The Christie Cannon Team Magazine - April 2018

Apr i l 2018

Cons i derCos t , NotJus tPr i c e 5Reas onsTo Sel lThi sSpr i ng

2Myt hsKeepi ngYou Fr om Buyi ngYour Dr eam Home

712, 000Homes HaveGai ned Equi t y!

4T i p sF Ma k i n gT h e Pf e c t Of f

Feat ur edPr oper t y: 3621Spi c ewood|Pr os per

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5 Resasons To Sell This Spring!

Here are five reasons listing your home for sale this spring makes sense.

1. Demand Is Strong The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase‌ and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now Housing inventory is still under the 6-month supply that is needed for a normal housing market.

This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon.

Historically, the average number of years a homeowner stayed in their home was six, but has hovered between nine and ten years since 2011. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. As home values continue to appreciate, more and more homeowners will be given the freedom to move.

The choices buyers have will continue to increase. Don’t wait until this other inventory comes to market before you decide to sell.

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1

3. The Process Will Be Quicker Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and much simpler as buyers know exactly what they can afford before home shopping.

According to Ellie Mae’s latest Origination Insights Report, the average time it took to close a loan was 47 days.

4. There Will Never Be a Better Time to Move Up If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has forced these markets into a buyer’s market. This means that if you are planning on selling a starter or trade-up home, your home will sell quickly AND you’ll be able to find a premium home to call your own!

Prices are projected to appreciate by 4.3% over the next year according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

5. It’s Time to Move on With Your Life Look at the reason you decided to sell in the first place and determine whether it is worth waiting.

Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

The Christie Cannon Team Magazine

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2

8300 Preston Trace | Frisco | 75033

7700 Arches | Frisco | 75035

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8723 Sherwood | Frisco | 75035

9907 Max | Frisco | 75035

15508 City Garden | Prosper | 75078

40011 Arches Lane | Prosper | 75078

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2020 Spotted | Frisco | 75074

8705 Verona | McKinney | 75071

e, Pictures, and me on the market

Team� to 59559

12221 Lazio | Frisco | 75035

12313 Winding Hollow | Frisco | 75033

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2816 Appalachian | Frisco | 75033

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Featured Property: 3621 Spicewood | Prosper | TX | 75078

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For Price, Pictures, & More Info Text “CannonTeam� to 59559!

STUNNING Drees home with custom touches throughout & backyard OASIS that opens to expansive GREENBELT with fantastic views! Home complemented by handscraped hardwoods, Plantation shutters throughout, wood beams, game & media rooms, large stone fireplace, & a dedicated study with bay windows, custom built-in bookcases, wainscoting & French doors.

Open & upgraded kitchen has a granite island, stone backsplash, stainless steel appliances, double convection ovens, & walk-in pantry. Expanded master bedroom has patio access & decadent bath with Travertine floors & walk-in shower. Relax in the landscaped & private backyard by the fireplace under a covered patio or cool off in the pool! Enjoy energy efficient features.

5 Bedrooms 4 1/2 Bathrooms 3 Car Garage

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6

712,000 Homes in the US Regained Equity in the Past 12 Months!

CoreLogic’s latest Equity Report revealed that “over the past 12 months, 712,000 borrowers moved into positive equity.” This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today.

The report also revealed: •

The average homeowner gained approximately $14,900 in equity during the past year.

•

Compared to Q3 2016, negative equity decreased 22% from 3.2 million homes, or 6.3% of all mortgaged properties.

•

U.S. homeowners with mortgages (roughly 63% of all homeowners) have seen their equity increase by a total of $870.6 billion since Q3 2016, an increase of 11.8%, year-over-year.

The map below shows the percentage of homes by state with a mortgage and positive equity. (The states in gray have insufficient data to report.)

98.4% WA 98.4% OR

91.1% NV 96.8% CA

97.7% MT 97.5% ID

97.0% WY

98.5% UT

92.8% AZ

98.3% CO

95.5% NM

98.3% AK

96.5% ND

VT 96.7% MN

NH (94.8%) 94.3% WI

SD 94.9% IA

95.5% NE 96.8% KS

98.5% TX

96.0% PA

93.1% OH

95.9% KY

WV 94.7% VA

96.3% TN

94.5% AR 89.9% LA

95.4% NY

93.8% MI

91.3% 97.6% IN IL

96.1% MO

95.1% OK

ME

96.3% NC

MA (95.6%) RI (92.5%) CT (91.8%) NJ (92.4%) DE (94.0%) MD (92.3%) DC (96.5%)

95.9% SC MS

95.7% AL

95.4% GA

Insufficient Data

80.0% to 84.9% 85.0% to 89.9% 90.0% to 94.9% ≥ 95%

98.3% HI

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UNITED STATES 95.1% www.ChristieCannon.com

91.0% FL

7

Lack Of Listings Slowing Down The Market

The housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are up, home sales are up, and distressed sales (foreclosures and short sales) have fallen to their lowest points in years. It seems that the market will continue to strengthen in 2018.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory. While buyer demand looks like it will remain strong throughout the year, supply is not keeping up.

Here are the thoughts of a few industry experts on the subject: Lawrence Yun, Chief Economist at National Association of Realtors “A majority of the country saw an upswing in buyer interest at the end of last year, which ultimately ended up putting even more strain in inventory levels and prices…These consistent, multi-year price gains have certainly been great news for homeowners, and especially for those who were at one time in a negative equity situation.”

Dr. Frank Nothaft, Chief Economist for CoreLogic “The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1 percent by year’s end, the lowest level in 17 years. Rising income and consumer confidence has increased the number of prospective homebuyers. The net result of rising demand and limited for-sale inventory is a continued appreciation in home prices.”

Bill Banfield, Quicken Loans Executive VP of Capital Markets “Low inventory of homes available for sale and a growing economy has led to steadily rising home values as indicated by the string annual increase of the HVI (Home Value Index).

The recent increase in interest rates could test affordability in the short run, but the desire to own a home remains on firm ground and may ultimately help normalize the inventory issues.”

Bottom Line If you are thinking of selling, now may be the time. Demand for your house will be strong at a time when there is very little competition. That could lead to a quick sale for a really good price.

The Christie Cannon Team Magazine

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8

7478 Greenvaley | Frisco | 75033

7451 Orchard Hill | Frisco | 75035

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1584 Barksdale | Lewisville | 75077

7473 Danbridge | Frisco | 75035

3663 Briar Tree | Frisco | 75034

1598 Pelican | Frisco | 75033

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7217 Oakbury | McKinney | 75071

6937 Collinwick | Frisco | 75035

e, Pictures, and me on the market

Team� to 59559

5533 Largo Vista | Frisco | 75034

5177 Lakehill | Frisco | 75034

3413 Sequoia | Melissa | 75454

1193 Pleasant Oaks | Lewisville | 75067

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The Real Reason Home Prices Are Increasing

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance� (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate (see chart 1).

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12

205 Crystal Court | Heath | 75032

708 Patio | Little Elm | 76227

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921 Palmflower | Frisco | 75034

11073 San Pedro | Frisco | 75035

1804 Balboa Park | Prosper | 75078

1865 Canyon | Celina | 75009

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746 San Clemente | Frisco | 75034

809 Field Crossing | Little Elm | 76227

e, Pictures, and me on the market

Team� to 59559

1131 Crooked Stick | Prosper | 75078

2911 Hawthorne | McKinney | 75071

1911 Cedar Springs | Prosper | 75078

8502 Falconet | McKinney | 75070

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14

2 Myths That May Be Holding You Back From Buying Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that “eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.”

Myth #1: “I Need a 20% Down Payment” Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same Urban Institute report: “Consumers are often unaware of the option to take out low-down-payment mortgages.

Only 19% of consumers believe lenders would make loans with a down payment of 5% or less…While 15% believe lenders require a 20% down payment, and 30% believe lenders expect a 20% down payment.”

These numbers do not differ much between non-owners and homeowners; 39% of non-owners believe they need more than 20% for a down payment and 30% of homeowners believe they need more than 20% for a down payment.

While many believe that they need at least 20% down to buy their dream home, they do not realize that programs are available that allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I need a 780 FICO® Score or Higher to Buy” Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

As you can see on the right, 53.5% of approved mortgages had a credit score of 600-749.

Bottom Line Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

The Christie Cannon Team Magazine

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15

61% Of First-Time Buyers Put Less Than 6% Down

According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time homebuyers purchased their homes with down payments below 6%.

Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying. The median down payment for all buyers in 2017 was just 10% and that percentage drops to 6% for first-time buyers.

Zillow's Senior Economist Aaron Terrazas recently shed light on why buyer demand has remained strong, “Looking into 2018, rent is expected to continue gaining. More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.”

It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.

Bottom Line If you are one of the many first-time buyers who is not sure if you would qualify for a lowdown payment mortgage, let’s get together and set you on your path to homeownership!

The Christie Cannon Team Magazine

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16

Ready To Make An Offer? 4 Tips For Success

So you’ve been searching for that perfect house to call 'home' and you've finally found it! The price is right and, in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration: 1. Understand How Much You Can Afford “While it's not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast “Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream home.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

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3. Make a Solid Offer Freddie Mac offers this advice to help make your offer the strongest it can be: “Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Talk with your agent to find out if there are any ways that you can make your offer stand out in this competitive market!

4. Be Prepared to Negotiate “It's likely that you'll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you'll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to "always get an independent home inspection, so you know the true condition of the home." If the inspection uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller, or cancel the contract.

Bottom Line Whether buying your first home or your fifth, having a local real estate professional who is an expert in their market on your side is your best bet to make sure the process goes smoothly. Let’s talk about how we can make your dreams of homeownership a reality!

The Christie Cannon Team Magazine

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NMLS# 140234

Your Dream Home Is Waiting As a KW agent, I provide you an unparalleled advantage – the ZeroPlus loan by Keller Mortgage.

Offered exclusively on transactions completed with Keller Williams, this loan helps buyers like you save thousands of dollars.

$250,000 Loan

$500,000 Loan

$750,000 Loan

Keller Mortgage

Typical Lender

Keller Mortgage

Typical Lender

Keller Mortgage

Typical Lender

Origination Fee

$0

$2,500 (1%)

$0

$5,000 (1%)

$0

$7,500 (1%)

Processing Fee

$0

$625

$0

$625

$0

$625

Underwriting Fee

$0

$875

$0

$875

$0

$875

Total Lending Fees

$0

$4,000

$0

$6,500

$0

$9,000

-$1,000 credit

NONE

-$1,000 credit

NONE

-$1,000 credit

NONE

Closing Credit Total Savings with Keller Mortgage

$5,000

$7,500

$10,000

To qualify for the $1,000 credit, the loan amount must be at least $150,000.

Pre-approval is easy.

Just ask for my free home search app!

Tap the “Keller Mortgage” button on the home screen.

Certain officers, directors, and owners of Keller Williams Realty, Inc. have ownership interest in Keller Mortgage. Keller Mortgage, LLC is an affiliate of Keller Williams Realty, Inc. This is not a commitment to lend. Buyers are advised to obtain a Loan Estimate. Rates are subject to change and are dependent on credit and underwriting criteria. Not all borrowers will qualify. Limited to transactions when a Keller Williams agent is a party to the transaction. Borrower is responsible for any rate buy-down. VA Lender ID 560110-00-00; FHA Direct Endorsed Lender No. 241940009 & 241940011; Keller Mortgage is a licensed trade name of Keller Mortgage, LLC, 4725 Lakehurst Ct., Suite 400, Dublin, OH 43016; NMLS No. 140234. 1-888-766-2678.

Full licensing information can be found at www.kellermortgage.com; Equal Housing Lender.

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19

Buying A Home? Consider Cost, Not Just Price

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, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by close to a full percentage point by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.3% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by the 4.3% predicted by CoreLogic over the next twelve months, here is a simple demonstration of the impact an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

*Rates based on Freddie Mac’s prediction at time of print

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20

Provence provides a lifestyle of luxury to its future residents. Nesled within an engaging community, alongside tree-lined boulevards, water fountains and manicured gardens, this French inspired development sets a new standard in townhome communities.

Provence presents an amazing opportunity to live in luxurious settings in one of the most repidly growing regions in the USA.

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7501 Renaissance Blv. | Mckinney | TX | 75070

Community | Lifestyle | Prestige