Dec 10, 2016|
Opening doors for buyers and sellers with critical and credible information on the real estate market. Fast paced and fact packed with experts, interviews, call-ins, field reports, and timely market conditions.
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This it's real estate today. The number one real estate show on. In the radio. Welcome to real estate today. Backed by the professional experience of real tours from across America. Where your most trusted source on the radio for up to date real estate information. Realistic today is the official radio programs of the National Association of Realtors. In Israel for members in your neighborhood. Hi there I'm Stephen guests great and thanks for joining us today for our special show the year ahead. And in depth look at realistic in the upcoming new year. What will happen to the value of your home. What about interest rates and rule more homes come on the market. We'll look at all those questions and what they mean to you on our special show of the year ahead it's coming right up but first. Let's go to the realistic today newsroom with bill Thompson's cargo price even. President elect Donald Trump is nominating his onetime GOP rival doctor Ben Carson to have the Department of Housing and Urban Development. In a statement mr. trump should quote Ben Carson has a brilliant mind and his passion about strengthening communities and families within those communities. But some critics question Karstens qualifications to run hugged. Former Hud official Amy Lou who now directs the metropolitan policy program at the Brookings Institution. Told NPR the factor Carson grew up in poverty in Detroit does give him a platform and a personal story. The challenges the extent to which he can really bring that experience to be open minded to the latest innovations that have occurred in the housing and urban development space. The 65 year old Carson has never held public office. And Stephen we'll have more on the story in just a few minutes. America's home prices have never been higher. The latest S&P core logic Case Shiller Index finds that prices nationwide. Rose an annual five point 5% in September reaching a mark higher than the peak of the housing boom. Wall Street Journal reporter Laura Christy Stowe says the price spiral is being fueled by a shortage of homes for sale. A lot of homebuilders went bankrupt during that crash a lot of them haven't come back even those that have are really hesitant about building. And so what's really fueling their sits not that they're writing and comes it's not demand for the annual buying homes it's just that there aren't enough homes for people to I. The Case Shiller Index measures repeat sales of single family homes. Right now a loan of 420000. Dollars is considered a Jumbo loan but that is about to change here's why. By law Fannie Mae and Freddie Mac are restricted to purchasing single family mortgages with origination balances below the ceiling known as the conforming loan limit. Loans above the limit or knowledge Jumbo loans. While the government is raising the ceiling on those conforming mortgages for 2017. The limit is currently 4171000. Battle go to 424100. In most regions of the country starting January 1. It's the first increase in the conforming mortgage loan limit is 2006. While home prices increased substantially in September so did home affordability according to one gauge. In fact numbers from the latest first American financial real house price index. Adjusted borrowers hold more buying power than any time in the past 25 years. First American chief economist mark Fleming says that while nominally the price recovery is officially complete quote in real purchasing power adjusted terms. House prices are still far below the pre decline peak. Contributing to be increased affordability. Is wage growth in most major markets. Coming up half an hour more lender side mortgage credit is loosening Stephen back to you. Thanks bill. Big housing news this week as Phil Thompson just reported incoming president Donald Trump. It has named his former political rival Ben Carson. To be the next secretary of the Department of Housing and Urban Development. If he is confirmed by the senate. The retired neurosurgeon will head up a department with 9000. Employees. In a budget of forty billion dollars. Of course the curse and nomination has caused huge debate across America. About whether someone with no formal housing experience. Can really take charge of an enormous government bureaucracy like housing and urban development. Let's talk about the Carson picked now with Jerry juvenile chief lobbyist and senior vice president of government affairs. At the national association of real torch. Gerri good to have you back on realistic today. Gerri right off the bat what do you think about the choice of Ben Carson. As the secretary of housing and urban development. Well the national association of real truce just congratulated him on becoming secretary of I think that like. Mr. trump them and several other reported keys he doesn't have a a deep background in housing issues which sure rarely is a challenge but at the same time we've already asked to meet with him more or some of his aides to give them. A background on our issues so we're just awaiting wrapped so I think we're gonna try and educate them about how important produce perhaps. Well Jerry of course doctor Carson as a retired neurosurgeon. Not exactly the kind of background you'd expect for the person who runs the Department of Housing and Urban Development. But. Does he really need in depth housing experience or. Is it possible that Hud as a federal department can kind of run itself. I think it's more toward the latter he will provide some of the strategic thinking about where the administration wants ago whether what programs are working. It's a vast department that has everything from that's HIV which insures low cost mortgages. It has section eight housing which is helpful to. People who. Are lowering come it has so public housing authority. And a whole myriad of of of the programs spirit throughout are important. But I think there are. Several deputy secretaries from people who run those kind of department expect that should make it a little more helpful. Interesting. You know I've read of course that Carson himself grew up in a low income family. And some people are wondering whether that doesn't help him. Bring some degree of credibility to the post what do you think Jerry. I think it does in this sense it was public housing and actually you spent some members of congress who brought that experience to our baby vote and look at how big issues in congress shouldn't. Of course for the Supreme Court goes sort of my hair has the same kind of an expert group and housing project so you know I take it as some relevance to how he looks a total program. I seek know when it comes to someone like her cabinet secretary of housing and urban development. What priorities. Will and they are bringing it to the new secretary if of course he's confirmed by the senate. I think primarily. To begin with who would be. Federal housing credit administration. Issues a map has to do with Condo regulations which have become very important for the first time. I'm home bars it has to do with the amount of a down payment are able to ensure it has to do with how high cost areas or whether. A page there will be available to most Americans there are regional differences there. Also will talk to about. Fair housing regulations. And just essentially LB. Hard department will be working what would be a boy at the White House promoting housing Orwell would be of secondary agencies there's all remains to be city. Interest in Nigeria some people are wondering why wasn't he appointed to impede the surgeon general of the United States. What do you think. Yeah out at I think that was. That's a good question because a lot of people thought well let's whose background you have a lot of experience in the medical. Or older men in the industry and so on and don't really know why he chose made sure whether it was offered the other position. I think cultural. Health and human services you're PR aspect kind of back from. Arm held. Apparently it took mr. price is some. A doctor and a member of congress so. Interesting choices. It is interest and I'm also interest in the fact that. Did and they are congratulated him and wishes him the best and hopes he does a great job for housing in the United States. Well I I think we. Have always done that I'm in a ticket to recognition that OK it's an appointment it's done we want to work with good. We did talk to our other people who were interest to do him a good job itself through a bit strange thing expressing our. Interest over I and so I think we've been part of the process. Well Jerry we still have a whole lot more to talk about so in our next hour commute come back and talk about real estate and to Capitol Hill. In 2017. Are. Great thank you Jerry. Jerry gym and out of the senior vice president of government affairs and the chief lobbyist of the national association. Of real sore. Coming up unrealistic today. The new year and your mortgage. I think many lenders aren't going to be looking for opportunities to make that next loan that's next on our special show. The year ahead. Real estate today. Connecting you with the real estate professionals. Every week. And we are back where they are special show the year ahead. Looking at 2017. There what it might mean to buyers sellers homeowners. And you. Right now we're going to examine one of the most important elements in the nation's real estate markets mortgages and we've already seen. Interest rates not shop but that's just one change happening. So let's talk mortgages now. With a pro. Joining us is Mike friend Tony the chief economist and senior vice president of research and industry technology. For the Mortgage Bankers Association. Mike welcome to real estate today thanks Jeremy. Michael we have seen interest rates leave 53% realm. And enter the 4% growth will that continue in your view in 2017. Great question and so as you noted in meat post election timeframe. We've seen mortgage rates go up about half percentage point last week or two about four point 2%. A lot of reasons for that one views and expectations. That. Inflation is likely to pick out and perhaps growth pickup as well give him some of the policies that are being discussed with that expect that the Fed might be more aggressive in raising the short term rates that they directly control. On top of that you have potential for federal budget deficit to increase which can also put upward pressure on rates. All of that no hands you know they asked Tristan and a lot of uncertainty he has to whether policies will get through congress they were originally proposed. Uncertainties about. Growth and the rest the world that's really been holding our rates down over the past couple of years and lots of opportunities. For other events to cars and trucks and when you keep rates lower. Our expectation is that mortgage rates are going to be rising faster and a little bit higher and we previously thought but beyond that a lot of uncertainties on the horizon. RC. Can you give us any numbers or is it just to variable. So four full years when he sixteen. We think got a mortgage rates can average about three point 7%. And we think that's critical years when he's seventeen now be up about half a percent to about four point two. Top by the end of twenty to seventeen will be about four and a half. So certainly force someone who is looking at a three and a half percent rate earlier this year that's higher. But anyone who's been in this market heard time knows that four and a half percent rate it's really quite low historically speaking you're really wasn't until really this post crescent environmentally kind thing both sides so it's still low but someone hired deliberately bad. Now looking at this from a consumer point of view. If interest rates go up somewhat will banks be more willing to grant mortgages to people. Just the way I'm looking at it if you look for a full year 2016. We think. The mortgage market totaled about one point nine trillion dollars in good hands and origination volume. That was about 900 billion in refinancing and a little bit less financially and on the purchase sighed. He's going to 2017. We need to refinance volume can be cut in half we've already seen that under the application activity. As rates rise as much less of a century five we do you think purchase activities gonna grow about 10%. Nydia back to your question because of that you know more than 20% drop in total volume that we're anticipating. I think many lenders aren't going to be looking for opportunities to make that next alone you know oftentimes with the home buyer. It is more of an effort to try to find along that works for them buyer. Now we are certainly be much more constrained environments and we were in the pre crisis period and much more. Heavily regulated environment and so there's a lot of platitudes. A move that credit Bach and there was previously thought we'd certainly have seen greater availability of low down payment programs and we need peace some borrowers with less than perfect credit have I have a slightly easier time getting balance. Let's talk about that Mike in terms of the year ahead we now have 3% loan programs available from both Freddie Mac and Fannie may. And more may be on the way what's your take will 3%. Down and be a somewhat standard mortgage in the future. So that's some unconventional side and then I do expect that those programs are gonna grow. But I. For many first time buyers they often turn choose either FHA your VA loans to get a low down payment mortgage and get their foot in the door respect to the housing market thematic in particular parents that's really been their their specialty is providing loans to first time buyers three and a half percent down. That program has had a tough time the last couple years we have many lenders backing away from providing FHA loans because a lot of. Legal and regulatory uncertainty. With respect to areas that might be made in making FHA loan. But pop my expectation of the year handed that all of these channels will likely see more volume so FHA DN ain't. You have a lot of returning veterans are looking to be harmonica at this point and those conventional 3% down and I expect they're already get more volume. Given the stronger purchased market we're seeing a 2220 to seventeen. Well Mike we still have a lot more to talk about when it comes to mortgages in the upcoming year. Can you join us again in our next hour and we'll continue to conversation. A plan great Mike thank you Mike Fred Antonia the chief economist and senior vice president of research and industry technology. For the Mortgage Bankers Association. Coming up on realistic today. He's your New Year's resolution. To buy a home. I wish I would love to currently remain under home. At the moment is not possible but we're thinking about doing it sometime soon. We can find the right home for the right price at the right location. Yes absolutely it. That's stories coming right up on our special show. The year ahead. But first it's time for real knowledge. A special segment unrealistic today. In which we talk to a top level realistic professional economist or journalist. And ask them a tough question designed to help you have a thorough understanding of real estate. Joining us today is pat Brennan broke Combs broker with Coldwell Banker AJ as Schmidt realty in Grand Rapids, Michigan. And the 2007 president of the national association of real torch. Pat welcome to real estate today. Thank you I'm really pleased to be here. Well pat we are delighted you're aware of us and today's question is about selling your home. Specifically. If there's low inventory in many market. With not many homes for sale but plenty of buyers. There's a seller really have to do any work at all. Really what you need to do is keep your house. In show shape. So that people will make you an offer worth seeing how the expiring upped the market in today's market place because people are not. Taking the time to get their houses were ready to show. Buyers are picking out there both the buyer for their country your house. They've been watching HGTV. And they expect that their expectations are way higher than some other Keller homes that are coming on the market. So tell you use the best term I've heard in a month show shape. The new look back and it's. A joke or I had to be and shows like. But pat what is showed shape. Well I think that you have to look at it through the eyes of a buyer. Sellers have been living in their house for five to ten years or more they. Are comfortable west stock fall over and what ever there house. Peppered the smell like at the time and what ever Kuerten they put up fifteen years ago when they've purchased. The marketplace today it that you have to look at how. With a buyer die each. And what are buyers looking for today. And so that's why it's really important I I come to people's houses sometimes a year ahead. Before they're gonna put on the markets and give them advice as far as what they need to duke. To get it ready to put on the market to appeal to the buyers into the market punished. Will pat thanks for answering our question today on real knowledge and thank you for joining us and pat I hope 2016. Ends up to be a great year for you in Grand Rapids. Thank you think your way I'm sure it will be appreciate it and have a great day NBC. Pat Greta broke Combs broker with Coldwell Banker JJS. Schmidt realty in Grand Rapids, Michigan. Fanned the 2007. President of the National Association. Of Realtors is. Real estate today. Connecting you with the real estate professionals. Every week. And we are back with our special show the year ahead. All about what 2017. Warming to real estate and view. Ensure we'll be looking at the numbers on prices. Interest rates and more. But we're also looking beyond the numbers and what you believe is coming your way. That would be a good year for Goodyear to fire house we'll find out. As our special show the year ahead continues but first let's check in with Bill Thompson in the realistic today newsroom hi bill. I even. More of America's mortgage lenders now believe it's gotten easier to obtain a mortgage. Genworth mortgage insurance surveyed industry executives and found that while 50%. Say underwriting standards are still too restrictive. The numbers down from the 61%. Who said that in a similar survey two years ago. Wrote group to the president and CEO Genworth. Does the survey data is quote consistent with the industry's emphasis on improving credit access for more home ready homebuyers. But he also concedes there is certainly more to be done on this front. Nearly a quarter of all homeowners with a mortgage are now considered equity rich according to new figures from Adam data solutions. The number of homeowners who owns at least 50% of the equity in their homes grew by two point six million in the third quarter compared to the same time last year. That means more than thirteen million American homeowners are now equity rich. According to Adam the five states with the most equity rich homeowners are California Florida Texas new York and Pennsylvania. Coming up and half an hour more top real estate news. Stephen backfield thanks bill. And we're back. With this week's special show of the year ahead. We're we're talking about what's down maligned for real estate in 2017. Homebuyers home sellers homeowners. And you and what might be the most daunting New Year's resolution of ball. Resolving to buy a house our national correspondent meg McCloskey joins us now with more on that card meg. Hi CNN. As the years come to a close we'll start to think ahead toward our future goals. What about you is your dream of buying their home actually in the card free just coming here. Well we took to the streets to talk to people about how to turn homeownership from resolution. To reality. Countdown. Is on. The New Year's almost here and people are already setting sites on their ambitions and aspirations. For Scioscia who currently renting and buying a home is at the top of her live. I wish. I would love to currently on my own home at the moment is not possible that we're thinking about doing it sometimes. We can find the right home for the right price that the right location. Yes absolutely it's homeownership is in your future now probably a time when you start getting your finances in mind. So what's it gonna take resilient her husband's make it happen trying to get that ourselves out of debt first taking care of things that need to be taken if we take the next step and purchase a home because that's a big investment so. They clearly are with dad. The more we have available. The down payment savings heart can be deemed most difficult step and the home buying price. But 40% of buyers saved for the down payment for six months or less according to NAR's re a profile homebuyers and Alex. So may be a candidate. 44 year old Javier does have some concerns about. My whole nine out a lot of details are neck and you can't battle the money at. All or extreme credit these are good things start thinking about now. Monitoring and maximizing your credit score is gonna put join a better position to qualify for lower interest rate. And that could ultimately saving thousands of dollars over the life of your loan. Credit scores and interest rates have a big impact nationwide since 88% of recent buyers finance their home purchase. Including Ron who owns not one but two homes. First diskette give me gain by house right stop wasting money by flushing down the toilet with rent. And then once you own a home and you get global money in the bank you've been positioned by second Alex providing credit good so it's you don't have to be. Rich that own almost holed but I bought my house I have now body and half ago and the rates are still crazy low self. Having the rates be low and housing housing prices themselves be affordable encourage people take advantage of that watch your credit watch the market. And watch your budget runs got some great advice for those looking at my house you know different strategies for different people books volatility and for a home that you need by some fourteen year. Price range that you can afford I don't they can go wrong things have definitely been going rate for Jen well. This year my goal is to get married and I did I got married couple months ago. And then next year we hoped start and grow our family Jen is a 34 year old who's got some big length changing resolutions for both the past year and frenetic. But for her it's not just about identifying goals. It's about getting a planned to make them happen and we planned ahead and we bought a house easily have thought it there and I and took different that it was actually really really easy because we went her friends there was a real letter. And she made the process really really some balls stress free I didn't really have to worry about it. And what's funny answers that we actually purchased the first house that we look that I know it's unbelievable. Affection it was like the house meant to be for. Everything went smoothly because Jim surrounded herself with supportive team help navigate the new waters we actually looked similar amount that's fit us. And our goals and our family needs and our real litter actually helped us find the right financing team and RA at loan officer to get us through. Now with the wedding and a big home purchase behind her Jen can look ahead to what next you're hasn't sort we have to grow our families stayed happy and ski do an audit every day you wake up. I have the best job ever so I can really ask for anything to warrant. I'm pretty happy with life. Being happy that's a good goal for every one right. They happen. If you're trying to purges home you can work on your credit cleared that. Planner your finances and stick to your budget and get a team to support you along the way all things that can help make that dream home purchased a reality. And who knows he'll be able to make it happen sooner than you know it. Let the countdown began. Great report meg you know it is kind of fun to start thinking about next year but let me ask you for the people you talked to. This seemed like everywhere and we're starting to think about their resolutions. At this time of year. You know yes and now a lot of people had set goals while still others talked about making an implementing resolutions. As an ongoing or not to reserved for January 1. If you have a goal like homeownership in mind he can't do it on New Year's Day so ticking up throughout the year can really help make it a reality. That's a great point meg and look have a great holiday season and especially. A great new year thank you even you tilt. Coming up unrealistic today what was the homeowner on your list. Like defined under the tree he's always getting better he's getting a brand new power tool under the tree it's getting to the fifth at the that's straight ahead on our special show of the year ahead. This statement of real estate today is brought inside the home Ito. The next generation of home improvement has everything you need to do projects smarter faster and relax every day. The Home Depot more saving more doing. And we are proud. Put our special showed good year ahead and in depth look at the upcoming year. And what it means to buyers sellers and homeowners all across America. But of course before we get to the new U. We have the holidays. So right now we're going to talk about the perfect gift for every homeowner on your holiday list. And some gifts he might wanna keep for yourself to. So let's talk about the perfect holiday presents now when our friends at The Home Depot. Joining us is Danny Watson's with a Home Depot in Atlanta Danny welcome back to realistic today. Thank you so much and I'm so excited to be on the show today. Well we're glad your back whether Denny now many of our listeners might know someone who'd just took advantage of those low low mortgage interest rates. And bought their first home people who might not have a single. School. So let's start there what's a great gift idea for them. The Home Depot can help you find these gift for the new homeowner in your life. The whole people has been number one retailer power tools and accessories and has innovative tools every one walk in the community and for people without a lot of tools are not at all I'd suggest starting with a combo kit. Which allows for new homeowner to do all sorts of projects right off the back. For instance we offer an exclusive wild before piece combo kit to drill a flashlight. Two salt and too powerful one blunt battery could catch particle could go it's practically perfect. And that's available now put to help those homeowners get started we've reduced price spikes fifty bucks this holiday season. Well that sounds good Danny that's a great option for people who need to build a toolbox for the first time. Now how about other people who have been in their homes for a long time. They might have the basic tools they need but in the coming months they might have some big projects in mind and they might have to ramp up their workshop. To do the best job possible now what's sort of gift would be right for them. Now worked all week. Always be better than getting a brand new power tool under the tree kid getting it is a success you can make a powerful get beaten new homeowner in your life even more powerful light now I've got Home Depot with a really wonderful program offering good holiday season leaders and how it works. When you buy select combo kit from Milwaukee rigid. Right OB Nikita or to walk we will let you choose another power tool from a special list. And we will give you that tool absolutely for and of course you can give that title to the whole warrant your life. Gorgeous children want to look for yourself it's completely up view. It's time to get picky if you really watch it with big savings on the best collection of innovative tools. Please see that's what we're all about giving more than a holiday season wouldn't go Home Depot. Well that sounds good now Danny let's talk about hand tools one problem I have is that. It had been a homeowner for many decades I might have one socket wrench this one size and another one that's a different eyes. But I can never find the what I really need so for homeowners like me what's a good bet. Oh you definitely need a complete mechanics tools that were every docket in every wrench into the right side and organize speech and you can find them really quickly. A complete tool that is practical and Parker couldn't do hallmark in your life and also homeowners who had been in their house for many years. Here's one idea the Huskies sixty people mechanics tools that it has everything you need. And what hunt he's a lifetime guarantee it make a lasting impression that black forest aren't. He just in time for the holiday we got cut the party to just 5997. Played he's twenty bucks. That's fantastic now Danny. If I want even more holiday gift ideas for the homeowners on my list I understand at The Home Depot has something called. The gift center both online and in the stores in my neighborhood. That's right and we're here to help all people can help you find it if you want to move dictating. Whether you're online or underscore. Be sure to visit the special holiday gets there are where you'll find presents for everyone on your left the home people has innovative tools. Everyone wants a unique look at these and what you're looking for something to put under the tree will habit and oh by the way will. Also it would have thought. I know you know I love that will Danny were past Thanksgiving now you've already done it. Black Friday you've already done Cyber Monday so tell me so far how's business. Oh it's been great and I can tell you I've been out our tree lot and we had a blast. Kirby archer he's loading them up and not just the end of smiled on the customer state you know it just like hey out if what you're tradition where many of our customers coming in every year picking up the perfect tree and grabbing the points out of it's it's really want a hot favorite times of year. That's a lot of fun you know I'd bet a lot of people are common in the by the reads to buy the spotlights for their front. And I know I just it just the whole store changes around the holidays. It does and you don't even give them five from the customers they're they're excited. You know they're decorating their target and the things they're really want and it. It's just up on time. Well Danny I sure appreciate you coming by today and talking about the perfect gift for the homeowner. This holiday season. Well thanks so much for having me I enjoyed being on the show we look forward to talking to you again Danny thank you and happy holidays. You turn to anyone in with a Home Depot in Atlanta. Coming up unrealistic today is your real estate portfolio better off or worse off than it was a year ago. That's next on our special show this year ahead. If you love listening to us talk about real estate. Join the conversation. Fine really T today radio on FaceBook we can't wait to hear from you. That's real estate today radio on beside. This is a real estate today. Location. Location. And information. Back now whether or special show the year ahead taking an in depth look at 2017. And what it might mean to use your home and your real estate investments. And now a question how did you do in 2016. Was it a very good year for your real estate. Well let's look at that now how do you did this year and then in our second hour we'll look at how you might do next year as well. Let's start by talking about how much your home is worth. You love talking about that tortured while in most markets across the country real estate values rose in 2016. A year over year increase of 6%. That's not a leap but it is steady growth which really adds up over time. If you're selling your house that means you have a good chance of making a better profit now than a year ago but it's not just about sales. Those rising prices also mean their homeowners on average have about 6%. More equity in their homes. Also millions of homeowners who were once underwater. Owing more on their mortgages than their house is worth what they're getting back in the black thanks to those rising prices. So for homeowners and home sellers 2016. Was a very Goodyear. Now how about a mortgage interest rates regardless of where interest rates go from here. 2016. Will be remembered as a year mortgage interest rates hit the bottom. So for people getting home loans and people refinancing. 2016. Was a great year. Now for buyers 2016 was a mixed bag. Yes they had some big factors in their favor the low mortgage interest rates made every dollar go farther. And also mortgages were somewhat easier to get more and more lenders started seeing yet to buyers with low credit scores. As low as X twenty and sometimes even lower than mapped for first time buyers who don't have a part of equity to put down on their next hour. 2016. Was the year that down payment requirements dropped to 3%. At both Fannie Mae and Freddie Mac. So byers had some good things come their way in 2060. Except for the one really big thing inventory the number of homes on the market. Was really low in 2016. And it's still it. It's driving up prices creating competition among buyers. And causing bidding wars to break out but buyers who were fast enough and flexible enough and Smart enough. Did get homes and at incredibly low mortgage interest rates. And as they now watch interest rates climbing again it's clear for people who bought our home in 2016. It was a great year sort of sum it up for homeowners and home sellers many will find themselves better off now than a year ago. For buyers as prices and interest rates rise. They might face a tougher road demented a year ago but those who succeed will certainly consider 2016. A great year for them. In our next hour will look at whether one year from now you'll be better off than you are now. That's coming up on our special show the year ahead. If you'd like to hear more realistic today's special show the year ahead. Either stay tuned for join us online at our new web address the radio dot real tour. And from all of us here realistic today thank you for listening. This isn't real estate today. The number one real estate show on the radio. Welcome back to real estate today. Backed by the professional experience of real tours from across America where your most trusted source on the radio for help today real estate information. Real estate today is the official radio program of the national association of real tools and Israel for members in your neighborhood. Hi again I'm Stephen guest way and we're glad you're here as we look at the year ahead. A special show all about you and your realistic in 2017. What's going to happen and how's it going to affect your realistic portfolio. We'll talk to national experts about all of that and more. The year ahead continue. Apps but first let's go to the realistic today newsroom with Bill Thompson I don't I Stephen. President elect Donald Trump's Treasury Secretary nominee says it's time to privatize Fannie Mae and Freddie Mac. Speaking on Fox Business Stephen -- Newton and taking the two GS these private will be a top priority for the new administration. We've got to get Fannie and Freddie out of government ownership but makes no sense that these are owned by the government and have been controlled by the government first long as they have in many cases this displaces private lending in the mortgage markets and we need these entities that will be safe so let me just be clear we'll make sure that when their restructured are absolutely safe and they don't get taken over again we gotta get him out of government control. Both companies have been under federal control since being bailed out during a financial crisis. The national foreclosure picture continues to get brighter. According to black Knight financial services America's foreclosure inventory rate in October fell below 1% for the first time since July of 2007. Like night tracks the number of mortgaged homes in the process of foreclosure. That number they say drop by just under 1% from September but it's down 30% compared to October 2015. Recent Census Bureau figures show that Americans are moving less Tuesday. Well now core logic put a finer point on the data adding a prospective acquired through its own data tracking americans' behavior. What they found is that mobility is down by a third over the last three decades state to state moves Greta fifteen year low. Core logic senior economist Christine you know founded in 1985. The median time between purchase of home and sail about almost four point four years. But 2015 net median time had stretched to six point six years. The single family built for rent market is a small portion of the total single family development but it's driving. According to Census Bureau data analyzed by the national association of homebuilders for the last four quarters single family built for a starts total 34000 homes. That's up from 28000. In the previous four quarters. Coming up in half an hour interest rates are rising. That's okay Stephen back to you thanks bill. Continuing now with our special show at the year ahead. We're going to look at Capitol Hill and whether the new congress will. Or won't take aim at some of the benefits that homeowners enjoyed all across America. And for that we continue our conversation with Jerry Giordano chief lobbyist and senior vice president of government affairs. At the national association of real tours welcome back Jerry. Jerry this January. Many many new members of congress will be walking in the door and taking their seat to what your first job for them. I think the first job is as a member of congress pointed out yesterday at a housing supposedly conducted that. 60%. Of the Republicans. Come again and have never served under eight Republican presidential suddenly they're gonna have to our our very total lie about. Work to get things done so the first thing I picked. On our agenda will be to educate educate educate them on housing issues so many new members did not have to deal with a lot of housing issues so I think that's first blow at the top apart gender to give them our agenda. Essentially legislative agenda. Excellent and I know that there's a lot of talk. In the coming year about tax reform and much of that senators on the benefits to homeownership so. Jerry tell us about the mortgage interest deduction is that at risk and are you gonna fight hard to make sure we maintain that. A strong answer is yes it is that risk and yes we're gonna not compromise on that issue. Right now it's part of a blueprint rather than a bill. But essentially the blueprints. When you look at exactly what it does. Would remove any real incentive to own a home it would pretty much they give equal to renter. And that's not been our tradition for over a hundred years retired mortgage interest deduction because we as a nation of agreed to let housing strong communities are important people vote moral fortitude and education and so on and back in surprise we intend to have to make. We know Jerry there's been a lot of talk of course about how Donald Trump is a real estate professional. And he certainly knows real estate at the shall we say. Billion dollar level if it but one has to ask whether that's going to translate to mom and dad in their home. On main street in America where they have this little mortgage interest deduction that means the world to them what do you think. I think he's been mapped specific I'll mortgage interest deduction but it is. Designee for secretary of treasury have asserted that the administration will move to cap. Mortgage interest deductions. So we're gonna Mississippi what specifically that means. I say. And it could be several different options they could lower the million dollar limit they could cut out second homes they could do a lot of things and no one knows yet what they're gonna director. That's exactly right away a much over the last couple years as well let's look at the mortgage interest deduction to 500000 dollars of outstanding debt. Mortgage debt and you know about Watson's primary is it will recover will give a lot of holocaust relative slow and so. Is penalized to some of those barriers. And we're gonna take a general Armstrong looked at exactly what they do it. Those same question is raised about property tax deductions if I'm paying 2000 dollars a year in property taxes right now. I deduct that strayed off my taxes on April 15 is that also at risk. Took that risk in the blueprint that's been put forward by a burger speaker of the chairman of the ways and means committee on the house side because it and all of the directions except charity. And mortgage interest reduction by Asia essentially raising the standard deduction but perhaps where the because what we did some research on match standard deduction beer race we've found out that essentially losing the mortgage interest reduction and state. Taxes property taxes a loss for most homeowners. And also the capital gains exclusion. Nor as we all know that means that if I know my house as a married couple. I'm not taxed on any profit up to a half million dollars in FM single. Are not tax and any profit up to a quarter million dollars. Millions of people have views that to help fund their retirement. Is that also at risk. You know there's not been much discussion about that I remember who originally. Put in that tax code to help with Social Security retirement usually means someone is downsizing perhaps and needs to be extra cash so we're gonna take a look at that there's not been much said about that but again it's kind of an attack advantage for owning a home. Finally Jerry as you look forward to this brand new playing field upon Capitol Hill. With a Republican president. And of course Republican House of Representatives and a Republican senate. What's your strategy. Going forward Jerry. I think the strategy is we have to really determined. What the majority is essentially the first hundred days or what their priorities are right now they are saying it's to repeal of health care bill and then. They'll meet another three years took it a primary. Frame of substitute so that's the first thing that needs to be done the second thing that seems to have a consensus among Republican Party used what we do about the border and that. Cruise ship or big campaign promise after the bat would not sure it's it's going to be. Tax reform or perhaps tax repatriation. Where you bring back some of that money that it is overseas by many corporations. Surtax staff to use that for infrastructure. Building. Bill so that's the way it looks for the first time that that is the speed do remember a the first hundred days or seven that will be mostly doing nominations. For cabinet or Supreme Court remember so that's gonna take some time. So the hundred days scenario might get stretched. That's really a great point jury when you think of everything that's gonna be done in this coming session of congress. One would hope tax reform is way at the bottom of the list. Well back that's pretty much good because I mean the way the code is written now again after hundred years and under the agreement among militant people who used to encourage strong communities and homeownership. Amendment that's a debate that needs to take its time. Well Jerry I sure appreciate you coming on the show and talking about the year ahead in Washington thank you Jerry Jim and LO chief lobbyist and senior vice president of government affairs. At the national association. Of real tours. Coming up on realistic today. Put 2017. Will mean to you and your realistic investments. If you had to. Sell pay taxes in the league best you probably have less money he started off what is written down payment that's straight ahead. And our special show. The year I. Real estate today. Connecting you with the real estate professionals. Every week. Back again now when our special show of the year ahead. An in depth look at the new year and what it might mean to your home your real estate investments and you. And right now a special conversation about real estate in 2017. With Bill Brown. The president of the national association of real torched. Bill is a second generation real tour from Alamo California. And founder of investment properties in Oakland. Bill welcome to real estate today. They just didn't couldn't say yeah it's great to see you 20 now you've got an exciting year coming up bill. As president of any. First is to increase homeownership rate in the United States we hits seven for Santana tell height. We're down about 63 point five now. It usually happens that it's just low so what we're doing is doctor Lawrence June our economists has reached out to a doctor Ken Rosen. At UC Berkeley's Haas school of business. And they're going to cope with academic reasons you are not a political self serving. But academic reasons Sean Powell the country will be there fit with our homeownership rate. I give one example doctor rose and actually he's doing research on this priest thinks. That GDP. We'll go lies every time homeownership rises so those of the kind of things were looking out so we get taken to team policy makers in DC. And give them peace you know academic and actually economic. Reasons on why homeownership shouldn't raise. Don't understand the one of your other priorities is maintaining the 1031 like kind exchange which. Defer the taxes on the profit of the it was commercial real estate tell us about that and why it's so important to keep that it is a priority. Currently if you or investor Robert save viewed by. Something's for a million bucks to make a 100000 dollars bombers when you sell it to correct came my training up into something of equal. Or greater value is very important to maintain this. Because if you had to do. Shall all pay taxes in the greens fast you'd probably have less money can you started off with which you down payment. You get a lower return and the result is you have find investors not selling. Because the government thinks that they're losing thirteen billion dollars off of write offs and everyone who doesn't change anyone's. You're not going to make anything because people won't sell also some political circles. Cigarette tax breaks for the rich the exchange commentators that facilitate to interview lines and the majority of their business are mom and pop owners. Selling pork Lexus 6810 you buildings. It's going to enter new lines so we think it's it's imperative to visit has retained. So you're gonna fight for that the coming year absolutely. And also the mortgage interest deduction now of course all of this comes under the mantle of tax reform to correct some people would like to change. Lower or eliminate the mortgage interest deduction altogether. So tell me is that another fight you're willing to wage. Yes and this is where. We really draw a line in the sand when it comes MIT you know we were not going to compromise I had. It would be devastating to our industry if the write off was eliminated. And all so you'll be devastating to cities and local is valleys. You're gonna find values will drop beyond the provisions limited. Also. The mortgage interest deduction the ability to take care detection is quite often quite enables people to buy homes. So many people benefit once again it is back on March him a lot of people benefit from you know people being able violence so. Looking ahead. What's your take on 2017. For realistic in America. Everyone's anticipating that the Federal Reserve scored residuals race. And then they probably well I think buyers should remember that interest rates are so it is starkly low levels. I mean they're unbelievably. So I mean if the next rate on a mortgage and goes. Three to 4% even up to 5%. Historically it's a very low level. You people just psychologically giving conditional loan rates for X seven and eight years because they need your lowest raise to stimulate the economy so you know scored to put some challenges to homebuyers. And terms qualifications because of the higher payments. But to those who doesn't. Ignore and fire house and really think about the long term benefits of homeownership under the context of interest rates. Packet and early eighties hit 18% so underwear along way from that and as I said historically and still had very low levels. Well bill how I'm very excited about your year coming up and I look forward to working with you in the months ahead let's talk again sounds good thank you bill thank you. Bill ground the 2017. President. Of the national association. Of real killers. Coming up on realistic today. We'll mortgage lenders say yes to more applicants next year. Incremental. Listening in order to reached an additional borrowers are just gonna happen at least one other factors lead Tuesday pick up a wholesale. That's coming up on our special show. The year ahead. But first it's time to get. Real tort. A special segment unrealistic today in which we give one real tour one minute to answer one question. An important question designed to help you whether you're a homeowner. Buyer or seller. And today are very timely issue about staying safe while you put up your holiday lights. Joining us now is the honorable Nancy Harvey storks. The past chair of the United States consumer products safety commission. Nancy is a voice for safety issues all across America. She's the author of three books including your home safe home. She's also an associate broker with long and Foster real tours here in the Washington DC area. Nancy we're glad you're here great to be back with you Steve Nancy write about this time of year all across America. Homeowners are pulling out their great big ladder. Climbing up and putting up the holiday lights. It might be in a warm environment it might be in an ice cold environment. Tell us how we do that and how do we do which. It's safe. Steve Harris so many accident climbed ladders. So many times a person thing always just going to agreement with a slight drop. First thing they should always have is somebody with them this holding that letter securely as they go up. Secondly they should be very sure did they actually are going to be able to handle whatever it is that they are putting up and that they don't lose their balance. I have had several friends and have fallen off letters. And once they lose their balance it's very difficult attention back so there playing his. Don't risk get those letters can be a serious serious hazards so I was say climbing a ladder one image should never never never be done. And just don't risk it it's too dangerous and you really just shouldn't even mother and I'm sure that a lot of families where the waitress said in Tucson husbands. Honey please don't go up on that letter. Maybe what she should do a surprise human hand. What ever he was gonna do done by somebody else her favorite handyman they know what they're doing and that way you're not gonna have any little accident are gonna ruin your holding. And that is one minute great advice Nancy there's better ways to do this they flag and that's what I love about having you on the show Nancy you always bring us. Better ways and safer ways to do things around the house. Thanks for being here you're welcome great to be back. The honorable man. He hardly source the past chair of the United States Consumer Product Safety Commission. The author of three books including your home safe home and also an associate broker. It's long and Foster real tours in the Washington DC here. This is really easy today. All real estate all the time. Back now whether special show the year ahead a special examination of the upcoming new year. And what it will mean to buyers sellers. Homeowners and you. It's only about three weeks until new years day so we're going to help you get all red for whatever comes down the line in 2017. The year ahead is coming up but first let's check in with Phil talks in the realistic today's news her I don't. Even mortgage interest rates have been inching upward since the election although still at historically low level. But the effect of higher rates may not be what chew assumes as Collingwood group chairman and former Fannie Mae executive Tim root. He told Fox Business news that the assumption is that higher rates will price thousands of people out of the market but here's what really happens he said. Ultimately. Folks will go out though drive until they comply means that either gonna drive out further by a smaller place but put down more down payment or order take out an arm here is C a resurgence of adjustable rate mortgages again. Rude things interest rates will go up more and stay up. But thanks to improving wages quote people will be able to afford it it's not going to have a negative impact. Hampered by a lack of inventories single family home sales in the sunshine state were down five point 3% from October 2015. Townhouse in Kabul sales were down twelve point 3%. Maybe BC the 2016 Florida realtors president has buyers are still the market however the luck finding is many potential options as they'd like. California's infamous San Andreas Fault has long been a source of anxiety about a major earthquake a 2014 scientific study concluded that. But to default could break all at once and sort of piece by piece. Well now core logic you used out study as the basis of a new analysis of the damage that could result from a catastrophic quake even if only a portion of the San Andreas Fault were break. Millions of homes would be damaged or destroyed the cost could top 289 billion dollars. But core logic researchers also point out a statewide earthquake above eight point oh. Would be likely in California only once every 2500. Years. The National Trust for Historic Preservation has declared bleak house tomorrow. A national treasure this house was built for the 1933. Chicago world's fair. And was meant to showcase what the home of the future would be like it currently stands in Beverly shores Indiana owned by the National Park Service. According to be Indy star the house of tomorrow featured such futuristic fantasies as. An automatic garage door opener and I was refrigerator. And a machine. That could actually wash dishes. And air conditioning of course. Didn't like do you thanks bill. Back now talking about the year ahead and what it would mean to you. And your realistic. Last hour we talked about mortgages with Mike Fred and Tony the chief economist and senior vice president of research and industry technology. For the Mortgage Bankers Association. And Mike is witnessed once again to continue that conversation. Mike my first question to you now is about all the different mortgage products out there. It's seems to me that they add up to more people being accepted. For home loans in the year ahead. What do you think. I think that's right. He'll we are still in a tight credit environment I think and it Sony haven't people don't be saying that. But incremental. Loosening in order to it reached an additional borrowers or is gonna happen and it will be one of the factors leading to his pickup and all the details they do we have a very supportive environment we're down to. A four point 9% unemployment rate now I think it'll drop below are almost four and a half but intertwined seventeen. So he'll have more families in stronger financial shape who will be able to qualify so very much are you positive backtrack about housing market. Mike you make a really good point which is. People are being much more careful. With the mortgages they grant these days. The underwriting a stricter there really looking at every single page of your application and every document you submit. And that's a tight credit environment but the plus side to that. Is if you're granted a mortgage you can know they really believe you can pay. I think that's right in and I would preempt apparently you said that. There is he moved theory thorough documentation and verification of every element of your application. And that process is quite painful has been quite painful last several years you know very time consuming for the borrower. I think industry is moving in a couple of directions dad hopefully should make a process a little more plaster and even though the same level of scrutiny is going to be applied. A lot of movement towards electronic mortgage additional mortgages utilizing as much automation that's possible. Certainly having the same level of scrutiny and clear with respect to. Mean he's very conservative with our credit standards but doing it in a way that can speed the process along trawler involved. You know Mike we've heard a lot lately about online mortgage applications. And some companies that do the entire mortgage process. Online. Will we be seeing more of that in the year ahead. I think we will pennies beyond that they're just various steps with them a process. Are sort of rights for improvements in the customer experience. And you know for anyone who does their own taxes you know you're familiar way of importing your financial statements right into your into your tax program. And there are similar technologies out there now that we'll do the same look restrict your mortgage application. And I think many lenders RT you teenage. Access to these technologies to improve the customer experience I think. To someone who got alone you know 345 years ago vs someone is gonna get alone in the next year I think it will be noticeable difference in the process. What does the Mortgage Bankers Association he coming down the line in 2017. That our listeners. Might not be aware. Well I think certainly. Folks active and real constraints are aware that there's been any really pretty dramatic shortage of inventory in the market. And that's been in a driving force behind the increases in home prices gone up about twice the level of overall inflation. Do expect that homebuilding is gonna pick up this year our forecast is for almost one point three million housing starts almost 900000. On the on the single family side and that really is desperately needed bringing more inventory on line. In another factor that we things can support a strong year home sales and strong Euro purchase search page. So the Mortgage Bankers Association is predicting that the inventory shortage might ease up somewhat in the year. Again moving in the right direction now think we'll get all the way there in terms during a normal market but better than. 2016 has been which has been a real difficulty for a lot of potential buyers in terms of finding their property. Well Mike I sure appreciate you coming unrealistic today and talking about. Mortgages 2070. Great to talk with you Mike Pratt and Tony the chief economist and senior vice president of research and industry technology. For the Mortgage Bankers Association. Coming up on realistic today. We put the new Google home to the test to find out how much it knows about realistic. OK Google how many square feet in an acre. One acre feet close 43560. Square feet. That's next on our special show. The year ahead. This is real estate today. Because your home might be your biggest investment. Welcome back to realistic today in our special show the year ahead. Now one thing you'll all hear about more and more in the upcoming year. You're Smart home technology and especially. Voice recognition technology. It's one of the hottest areas of tech has millions of Americans bring home the Amazon echo and the new Google home. But how much do these devices really know. About real estate. Our next guest can help us answer that question joining us now. Is Google home. Stay cool how are you today. I'm great what can I do for you what we'd like to learn more about you. So pay Google tell us about you I can help you with lots of things for example you can say crystal ball. Or playing music for dancing. You can also seem more examples in the Google home math pay Google how old are you I'm old enough that the engineers trust me he used the Internet tough. OK Google where do you live and live in the cloud shoreline here whenever you'd like to chat well that sounds good now let's talk about realist. Pay Google what is the national association. Of real torched. According to Wikipedia the National Association of Realtors whose member brokers are known as realtors is a North American trade association for those who work in the real estate industry OK Google. What is a buyer's agent according to real estate dot com AA you. Buyer's agents are licensed professionals that specialize in searching evaluating and negotiating the purchase of property on behalf of the buyer. Now let's look at the other side of the closing table. Hey Google. What is a listing agent. According to Wikipedia a real estate broker real estate salesperson is a person who acts as an intermediary between sellers and buyers of real estate real property in attempts to match up sellers who wished to sell in buyers who wish to buy. Well that kind of describes all real estate agents not just. Listing agent so let's ask you another question. OK Google what's the difference between getting pre qualified and preapproved. For a mortgage. Here's an information for what is the difference between a pre qualification in a pre approval according to regions dot com. A pre approval takes the pre qualification process one step further. A loan application must be completed which is required in order to be pre qualified. The mortgage lender will review the following information income debt assets confirmed monies available for down payment and closing costs. Okay no harder realistic question. Pay Google what are repairing and right. According to do hey dad ordered the bundle of rights of people who own land that runs into a body of water such as a dream river or lake or ocean. OK Google what's going to happen to interest rate. Sorry I don't know how to help with that that's actually pretty Smart because no one else knows that either OK now let's ask some math questions. OK Google how many square feet in an acre one acre equals 43560. Square feet. Well that was good but it's kind of easy so let's ask a tough question. Pay Google H 126000. Minus 16%. The answer is 693840. Good job but how about an even harder math question. Pay Google what the square root of 682000000327. Million to. The answer is 826032. Point 871. Where you're doing a pretty good job. But let's take a little break now pay Google tell me something funny okay you're you know what sounded porcupine make when they kids. Which I thought I thought that's good. OK now we all know your not the only voice recognition device out there there's also the Amazon echo. And their virtual assistant is named Alexa. So OK Google. Have you met elects her I like Alexis cool blue light plus we share an affinity for our awards okay so pay Google is Alexa your friend. It'd be nice if my home was as tall as Alexis I'm not complaining though I like how cozy this is. Well it certainly was nice having you here unrealistic today pay Google thank you you are welcome. And hey Google. Have a great day I think YouTube Google home the Internet connected Smart home virtual assistant from a Google. Coming up on realistic today one year from now. We'll your real estate investment be worth more. Or less we'll talk about it straight ahead our special show a year ahead. If you're hungry for real estate information and follow real estate today on Twitter. Shares segments listened to them again and be the first to know what's on next weeks ago. Just search realistic today on Twitter. Real estate today because you. Love real estate. And we are back when our special show the year ahead. All about what 2017. Might mean to use your home and your other real estate investments. We're going to wrap up today's show with a look at what the experts are saying about the new year and what you can take away from. First of all let's look at the value of your home. Now of error we have some good news for you prices in most parts of America are expected to keep rising in 2017. The reason is that there aren't enough homes for sale but there are still plenty of buyers out there. So the laws of supply and demand are in your favor if you own a home where you plan on selling one. Now it won't be a huge increase. And they are believes that by this time next year the median price of a home in the United States. We'll go from its current point of 232200. Dollars. Up to 241250. Dollars that's an increase of three point 9%. No again it's not a spike but after all up is up. And that's good news for owners who have even greater equity in their homes and investments. And also for sellers who will see those profits at the closing table. Now that low inventories and rising prices are expected to create challenges for homebuyers. Especially first time buyers. But as we've been say. Those buyers do have factors in their favor. For one thing most mortgage lenders are allowing lower credit scorched and lowered down payment. And up to now homebuyers have enjoyed record low interest rates will backs about to change. Interest rates have started to rise not by that much but they are on the way up they've gone up about half a point since the summer. In by the end of 2017. There are expected to be roughly a half point higher the net. We should find out pretty soon with the Fed plans to do about interest rates when they meet on Wednesday. At that time they're expected to raise interest rates slightly. So the days of record lows may be behind us but even though the race will continue to be. Incredibly look and knocked a barrier to homeownership. But experts believe that there could be some really good news for buyers coming down the line in 2017. And that is more homes are expected to come onto the market that means more choices less competition. And all that added inventory should help curb those rising prices. You see the nation's homebuilders are predicting that in 2017. They'll finally be on track to build more than a million new homes. That's up there from the slump they had after the downturn not up their old ways in the homebuilders ordinarily. Would put up a million and a half homes. But again. Up is up and new home construction is headed in the right direction. So buyers who hang in there might do OK especially if they end up getting a home of their own. That would make 2017. A great year and even better if they're moving from renting to buying. Because rents are expected to continue to rise throughout 2017. So what's the bottom line Bowen prices interest rates mortgage availability and inventory. We're seeing positive changes on the horizon. Not a massive epic changes but slow steady movement back to what could be considered. A normal market a balanced market in which buyers and owners are on more equal footing without either being at a big disadvantage. You could call that a healthy real estate market and that's a pretty great outlook as we approach 2017. The year ahead. Coming up next week unrealistic today. The winter market we'll look at what shorter days cooler weather and the holidays mean to real estate all across America. And in your hometown to it may not be the busiest season of the year but it might hold big opportunities for buyers and sellers alike to. The winter market is next week right here on realistic today. And remember you can always listen on line at radioed got real tour that's our new web address radio dot realtors. And from all of us here at realistic today thank you listen.