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What does today’s Real Estate Client Really Want?

Dive into the current real estate trends and consumer behaviors to gain insights on pricing, mortgage rates, home equity, and buyer psychology. Understanding these key factors can help you navigate the market effectively and make informed decisions.

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What does today’s Real Estate Client Really Want?

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  1. What does today’s Real Estate Client Really Want? August Strategy Call

  2. “When getting help with money, whether it is insurance, real estate or investments you should alwayslook for a person with the heart a teacher, not the heart of a salesman.” - Dave Ramsey

  3. It’s not about having the dots. It’s about CONNECTING the dots!! - Seth Godin

  4. Buyers are coming back in force. One factor for the recent surge could have been due to the rising mortgage rates. As nearly always happens, the initial phase of rising rates nudges people to make decision now rather than wait later when the rates could be higher still. - Lawrence Yun, Chief Economist, NAR

  5. EXISTING Home Sales Y-O-Y by region NAR 8/2015

  6. Existing Home Sales in thousands Freddie Mac

  7. New Home Sales in thousands Freddie Mac

  8. PENDING Home Sales Y-O-Y by region NAR

  9. % Change in Sales from last year by Price Range NAR 8/2015

  10. Foot Traffic indicator of future sales NAR 9/2015

  11. EXISTING Home Prices Y-O-Y by region NAR 8/2015

  12. 12 Month Price Change Source: CoreLogic

  13. 1 Month Price Change Source: CoreLogic

  14. Price & Time Since The Peak Source: CoreLogic

  15. 30 Year Fixed Rate Mortgages Freddie Mac Rates April – August 2015 Freddie Mac 8/2015

  16. Mortgage Rate Projections 8/2015

  17. If you are thinking of buying a home and have the financial means to do so, this could be a good time to take a look at the neighborhoods you are interested in. We expect home prices in our national index to be up about 5% in the next 12 months, and mortgage rates are also likely to increase over the next year. - Dr. Frank Nothaft, SVP & Chief Economist, CoreLogic

  18. Appraiser home value opinions compared to homeowner estimates 2015 Quicken Loans

  19. Home Price Expectation Survey A nationwide panel of over one hundred economists, real estate experts and investment & market strategists.

  20. PROJECTEDMean Percentage Appreciation Home Price Expectation Survey 2015 3Q

  21. $34,115 potential growth in family wealth over the next four years based solely on increased home equity Increased home equity based on price appreciation projected by the Home Price Expectation Survey Home Price Expectation Survey 2015 3Q

  22. Why renters do not own their home… Federal Reserve

  23. Two-thirds of those surveyed believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. Consumers also overestimate the down payment funds needed to qualify for a home loan, with 36 percent thinking a 20 percent down payment is always required. - Ipsos Survey

  24. Average FICO Score on Approved Loans Ellie Mae

  25. MILLENNIALS between the ages of 18 and 34 How much was your down payment? 64.2% Digital Risk

  26. Willingness to Pay (WTP) WTP increases by 40% if down payment goes from 20% to 5% Willingness to Pay +40% Down Payment (from 20% to 5%) Federal Reserve Bank of NY

  27. This suggests that PERCEIVED financial and credit barriers to homeownership are a crucial driver of why some individuals are renting rather than owning, despite the stated preference of many renters for homeownership. - The Federal Reserve

  28. Median Asking RENT since 1988

  29. Homeowners may be underestimating their home equity. …if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes. - Fannie Mae

  30. Negative Equity (>0%) Perceived/Actual Fannie Mae

  31. Significant Equity (>20%) Perceived/Actual Fannie Mae

  32. Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate: 1.) how large a down payment they could make with their home equity 2.) their chances of qualifying for mortgages 3.) their opportunities for selling their current homes and for buying different homes - Fannie Mae

  33. The appreciation gap presents a potential opportunity. It is an opportunity to remove a barrier that may have hindered housing and mortgage market activity. It is an opportunity that does not require changes in laws or regulations. It does not require additional subsidies by business or government. Costs to close the gap can be low. Providing homeowners with information and with tools so they can better estimate their home equity may help shrink the gap. - Fannie Mae

  34. Fall Buyers’ & Sellers’ Guides will be out September 1st

  35. Next Exclusive Agent Webinar Wednesday, August 26th 2PM EST Homeownership: why it will always be a part of the American Dream

  36. Next Strategy Call Wednesday, September 16th 2PM EST

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