Posts Tagged ‘buying a home’

Affordable Modular Homes Rising in Pennsylvania

July 17th, 2013 Comments off

Site development of the first of four modular homes is set for Monday, July 22 in Chambersburg, Penn., with two of the three-bedroom two-story homes ready for occupancy Oct. 1 of this year. The goal of city officials is to encourage affordable homeownership in the Southgate area where millions of dollars have been spent in recent years for town homes and apartment buildings. The $580,000 project is a collaboration of non-profit Valley Community Housing Corp. along with the state and federal governments as well as F&M Trust, which will receive tax credits for lending to first-time home buyers who qualify for the opportunity to buy one of the homes. According to what publicoopiniononline reports to MHProNews, Pennsylvania Interfaith Community Programs, Inc will be marketing the homes in this town in south central Penn. So far, 20 families have shown an interest in buying a home.

(Photo credit: Dickinson Homes)

Obstacles may Face First-time Homebuyers

May 15th, 2013 Comments off

HousingWire informs MHProNews first-time homebuyers are facing different circumstances than their parents’ generation. Whereas their parents were saving for a down payment on their first home, Generation Y is burdened with an average $27,000 in college loans which may take ten years to pay off. Housing research site Doorsteps has determined the average age of first time homebuyers is 31, that 42 percent cut out luxury items and 35 percent stopped entertainment expenses to save for a home. Sixty-six percent would consider buying a home in foreclosure, a higher percentage than repeat buyers.

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Inflation will be Higher than Current Interest Rate

August 16th, 2012 Comments off

RealtorMag ticks off four strong reasons for buying a home now, as John Waggoner writes in USA Today. The median single-family home price fell to $154,600 in January, the lowest price since Oct. 2001, a full third below the $230,900 number at the height of the housing market in July 2006. Secondly, in almost every metro market, because of the continuing rise in rents, it is now cheaper to buy than to rent. Thirdly, inventories of for-sale homes are beginning to shrink, which in the long term will lead to higher prices, making now the better time to buy. And finally, mortgage rates are at absolute record lows, making housing affordability more attractive. As MHProNews has learned the average 30-year fixed rate mortgage, the most popular among home buyers, is just above the lowest rate ever (3.49% recorded July 26) at 3.59%. As Waggoner points out, it is likely the rate of inflation will be above the current interest rate at some point in the future.

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Emotions Outweigh Finances

July 17th, 2012 Comments off

RealtorMag reports a survey by Prudential Real Estate Outlook Survey of home buyers and sellers reveals in addition to the 70 percent who believe real estate makes a good investment, many if not most have a stronger emotional tie to owning a home. Phrases like “control over living space,” a “safe neighborhood,” a “good place to raise children,” and “more space for family,” are what realtors hear often. Prudential Real Estate president Earl Lee says, “Every last emotion is rolled up into owning a home — it’s where life happens — so it’s no surprise that the emotional side outweighs financial reasons for owning a home among respondents.” Still, many expressed caution during uncertain financial times of the risks involved in buying a home.

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Renting Vs. Buying

June 27th, 2012 Comments off

MarketWatch reports the U.S. Census Bureau says American homeownership fell from 66% to 65% in Q1 2012, the lowest point in 15 years, especially noteworthy because historically spring marks the home buying season. At its peak in 2004 it was 69%. Dan McCue of Harvard University’s Joint Center for Housing Studies, noting the number of single-family rentals increased two million from 2006 to 2010, says, “One third of all rentals are single-family homes.” Although rents are expected to rise four percent this year, the cost of renting is $500 to $1000 less than buying a home. The report, as MHProNews has learned, notes five markets where it is less expensive to rent than to buy: Northern New Jersey, Long Island, New York, California, Seattle, and Honolulu.

(Image credit: Build-a-Sign)

Attention Shoppers: The Time to Buy is Nigh

March 26th, 2012 Comments off

In an rent vs. buy index of the 100 largest metropolitan areas in the nation, Trulia has determined it is a wiser decision to buy in 98 of them. The top ten cities where buying a home is a better deal: Detroit, Oklahoma City, Dayton Ohio, Warren-Troy-Farmington Hills Michigan, Toledo Ohio, Grand Rapids Michigan, Cleveland, Atlanta, Gary Indiana, and Memphis. The top ten where renting is smarter: Honolulu, San Francisco, New York City, San Jose California, Orange County CA, Los Angeles, San Diego, Colorado Springs CO, Boston, and Albuquerque NM. Trulia compares neighborhoods and properties, and then calculates the ratio between asking prices for rentals and for-sale homes to arrive at its conclusion. Based in San Francisco, Trulia tells it  collects information and maintains unique files on desireable places to live through its many contacts with real estate professionals.

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Mortgage Payments Nearly Halved since 2006

January 31st, 2012 Comments off

NationalMortgageNews has informed FiServ chief economist David Stiff says actual improvement in housing prices is still a year away, when he expects prices to rise four percent. The Fiserv Case-Shiller house price index indicates prices will fall 2.7 percent through the third quarter 2012. Meanwhile, buying a home has become more affordable: Since the boom days of house prices in 2006, the monthly mortgage for a median-priced home has fallen 45 percent to $640. “Mortgage payments now account for 14% of monthly median family income, as households made more progress in repairing their balance sheets,” Stiff said.

(Graphic/photo credit: moneycontrol)

Home Ownership: Good Investment?

January 4th, 2012 Comments off

HousingWire reports David Blitzer, chairman of Standard & Poor’s Index Committee, says when current home prices are adjusted for inflation, they are back to 2001 levels. This suggests the rapid rise and decline of home prices did little more than create havoc for the economy. “Allowing for a dip in home prices in the 1990s when inflation rose faster than houses, we’re almost back to 1989,” he says. As to whether buying a home is even a good investment, his response is that it depends on the economy, the real estate market, and the needs and finances of the buyer.

Photo credit: MoneyControl)