Dec 17, 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.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
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 we are your most trusted source on the radio for up to date real estate information. Real estate today is the official radio program of the national association of real stores and Israel for members in your neighborhood. Hi there I'm Stephen guess great and I'm glad you're here for our special show the winter market. That's right winter officially begins this coming Wednesday. And when it does. What's going to happen to real estate we'll market's slowdown. Or we'll Smart buyers and sellers jumpin. While others are taking a long winters now. We'll talk to top realistic prose about how you can trust in every deal you do the winter market is straight ahead but first. Let's go to the realistic today newsroom with Bill Thompson Carville ice Stephen. As mortgage interest rates have climbed since Election Day now at their highest level in two years mortgage applications have been on a roller coaster. Up sharply one week down significantly the next and flattened out. Wall Street Journal consumer lending reporter Anna Maria and realist says it's not that interest rates or even my whole life they're not but home buyer expectations are. Consumers got so used to age. Interest rate environment where mortgages work. You know no more than 4% or even below 4% for. Several years now that as a were moving now well beyond the 4%. I level. It's looking expensive. And be Otis points up at the last couple of Beers there have been several times when mortgage rates suddenly spiked only to drop back again. And it is not clear yet what the market's response will be to the Fed's action on interest rates this week even though the Fed has no direct effect on mortgage interest. This could be a perfect time for thousands of American homeowners to trade up. Fortune magazine reports that smaller homes have seen better price growth and larger homes recently. Meaning some homeowners may be sitting on more equity than they realized in fact according to fortune. Many growing families or in the housing sweet spot right now. America loves it suburbs a new study a population trends and housing from the urban Land Institute term rule under center for housing. Reveals that while the influx of young professionals into big east has been a big story the suburbs continue to thrive. And it's largely because of affordability concerns sparked by that movement of affluent professionals in the bigs central cities. Median home values in the city are often tens of thousands of dollars higher than in the suburbs. In terms of overall population growth the study finds that suburbs outpaced downtowns even among younger residents. The future of Fannie Mae and Freddie Mac will be in the hands of congress in 2017 but at least one top lawmaker says radical changes unlikely. At a recent housing policy conference hosted by the national association of real first and S&P global. California democratic congressman Brad Sherman acknowledged that the house may pass legislation that could significantly change health Fannie and Freddie operate. But given their crucial role in helping Americans achieve homeownership Sherman says quote I wouldn't be surprised that the change is rather modest. Sherman and Oklahoma Republican Frank Lucas urged groups like and they are to stay engaged over the next two years to ensure a positive outcome. Coming up and half an hour more populous state news to invite you. Thanks bill. The big story this week the Federal Reserve. Raised interest rates for the first time in 2016. The move will increase its key interest rate by one quarter of a point. Plus the Fed announced it plans to continue to raise rates throughout 2017. The move shows the Federal Reserve is confident in the US economy. And so in many ways it's a good sign but of course it will mean that the interest rates many of us pay. Could increase also let's talk about all of us now the national expert joining us is Jill slush injured the award winning business analyst for CBS news. And a host of the popular radio show and podcast Jill on money Joseph welcome to realistic today separate TV radio we're glad you're here so here we are they finally did it the Fed raised interest rates. Tell us about that geo. Yet the worst kept secret in Washington right affect. It and remind everybody that a year ago. This was a bigger deal right it was the first day at a rate increase in nine years and that's why we made a big hoopla around it. And way back when in December of 2015. When the Fed raised rates. They did what they do. Every few meetings which is they have economic projections and they tell us what they think they're gonna do in the next year or two in three years down the line. A year though the Fed said hey we think the economy's gaining strength were raising interest rates and we believe that there will be fourth quarter point increases in two when he sixteen. Fast forward to today and we did not get four quarter point increases we got one and it just happened. So now this is really kind of interesting because on some level at stake a lot of economists as well as investors. Homeowners are sort of saying. Fed officials not very good at forecasting aren't very cut up and down and then I do think that we need to be little bit careful before we run around shrieking about rising interest rates and what's gonna have banned because. We don't know what's gonna happen and clearly. In mesh term. Don't know what's gonna happen so we did get this quarter point. That's you know maybe slightly good news for receiver out there maybe get a few more shekels in your checking it countered maybe when you renew his CD get a little bit more interest but it's not going to be a lot. And for borrowers we know that trend is that it looks like rates are headed hot air that's who we know right now. How does that affect someone who's in the market. For a home loan well what it does is it may actually do nothing because if you're getting it fixed rate mortgage. The Fed controls rates that are not tied to a fixed rate mortgage but that said. The reits that that fixed rate mortgage is key off of had been rising in anticipation. Of a more growth oriented economy. So this affects you is that's. If you're going to get at 300000 dollar mortgage. You could have gotten a three and a half percent fixed rate mortgage and nice to get a four and a quarter percent fixed rate mortgage unit a couple hundred dollars a month extra. Because reits have gone higher. If you're in currently a variable. Mortgage if your room if your mortgage rate. Based off of the crime rate or prime plus some number you would see your payments rise in the future so. That's how it affects you with your housing costs or even if you have a home equity line of credit that's tied to aid variable rate back to may change so. Your monthly payment could increase. But if I already have a fixed rate mortgage this means nothing to me zero because it's fixed rate right. And have a variable rate which I know that there's a lot of people who had variable rates were paying very low payments they were very much induced by that I know that we talked about this over the last couple of years we've said. If you have a variable rate yet they want a lot and went rates went thirty year fixed rate mortgages at three and a quarter three and a half percent remember having this conversation with the and I presume. That a good chunk of people roll their eyes and said are you kidding me love my low at. Those same people. Are going to have to start thinking about whether or not makes cents to lock in today. At four and a quarter four point 3% because even if you've got a very low payment right this second. You've got to look at what the likelihood. Is. Of your team at rising. Much faster than perhaps you expected. That's a reason why people would refinance. If you had either a variable rate or you find yourself a little more equity. Or you need to change the term of your loan. I would start really counting on this sooner rather than later because I do think that next year the Fed will be increasing at least. 123. Maybe even four times. Would you from talking to you so many times I know that you never panic. And that you urge people not to panic but you are saying crunch the numbers look at your finances because yes. Overall rate will rise in 2017. Yes I I think that that's I think it's fair to say that rates are rising they are not rising quickly I'm not so concerned about. Paying four and a quarter percent Ford had percent or 5%. On a more gauged if I've run the numbers. I have my down payment and I feel really comfortable week that amount every month they someone making now. Don't get spooked out of the market because mortgage rates have gone up. You still have to run the numbers in single net App Store to rent and some places. Owning a home with a four and a quarter percent mortgage is still more affordable than paying rent and in other places it may be the reverse. You know you still have to think about what I don't live somewhere. Why I'm making this decision what are the factors that go into this and then try to make the best decision for you and your fans. Jill that is great advice and and I like to just underline what you said you know crunched the numbers. Look at your personal financial situation but don't freak out don't panic this is not the end of the world. Now I promise it's not the end of the world that we're gonna wake up tomorrow morning you'll be able to get a mortgage somewhere somehow. I I will also remind you that. Might first mortgage. Was seven point 25%. For 830 year fixed rate mortgage. And my dad said to me home my 20 is the cheapest I have ever heard a tough avert a thirty year more shot. So everything is relative friends. Totally. Jill thank you so much for walking us through the Fed. And there increase our of their key interest rate thanks Jill. My pleasure Joseph Schlesinger the award winning business analyst for CBS news and the host. Of the excellent radio show and podcast. Jill on money. Coming up on realistic today expert advice on selling your home. In the winter. Here in a market where your population traditionally increases in the wintertime you have snow birds are coming to visit the iMac can be a really busy time year for you. That's next on our special show. The winter market. Real estate today. Connecting you with the real estate professionals. Every week. And we are back where their special show. The winter market all about the upcoming three months and how to. Well I've been realistic. Whether you're buying a home or selling a home. Not sure the days are shorter and the temperatures are cooler. But real estate doesn't stop in the winter in fact Smart buyers and sellers are still out there doing deals all winter long. Let's talk about the winter market now within expert. Joining us is Elizabeth Mendenhall. Real sore and CEO. Of re Max boon realty in Columbia Missouri. Elizabeth is that 2017. President elect of the national association. Of real tours Elizabeth welcome to real. State today thank you I'm glad to be here so Elizabeth it's almost winter and with that comes the winter market. Probably. A slower market and other times of the year but still people will be out there so beginning with sellers what's your advice to someone who is thinking about putting their house on the market. This coming winter. Well if you're on the market or if you're thinking about it the best thing to remember is your house can't tell if it's not on the market. So no matter what time mere days you really need to consult Sharell Turks about what time how to price it and when to put it on the market so it can get old in the timeframe of when you need to sell it. Is the winter market a good time to be in the the real estate market or should you wait till spring well that's another great question for your real estate professional I happen to be in a market where we have a lot of investors who are very active. At the end of the year in fact many times December's or third busiest month of the year but that varies from market to market so. That's a question ask hero to professional but it can be a wonderful time to have your house. On the market it up many times it shows better with holiday decorations. There's lots of benefit to buy property and all property at the end of the year. Does the president elect of NAR you're obviously in touch with realtors from all over the country all the time. What happens to their businesses during winter today slowdown did they stop what are they just keep going straight ahead. I think again it depends upon the market if you're in a market where. I'm your populations traditionally increases in the wintertime you have snow birds are coming to visit us on that can be a really busy time year free of if you're in a market where sometimes it's cold and snowy on sometimes that can be a little bit of a light from market but again contrary all across the country great question ask year old Turk. An all throughout the year they're certainly different times which are heavier and miners first traffic held a question a local realtor can answer. One has to wonder that with a low inventory were experiencing in many markets across the country if leaving your house on the market. Might not be a brilliant idea because they're not many homes for sale and if you're one of them you'll probably get a lot of traffic. App lithium and in fact I'm in Missouri and that's something that I advise my agent studio. Again if it's not on the market it can't sell. The other thing Kansas that this is the time Mir when people are thinking about New Year's resolutions what are they gonna do in the new year and a lot of times that means I'm gonna. Find a new home and they start looking for property unit that your house just tap and then to match their goals and dreams right then you might be a candidate for them to buy. Last question about sellers should I keep my house open. For people to see it. Over the holiday. The number one thing that. I will tell you as as agents and as brokers that's really hard to manage is when a seller doesn't let a buyer. Either house one of buyers ready to buy and if you're ready to sell. You wanna have that house opened about buyer can see that house. If you're not ready it is now you may opt for an alternative showing strategy but that's something that you can tucked hero turnabout. But if I buyers can Avaya they're gonna wanna get you wanna be ready for them a country that house. OK Elizabeth Nowak covered sellers but we still a lot more to talk about so I wonder could you come back in our second hour. And talk about buying real estate in the winter market your thanks Elizabeth I appreciate it and we'll hear more from you. In the next hour of real estate today Elizabeth Mendenhall real Torre and CEO of three Max Boone realty and Columbia Missouri. And the president elect of the national association. Of real torts. Coming up unrealistic today but clock is ticking. For saving money on your 2016. Taxes. And thirty urgent it is a lack of crying you kid. Mr. Reid Brenner lower your taxes right it would be pretty nice thank you to fill. That's next on our special show. The winter market. But first it's time for ask the millennial. The Maloney also the biggest demographic group in America. And potentially the biggest group of homebuyers. Ever. So let's talk real estate now with a genuine member of the millennial generation. Joining us is Jayne dollar injured Jane welcome to realistic today I even happy holidays. Happy holidays to you to Jane so. What's in your holiday stocking today. With coach even this is actually the first year that I'm not spending the holidays at either my mom's house or with my young family. This year they will all be coming from my house I am hosting a holiday for eight people. In my new one met her apartment. And they're all staying there. Now it is out loud and as I'm sure the other millennial out there who are living tiny base and can tell you. This really poorly thought out idea. Isn't really bad idea but I committed to it and data I'm gonna do are right. So I thought I'd share a few of the holiday hacks I've learned. And I prepared for this tiny apartment holiday Armageddon that is about to befall me that's a my first dad is to make the plea deal homey when everyone arrives. Normally that would involve baking cookies and things smell amazing and there's cooking. But there'll be no time for such frivolity as I will be. Free to clean making room all of my tiny apartment to store coats and presents and Snooki. So instead. I'm gonna face. Simmering lemon slices Rosemary and Vanilla extract on the dough will still how with the smell of eight goodness. And Mike Campbell does have to eat my door about cookies and you know what I monitored care I don't think they were a leader because there will be. Cookies exactly and you know eating eating and more eating are a big part of how my family celebrates holidays. Cookies hi Amy B more lying. And I don't wanna be worried about dishes piling up in the kitchen or having to step away from the group to wash them. So it will be nothing but paper plates and cups during this visit nice and you know I'm also giving myself the Christmas present this year. I am hiring a professional cleaner to come after the family. I love my family. But entertaining them requires a little bit of recovery time. And I would enjoy the time I have with them and not stressed about the work that comes after they leave. So in dead. The elite you. I go to the movies and someone takes care of the mask happy holidays and Timmy the fat sounds like a great plan Jane and again. Happy holidays to you happy holidays to you you. Even ended any of you have questions that only millennial can answer. Please send me an email at. Ask the millennial at radio dot realtor and if possible. All your money here. Real estate today. Connecting you with the real estate professionals. Every week. Then we are back with our special show at the winter market. All about you and your house and your real estate plans in the months ahead. You know it's hard to believe it but winter officially starts up this coming Wednesday in all throughout today's show. We're talking about how to navigate the markets so that your winter can be a great winter for real estate. Coming up last minute tax planning tips that could save you money. The winter market continues right after we check in with Bill Thompson in the realistic today newsroom Pardo. I student. North Texas home sales erupted like a gusher in November. Sales were up 26%. From a year earlier the biggest year over year gain for the area and almost five years according to the Dallas morning news. Doctor James games chief economist for the real estate center at Texas say NM told the paper quote the November numbers just rocked. He says I don't know if it was the election nor the interest rates rising but people have been buying a lot of houses. The median price of an existing home in north Texas. Jumped 15% in November year over year. Can fire sprinklers helped keep you and your family safe. A fire safety advocate believes they can and I'm a share abroad in two years ago she lost her brother and his family to a devastating fired during the holiday season in Maryland. Well now she's become a fire safety advocate and a new video grunt appeals to anyone building a new home to include sprinklers. The one thing that might have made a difference for my family could have been a home fire sprinkler system. Which would have slowed the progress of the fire and possibly bought them time to get the children and filed their State's hands. Last spring the National Fire Protection Association launched an effort to persuade builders who include sprinklers in new homes. Because even though many areas require sprinklers in new houses it's not the law everywhere. Coming up and half an hour the link between healthy food. And higher home values keep him back to you thanks bill. In just about two weeks 2016. Will end. And 2017. Will begin and of course that means you have only a few days left. To save money on your 2016. Federal income tax. That's right there are steps you can take right now that could reduce the taxes you oh when you file. We wanted to know about these strategies now because when the ball drops on New Year's Eve it will be to elect. So joining us now with all those eleventh hour tax tips is Lisa green Lewis with Turbotax. Lisa is a certified public accountant and Turbotax expert. She has more than fifteen years of experience in tax preparation including positions as a public auditor controller and operations manager. Lisa welcome to realistic today. So you're very welcome so Lisa. The clock is ticking down to the new year can we really make a difference in our tax hit. In that short time. Yeah he can he guard curry you know December 30 church it is. Battle I you can. Stick to reprint or lower your tax write it would be pretty expect you to kill our. Well that's good to know not Turbotax has an online guide dedicated. Just saving money at the eleventh hour so let's look at some of those ideas beginning with defer. Your income tell us about that Lisa. Yeah our Carol you know you may have been working really hard to hear it you're expecting holiday Boehner may be you can could be if your employer ordered search. Your opponent until January it that bonus with Gannett which you into higher tax bracket carbon unit are higher tax liability. But he may want to check into. The appeared Gupta employee if you have clients and you did work for it and you can call in light senior client in panel January or you don't. That income each. Deferring your income that's such a great idea I'd never thought of that before OK all so. Take some last minute tax deductions. Tell us about that. Yet Bayard. A lot of things he can do right Carol I'm. Dole contributing to a charitable contribution that would be why the majority of people contribute not lack. Key week of the year AD contribute not chat skated. Well being outlawed gay. You can't great architects and toward donating to charity in addition to act unique. Contribute. Acts can be and might detection Knoblauch. Do you pictured you'd 250 dollar or more you do need to get pat repeat or at least her charitable. Organization and people want to make sure. It erect I act perhaps I Earl Warren C three organization and current air. And Eric. They are week where you can there are organs in the. Okay Lisa next contribute the maximum to retirement. Account. That's a great idea and that's something I do understand. That is a great idea carp are going to meet and you can contribute and backroom arm until December 31. And Kirk won sixteen you can contribute 181000. An acute kidney or altered your extract the Arab. Our control total. When he port up and and it could greatly to lower your taxable income to let yours maybe you're tired and you think you are. In employer provided tore one K it's so windy and figured where actually it. Your release increased senior retirement accounts. We'll turn our. I've felt employee don't forget that they do you can contribute 20%. Are here and harm or could it be Greek and collared. And then backed Arab dignity Quebec's. High seas to Europe to do this every two weeks or every month you can just write him a big check at the end of the year. Excellent. So all these things added together could make a big difference in someone's tax bill. If they just get to it by a New Year's C. What well Lisa thank you so much for coming by and talking about those last minute strategies that can really help save some serious cash are appreciate you being here. You're very welcome. Lisa green Lewis with Turbotax certified public accountant and Turbotax expert. Coming up on realistic today spending the winter market. Improving your credit. It seems fluctuation. In consumers' credit scores of 3050. Even sometime many up each morning that's next right here. On realistic that. This is real estate today. 100%. Real estate 100% of the time. And we are back with our special show the winter market. All about you and your realistic violence during the coldest part of the year. Right now we're going to talk about what might be one great New Year's resolution. When that could make getting a mortgage a whole lot easier in 2017. And that is improving your credit score. If you can get that number just a few points you might qualify for some of the best mortgage interest rates help. But how can you make that happen. Let's talk about that now with a pro. Joining us is Jerry Jeff Wyler a national credit authority. Jerry has worked for decades educating consumers about their personal credit. She's the head of market education at NAFTA which helps consumers and business owners manage their credit. Her latest book is financed your own business Gerri welcome to realistic today. Well Jerry let's start at the very beginning in today's marketplace with mortgages and car loans and other finance issues. What's the difference between having a say 650 credit score. And say 8750. Credit score. All right out of work it's grown it could be as significant. Difference now you know that you stalling to different interest rate brackets usually based on your credit scoring here's one thing that I find that many homebuyers suspicion speculators for the first time don't realize. And then sent mortgage lender is gonna put your credit report from all three credit here at Equifax. Experian and changing and they don't share information with each other your credit reports are going to be different in your credit scores will be different with all three. And so usually it will use the middle of the three credit scores as the qualifying credit score. For that mortgage so whatever that middle number his dad she issued a number of its gonna be used to determine. Which bracket you falling to the terms of the interest rates legal qualified for. If you can get that number up an ATP get into the next to better packet. A lot of attention to qualify for lower interest rates and over the life of the mortgage loan which is the largest won't even let small difference in the mortgage rate could needs tens even hundreds of thousands of dollars in your mortgage. OK but say they're ending the year. Where their credit score around 650. What do I have to do to get that score all the way up. 2750. Well that's a big job. It's not impossible but one of the biggest ones that can have the biggest immediate. Impact to our credit. Is the balances on our credit cards and I have seen it. Time and again. I've seen fluctuations. In consumers' credit scores of 3050. Even sometimes as many as seventy points. We need to heat down at those high credit card balances itself. I'd give me an example. I have friends who Aetna Holliday went shopping jitter retail cart with a relatively low credit limit is maybe 800 dollars. And she spent about maybe 600 hours and that cart cheap heat couldn't fault but which she didn't know it that the critic current company reports are balanced when Nicole about the build it they Keller does it come. How much you are you can pay the minimum we can pay in full feel the element got reported and it would collection that you can almost all of her available credit. What they had to rupture credit score by. Well over forty points and she freaked out and called it said what's going on I said he paid off like usually do weighed a month and it went in new. There is zero balances reported let's see what happens and sure enough the next month or credit score popped up so if you're looking here credit report. And any of your credit cards show very high balances compared to the credit limits if you're able to get those down. Count debt could have a significant impact on your credit score appointment 2070. Will jury that raises a really interesting question do you know the credit scores of all your friends. At me a lot of F a cup I would cut back. So if are you really leaned into it and did everything I could. Followed all your advice on how to improve my credit picture. Over the next three months. How well do you think I could do. It depends what's bringing your score down surface something like your credit card balances you could see some significant improvement very quickly influence thirty to 45 gazes in at certain you balances are reported. Your credit score will be different. It's campaign over time he'd had a lot of late payments and they're fairly recent adapt harder to recover from that probably takes more time. So another you know approach your mind when I think about is considering that interest rates are still historically fearing low. Even ESP interest rates isn't the lowest of the low it could still be a very good time to buy and locking into rates because as interest rates start to rise which they inevitably went home. He donate them bouncing around for awhile but we're already seen that debt but that is starting to raise rates again. Then you'd you may look back later and say you know what I'm glad I thought when I get I'm glad I locked into that rape when I get. And you can still work out your credit if rates continue to stay low or they drop down again and you could consider refinance to see Pete can get a better rate because your credit situation has improved but it's nothing where rates are it's still makes a lot of sense to take advantage of what's considered here historically very cheap money. We'll Gerri great advice thanks for coming on the show today aren't you here Jerry Jeff Wyler the head of market education at Najaf which helps consumers and business owners. Manage their credit. Coming up on realistic today. How to use the winter market to get ready to purchase a home in the spring market. That's story's next right here on realistic today. If you love listening to us talk about real estate join the conversation. I'm really see today radio on FaceBook. We can't wait to hear from you. That's real estate today radio on FaceBook. This is a real estate today. Location. Location. And information. And we're back with our special show the winter market. All about how you can drive this Twitter where you're buying or selling property anywhere in America. Of course even though lots of people dude jumped into the real estate markets in the winner as we know others don't. Some people prefer to wait to until spring so if that's you let's talk about another's strategy for the winter market. And our strategy is using the three months ahead to get all ready. So that when spring arrives you can go for it without any delay. Now in this hour we'll talk about spending the winter months getting ready to buy next hour we'll talk about getting ready to sell. OK step one start saving money. Where three months ago you might be able to sock away more than you think if you start that now you'll be in pretty good shape but it's time winter's over. Step two get your credit in order check your credit report and also check your credit score. Look for any mistakes. If you find some get to work fixing them on line sites like credit dot com can help. You see of course the better your credit the better your mortgage interest rates so starter on that right now. Okay so. Now that your building up your savings account and building up your credit. Talk to a real tour in fact talked to a few. Find a real tore you'd like and who knows the area and even if it takes awhile to make the decision on which real tort work with. Well that's okay it's a good thing to do now when it's winter. Rather than starting your search for a realistic professional in the spring when the market will be heating up. Okay now step for the real tore you select will know several trusted mortgage lenders who can tell you exactly how much house you can afford. You can pick one of the lender your real to recommends or of course she confront when yourself but going through the process now in the winter. We'll save you a lot of time down the road. Step by start researching neighborhoods places you might like to lift places you might like to call home. Talk to your realtor as well as family and friends about all the great places around town take a drive over there and even for yourself. Ask curiouser weather based on the mortgage qualify for you can afford to buy in those neighborhoods or not. You know it's better to know that before you walk into a house and fall in love with it. And to be heartbroken because you can't afford the place. Oh and one more thing to do ask your real tour how competitive the market is where you wanna live. North it's red hot you might wanna take one more step with few realtors help. And that is read through all the contract paperwork. Now during the winter months. Read the offer the contingencies. All the disclosures. And make sure you understand every single benefit. Because when spring time comes you don't wanna be slowed way down by a big learning Kerr. OK so if you do all bet you'll be ready to start your house hunting as soon as spring arrived in May be sooner. But whether you jumped in before the spring market gets here or you wait. One thing's for sure you'll be so happy you did such good work all winter long getting ready to buy that home bureau. Much better than hibernating. If you'd like to hear more of realistic today's special show. The winter market dieters stay tuned for join us online at our new web address and radio got real tour. That's radio dot real tour. And from all of us here at realistic today thank you we'll listen. If you're a real terrorists you can put the entire real C today show on your web site. The best real estate show on the Radio One 100% free and they are members just go to our new web address radio dot realtor and break. This is. 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 us today realistic information. Real estate today is the official radio program of the national association of real tools and Israel for members in your neighborhood. Player again I'm Stephen guests weigh in I'm delighted you're here as we examine the winter market. A special show about the most unusual market of the year. Fewer people involved fewer transactions happen but it's. How can use use all of that to your advantage. We'll talk to the pros who would you market. Is coming right up but first let's go to the realistic today newsroom with bill talks Carville. I even the 2017 national real estate market is likely to slow compared to the last two years according to a new forecast from REALTOR.com. Watch for home prices to rise more slowly base say. 20s17 year over year growth is projected is three point 9% down from an estimated four point 9% growth this year. Real drew dot com things millennial and baby boomers will dominate the landscape in 2017 and for years to come. Although the millennial marketshare may only reach 33% in 2017. And homebuyers we'll have fewer choices next year as inventories expected a drop even lower in 2017. Don't swept the rising mortgage interest rates so says former million dollar listening Miami R&D Bianchi. Who tells Fox Business that almost all people are nervous about the rising number. Be it still a great time to buy even if rates go lopped you know I know there are talks about 4% over 4% what not it'd. Still very very low it is still good to buy and at the dollar it Philip great time to sell. Just as long as you were not overpriced you can make money in this market and as a buyer you can get a deal not a deal that you can get a deal. You Bianchi says the luxury home market had a low summer but he is now picking up again post election. Would more Americans buy a home if they have more knowledge about the process. Just a new survey suggests. The nationwide survey by Austin, Texas based sent a mortgage found that half of US consumers say they just don't have the financial education needed to buy a home. And almost that many say they find the whole process scary or intimidating. And a mortgage CEO Tom Rhodes says quote with the right guidance and support. Owning a home can be one of the biggest contributing factors to long term financial success. It's common knowledge that. Being close to good schools and parks will add to a home's value and now there's evidence that proximity to healthy food is also a big plush. A new report from the urban Land Institute finds that real estate values can be boosted by access to healthy food local choices and innovative cuisine option. You realize senior vice president Rachel McLeary says quote just as food plays a key role in social interaction and creating a sense of community. Real state plays a significant role in shaping how people accessed an experienced food. Coming up and half an hour underwater or upside down no matter what you call and there's a lot fewer of them Stephen thank you thanks bill. Today on our special show the winter markets were looking at how you can thrive in the upcoming winter season. Whether you're buying selling or refinancing your home. We're going to start with a brand new report. That says right now. Some people are considering this a great time to body in the United States. But others aren't so sure that's for a major study on exactly what consumers think about today's realistic market. It's an heiress quarterly home report. Which stands for housing opportunities market experience. Joining us now with more on the whole report is Lawrence June the chief economist of the national association of real torched Lawrence welcome to realistic today. Post event thanks for having me on the show. We're very glad your here so Moritz I understand that this quarterly report. Has changed somewhat since the last time it came out in the early fall can you tell us about that. What we are trying to do India home survey is people are not real true pioneer ask SOB yet they are just ordinary randomly selected America has. Their view of the market. And 70%. Indicated. That it is good town to buy a home. So that particular rescue ripple reflecting a good potential housing demand going into the future. Apple one have to keep in mind that 7% is lower. That's 75%. Of recorded earlier in the year it's. So they risk say less of an enthusiasm now than before. Me and dead enthusiasm. Is pretty much vanishing away in the west region and I know where home prices have run out fairly strongly. So trying in two variables together. Chanting death to consumers are saying. Look if things are unaffordable. I don't want to body. RC hole warrants that certainly backs up the old saying that all real estate is local because if you're living in part of the country where the economy's really good to. And homes are still affordable where you're gonna be enthusiastic about buying a home. But if you live in a part of a country where you know the economy might be good. But if home prices are just going through the roof ensure you're definitely going to be less enthusiastic about buying a home. Well we have to recognize that the home values have. Consistently outpaced people's any content on a nationwide basis for five straight years old West Coast particularly more so because price protest too much stronger. Obama and be in the report regarding the general economic conditions and I'm not related to bombard we are getting more and more people saying that economy is improving things are turning better things first our point better now compared to twelve months ago. But in the areas where there is sense fingers experiences. Fashion brought up at home values. People are feeling discomfort from that today and saying that they will hold back buying has oversold up being its. Unaffordable. OK but on the other side of the closing table. The sellers out west think it's a great time to sell a house. That's right stories like tipping balance you know one goes up one goes down to. On the hand in the west region because of the runup in prices fell more so virtually Australia has created a good time develop. Anyone can look at the data for example in Seattle Portland or many California markets where a list at home. Stage on the market typically fall even mocked us sometimes even less so it is very relieved. Easy to sell a home out in the west and now more and more people are saying dad and hopefully we do get some more inventory. And won big about economics is that. Didn't fluctuate up and down but he balances out so hopefully this finds one out. Will induce more inventory to come into the market. And that will begin to lessen the potential price growth. And better opportunity put upon years to Dem Mick does strike to buy a home. Our state Lawrence in the report it shows that people who own a home. Are pretty enthusiastic. About the idea of buying another home. But renters are not why would that be. Hello Leo I think it comes down to mortgage access because the owners to have extreme in some housing equity gains which they can then utilize sport. Deep down payment on their next home purchased. But do you renters don't have that looks a racial renters can to qualify. And many many renters are indicating that credit conditions still remains cellular extremely hoarse somewhat difficult. Are you in terms of able to obtain mortgages. And acting just as leading to that K fest to a body that does sentiment about buying it from Warner's perspective. They have the better financial capacity and then hence they are saying well. Yesterday it's Qatar to spotlight a lot of renters. Did did BR that's indicating that because of the difficulty of obtaining mortgage disk. He has since. Getting priced out of trumbull prices as well as the mortgage debacle to meet and indicating that is not a deterrent to buy. IC Lawrence there's part of the home survey called. The personal financial outlook index can you tell us what that is what you measure and what it found. Alonso at the did you just Bob Dole overall personal finance hazard but some people have and there are wolf tried to do you stock market. That people aren't that constantly looking at how they are salary may be changing. Have forced some people who may be O had a temporary job and now moving over to permanent job. Would builder about benefits that comes along with that at all considering all this aspect about their overall financial or how would they change their. Is it improving is that not improving. And it's good to see that that that more people or indicating that things are improving how. Lead trial. 26 came before this report. Slight majority indicated things were not improving. Just report the latest data comfortable majority are indicating that things are improved and so good news regarding the economic picture. Less hope that this translates into home buying enthusiasm. In the future. And that brings us to the future Lawrence after all were almost beginning 2007. Team. Does the latest home report give us any indication of what kind of year that may be for home sales across America. Well we are being cautious that I knew regarding projections. The economic factors suggest that housing market should continue to do fairly well in 27 came job creation on. Mortgage rates are somewhat higher your old will be sold in 27 thing but nothing alarming maybe four and a half percent. Average weight by age and built 27 change currency you know historically very very favorable. Solid economic got condition would imply that housing market should do very well. But we are only calling for 2% increase in unit sales just because the whole report. The level of enthusiasm about buying a home that diminished. Somewhat. And so we are being a little cautious and incorporating what the consumers are indicating. And be a second factor yes or no there is a greater uncertainty any time after a presidential election because any new pres. Blessed to make their mark there will be some policy changed proposals. And depending upon what what apple proposal becomes out of Washington and related to real estate. That could be a bigger player. Literally potentially impact and a real estate. I seahorse it is a fascinating report and I appreciate you being with us today. To talk about it especially right about now because were just about to begin a new year. And it's a good time to know exactly what consumers are thinking about when it comes to buying or selling a home so Lawrence. Thanks for being with us today. Thank you at Rancho. You're very welcome Lawrence Morris June chief economist of the national association of real towards. With NAR's latest home report. The housing opportunities market experience study. Coming up on realistic today wintertime strategies. For homebuyers. You're getting ready for a big family getting your thinking gosh I wish my dining room was bigger you know let's go look at houses. That's next on our special show go winter market. Real estate today. Connecting you with a real estate professionals. Every week. And we're back with our special show the winter market. All about all the good reasons to resist the urge to hibernate all winner. And instead to break out and make your realistic dreams come true. Now in our first hour we talked about winter strategies for sellers. And our guest had some great advice saying you'll never sell your house. If it's not on the market. That was Elizabeth Mendenhall real Torre and CEO of re Max boon realty in Columbia Missouri. End the 2017. President elect. Of the national association. Of real torched well in this hour Elizabeth is backwardness talking now about Smart realistic strategies for buyers in the winter market. Elizabeth thanks for joining us again. Glad to be here if I'm looking to buy a house in the winter market well I find bargains but I find motivated sellers. Gannon kind of completely depend upon the place and that where you are in the country. Com two completely different depends on climate on seasons on. Inventory on horses. You know we publish a lot of statistics from the National Association of Realtors include in the home irons are guys which talk about different regions in the type of times the regions are. Higher sales and different and that's where rupture Kim can be good advocate. In your market. Do buyers still come to you during the winter and say let's go looking at houses. All add slowly sometimes you have family in town sometimes again year. You're getting ready for a big family Denning your thinking gosh I wish my dining room was bigger. You know let's go look at houses you know and many times your thinking about what's gonna happen in the spring and they start to get kind of an initial. Blush of the market and what it looks like in oh. And certainly it's a fun time of year to look for houses as there are any of the month. When I go looking for houses in the winter say it's in the snow state and there's two feet of snow. Can I really do home inspection. Sure in an especially in those markets because that's what professionals are trained to do they know how to do home inspections. No certainly if a house has been vacant for awhile and it's been when our rights than your ruptures can advise you to put it in your contracts he can actually can be that inspection and have a home underwent right. On those are things a negotiator in the terms of you know the purchase contract but I am must stay can certainly manage their their whether and when they're ready to sell. Last question Elizabeth. Ever since July we've seen interest rates start to slowly. Rise. Not a spike not a surge but they're picking up bit by bit have any buyers come to you instead I wanna get again. Before they get too high. I think there's always a concern whenever the market changes and as we move into. New Year's mule. And governments in many in not only nationally but a name many in a state that's a question many people's minds that the great is as that interest rates are still has darkly so much lower than they have been for that. Majority of the past twenty years even and so it's a great time divides a great time to consult with your. Rupture as far as what that rate means and how much home you can afford. Well Elizabeth as we approached the winter market of 2016. Which will spend 2017. I wanna thank you for joining us. On realistic today. Thank you very much we certainly wish everybody out there is Christina happy holidays and a very happy new year. And you to Elizabeth happy holidays. Elizabeth Mendenhall real Torre and CEO of re Max boon realty in Columbia Missouri and its 2007. Team president elect. Of the national association. Of real tours. Coming up on realistic today saving money on your utilities. When the weather gets cold. The cracks and and little areas where. Or barricades and people tell others keep out all that object you'd be like completing a window open in her house in the dead when ourselves. That's coming up on our special show. The winter market. But first it's time for our Smart home technology report. And today we have some brand new information for you. About saving money by cord cutting. We're not talking about cable TV your landline phones because. In many cases those courts were caught many years ago no. We're talking about new data that shows more and more consumers are cutting another record in this when might surprise you. They're cutting out broadband. Internet. In their homes. That's right hard wired high speed Internet. And those cord cutters are choosing instead. To just use their Smartphones. Now we've talked about this before but earlier this year the number of people cutting out home Internet was. It trickle now it's not quite a flood. But the numbers are growing the data come from a media research company called over him and were reported by media life magazine. The report found that more and more people have become triple cutters. Have you ever heard that phrase it means they've cut landline telephones cable TV and now. Broadband home Internet as well. Big companies are reporting cut in broad band Internet usage including AT&T. Verizon frontier. And Windstream. Now those companies are not losing customers every single quarter. But they are losing some customers in some quarters. And that reflects a national trend. Media life magazine points to a study done recently just this past October. By pew research which found that today 13%. Of Americans use only their Smartphone to access the Internet. Pew says that's a big jump because just three years ago that number was only 8%. So how can you function using only your Smartphone. Opium says that in many cases. These cord cutters supplement their Smartphone data with the public Wi-Fi at places like Starbucks or libraries. So it's clear. Things are changing. Now you might remember that just a few years ago when the cord cutting craze began at. The assumption was that when people cut out cable TV. They were just stream their entertainment over the Internet in instead of watching cable programs. They stream Netflix or Hulu or HBO now but it. The data now indicates that mobile tech Smartphones and tablets. There's going to take on an even bigger role in the years ahead as many people shed all the cables altogether and just pick up. This is really easy today. All real estate all the time. Welcome back to real estate today I'm Stephen gas play. We're continuing though at our special show though winter market all about how to succeed in the upcoming three months. While many other people sitting down and wait for spring. Straight ahead expert advice on how to save money on your utility bills during the cold weather. The winter market. Is straight ahead right after we check in with Bill Thompson in the realistic today newsroom cargo I Stephen. The number of underwater homeowners continues to fall. New figures from core logic show that in the third quarter of the year 384000. American homeowners to regain positive equity in their homes. That leaves a total number of homeowners in negative territory at 3.2 million. That's down a million from a year ago and it represents just six point 3% of all mortgage homes. Core logic report that in the third quarter homeowners with a mortgage gained a total of 227. Billion dollars in equity. The city of Chicago's expanding a program through which it sells vacant lots to residents for one dollar. The large blocks program targets neighborhoods impacted by foreclosed homes and empty lot residents can buy a lot on their block for. Buck in return Imus simply maintain and pay taxes on the property. The large large program now covers 4000 loss in thirty neighborhoods in the hurting south and west sides of Chicago. Stephen thank you thanks bill. As we enter the winter market of 2016. Plenty of homeowners all across America. We'll be wrestling with higher utility bills. It's certainly true in the snow stayed up north but also true in the south where cold weather happens enough. To make a big difference in your heating bill. So let's get some expert advice on this now with a pro. Joining us is close bell business reporter at Bankrate dot com. Cost is an award winning journalist who specializes in personal finance matters. Including banking. CDs. Cars and many other topics as well class welcome to realistic today. It. So plus you wrote a great article for Bankrate. Called ten ways to lower your utility bill now. That article covers a lot of ground but let's concentrate on seasonal utility bill. Beginning with furnace and air conditioning filters no this is way up on your list of ways to say why is that. Well when you about filtered it's clogged with dust it's going to reduced efficiency huge unit that's going to keep it from eat your house as well so it you can squish that out front and extent of culture or even better by a reusable filter and cleaner really. That's really gonna help cure on that really big HPC bill that's one of the main problem parts of most people's energy bills. Interest thing. So mixup clubs sealing the cracks in all the doors and windows in your house tell us about that. All you know it's interesting idea I talk to experiments and he says that. The cracks and and little areas where more merit skates and people how to keep out all that topic you'd be like leaving a window open it. And in your house in the Dedham winner so it really adds up all those little cracks you don't want that you can see you know he recommended using some kind of out foam sealant the peninsula it's sealant or talk to steal those options to make certain you're not carried out war merit skating because again you know without heating bill being such a big portion of people's overall utility cost her the winner can make a big difference. That's excellent. Another from your list getting a programmable. Thermostats. Are you talking about the Internet connected devices. Well you know there's a whole range they obviously you can buy a nest or are you aware of those Internet connected parental thermostat that it really I attack at my screen and can tell when you're coming in are leaving but you can buy much cheaper unit they have some and a deep love for Eagles twenty dollars so you get that installed dad that you can basically tell when you're gonna be there when you're not going to be there and so it automatically start eager crops up when you get ready to come out to mark and you're about what I he'd else that did know and that. You can save a lot of money with Scalia absolutely I mean the amount of money you can save those 280 dollars a year according to use the department of energy and that is program correctly but year after year that's gonna be dealt city money. That's great now this one's fascinating clocks and making sure your electric bill. It is accurate so that's about balance. Well gutsy and everybody makes mistakes including the meter reader for your utility so it's gonna go and take your bill and compared to do what they've actually honored meter because if there's discrepancy there you actually get a refund because it does happen where ever for whatever reason the meters are read correctly and you know you charge for power that you're not music. That is interesting. And one more for him serving near water heater at 120. Degrees. What are most people set their side is it much higher than that. Can he wants forty or more yet depending on how would set by the person who installed it usually they have people may not even go in and checked it's your temperatures Kirk driving its I country you have to realize you know is there an increased risk of scrawled Eugene Harvey the only child deterrent actually turned on -- water to art like continuously keeping that water at a higher temperature and bringing the cold blooded succumbed in the doused up to that temperature can cost you hundreds of dollars over the course of globe a couple of years. We know what a great list clause that you had on Bankrate dot com and I imagine all these things together really could make a big dent. In your utility bills. Yeah absolutely and he ought to understand where's the Energy Star windows did that we talked about earlier during those are expensive blood people should know if they get the Energy Star windows installed before the end of the year there is a tax credit that's expiring at the end of December so if people could squeak in they're before the deadline they may be able to get you know ought to tax credit to current part of Kosovo as windows. That is huge claws I really appreciate you sharing all these. Money saving tips Lewis unrealistic today. It plus bell award winning business reporter at Bankrate dot com. Specializing in personal finance matters. Coming up on realistic today why your household move during the winter. Can be a great. Deal in this weird current period didn't watch more flexibility of schedule standing mark Portland Bollywood currently offer. And that it is pure life that's next on our special show. So when jamarcus. This is a real estate today. Because you're home ninety. Your biggest investment. Back again now whether or special show the winter market it's all about buying and selling real estate. During the upcoming three months. Now it is a slower market and other times a year but even so many many people. Buy and sell homes in the dead of quarter people who will also be moving in the dead of winter. So how is a winter move different. From when that happens in the spring summer or fall. Let's ask pro. Joining us now is John O'Neill president of metropolitan moving and storage LLC. In Laurel, Maryland. John founded the company in 2003 when he was just 24 years old. And since then metropolitan has grown into a million dollar enterprise. With more than 45. Employees. John welcome back to realistic today. Thank you even I appreciate it glad to be back. We're glad you're here so John is a win to remove any different. From moves at other times of year. There are gasoline if you gain differences one being moving dirt and water garden can offer significant stating you know sometimes does watches what he got a 30%. Awful what. I'm Lou would be hearing. It edit Hummer wasn't the market is our strongest and that. Oh appeared dig creating a guerrilla type unit you have and the other main differences around here at east peace especially the letters. Internet fans need to play had to be prepared for whatever letter might come your way and any unity day. As though making sure the sidewalks are clear leader are Larry your front doorstep not sure although there are clearly you know little not a word that I did you drink strangle a remote. That is really interesting so let's talk about the money for a minute. I imagine the reason you can get a discount during the winter is. In the winter you're trying to fill up your trucks with people making moves whereas this summer. You barely have enough trucks for all the business you have. Exactly correct it's a combination note try and obviously keep our stats it beauty is possible keep our trucks running so. In net where current period there's much more flexibility look the schedule Eddie mark or flexibility that the correction that we can offer. And that didn't industrywide. So John if our wanna make a win term move. How long before the closing day should I be calling a company and making my reservation. Can you at church and that is. Three weeks it's possible prior to the clothing because during work on the schedule are more electable and during the summer. Coburn were booked up a monitor to look at that their hundred alert target if you try to play create I would get worried if I can hear him on the three weeks. Prior to the new happening. And what if I'm scheduling my moon roof. And the night before you guys show up we get two feet of snow what should I do is the homeowner to get ready. For the moving truck ruling out. It's very very important for people are giving to concur with their remover in advance so they're aware they're still called these because it or not. Couldn't be caught off guard to learn that political settlement closing total current account you are a pick it's really cute do you spell. We would probably be contacting. All of our clients at a club anyway it is based on the weather forecast we eat. Do you dryer that could make it work but if we get it take dumping its no like that's a I'm not hard to drink your outlook for Cutler ridge. Yeah that's a good point plus you might have your house already ago. But the street you live off that might be an impassable also. Correct illegal Latin wanted to truck and it stuck outside street Teddy being loaded with the pirates furniture and he's got war but they're few days because it. The carrier encountered our whole work to private. Culture so John finally what other advice would you have for a homeowner who are thinking about moving. This coming winter. The main thing is it slightly to any other moon during the year you still wanna had a strategic plan for where your furniture. You know you don't need it out at sea floor plan ready to do so nobody knows exactly where every single piece departures in ago but the more organized. Good customer is the last moving around there will be after the New Orleans which. Can avoid an injury could client parent possible bidders Lara home. Most importantly. It's very easy and street parking where you are moving out or do you need to have a no parking car reserves. It you can't eat fewer hours in advance welcome to and that's very important and GB Kurtz it's. You'd Ciara post Oak Park gardens and do good breaks. Power longer because we're very little parked in front of the actual. Crow well we aren't required on all these things to make sure that we're making daylight triple blow hard. Split those two things arc jet played the most important they're cheap and aren't. Great advised John I really appreciated in the best of luck to you when your company this coming winter. You are welcome John O'Neill president of metropolitan moving and storage LLC. In Laurel, Maryland. On how to move well during the winter markets. Coming up on real estate today how to use the winter market. To get ready for this spring market that's coming up right here. Unrealistic today. 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 week show. Just search real estate today on Twitter. Real estate today. Because you love real estate. Back again now or their special show the winter market. All about what the upcoming season means to you and your realistic plans. As we mentioned earlier in the show plenty of people jumped into the real estate markets everywhere. For buyers there's less competition. For starters there's more exposure. And some folks pull their homes off the market in winter. And especially over the holidays. But as we know even though some people jumpin others decide to wait until spring. And that might be year so if it is let's talk about how to spend the winter market getting ready to sell your home. So that as soon as the first death for Dole's top QB already to put your house on the market. Step one get your real sore all lined up interviewer if you agents and find out how well they know your neighborhood seed who clicks with you. In May be who doesn't talk to them about your plans to sell in the spring. And get their opinion about whether that's the best way to go or whether you might do better by beating the rush and putting your home on the market sooner. Step two in the real term does the GMA the comparative market analysis. Study it very carefully. That will tell you your price point the price stranger home should be and would it enters the market. It's good to know that figure way up front because if you know approximately. How much your house do so for. You can then crunch the numbers on your next house console. Because as we know most people who sell our house and up Bahrain won all. OK step three listen to your realtors input about what you need to do to get your home ready for sale. They may suggest just deep cluttering. Or maybe a thorough cleaning or they may recommend upgrade to improvement based on what the other houses in your market have to offer. They might also suggest you get your house professionally staged but the best thing about doing that all right now in the Dedham winner. Is that there's no rush there's no panic. You have plenty of time to get all of it done before the spring market arrives. And that all leads us to step for you might consider getting a home inspection. I know usually the bar or does that and they will but if you have a home inspection done a few months before you go in the market. You'll know exactly what needs to be done and you know it now. Before you get that same information from a potential buyer. No if you wait well once again you'll have to fix things fast. But if you do it all now you can get estimate you can think them through and get all the work done on a reasonable schedule. Not in a crazy rush. They're depending on where you live you might be able to get the yard fixed up to now assured that's not going to happen in the snow states. But in plenty of other areas the winters a great time to get outside and get to work. You can get the flower beds already for the spring color or making sure they're neat and tidy. Also you can check to see whether the trees and shrubs need to be prune. You can talk to landscaper about whether or now's the time to do go out or whether you should wait. But no matter what the answer is at least you'll know what you have to do when spring time arrives. And just like we mentioned to all the buyers out there. Sellers might wanna spend the winter months checking their credit and fixing any mistakes if they find some because as we said. In most cases people who sell a house by another one. And you'll get a much better mortgage interest rates if you get your credit in the best shape possible. So again it's just a strategy but a pretty good one. Spending to three months of the winter market getting your house in your finances in the best possible shape. So to win the spring market arrives you're home might be the first one in your neighborhood to hit the market. It's way better than just taking a long winter's nap. Coming up next week unrealistic today you're Smart home we'll talk about Smart home technology. And how we can make your life. More efficient more economical. And more fun if you're Smart home is next week right here on realistic today. And remember you can always listen unlocking our new web address radio dark real tour that's radio dot realtor. And from all of us here at realistic today. For listening. If you're realtor you can put the entire really see today's show on your web site. The best real each show on the Radio One 100% free and they are members just go to our new web address the radio dot realtor and click.