What Is My Home Worth Today

by Brad Heavey on July 21, 2017

Value of my home

Home values at highest level.

 

How much is my home worth?

Why has the median home price in the USA risen to the highest level of all time? Based on research recently conducted it appears that the recession in 2008-2009 represented a crash in the real estate residential industry. I would think a large percentage of the population was impacted by the recession. Many banks failed and were acquired by larger banks those that are “too big to fail” and then the Fed came in to the rescue. Let’s look at what really happened. Individuals became speculators when they absolutely had no ability to carry a property when the teaser interest rate reset.

What really happened to all of these properties that were foreclosed upon or sold at a short sale. Investors that had long term holding power purchase these predominantly lower-priced homes, made repairs and held the properties for rental income and or flipped the property at a higher price. What did builders do? Builders were stuck with this land that had been projected at build-out to have much higher prices and they could no longer maintain the interest and or purchase payments and thus mergers and acquisitions became the way out for most of the larger builders to maintain and hold previous land acquisitions. Builders then leveraged the equity and or traded out of the single-family developments to build multi-family condominiums and or apartments for rental property. The writing was on the wall middle America was losing their homes and the alternative housing was rentals. Rental rates have escalated dramatically since 2010-2011, to where appreciation of rental rates is far above the CPI.

Let’s get back to why the median price of homes are at the highest levels ever in the USA. It’s because of low inventory levels and more expensive homes are selling. Home values have been rising fairly rapidly since 2015 and less expensive homes are being constructed to a lesser extent, all due to the higher prices builders anticipated selling homes at before the recession. Who were these investors that purchased these inexpensive single-family homes and renovated them for rental property? Some of them are large conglomerates and what would happen if these large conglomerates decided to put these 1,000,000 to 2,000,000 inexpensive homes on the market now. The median price of homes would decline, and nobody including the banks, the Fed, or these large investors want the average price of homes declining.

You might be thinking now, are values going to decline the answer to that question is yes but, when none of us really know. You can be sure history will repeat itself as it is evident in the marketplace today that certain geographic areas of the USA are experiencing home values in a stall (not appreciating).

Interest rates work on a 30-year cycle, for the last 30-years interest rates have been declining. Last year the Fed decided to change that cycle and has now started and is on a path to increasing interest rates. We really don’t know how high the Fed will raise interest rates but we can be sure they will be consistent and vigilant in raising interest rates based on inflation rates.

In summation, you might be thinking do I buy a house now when values have already escalated. I think the question might be more appropriate to ask yourself do I want the responsibility of home ownership, and that responsibility includes what will happen if values decline. Keep an eye out for wage growth and the unemployment rate. If wage growth maintains low levels of increases and property values continue to increase that should be a big red flag, and if unemployment rates increase that’s another red flag.

Brad Heavey is a Carlsbad Real Estate Appraiser

 

 

 

 

 

 

 

 

 

 

 

 

 

Keywords: how much is my house worth, home value estimator, property value, house valuation, what’s my house worth, value my house, how much is my home worth.

 

 

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Less Underwater Homeowners

by Brad Heavey on December 8, 2015

December 2015

Homeowners came up from underwater on their home loans in the third quarter, decisively owing less than their home value.

Loan to Value rates fall

Negative home equity in the US  fell to 13.4 percent of homeowners with a mortgage, 1-percent from the second quarter and 16.9 percent from a year ago, according to Zillow. Historically, the typical negative equity rate is lower than 5 percent. Thus, many are still struggling to establish equity.

Rising home prices is the cause of the gains, a good thing to see as a trend. Home value gains widened in October, up 6.8 percent from October 2014. The gains contracted in the first half of 2015. Recent price gains have reduced negative equity by a collective $60 billion in just three months. While the increase in home equity is a sizable  improvement since the housing crash, negative equity crisis is far from over. More borrowers will now be able to refinance, but an large number are still stuck in place.

Negative equity has become almost an afterthought in a handful of the nation’s hottest markets, but is holding back the recovery in dozens of large markets nationwide according to reports from Zillow.

Now 8-years after the housing crash began, more than 6 1/2 million homeowners are still underwater on their loans, and 30 percent of homeowners with a mortgage are still in negative equity position. Thus, they don’t have enough equity in their homes to afford a down payment on the next home or to afford the costs associated with selling and moving.

Brad Heavey is a Real Estate Appraiser in Carlsbad, CA

 

 

 

 

 

 

 

 

 

 

 

 

Carlsbad Real Estate Appraiser, Carlsbad Real Estate Appraiser, Carlsbad Appraiser, Estate Appraiser

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Real Estate 2015

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Sales Statistics for SAN DIEGO County CA Realist’s most recent sale date for this county is 10/19/2012   Single Family Residence Time Period Number of Sales Median Sale Price Sep 2012 2,130 $390,000 Sep 2011 2,033 $350,000 Aug 2012 2,639 $377,000 Aug 2011 2,098 $360,000 2012 YTD 21,493 $365,000 2011 22,891 $357,000   Condominium Time […]

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Sales Statistics for SAN DIEGO County CA Realist’s most recent sale date for this county is 09/28/2012   Single Family Residence Time Period Number of Sales Median Sale Price Aug 2012 2,639 $377,000 Aug 2011 2,098 $360,000 Jul 2012 2,390 $370,500 Jul 2011 1,993 $360,000 2012 YTD 19,755 $365,000 2011 22,891 $357,000   Condominium Time […]

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