Real Estate Information

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Let’s talk about home prices for just a minute. The Case-Shiller home price index measures 20 markets across the nation to determine home price direction. On a national basis, the home price index shows that home prices are under great pressure – down 5.1 percent nationally from a year ago and concerns for a double-dip in home prices are now at the forefront of the national housing conversation.

Here in the parts of the Triangle – according to the Triangle Multiple Listing Service, while home listings and closed sales have decreased, home prices have actually increased. Yes, I said increased. Data from across the Triangle shows that both median and average sales prices have risen for April in year over year data – 0.2 and 0.6 percent respectively.

- courtesy of wral.com

More than 25,000 runners and walkers descended upon Meredith College in Raleigh Saturday morning for the 15th annual Susan G. Komen NC Triangle Race for the Cure. Saturday's total was about 29,500 people in attendance, according to event organizers. About 850 teams, including a Pace Realty Group team, participated Saturday. Organizers said they raised about $1.8 million toward a $2 million goal. For the past fifteen years the Raleigh community has come together to help raise money for the cure.

According to the Triangle Race for the Cure, 75 percent of the funds raised through events like the Race for the Cure go to funding grants in the group's 20 county service area at local hospitals and community organizations. They provide breast health education along with breast cancer screening and treatment programs for medically under-served women in our community. The remaining 25 percent supports the Susan G. Komen for the Cure Award and Research Grant Program, which funds groundbreaking breast cancer research at the national level.

 - courtesy of wral.com

When you get a mortgage, you are charged an interest rate. This is the rate, which the lender charges you for using their money to buy a home. It determines how much your monthly payments will be. Generally speaking, the higher the interest rate, the higher your monthly payment.

Mortgage interest rates change constantly, daily, even hourly. If you speak to a lender and are quoted a specific interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you formally lock-in that rate with the lender. Locking in an interest rate will guarantee you get your loan with a particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the more expensive it will be, since it's more of a risk to lenders.

-Courtesy of Yahoo Real Estate

Save Precious Time. Selling a home is time consuming. Even in a strong market, homes can stay on the market for weeks or even months. And it usually takes another 60 days or so for the transaction to close after an offer is accepted. When you work with a realtor, you can minimize the amount of time your home will sit on the market, since Pace Realty will have done all the research necessary to price your home effectively and competitively.

Be More Objective. Pace Realty provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and a roof, home selling is often a very emotional undertaking. For most people, selling a home is one of the biggest financial transactions they’ll ever undertake. Having a concerned, but objective, third party helps you stay focused on both the business and emotional issues most important to you.

Make a Better Profit. Not only does Pace Realty help you price your home appropriately, but we leverage our years of experience for you when negotiating an offer with a potential buyer.

Article courtesy of Trulia.com

Many homebuyers are surprised to find that a down payment is not the only cash requirement. A home inspection can cost $200 or more. Closing costs may include loan origination fees, prepaid interest, application fees, appraisal fee, survey, title search and title insurance, first month's homeowners insurance, recording fees and attorney's fees. In many locales, transfer taxes are assessed. Finally, adjustments for heating oil or property taxes already paid by the sellers will be included in your final costs. All this will probably add up to be between 3 percent and 8 percent of your purchase price.

Pace Realty Group will help you find your perfect and affordable home. Feel free to give us a call!

-Article courtesy of Yahoo Real Estate

Home ownership is the cornerstone of the American Dream. But before you start looking, there are a number of things you need to consider. First, you should determine what your needs are and whether owning your own home will meet those needs. Do you picture yourself mowing the lawn on Saturday, or leaving your urban condo for the beach? The best advice is to look at buying a home as a lifestyle investment, and only secondly as a financial investment.

Even if housing prices don't continue to increase at the torrid pace seen in recent years in many areas, buying a home can be a good financial investment. Making mortgage payments forces you to save, and after 15 to 30 years you will own a substantial asset that can be converted into cash to help fund retirement or a child's education. There are also tax benefits.

Like many other investments, however, real estate prices can fluctuate considerably. If you aren't ready to settle down in one spot for a few years, you probably should defer buying a home until you are. If you are ready to take the plunge, you'll need to determine how much you can spend and where you want to live.

Pace Realty Group specializes in helping first time home buyers find their perfect home. As always feel free to call us if you have any questions about buying or selling your home.

- Article courtesy of Yahoo Real Estate

Home Ownership Matters

Home ownership has a significant impact on net worth, educational achievement, civic participation, health, and overall quality of life. And, home ownership helps create jobs—lots of them—right here at home.

Owning your own home is not only beneficial to you; it also helps create jobs and stimulate the economy.

Home Ownership matters…to people, to communities, and to America. Why?

For every two homes sold, one job is created in the U.S. each purchase generates as much as $60,000 in economic activity over time.

-Article courtesy of Realtor.com

Article Courtesy of Realty Times.

Signs That You're Ready to Buy

Six tips that tell you it's time

By Michele Dawson

Figuring out whether you're ready to buy a house -- whether you're a renter or are aiming to move up or size down -- can be a daunting task. But there are signs that will indicate whether you're ready to take the buying plunge.

If you are thinking about buying, you're not alone. So are you ready to make the move? You might be if you:

1. Are familiar with the market. If you've been paying attention to how much houses are listed for in the neighborhoods you're eyeing and have a realistic view of how much a house will cost you, you're in good shape. But if you're dreaming about that big corner house with no clue about it's asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.

2. Have the money for a down payment and closing costs. The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. You can expect to pay between from 2 to 7 percent of the property value. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage.

3. Know how much you can afford. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt -credit card bills, car loans, housing expenses, alimony and child support -- should not be more than about 30 to 40 percent of your gross income.

4. Know what additional expenses will come with owning a home. This includes homeowners insurance, utility bills, maintenance costs -- roofing, plumbing, heating and cooling.

5. Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history -- how much debt you've accrued, how many accounts you have open, whether your payments are made on time, etc. -- to determine whether they'll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

6. You haven't made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan -- or it could potentially lower the amount you'll be approved for.

Copyright © by Realty Times.

Article Courtesy of CNNMoney.com.

Mortgages under 5% are back in bloom

With one of the key measures below the benchmark for the second week in a row, would-be home buyers face the best rates since the spring.

By Julianne Pepitone, CNNMoney.com staff reporter

NEW YORK (CNNMoney.com) -- The possibility of securing a mortgage rate below 5% has greatly improved in recent weeks, in a positive sign for would-be home buyers.

Home mortgage rates fell for the sixth straight week, according to two key measures, with one of them pointing to a sub-5% rate for the 30-year fixed loan for the second week in a row.

Freddie Mac's (FRE, Fortune 500) weekly report said the 30-year rate slipped to 4.87% for the week ended Thursday, the lowest since May. According to the mortgage backer, last week's rates stood at 4.94%.

Mortgage tracker Bankrate.com said the average 30-year fixed loan slipped to 5.22% from 5.25% the previous week. The 15-year fixed rate also fell, Bankrate said, to 4.6% from 4.64% the week before.

The 30-year rate is influenced by the benchmark 10-year note's yield, which moves in the opposite direction of its price. Treasury prices have risen over the past week as $78 billion worth of auctions received above-average demand.

"Another disappointing employment report had investors questioning the strength and sustainability of the economic rebound," the Bankrate report said. "The resulting uncertainty drove investors into the safety of government and mortgage-backed bonds."

"Not even a substantial auction of government debt has been enough to derail the streak of declining mortgage rates," the Bankrate report said.

Rates are returning to levels not seen since the spring when, in an effort to cap mortgage rates, the Federal Reserve began a campaign to buy back $300 billion in Treasurys. The Fed hoped that it would spark demand and keep yields -- and therefore, mortgage rates -- in check.

Mortgage rates fell as refinancings abounded. But those benefits seemed to wear off, as rates started on a tear in the summer. By June, the benchmark 10-year bond's yield had increased steadily to hover around 4%.

Now the central bank has less than $15 billion left to spend on its buyback program, which led some investors to worry that yields would soar again. So far, that's not the case.

On Wednesday, reports said Democratic congressional leaders were working to extend a $8,000 tax credit for first-time home buyers past the Nov. 30 expiration date and could even make it available to current homeowners who buy a new house.

Homeowners have received a boost from both the tax credit and the lower rates -- last year, the average 30-year fixed mortgage rate was 6.2%, according to Bankrate.

To translate the difference in mortgage rate into dollars, consider a $200,000 loan. At last year's rate of 6.2%, the monthly payment would be $1,224.94, or $124 higher than the monthly payment at the current rate.

The low rates helped mortgage applications surge by 16.4% last week, according to a separate report.