13 Takeaways on the Real Estate Industry after 13 days of 2021!

13 Takeaways on the Real Estate Industry after 13 days of 2021!

13 Takeaways on the Real Estate Industry after 13 days of 2021!  

More than likely, 2020 is not going down as your favorite year.  It has such a nice ring to it, but didn’t exactly live up to the hype. BUT,  it is now behind us and it’s time to look forward. I don’t know about you, but I am hopeful and encouraged. Maybe that’s the new year’s resolution nostalgia that still hasn’t worn off, but nonetheless, I am going with it.

After only 13 days, here are 13 takeaways that are setting the tone for the start of the new year:
  1. Let’s start out with the obvious: This years Spring market is FREEZING! Yes, it might say January on your watch or Google calendar, but the Spring Market is here. Talk to any agent and they’re seeing a flurry in sales, closings and interest.
  2. Seller’s: Inventory is TIGHT! That is incredible news if you’re a Seller as your home should sell FAST if properly positioned, priced and marketed! If you’re thinking about selling, you need to be on the market NOW!!
  3. Buyers: Inventory seems even tighter! There are VERY few homes on the market, in fact, record lows. What does that mean? You need to be prepared by having your pre-approval in hand and a REALLY good advisor on your side.
  4. New Construction costs are rising! Most have heard about lumber costs rising, but other material shortages are driving up costs as well.  One of our clients says it best, there’s no better time to build than NOW (Credit: Bernie Kurlemann from Classic Living Homes). Costs will continue to rise so don’t wait until they get higher.
  5. Lots are hard to find! We know this first hand with our sourcing team working overtime to find out clients lots. The good news: we’re still finding them 🙂
  6. Land Values are Rising! Land has been slower to increase in value over the past several years, but we’re finally seeing it. Great news for developers and land sellers, but tougher to swallow for new home buyers as it’s pushing prices up.
  7. New Development is happening! There are all sorts of new communities in 2021! Some of our favorites are Peterloon Meadows (Indian Hill), Three Oaks (Oakley), Factory 52 (Norwood) and Chimney Ridge (Loveland).
  8. This is the last year of the current City of Cincinnati Tax Abatement! At the start of 2022, the tax abatement will be changing so get moving on your new City home! Link here for more information
  9. Median Home Prices are rising! This has been happening for the past several years, but we continue to see this. It may be at a more modest pace, but 3-4% is likely!
  10. Citirama is coming to Newport! We’re excited to see the Home Builders Association jump across the Ohio River to do an incredible show in Newport with incredible view. More news to come so watch our feed!
  11. Mortgage Rates are still at ALL TIME LOWS! This helps to offset the rising values and new construction costs.
  12. Baby Boomers are making moves. Call it what you want, downsizing or right sizing, but we’re seeing a surge in baby boomers making the move.
  13. Lock your doors, there’s another little Hines coming in the Spring 2021. This was just a test to see if you made it all the way to number 13.  But, seriously be careful, we’re really not in control any more.
As always, if you have any questions, thoughts, comments, or just want to say hello, don’t hesitate to reach out! We’d love to hear what you’re seeing in the market and what your experience is.
Thanks and Happy 2021!
Sell Your Home in the Winter

Sell Your Home in the Winter

Sellers Wanted! Three Reasons Why Winter is A Great Time to List Your Home

While the weather out there is screaming WINTER, the market says SPRING!
With the holidays behind us, it’s time to get serious about listing your home. There’s no need to wait for warmer weather; getting your home on the market first can also mean getting it sold FIRST. 

Top 3 reasons to list NOW:

1. Buyers are hunting, and less inventory means MORE attention for your listing.

You’ve heard of the theory of supply and demand. With fewer choices on the market, there’s a greater possibility buyers will be giving your home a look (or a second, maybe even a third). Is it a great fit? Let’s hope. If it’s not, they’re more likely to consider making adjustments rather than waiting for the perfect house to come along. Winter-time lookers tend to be more serious. Give them something to look AT (and never end a sentence with a preposition).

2. Lower inventory can also lead to HIGHER SALES PRICES!

“I want to sell my house for a lower amount.” (said no one ever). Put your house on the market now and you’re more likely to get full to above market value. Why? One word: competition. You don’t have as much. With fewer houses on the market, potential buyers have fewer options to compare and are less likely to negotiate aggressively.

3. Less business can lead to a SMOOTH TRANSACTION.

Everyone gets busy during the spring and delays can be a huge frustration for both buyers and sellers. With fewer transactions occurring during the winter months, lenders, appraisers and inspectors have more time to focus on your property. Bypass those long lines. Get your house on the market early and put your listing in the express lane.

Bottom line:

If you’re ready to sell, there’s never a bad time to list your home, but don’t procrastinate (keep that New Year’s resolution). The buyers are ready and waiting. Let your house be the “new listing” getting everyone’s attention and let us show you how to do it.

Making the decision to sell your home can be overwhelming. Brandi Schildmeyer, at Build Collective, Coldwell Banker Realty, can help you understand the process and make sure you get the most for your home in the shortest amount of time.

How Does the Current Low Interest Rate Environment Impact Home Buyers?

How Does the Current Low Interest Rate Environment Impact Home Buyers?

How Do Interest Rates impact Buyers? 

On July 31st of this year, the Federal Reserve lowered the Federal Funds Rate 25 basis points in a much-
anticipated move. As a mortgage broker, I’ve fielded many questions from our firm’s clients about this
development. Specifically, people want to understand how this shift in policy impacts their mortgage and
buying power in the future.

How does a Federal Reserve rate cut impact mortgage rates?

The short answer I give to my clients is to pay attention to the 10-year treasury bond rate. There is a
common misconception that the Federal Funds Rate directly correlates to mortgage rates. Instead, the
10-year treasury bond is the main index lenders use to price mortgage rates. The reason? While most
mortgages are 30-year products, those mortgages typically get paid off within 10 years, making it a great
benchmark to determine where rates are going.

To provide an illustration, if you look at the 10-year treasury rate between January 2019 (around 2.75%)
and August 2019 (around 1.66%), that 100 basis point drop is a direct correlation to how the conforming
30-year fixed mortgage rate has performed. In January 2019, that rate was around 4.5% and in August
2019 that rate is in the 3.5% range.

What are things to consider as a potential homebuyer?

1. Low interest rates represent higher home buying purchasing power

Let’s say you’re applying for a 30 year fixed mortgage loan for a new primary residence and have been
prequalified to borrow up to $400,000.
Last year, assuming a 740+ credit score, a 30 year fixed rate would have been in the ballpark of 4.75%. The
principal & interest payment would be $2,075.43 per month.
In today’s environment, that rate could be as low as 3.5%. on conforming loan amounts (<$484,350). The
principal & interest payment would be $1,790.54 per month. That’s a difference of $285 per month.
That also means, in today’s low rate environment, you could get approved up to $463,500. The principal &
interest payment would be $2,075.43 per month at 3.5%.
The drop in rates represents an ability to borrow up to $63,500 more.

If you don’t envision owning your home for longer than 7-10 years, you might consider refinancing into a
10-year fixed Adjustable Rate Mortgage (ARM). A 10-year ARM is amortized over 30 years but offers a
lower interest rate than a traditional 30-year mortgage for the first 10 years. This can be a great way to
save on interest payments. For example, if you compare a $1MM loan with a 30-year fixed rate at 4.25%
to a 10-year ARM at 3.125%, there is an interest savings of nearly $107,000 over 10 years. Typically, you
can refinance as much as a $3MM loan balance into this type of loan.

2. Look at a 15 or 20 year mortgage

Ideally, we all would like to pay off our debt in as short and inexpensive way as possible. In comparison to
a 30 fixed mortgage, 15 & 20 year fixed options offer lower interest rates. The amount of interest you pay
over the term of a 15 or 20 year fixed loan compared to a 30 year fixed mortgage is drastically lower. In
fact, many financial advisors and personal finance experts recommend homebuyer’s utilize15 year fixed
mortgages.
So why do most buyers not finance their mortgage into a 15 year fixed loan?
They can’t budget the higher monthly mortgage payment of a 15 or 20 year fixed loan into their budget.
There’s too many other expenses, whether it be putting money away for retirement, school tuition, or
lifestyle expenses.
Assuming you can comfortably budget a 15 or 20 year mortgage payment, it’s a great financial tool to
build up equity in your home quickly and eliminate interest expense.

3. Adjustable Rate Mortgage option

Consider this example. Say you don’t envision owning your home for longer than 7-10 years. You might
consider a 10-year fixed Adjustable Rate Mortgage (ARM). A 10-year ARM is amortized over 30 years but
can offer a lower interest rate than a traditional 30-year mortgage for the first 10 years. This can be a
great way to save on interest payments. For example, if you compare a jumbo $1MM 30-year fixed rate at
4.0% to a 10-year ARM at 3.125%, there is an interest savings of nearly $82,000 over 10 years when you
compare them side-by-side. That’s a massive amount of savings. If you select the 30 year fixed option and
moved in year 10, that’s $82,000 in interest you didn’t need to pay.

As you can see, the reasons to pay attention to rate changes are many and varied. However, as a
homebuyer, low interest rates represent a great way to increase your borrowing capacity and save
thousands of dollars in interest over the life of your loan.

Making the decision to buy a home can be an overwhelming. Tim O’Brien, at Zipfel Capital, can help you understand opportunities that will provide clarity in a complex situation like purchasing a home.

About the Author

Tim O’Brien is an equity partner in Zipfel Capital, a mortgage brokerage company
based in Hyde Park, specializing in residential and commercial lending. Tim has
been acknowledged by the Greater Cincinnati Mortgage Bankers Association
(GCMBA) as a Diamond Level Producer, given to less than 1% of industry
professionals. He has also been featured in the Cincinnati Business Courier’s “Ask
the Expert” series. Tim holds a bachelor’s degree in Xavier University and is a
graduate of The Summit Country Day School. He lives in Mt. Lookout with his wife
and three children.

Your Guide to Building A Home In Mason

Your Guide to Building A Home In Mason

Mason is a Hot Spot For New Construction!

We Break Down the Top 3 Options for Custom Homes

The Mason area continues to be a hot spot for new construction, and for good reason! With a top rated school district, an abundance of recreational outlets nearby, a wide variety of shopping and dining, and close proximity to I-71 and I-75, new home buyers consistently add Mason to their top choice for a new home. As the 2109 selling season goes into full swing, we wanted to give you a brief outline of three of the most popular New Home Communities in Mason.

Kensington

  • Site of Homearama 2019
  • Custom Homes from the $800s
  • Half Acre to One Acre Lots
  • Community Pool, Playground, and Gardens
  • Superb Location off of Fields Ertel Road

Vintage Oaks

  • Custom Homes from the $700s
  • Half Acre Home sites with Walkout Options
  • Water features throughout the Community
  • Mature trees & wooded views
  • Conveniently Location off of Duke Blvd

Long Cove

  • Prestigious Community
  • Custom Homes from the $800s
  • Elegant Clubhouse & Community Pool
  • Picturesque Waterways and Streetscape
  • Beautiful Entrances at Wilken and Snider

For more information, contact Mike Hines at 513.260.0424 or Jan Gerding at 513.608.3770 at Build Collective at Coldwell Banker West Shell. They can get you started on building your perfect home in 2019!

Inspections May Be the Most Important Step of the  Home Buying Process!

Inspections May Be the Most Important Step of the Home Buying Process!

So Just How Does the Inspection Process Work?

So you’ve put a contract in on a homes and now It is time for inspections.  You may think that the most important thing when negotiating the contract is the purchase price, but in our opinion it is the inspection process!

Hiring a certified home inspector is one of the best decisions you can make when buying a home. They are over 1,200 items that home inspectors look at during the inspection on your new home. Some of the biggest items are: structure, foundation, roof, plumbing, mechanicals and appliances. There are also other inspections that you can have done usually for an extra cost that include radon, termite, sewer and mold testing.
Buying a home is normally the largest investment that you make in your life so it is very important to have all of these items checked so you make a wise financial decision.
Can you imagine buying a house and not having an inspection done? Imagine a year later finding out you have major structural issues or that you need a new roof. Having an inspection done before purchasing a home can protect you for years to come on your new purchase!  If issues are found during the inspection, you as a buyer can negotiate items to be repaired or replaced by the seller.  The Seller is not obligated to fix any item, but it allows the buyer the option to reconsider the purchase or fix things before they move in.
This is why we feel the home inspection process is one of the most important steps when going through the home buying process. Don’t make the mistake of buying a new home without having an inspection performed!