If You Dream of Owning a Home, You Must Read This

If You Dream of Owning a Home, You Must Read This

Florence, KY – March 23, 2015. In neighborhoods across Northern KY, there are hints that spring is on its way. As our neighbors emerge from their winter cocoons to start a walking plan, take a bike ride, or watch the children play outside, we get that feeling of renewal and new energy that has been dormant during the cold, snowy winter months.  You may start to notice more and more REALTOR® “for sale” signs pop up too.  It’s that time of the year when sellers are anxious to get their homes listed and potential buyers are out there hoping to find their “American Dream”.

The Northern Kentucky Association of REALTORS® and its Multiple Listing Service are pleased to announce that average sale prices in February 2015 rose 11% (152,404-137,072) over average sale prices in February 2014.  Sales are still lagging a bit due to an extremely cold and snowy February, but that is expected to turn around as more seasonal weather brings buyers out to see what’s new on the market.

 

Feb Stats and YTD

In February, the MLS had 539 homes go under contract or pending.  That is 98 more than went pending in February 2014 so it looks like 2015 will start to gain steam to compete with 2014- when the highest number of sales and sales volume were reported since 2007. 
NKY REALTORS® anticipate a strong housing market this spring.  It’s a perfect time for renters to consider buying a home.  In the last few years, lending had been so restrictive that many would-be buyers have been forced to rent.  That has caused rental prices to skyrocket all across the country. 

There are new financing programs for buyers with smaller down payments that are perfect for renters to make the switch to home ownership, possibly saving hundreds of dollars a month that they are currently paying to rent.  Fannie Mae and Freddie Mac announced this week that first-time home buyers can now qualify for conventional loans with down payments as low as 3 percent. We expect this will open the door for qualified home shoppers who may have been sidelined the last few years because of higher down-payment requirements.

Freddie Mac launched “Home Possible Advantage”, a conventional mortgage with a 3 percent down-payment requirement geared to low- and moderate-income borrowers. It's a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent. To qualify, first-time home buyers are required to participate in a borrower education program.
With Fannie Mae's 3 percent down-payment offering, borrowers must still meet standard eligibility requirements, including underwriting, income documentation, and risk management standards. Any buyer can take advantage of Fannie's loans as long as at least one co-borrower is a first-time buyer. These loans will require private mortgage insurance.
REALTORS® applaud these programs and the government’s commitment to home ownership. The new program ensures that responsible home buyers will have access to safe, affordable mortgage credit.   Purchasing a home is one of the most important decisions in your lifetime. Working with a professional REALTOR® is a wise choice.   Their support, knowledge and experience with the entire home selling or buying process is essential to a smooth real estate transaction.  Remember, your local REALTOR® is a member of the Multiple Listing Service, the most current source of listing data. Call a REALTOR® today!