Home appreciation continues to reach historic highs as tight supply and strong demand lead to an extremely competitive housing market. According to the S&P CoreLogic Case-Shiller home price index, prices in February rose 12% year over year across the US. This 12% gain is a 15-year high, and Seattle is one of the top cities with a gain of 15.4% year over year.
Those trying to enter the housing market are feeling the frustrations and disappointments of a competitive low inventory market. In many cases, buyers are having to make over five offers on homes before getting one accepted. However, the risk and rewards can quickly make sense when you consider the yearly equity gains with appreciation being higher than most full-time annual salaries. With a 15.4% gain in home prices year over year in Seattle, a person purchasing a $750,000 home last year would have gained $115,500 in appreciation on average. Historically low interest rates are also helping give a small boost to your purchasing power, so long as they remain low.
In the end, the most important thing prospective homebuyers need to consider is if are you in a position to responsibly take on a mortgage payment. Make sure you are evaluating a range of factors including your finances, personal life, and future. Connect with us today if you have any questions. If you have anyone looking to get pre-approved to purchase a home or refinance, we’d love the opportunity to serve them!
Homeseed is constantly looking for ways to provide value for our clients and industry partners that extends past the transaction. Our goal is to be your trusted advisor for life and provide ample opportunities to engage and communicate with us regarding your home. To help support this goal, we will soon be launching a tool that provides dynamic financial reports to clients about their home or any other potential real estate endeavors.
For most individuals, 83% of wealth comes from real estate at the average age of retirement. Therefore, it is important to provide homeowners with the appropriate tools and the guidance of a Homeseed Loan Advisor to manage wealth through the largest asset they will likely ever own, their home. Our monthly reports will provide you with information regarding your home’s value, financial strategies in connection with your equity position, and plenty of engagement opportunities with your Loan Advisor to help you grow your real estate portfolio and continue to build wealth.
Homeseed is excited to be providing this service to all our clients and partners, even those who have already financed a home through us in the past. We want to empower you to take ownership of managing your wealth in a simple, engaging, and meaningful way. Communicating with our Loan Advisors will also always be a simple click away as well.
Please reach out if you’d like to learn more about this new tool we will be offering. If you also have anyone looking to get pre-approved to purchase a home or refinance, we’d love the opportunity to serve them!
Finding and getting an offer accepted on any home is tough in today’s housing market, but what if you could build your own dream home? You could design it how you want and potentially build your own equity in the process. Either buy land and finance it into the costs of the loan or build on land you already own while using its equity as a down-payment. With a construction loan from Homeseed, there are plenty of options and adjustments available throughout the process as you build your dream home.
“Nothing worth having comes easy” is the mantra to remember when going through the building process. The whole process can be daunting but having a can-do attitude will be your ticket to success.
Here’s a simplified checklist for the construction process:
- Research land: location, available utilities, cost for development
- Research type of home: layout, cost to build, finishes
- Research builders: reputation, easy to work with, attention to detail, cost per square foot
- Research loan options: which loan option fits your project and financial goals.
Doing your own research will help you prepare for the challenges ahead. Depending on how you like to organize a project, you will want to keep a digital or paper record of all the details and information you discover. Tip: check out the local jurisdiction in the location you are wanting to build for building requirements and costs. Some building departments have super helpful websites as well.
Getting the financial piece nailed down is one of the early important steps. Here at Homeseed, we offer Conventional (conforming and Jumbo loan amounts), FHA, VA, and USDA construction loans. Speaking with a loan advisor about your financial goals will help you decide which loan option is best.