Problems viewing this email? View Online
Real Estate Trends Newsletter -- A weekly news update for mortgage professionals

Dave Hershman
The Hershman Group
123 Anystreet
Suite 201
Centreville, Va 20122

NMLS #11111
NMLS Company #12345

OriginationPro Mortgage Company is dedicated to bringing the American Dream of Home Ownership to our clients.

We provide a variety of competitively priced mortgage products and services that are designed to help you achieve your financial goals.

As the experts in the world of real estate finance, we can help you achieve your goals with less stress, making your American Dreams Come True!

July 4, 2017
Counting Our Blessings

Today is July 4th. Our country is almost 250 years old. If you read the headlines, you would think that our country is in more trouble than it has ever has been. True, our country is not perfect, and certainly the fighting emanating from our Nation's Capital does not make us the envy of the world politically. On the other hand, if you take a look at the numbers, our country is again leading the western world with regard to the recovery from the deep world recession.

After peaking at over 10% during the recession, our present unemployment rate is less than 5.0%. The average unemployment rate of the European Member countries is well over 7.0%. During the latter stages of the recovery we have been consistently adding between 150,000 and 200,000 jobs per month. Concurrently, our real estate market has regained just about all of the losses sustained during the recession.

Some are wary that the Federal Reserve Board has raised interest rates four times during the past 18 months. The fact that the Fed is comfortable raising rates for the first time in a decade is evidence that they are getting more comfortable regarding the state of the economy. That does not mean that our economy, our jobs picture and our real estate market does not have room for improvement -- which is why rates continue to be historically very low. But we have come a long way and we continue to improve. Hopefully we will see more of this improvement when the jobs report is released this Friday. In the meantime, happy 4th of July. 

  The impact of first-time buyers on the American housing market has been highlighted in a new report from mortgage insurer Genworth. The data shows that in the first quarter of 2017, first-time buyers bought the most single-family homes since 2005; 424,000 or 38%. It was an 11% rise from the first quarter of 2016. "Over the past three years, first-time homebuyers have accounted for 85% of the growth in home sales, and have become an important indicator for understanding market trends," said Tian Liu, Chief Economist for Genworth Mortgage Insurance. "Their impact has already been felt in falling inventory and rising home prices, and we expect them to increasingly drive growth to businesses most exposed to this market segment." The figures also reveal that 3 million potential homebuyers are missing from the market following the financial crisis. This pent-up demand is set to lead to a surge of first-time buyers ahead. Genworth says it is the first report of its kind, looking at data from the past 20 years, tracking home sales to first-time homebuyers on a monthly basis and reporting at quarterly intervals, and separately identifying first-time homebuyers enabled by low down payment mortgages, such as conventional loans with mortgage insurance coverage, FHA loans, VA loans, and USDA loans. Source: MPA

Summertime in the housing market brings countless buying and selling opportunities. But with all the competition out there, would you be better off waiting a few months? Real estate experts say no. They contend home prices peak from June to August and say there are advantages to buying during the market’s busiest season. “A huge myth about the real estate market is that homes sell for more in the summer and less in the winter. This is simply not true,” says Dippy Chhina of Dippy Real Estate. Other forces play a role in the asking price, such as the amount of homes for sale in an area, interest rates, and the job market, Chhina notes. “There are more homes on the market in summer than in the winter, and there is also a higher number of sales in the summer than the winter,” Chhina says. Broader inventory means more choices, making buyers “feel more confident in their search because additional properties hit the market every week,” says Sarah Lilly of Five Star Lakeshore Real Estate. “The large inventory offers significantly more opportunities for purchasers to identify specific floor plans, amenities, and locations.” With more properties for sale, buyers may have more leverage in negotiating prices. Those who need to sell their current home to purchase another often find it easier to do in the summer months. “If the client needs to sell a home before buying, the home will be more likely to sell, and potentially at a good price, allowing the client to purchase their new home sooner,” says Joe Lopez of Connect Realty. Source:®

Most retirees are deciding not to relocate. During the past seven years, more than 80 percent of people aged 55 and up who live in 17 of the nation's largest housing markets remained in the same county or state, according to a new analysis by real estate data firm CoStar Group. “Most people retire in the same metropolitan area,” says Hans Nordby, a CoStar economist who authored the firm’s report. “You don’t see the migration of snowbirds you would expect to see to the Sun Belt.” Instead, nearly 90 percent of older Americans say they want to age in place, and 80 percent say their current home is where they intend to live out the rest of their lives, according to research by the National Conference of State Legislatures and the AARP Public Policy Institute. “Retirees don’t want to leave home for a coastal community where they are not connected to anyone,” says Paul Irving, chairman of the Milken Institute Center for the Future of Aging. Newer retirees value lifelong learning and job opportunities more than better weather, adds Irving, who is also the creator of the institute’s Best Cities for Successful Aging list. But not every retiree is casting aside ideas of retiring to a beach town. Americans 55 years and older with annual incomes of $75,000 tend to favor markets with warmer weather and retiree-friendly tax policies. Source: CNBC 

All rights reserved.

Licensed Originator DC, MD and VA


Please email if you would like to be unsubscribed from this mailing.
All rights reserved.