As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As a buyer, you must be concerned not about price but instead about the ‘long term cost’ of the home.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about three-quarters of a percentage point over the next twelve months.
According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean as a Buyer?
Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2% predicted by CoreLogic over the next twelve months:
Call 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com
“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”
How can this impact the housing market?
The article reported that recent analysis from Realtor.com found that –
“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”
This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with substantially more cash for a down payment or settle for a lesser priced home.
Below is a table showing how a jump in mortgage interest rates would impact the purchasing power of a prospective buyer on a $300,000 home.
If you are considering a home purchase (either as a first time buyer or move-up buyer), purchasing sooner rather than later may make more sense from a pure financial outlook.
Tired of being a tenant? thinking of selling your home?, looking to upgrade? 1st time buyer(s)? buying your dream home? Call us 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com
We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.
Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.
There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.
The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application. However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably at or below 4%.
The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <4%, they would probably bend over backwards to make the process much easier.
Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.
Tired of renting and/or being a Tenant(s)? Thinking of selling your home?, looking to upgrade?, First Time buyer(s)? Buying your dream home this year? Call us, you know you can count on our help every step of the way while reaching your goal faster, easier and with a smile on your face. 📞786.554.8063 📧George@GeorgeAssal.com 💻 www.GeorgeAssal.com
The Related Group and Dezer Development joined forces to bring to Sunny Isles Beach, “The Residences by Armani Casa by Cesar Pelli” The most anticipated Ultra Luxury project in Miami. Only 261 families will have the honor to call the Residences by Armani Casa their home.
.- The brand: First US project by Armani casa
.- Location: Sunny isles Beach
.- The Archited: Cesar Pelli
.- Units: 260 units
.- Prices: starting from $1 million
.- Completion date: 2017
.- Floor Plan: 5 units per floor, the higher the unit the bigger it is.
The Residences by Armani Casa in Sunny Isles Miami are spacious units from 1358 Sq.Ft to 3,756 Sq.Ft and ranging in price between $1,000 – $1,500 per Sq.Ft
Unit A at Level 4 (Units at a Higher level offer more Sq.Ft)
4 Bedrooms + Den / 5,5 Bathrooms
Interior Sq.Ft: 3,326 (At level 28→ 3,527 Sq.Ft and No den – At level 54 → 3,756 Sq.Ft)
Aria on the Bay located in the heart of the Arts and Entertainment District, more specific 1770 North BayShore Drive Miami FL 33137. With 53 Stories into the sky, this project offers in all units, 9-foot glass from floor to ceiling, being the smallest 813 sqft and the biggest over 2,365 sqft plus balcony for the amazing water and city views.
From this enviable location, residents can enjoy immediate access to the neighboring Adrienne Arsht Center for the Performing Arts, Arts & Science Museums and Miami World Resort for shopping and entertainment along with a myriad of dining options and boutiques. In just 10 minutes one can be enjoying the pristine beaches of Miami, Brickell’s financial district. Design District, Wynwood and Midtown. Miami International Airport, Coconut Grove, Coral Gables.
.-2-Curved Sunrise and Sunset pools, .-Jacuzzi overlooking Biscayne Bay Expansive sun deck and lounge area, -.Expansive Indoor/ Outdoor social room with bar 24-Hour concierge and on-site monitoring,.-Controlled-entry garage with assigned parkingValet parkingStreet-level retail and office spaceHigh-speed wireless internet in social spaces, .-State of the art Gym and Yoga StudioOutdoor fire pit with custom seating, .-BBQ area with summer kitchen featuresGreat room with social areas including pool tables and flat screen TV’s, .-Private spa and massage treatment areasBlow-dry, .-manicure and pedicure stationsChildren’s PoolGame room and libraryScreening room/ theatreTeen lounge and Kid’s Playroom, .-Business center with conference room and offices.
1 to 3 bedroom+Den grand residences, .-Spacious, open-plan living, dinning and kitchen areas, .-Modern custom-designed cabinetry and European-style kitchens!Private elevator access on select units.
As the Real Estate market continues to build up in South Florida, Coral Gables luxury homes and condominiums properties are getting listed for sale at more than $1M, the highest number of 2014 sales was in June, representing a 21.4% increase over May and an incredible 278% increase when compared to January. When it comes to luxury real estate sales in South Florida, summer is anything but slow season, maybe not especially when prices increased alongside the number of properties sold.
The average price per square foot for a property sold in June was $476, up $13 from May and a full $85 per square foot from January. In fact, 55 properties were sold or under contract for sale in June, representing over 25% of the entire available inventory.
Two projects are currently in pre-sale in Coral Gables:
-Merrick Manor, a 10-story, 180-unit development located adjacent to the famous Village of Merrick Park.
-Antilla Coral Gables, a 5-story, 45-unit project located in the northeastern corner of Coral Gables.
(If you need more info regarding either of this projects please contact me directly as I have direct communication with the developers)
For those that don’t know, Coral Gables is one of the nation’s earliest planned communities with a centralized business district, and is home to the iconic Biltmore hotel, one of only three national landmarks in Miami-Dade County. Coral Gables also has world-class shopping along Miracle Mile and the Village of Merrick Park, a diverse spectrum of art galleries, theaters and lots of fine dining establishments.
As a result, Coral Gables will continue to have in-demand properties that sell for a premium and should remain a sound investment.
Investing in South Florida Real Estate? Here is all the information you need as Comparative Review of the Real Estate Market in South Florida. If you are undecided but interested in Investing South Florida real Estate and might already know that is time to buy, contact me immediately I will guide you to the right direction
Project: Echo Brickell condominium at 1451 Brickell Ave. Developer: New York-based Property Markets Group Founder and CEO: Kevin Maloney “We like the site. There is a ton of stuff coming out in Brickell,” said Shear. “We will be able to tell buyers you have an unobstructed bay view.” If all goes well, PMG expects to break ground in the first quarter of 2014.
Developer will start taking reservations next week for Echo Brickell,