On December 22nd 2015, the National Association of Realtors (NAR) released their latest Existing Home Sales Report which covered sales in November. The report revealed that sales:
“…fell 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November (lowest since April 2014 at 4.75 million)…”
That revelation gave birth to a series of industry articles, some of which quoted pundits questioning whether the housing market was slowing. In actuality, there is one rather simple explanation to much of the falloff in sales last month. It is likely the implementation of the “Know Before You Owe” mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which went into effect on October 3. These regulations caused house closings to be delayed by an extra three days in November as shown in the graph below.
Three days might sound like a minimal difference. However, since there are only approximately 20 days in a month that a closing would normally take place (Mondays through Fridays), losing three days constitutes well over 10% of all closings. These sales are not lost. They are just moved into the next month’s numbers. In aDS News article on the subject also posted on December 22nd, Auction.com EVP Rick Sharga explained:
“The most likely cause for the weak sales numbers is a delay in processing loans due to the new TRID mortgage requirements imposed by the CFPB. This is the biggest change in mortgage document processing in many years, and there have been numerous reports within the industry of problems implementing the process and the new documentation that comes with it.”
So how is the housing market actually doing?
A better way to look at how well the housing market is doing is to look at the Foot Traffic Report from NAR which quantifies the number of prospective buyers that are actively looking for a home at the current time:
We can see immediately that demand to buy single family homes is increasing over the last few months – not decreasing.
No matter what last month’s sales numbers show, the housing market is still doing well as demand remains strong.
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 .
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
Doral is a city located in north-central Miami-Dade County, Florida, United States. An industrial and suburban mixed neighborhood of Miami, it lies North-West of Miami International Airport. It takes its name from the Doral Golf Resort & Spa located within its municipal boundaries. Originally built by Doris and Alfred Kaskel, who coined “Doral” by combining their first names, who dredged the swamp to build, in 1962, the Doral Hotel and Country Club, (now Donald Trump’s Trump National Doral) a wildly popular wealthy golfer retreat and sibling hotel to the Doral Beach Resort in Miami Beach. The city of Doral is also known as Doralzuela due to the city’s large and affluent Venezuelan community. Doral has a large number of shops, financial institutions and businesses, especially importers and exporters, primarily because of its proximity to the Miami International Airport. In 2008, Fortune Small Business and CNN Money ranked Doral as 51 on a list of 100 cities with the best mix of business advantages and lifestyle appeal.
By the early 1980s, Doral started to experience the first spurts of growth when Alfred’s and Doris’ grandson Bill developed Doral Estates that was followed by a joint venture with Lennar Homes to build Doral Park. Both communities were named after the Hotel, a trend that was to be repeated many more times. Younger families started flooding the area but had to travel to purchase even the most basic essentials, because there were no stores, schools, or parks. Although the majority of the original homes were investment properties or second homes, the early fulltime residents believed that the quality of life and the low housing costs far exceeded the lack of amenities and started coming together as a community.
In 2002, the Governor appointed Cancio to fill the remainder of Commissioner Miriam Alonso’s term of office. Doral residents hoped that his appointment would be the impetus to bring the community closer to incorporation, and Cancio did not let his community down. In the meantime, Cancio named Juan Carlos Bermudez, the City of Doral’s first elected Mayor, as his replacement to the Community Council. Bermudez declined the offer and ran for the seat and was elected. At the time, Bermudez was president of One Doral, a civic organization formed to counteract the perceived influence of the West Dade Federation on the Council. One Doral and the West Dade Federation were instrumental in the incorporation process.
In January 2003, following a seven-year battle, 85% of the voters in Doral voted in favor of incorporation. At long last, they had their own new city with a local government and more service for their tax dollars. In June of the same year, 92% voted to accept the City Charter and elected their first Mayor and City Council.
The City of Doral has come a very long way in a very short time and is attracting positive attention from Fortune 100 corporations, mom-and-pop businesses, young families and retirees.
Interested in Selling, Buying, Renting a home/townhouse in Doral? Call me 786.554.8063; I can help, because working with someone who knows the numbers and area is crucial.
The New Park Grove Condo Project is selling quickly; this luxury condo project is located in Coconut Grove more specific in the middle of a newly developed waterfront park. The condo project has 3 towers with great investment values.
Designed by OMA and rem KOOLHAAS, the striking towers of PARK GROVE set a new architectural standard in the quiet seaside enclave of Coconut Grove.
Park Grove Residences will blow everyone expectations with their high-end waterfront project. With amenities that will take you to the next level and to better your experience, The Park grove Condo offers pools, fitness, yoga, a private chef, yes a private chef and much more.
As the first Luxury Condo in Coconut Grove to be built after Grove at Grand Bay, makes this project most ambitious architecture/project to date
Contact me For more info about Park Grove and any other projects / new constructions in Miami or South Florida
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
This is a new pre-construction project in the heart of Brickell.
The project will launch sales very soon, Millecento is an unprecedented condo offering elevating residential design to a new level of sophistication. Set at 1100 South Miami Avenue, just steps from Mary Brickell Village and the upcoming Brickell CitiCentre, the condo will boast 382 residences. Architecture will be by internationally celebrated architect Carlos Ott, known for his high-end iconic projects such as Jade Beach and Artech.
The amenities of the building, well-dressed by exotic woods and Italian leathers by Pininfarina, include a ninth floor elevated pool deck with a club room, state-of-the-art fitness center, private theatre and 42nd level rooftop infinity pool with private cabanas. It is anticipated to continue to evolve Brickell’s skyline to a 24-hour destination.
“With our first residential project in the US we will bring all our passion and Italian flair to Miami,” said Paolo Pininfarina, Chairman of Pininfarina Group. “We are pleased with partnering up with Related Group. We couldn’t have chosen a better, more reliable partner in the US.”
About 1100 Millecento Brickell Miami Condo
Year Built: 2014 Est.
Number of Floors: 42 (est.)
Number of units: 382 (est.)
Sq. Ft. range: 578-1,270 sq.ft.
Beds: Studio, 1-2
1100 Millecento Brickell Miami Amenities:
– Secured Entrance
– Social Room
– Centrally located in Brickell
– Close to Highways and Shops
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George R. Assal| Realtor–Associate® | BBF Member | Property Manager |
REO & Short Sale Specialist
English- Español EWM Realtors® | A Home Services of America Company | An Affiliate of Berkshire Hathaway
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