Real Estate Market Trends

The Myth of the 20% Down Payment

When people think about buying a home, they are often discouraged by the idea of saving enough money for the down payment. Indeed, surveys have shown that the greatest impediment to home ownership for prospective buyers is the down payment. However, many potential buyers have the false notion that a mortgage requires 20% of the home's purchase price paid up front. In reality, the median down payment in 2017 was only 10%, and many buyers paid even less than that!

No, a New Housing Collapse Isn't Brewing

It has been more than a decade since the price bubble and subprime mortgage crisis led to the collapse of the U.S. housing market, but the event is still fresh in the minds of many Americans. Today, large numbers of home owners, buyers, and onlookers are concerned that another major correction could be looming just over the horizon. Their fears are not entirely unfounded; after all, 2018 has seen a slowing of home sales coupled with an ongoing streak of 76 consecutive months of year-over-year home price growth. Given these omens, should another housing crash be considered likely? According to a new article written by National Association of Realtors chief economist Lawrence Yun, the answer is a resounding "no". He argues that the underlying market conditions in 2018 are fundamentally different than those that existed prior to the last crash. Keep reading to learn why he believes that "the likelihood of a nationwide home price collapse is near nil for the foreseeable future."

The Average Homeowner's Equity Rose $13K in the Past Year

The numbers are in, and CoreLogic's Homeowner Equity Report proves that owning a home continues to be a great investment. In fact, U.S. homeowners with mortgages have seen their equity increase by a total of $766 billion since Q2 2016, working out to almost $13,000 per homeowner!