mortgage rate rose to 3.45% from 3.22% the previous week. If inflation continues to grow at the current pace, rates will move up even faster in the following months. Nevertheless, the Fed has already started its efforts to control inflation by pulling back on bond purchases and raising interest rates later this year. Thus, if inflation slows down, mortgage rates may not rise as much, remaining near historic lows. NAR expects inflation to start easing in the second half of the year, growing by 4.5% by the end of 2022.

Nevertheless, amid rising rates, owning a home remains more affordable than renting. After comparing the monthly mortgage for owning a median-priced home ($1,260) to the average rent ($1,540), it's still more affordable to buy a home. Taking into consideration the financial and social benefits of owning a home, the gap between owning and renting is even larger. For instance, people who bought their home a year ago have already accumulated more than $50,000 in equity in just one year.

Meanwhile, it is estimated that more than 35% of renters can currently afford to buy the typical home. This translates to nearly 15.1 million renter households. These renters are typically 40 years old, 42% of them are married, and most of them have a bachelor's degree or higher. Looking at their expenses, these renters spend $1,450 on average for rent. Thus, as it makes more sense for them to own than rent a home, expect homebuying activity to remain strong this year."

Two Ways Homebuyers Can Win in Today’s Market

Wed, 12 Jan 2022 12:42:19 -0800

Two Ways Homebuyers Can Win in Today’s Market

If your goal is to purchase a home this year, you might be looking for any advantage you can get in today’s sellers’ market. While competition is still fierce for homebuyers, there are ways you can win and secure the home of your dreams, even in a hot market.

Act Early and Save

The earlier you act this year, the more affordable your purchase will be. That’s because experts project mortgage rates will rise as we move deeper into 2022. According to Freddie Mac, the average 30-year fixed-rate mortgage is expected to be 3.5% by year’s end. Experts forecast home prices will rise as well.

That means the longer you...Read More

Home Sales Expected to Continue Increasing In 2020

Mon, 09 Sep 2019 09:01:51 -0700

Home Sales Expected to Continue Increasing In 2020

Freddie Mac, Fannie Mae, and the Mortgage Bankers Association are all projecting home sales will increase nicely in 2020.

Below is a chart depicting the projections of each entity for 2019, as well as for 2020.As we can see, Freddie Mac, Fannie Mae, and the Mortgage Bankers Association all believe homes sales will increase steadily over the next year. If you’re a homeowner who has considered selling your house recently, now may be the best time to put it on the market. #NinjaSoldIt #NinjaRealty

A+ Reasons to Hire a Real Estate Pro

Fri, 06 Sep 2019 10:48:05 -0700

A+ Reasons to Hire a Real Estate Pro

Some Highlights:

Hiring a real estate professional to help you buy your dream home or sell your current house is one of the most powerful decisions you can make.
A real estate professional has the experience to help you confidently navigate through the entire process.
Make sure you work with someone who knows the current market conditions and can simply and effectively explain them to you and your family. #NinjaSoldIt #NinjaRealty

5 Reasons to Sell This Fall

Fri, 06 Sep 2019 08:33:51 -0700

5 Reasons to Sell This Fall

Below are 5 compelling reasons listing your home for sale this fall makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase…and are in the market right now. More often than not, in many areas of the country, multiple buyers are competing with each other to buy the same home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is still under the 6-month supply that is needed for a normal market. This means that in the majority of the country, there are not enough homes for sale to satisfy the number of buyers.

Historically, a homeowner would stay an average of six years in his or her home. Since 2011, that number has hovered between nine and ten years. There is a pent-up...Read More

Housing Supply Not Keeping Up with Population Increase

Tue, 20 Aug 2019 08:36:07 -0700

Housing Supply Not Keeping Up with Population Increase

Many buyers are wondering where to find houses for sale in today’s market. It’s a true dilemma. We see an increase in buyer demand, but the supply available for purchase isn’t keeping up.

The number of new housing permits issued prior to the great recession increased for 15 years until 2005 (from 1.12 million in 1990 to a pre-recession peak of 2.16 million in 2005). According to Apartment List,

“From 1990 to 2005, the number of single-family permits issued more than doubled, while the number of multi-family permits grew by 49 percent.”

When the housing market crashed, the number of new homes permitted decreased to its lowest level in 2009 (see below):Since then, supply and demand have been out of balance when it comes to new construction. According to the same report,

“Construction of single-family homes has recovered much more slowly — the number of single-family housing units permitted in 2018 was barely half the number permitted in 2005.”

Why is new construction so important?

As the U.S. population...Read More

A Great Way to Increase Your Family’s Net Worth

Mon, 19 Aug 2019 07:38:51 -0700

A Great Way to Increase Your Family’s Net Worth

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...Read More

Buying a Home: Do You Know the Lingo?

Fri, 16 Aug 2019 09:03:57 -0700

Buying a Home: Do You Know the Lingo?

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.’ #NinjaSoldIt #NinjaRealty

Busting the Myth About a Housing Affordability Crisis

Thu, 15 Aug 2019 11:30:24 -0700

Busting the Myth About a Housing Affordability Crisis

It seems you can’t find a headline with the term “housing affordability” without the word “crisis” attached to it. That’s because some only consider the fact that residential real estate prices have continued to appreciate. However, we must realize it’s not just the price of a home that matters, but the price relative to a purchaser’s buying power.

Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by 3.5% over the last year.

Let’s look at three different reports issued recently that reveal how homes are very affordable in comparison to historic numbers, and how they have become even more affordable over the past several months.

1. National Association of Realtors’ (NAR) Housing Affordability Index:

Here is a graph showing the index going all the way back to 1990. The higher the column, the more affordable homes are:We can see that homes are less affordable today (the green bar)...Read More

3 Expert Insights On Inventory In The Current Market

Thu, 15 Aug 2019 11:21:53 -0700

3 Expert Insights On Inventory In The Current Market

The current housing landscape presents greater home values, low interest rates, and high buyer demand. All of these factors point to the strong market forecasted to continue throughout the rest of the year.

There is, however, one thing that may cause the industry to tap the brakes: an overall lack of housing inventory. Buyer demand naturally increases during the summer months, but the current supply is not keeping up.

Here is a look at what a few industry experts have to say:

Lawrence Yun, Chief Economist at National Association of Realtors

“Imbalance persists for mid-to-lower priced homes with solid demand and insufficient supply, which is consequently pushing up home prices.”

Mark Fleming, Chief...Read More