What does Brexit Mean for Real Estate?

29 06 2016

BREXIT: What's the FIXIT for U.S. Home Buyers and Sellers? Now that much of the dust has settled and the panic has waned, let’s take a look at what impact Britain’s exit from the European Union may have on the U.S. housing market. The most immediate impact of Brexit will be on mortgage interest rates. Interest rates have remained at historic lows for the last several years. Contrary to what many experts believed, rates have remained low throughout the first half of 2016.

Possible impact of Brexit on mortgage rates?

In a recent article, the Washington Post explained:

“Brexit has spawned the recent bout of volatility in global financial markets. That has anxious investors scurrying for safety — and few assets are safer than U.S. Treasuries. High demand for government debt pulls down interest rates. That all translates into ultra-low mortgage rates for American households. And with Britain voting for Brexit, they could go even lower.”

However, the lower rates caused by Brexit may be short lived as Trulia Chief Economist Ralph McLaughlin pointed out in a recent post:

“While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.”

Bottom Line

Rates are already at historic lows. The UK’s exit from the EU almost certainly guarantees they will remain low (and possibly go lower) over the next few months. If you were thinking of buying your first home or trading up to the house of your dreams, this may be the time to act. The cost of money may never be better for a potential buyer.

8 Ways to Prep for Resale

16 06 2016
It may be a seller’s market, but that shouldn’t stop you from fixing up your home before you list it. As you know, kitchens sell homes. However, what you might not know is how to create a space that seals the deal. If you update your kitchen’s finishes and stage the space properly, your home won’t be sitting on the market for long. Here are eight ways to prep your kitchen for resale.

Non-MLS Listing, Sneak Preview

7 06 2016

2017D Simond Ave., Austin, TX  78723

Pre-MLS $535,000

Rare 4 bedroom condo with fenced in yard.  Master bedroom downstairs with 3 bedrooms up.  Rear entry garage with plenty of storage. 2,377 sqft.  Granite in kitchen and bathrooms.


Click here for video!

Houses Have Been Growing

6 06 2016

Business Insider has done a study on the changes since the 70’s and here’s their findings.

Houses have been getting bigger and fancier for the last several decades, and we have the charts to prove it.

Every year, the Census Bureau releases data on the characteristics of newly constructed homes, and they recently released info on houses built in 2015.

We decided to take a look at how different aspects of newly completed single-family houses have changed over the last several decades.

The number of bedrooms in single-family houses has tended to increase. In 2015, about 47% of newly built houses had four or more bedrooms.

The floor area of houses has also increased over the years. The median house built in 2015 had an area of about 2,467 square feet, about 62% larger than the median in 1973 of 1,525 square feet.

WSJ says Housing Recovery Picks Up Steam

2 06 2016

Wall Street Journal: Housing Recovery Picks Up Steam | Keeping Current Matters The first paragraph of the article says it best:

“Home prices are back to near-record highs across the U.S. amid rising demand and supply constraints, a sign that the lopsided housing-market recovery of the past five years is gaining some strength.” (emphasis added).

What about the struggles in the economy?

Some openly question how the real estate market can be gaining ground if the overall economy is still struggling. According to the WSJ, it is:

“Despite the unbalanced recovery, Federal Reserve officials have seen housing as a bright spot for the U.S. economy in recent years. Residential construction has contributed to overall economic output for eight straight quarters, expanding at a 17% annual rate in a first quarter marked by slow growth in other sectors.”

Bottom Line

The housing market is gaining strength and all indicators point to an even stronger real estate market moving forward.