Dan is a RE/MAX HALL of FAME recipient, only 23% of RE/MAX agents achieve this! Successfully listed and sold Luxury homes, diversified real estate portfolios. Advises and assists clients with challenging liquidations and purchases. Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation for Integrity, Expertise, and Focus. Our customers deserve the best.

Currently provides reputable “SPOT ON VALUES” for Residential and Commercial B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders.

Dan and his wife relocated to North East Florida, to the community of Nocatee. Currently selling in Ponte Vedra Beach and in 55 and older communities and Luxury Real Estate.

Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years.

Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors.

The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships!

Specialties: Assets recovery, receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

President Carter took office in 1977, during a period of “stagflation,” which is defined as a period in which inflation is high or increasing, economic growth is slowing, and unemployment cannot be measured.

It creates a quandary for economic policymakers because actions aimed at lowering inflation may exacerbate unemployment. As a result of a combination of high inflation and slow economic growth. Carter’s enacted fiscal policies aimed at containing inflation by reducing deficits and government spending. Something that the current administration continues to ignore, with a historic (31) Trillion dollar deficit announced this Month of October 2022.

Responding to long-standing energy concerns, the Carter administration enacted a national energy policy aimed at long-term energy conservation and the development of alternative resources. The later our current administration is determined to proceed with.

In the short term, the country faced an energy crisis in 1979, As growth stalled the U.S. Federal Reserve took aggressive steps to rein in rampant inflation. The Fed did so by raising interest rates to historic highs – so high, in fact, that the going 30-year fixed mortgage rate stood at 18.5% in 1981.

We will no longer be an independent leader in oil production, in my opinion, once our oil reserves are depleted, which is expected by the end of this 2022 year.

To stabilize infrastructure funding, the federal government will need to engage their gas price tariffs, and local and state agencies in many states will be forced to engage their fuel tariffs, which have been waived for the month of October 2022. Our level of assurance may well rival that of the late 1970s!

At the time, an $82,000 home, with 20% down, would cost $1,109 a month, excluding fees, taxes and insurance.

If 18.45% mortgage rates were still around today, a $322,700 home, with 20% down, would cost $3,986 a month, with total interest payments over 30 years of the loan amounting to $1.18 million.

Today, at 4%, that same $322,700 home costs about $1,232 a month, with a total cost of about $444,000 over 30 years.

As inflation ebbed in the 1980s, U.S. mortgage rates gradually slid downward, and kept sliding, well into the 21st century:

Yearly Average Mortgage Rates:

  • 1981 17.00%
  • 1985 12.96%
  • 1990 10.31%
  • 1995 9.13%
  • 2000 8.25%
  • 2005 5.66%
  • 2010 4.98%
  • 2015 3.66%
  • 2019 4.45%

What Has Been the Impact of Mortgage Interest Rates?

In the U.S., the price of borrowing large sums of money from a bank or a mortgage lender began to take hold on the populace in the mid-20th century, and has never lost its grip, even through a series of severe downward economic cycles (including severe recessions in 1973-75 and 2007-09).

As history has shown, American families have always sought greener pastures, particularly when they were working in good jobs with decent pay and were willing to borrow more money for a new home.

As interest rates fell in 2019, Americans continued to rely on the mortgage interest rate model to buy and refinance new homes, a trend that will continue until April or May of 2022!

The Federal Reserve’s continued involvement in the nation’s economy, reducing rates when the economy is in danger and increasing them when the economy becomes overheated, therefore consistently changing the mortgage market around the edges.

Nonetheless, economists do not expect the US mortgage market to revert to the late 1970s and early 1980s, when interest rates peaked at 18%. That’s good news for today’s home buyer, who, like his or her forefathers in ancient Rome, still believes in the concepts of “pledge” and “death” when it comes to obtaining a mortgage to purchase a home.

While it is well known that history repeats itself, will our current administration and President Biden become the next President Carter to bring the American dream to it’s knees?

What are your thoughts?

Resources Lillianb DIckerson inman news.

According to an analysis by CNBC that weighed each state’s economic health, annual home price appreciation, new construction per year and foreclosures and insolvency from the first quarter of 2022, Utah has the most stable housing market in the country right now.

The financial news outlet drew data from the recently released CNBC America’s Top States for Business study, the Federal Housing Finance Agency (FHFA), the U.S. Census Bureau and Attom Data Solutions.

1. Utah

Old Paria, Utah | John Fowler / Unsplash

2022 Economy ranking: 6

Home price appreciation: 27.1 percent

Housing starts per 1,000 people: 12.2

Foreclosure rate: 1 in 2,063 housing units

Underwater mortgages: 1.4 percent

Utah, undoubtedly, has a hot housing market right now.

The state boasts the second-highest rate of rising home prices in the country, but also the fastest rate of new construction. In addition, its foreclosure rate is low and the economy is in a strong position.

2. Washington

Seattle skyline

Seattle | Photo by Luca Micheli on Unsplash

2022 Economy ranking: 3

Home price appreciation: 20.1 percent

Housing starts per 1,000 people: 7.3

Foreclosure rate: 1 in 4,965 housing units

Underwater mortgages: 1.2 percent

Although Seattle has often been pinned over the years as a city with a severe housing crunch and affordability issues, the state’s sustained economic growth has helped place it in a strong position on this ranking list. Additionally, foreclosure rates and underwater mortgages are quite low.

3. Florida

St. Augustine | Lance Asper / Unsplash

2022 Economy ranking: 4

Home price appreciation: 25.7 percent

Housing starts per 1,000 people: 9.6

Foreclosure rate: 1 in 1,211 housing units

Underwater mortgages: 1.4 percent

There have been conflicting reports over the course of the pandemic about whether or not everyone is moving to Florida, with its attractive weather year-round and favorable taxes.

Still, rising prices and rates of construction reflect strong demand, at least for now.

4. Texas

Austin, Texas | Carlos Alfonso / Unsplash

2022 Economy ranking: 8

Home price appreciation: 19.3 percent

Housing starts per 1,000 people: 8.9

Foreclosure rate: 1 in 2,326 housing units

Underwater mortgages: 2.5 percent

Texas is another state that’s seen a lot of press in the last few years for its growing population, as buyers in pricier markets like California got fed up with the competition during the peak of the pandemic-fueled housing market.

In response, home construction is up to help meet demand and there are plenty of qualified buyers ready to adopt those new homes.

5. Idaho

Boise, Idaho | Click Sluice / Unsplash

2022 Economy ranking: 5

Home price appreciation: 27 percent

Housing starts per 1,000 people: 10.5

Foreclosure rate: 1 in 6,015 housing units

Underwater mortgages: 1.6 percent

Boise has consistently ranked as one of the nation’s hottest markets, contributing to overall strong housing demand throughout the state.

New construction is helping bolster the state’s inventory, CNBC’s report noted, but foreclosure rates are also on the rise (albeit still, quite low compared to other states), which may be a warning signal if the economy takes a sharp downturn.

6. Tennessee

Nashville, Tennessee | Brandon Jean / Unsplash

2022 Economy ranking: 2

Home price appreciation: 24.1 percent

Housing starts per 1,000 people: 8.2

Foreclosure rate: 1 in 2,797 housing units

Underwater mortgages: 2.9 percent

According to CNBC’s analysis, Tennessee has the second strongest economy in the country behind North Carolina.

The stable housing market and rising prices have largely contributed to this factor. However, the report also warns that foreclosures and underwater mortgages have been on the rise.

7. Vermont

Champlain Valley, Vermont | Kevin Davison / Unsplash

2022 Economy ranking: 33

Home price appreciation: 20 percent

Housing starts per 1,000 people: 3.2

Foreclosure rate: 1 in 13,930 housing units

Underwater mortgages: 1.1 percent

Individuals seeking an escape from larger cities have given Vermont’s housing market a boost, contributing to rising prices and new mortgages. Despite these healthy signs, the state’s economy and new construction have both lagged, bringing down Vermont’s overall ranking.

8. Arizona

Piestewa Peak, Arizona | Kyle Kempt / Unsplash

2022 Economy ranking: 22

Home price appreciation: 27.4 percent

Housing starts per 1,000 people: 9

Foreclosure rate: 1 in 1,861 housing units

Underwater mortgages: 1.4 percent

Arizona has become another Sun Belt hot spot, with spiking home prices and low inventory.

However, the state’s construction surge should provide some needed relief. Increasing foreclosure rates are something to keep an eye on, CNBC’s report noted, but home equity generally is in a strong position.

9. South Carolina

Charleston, South Carolina | Leonel Heisenberg / Unsplash

2022 Economy ranking: 13

Home price appreciation: 21.4 percent

Housing starts per 1,000 people: 9.5

Foreclosure rate: 1 in 1,081 housing units

Underwater mortgages: 3.4 percent

South Carolina is in the midst of a very heated market, with tight inventory and regular bidding wars, helping prices to continue to rise.

However, strong new construction starts should eventually help mitigate that demand in upcoming months.

10. South Dakota

Mount Rushmore, South Dakota | Ronda Darby / Unsplash

2022 Economy ranking: 12

Home price appreciation: 20.1 percent

Housing starts per 1,000 people: 8.8

Foreclosure rate: 1 in 17,724 housing units

Underwater mortgages: 4.8 percent

South Dakota’s economy is in good standing with home price appreciation still going strong and housing starts also at a healthy pace.

The foreclosure rate is extremely low. However, with underwater mortgages increasing, some trouble may be brewing for the housing market, CNBC noted.

Florida residents are outraged by the homeowner insurance costs. We’re seeing rate increases of up to 46 percent PLUS! An 88-year-old stated his increased from $1,640 to $2,473. It just doesn’t seem reasonable to see so much increase all at once! I’ve lived in Florida over 40 years and never experienced anything like this. Did I expect it? of course, however this certainly opens our eyes to reality. It’s important to reevaluate the value for your home, replacement costs and I urge you to review each line item with your insurance carrier. Also keep in mind, insurance carriers do not allow changes if a tropical storm or hurricane is within 500 miles of your location.

Floridians have experienced rate increases and challenges for many years. Insurance fraud for replacement roofs, Flooding, and Hurricanes are huge issues resulting for much of this increase. Many Insurance carriers have fled Florida due to these elements.

Tallahassee – Friday June 24, 2022: The Florida Office of Insurance Regulation (OIR) had established the 2022 personal property and commercial property insurance rates for the Citizens Property Insurance Corporation (Citizens). Citizens Property Insurance Corporation (Citizens) was established in 2002 by the Florida Legislature as a not-for-profit insurer of last resort. It was created to provide both wind-storm coverage and general property insurance for home-owners who could not obtain insurance elsewhere. Headquartered in Tallahassee, Citizens quickly became the largest insurer in the state with Citizens Insurance.

OIR “Office of Insurance Regulations,” held a virtual public rate hearing to receive public comment on March 31 this year. At the hearing, Citizens provided testimony in support of its rate recommendations and received comments from members of the public on the effects of the rate filings. Public comments were accepted for consideration on rate filings until April 14.

Following a review of the complete record, OIR established rates for Citizens’ Coastal Account (CA), Commercial Lines Account (CLA), and Personal Lines Account (PLA). The effective date for new and renewal rates is September 1, 2022.

SB-2D was passed by lawmakers following a special legislative session. According to the statute, “insurers that participate in the Reinsurance to Assist Policyholders or “RAP” program this year “must cut their rates to reflect the cost savings gained by participating in the program.”

Reinsurance is essentially insurance for insurance firms, and the cost, like everything else, has risen, according to insurers.

The legislation’s premise is that if insurers receive reinsurance from the state that they do not have to pay for, they will pass those savings on to customers. According to the statute, insurers were obligated to file the rate decreases “no later than June 30.”

Unless we get some help from the government. It’s unlikely that things will improve with any insurance carrier. It’s my understanding, 69 insurance companies applied for rate reductions with the Office of Insurance Regulation. Many insurance firms and underwriters are suggesting rate reductions ranging from 1% to 6%. With this gap, the average percentage experienced will most likely be 1-2 percent. The Federal Association of Insurance Reform claims. These will not likely affect your latest insurance renewal and see your rates going down.

For example, the Collins’ company has not filed a rate reduction for this year, but their latest increase in premiums was 46%, and his insurer requested a 48% increase from the Office of Insurance Regulation for next year — so reducing 1-2% wouldn’t really move the needle.

“If the goal was to reduce rates for consumers, certainly that’s not materializing,” Per Paul Handerhan, President of the Federal Association for Insurance Reform.

Meantime, if you would like to check to see if your insurer has filed a rate reduction, CLICK and follow these steps:

Republicans, who wrote and supported the legislation, said people should start seeing a decrease in their property insurance premiums in 12-18 months. I’m guessing it takes that long for these measures to take affect and impact the American public, if at all.

  1. Click the “Advanced Search” tab at the top of the page.
  2. Select “Property & Casualty”
  3. In the Keywords box enter “SB 2D: RAP Filing” and hit search.
  4. Companies will appear under the results tab.
  5. Find your company then click the arrow on the far left of the company’s name.
  6. Next click, the documents symbol under “Filing Actions.”
  7. Request the Explanatory Memorandum or the Actuarial memorandum. You will have to enter your email address and prove that you are not a robot by answering a numerical question, then the document will be emailed to you.

Americans pushed their limits when purchasing a new home. Many new homes have been secured with purchase agreements, and the builders have not broken ground yet. Thousands of homes are only half completed do to supply shortages and most may not be move in ready and closed until the fall.

It’s possible that some high-earners overspent on their homes based on standard benchmarks: For example, a $1.7 million home with a 20% down payment would cost $100,000 per year in mortgage payments. According to Bloomberg, that would account for 40% of a pre-tax income of $250,000 or more. Most financial experts recommend limiting home costs to 30% of income. However with the closing of their new build hanging in the air of uncertainty, will these buyers be patient and close on their dream home? Lot’s of questions that not even the best data resources can answer.

A 40-year high in inflation is prompting many Americans to reassess their financial goals. Food, housing, fuel, and other basic necessities are all seeing increases in price due to the current rate of inflation, which stands at 8.3 percent.

According to a new BMO Harris Bank research, 25 percent of Americans are postponing retirement because of inflation. One in three people who earn $250,000 a year say they’re living paycheck to paycheck, according to a survey from Pymnts.com and LendingClub.

It’s becoming increasingly common for people to use their savings accounts as inflation rises, according to a BMO Harris Bank survey. The survey indicated that 36% of Americans have already lost money due to inflation.

As of this month, the National Association of REALTORS annual ®’s survey found that the average American consumer is spending $500 more per month on living expenditures than they did a year ago.

In a research by BMO Harris, consumers reaching retirement age said they are limiting their dining out, shopping, and driving habits because of rising costs. One asset management business, Schroders, found that only 22% of Americans believe they have enough money saved for a decent retirement, down from 26% a year earlier. Among the poll participants, more than half predicted that they will have less than $500,000 in savings when they retire. Most respondents, however, settled on a median goal of $1.1 million for their retirement savings.

As BMO Harris Bank’s head of customer strategy Paul Dilda explains: “Consumers must think differently about their finances in an inflationary environment.” BMO Harris Bank is a Chicago-based institution with locations throughout the Midwest and West Coast.

Dilda asserts that inflation is having a particularly negative impact on the nation’s younger citizens.
As a result, significant purchases like a home and a car may strain their budgets even more, he says.

Source: BMO Real Financial Progress Index, National Association of Realtors, FORTUNE June 1st 2022, Personal Finance-Retirement, Motley Fool, “More Than a Third of 250K Earners Live Paycheck-to-Paycheck. By daily Upside June 1 2022 at 9:00PM

You’ve already used a VA loan to purchase a home. Now, you may be wondering if you are eligible for a second VA loan. The answer is yes, but you should know how your entitlement benefit works, what your financing cost will be, and a variety of other concerns before applying.

What is the maximum number of VA loans you can have? VA loans are available to you if you have residual entitlement (more on that below). Some of the most common situations that necessitate an additional VA loan include:

To acquire a second house with a VA loan, you must first sell the first one, re-establish your entitlement, and then apply for a new VA loan.

If you sell each house and move, you can have as many VA loans as you desire for the rest of your life.

You move from one VA debt to another by refinancing your current loan.

At the same time, you may be the beneficiary of more than one VA loan for distinct properties.

Using a VA loan several times can be done in a variety of ways.

Your VA eligibility can be restored if you sell your existing home.

To take advantage of another VA loan, you don’t always have to sell your home or relocate.

With a VA streamline refinance, you can lower your interest rate and monthly payment by refinancing into a new VA loan.

VA cash-out refinance loans need extra documentation but allow you to access the equity in your property.

This is the third option,

It involves taking out two VA loans for two separate properties at once.

There are times when an active-duty member obtains a Permanent Change of Station (PCS) order, and the VA lender will need to authorize numerous loans.

Basically, you’ll have to demonstrate that you have the financial resources to repay both loans simultaneously.

The benefits of a VA mortgage

To qualify for a VA loan, a borrower must meet the VA’s loan eligibility requirements.

This helps you figure out how much money you can borrow before you must put down a deposit. VA loans with lower interest rates, no down payment, and more lenient eligibility requirements are offered by lenders because of the protection afforded to veterans.

In 2020, the Department of Veterans Affairs (VA) abolished loan limits for veterans with full entitlement.

When it comes to partial entitlement, things get a little more complicated. Either 36,000 dollars or 25 percent of the loan amount up to the conforming loan limit commonly serves as the starting point for entitlement calculations.

Currently, $647,200 is the cap in most sections of the country, although in some markets, up to $970,800, the limit is in effect. A bonus of 25% of the $647,200 maximum is yours as a result.

An example., you have a $200,000 loan, which means that 25% of your entitlement is now being spent. You’ve decided to take out two VA loans now. You’ve already tapped into $50,000 of your quota for the year.

A bonus entitlement of $161,800 (25 percent of the conforming limit) now exists, but you’ll need to deduct $50,000 before claiming the bonus. In this case, you have $111,800 in entitlement for the second loan.

There is no limit to how much you can get, however. You may acquire a $447,200 loan from a VA-approved lender because the VA pledges to pay the lender a quarter of that amount if you default.

If you have full entitlement, there is no limit to the VA loan amount, and if you meet the lender’s requirements, you won’t have to pay a down payment if you qualify.

Call the VA at 877-827-702 to speak with a home loan agent if you have any outstanding entitlement inquiries.

Customers can contact the company’s customer care department between the hours of 8am and 6pm Eastern Standard Time, Monday through Friday.

Getting a second VA loan is a simple process.

Getting a second VA loan is likely to feel very much like getting your first VA loan. The following is a step-by-step breakdown of the process:

Request a copy of your eligibility certificate.

As a result, lenders will know if you are eligible for a VA loan, and it will also assist you determine how much of your entitlement benefit is available for usage.

You can acquire it via your regional service center or through your benefits portal.

Your discharge papers may also be necessary.

Consider your options before deciding.

Buying a new house may necessitate selling your current residence to maximize your entitlements.

Decide what’s more essential to you: more money or less work if you refinance.

A VA IRRRL or a cash-out refinance may be better options if you’re just thinking about refinancing your mortgage.

Make sure your finances are in order before you begin.

Even though the Veterans Administration does not need a minimum credit score, VA lenders often do. It’s important to check your credit record and pay off any outstanding debts before applying for a second loan to show that you can afford your new monthly mortgage payments.

Buying a home vs. renting based on eligibility

Why not consider renting your current residence while you apply for a VA loan to purchase a new one?

If, for example, you’re stationed elsewhere but don’t want to sell your current property, this could happen.”

David Reischer, an attorney in New York City, argues that in this instance, “you decide to rent out your existing house and purchase another one.” Only one restriction applies: You can’t rent out your primary residence and then buy a comparable-sized home nearby.

To accommodate a growing family, the second home would either have to be a larger residence or be located in a different neighborhood.

For the second VA loan, “you would not be able to use any of that rental income to lessen your debt-to-income ratio,”

That rental income may, however, help you qualify for a second VA loan by reducing your mortgage payment.”  A second VA loan’s effect on the cost of borrowing

It’s impossible to avoid the funding fee on a VA loan; you may end up paying more for it on your second loan. The funding charge is 3.6 percent if your down payment is less than 5% of the purchase price on your second VA loan (and any subsequent ones).

However, if you’re able to put down more than 5% or 10% of the purchase price, the funding charge drops to 1.65% and 1.40%, respectively.

It is possible to reclaim your VA mortgage benefits

Remember that you have an entitlement limit, but if you sell your property and pay off the VA loan in full, you can get your entitlement back. Loan repayment or refinancing doesn’t remove the entitlement amount from your residence; it just removes it from the property’s equity.

Fortunately, there is an exception to the VA’s must-sell rule: You can request a one-time restoration of your benefit.

Assume that the buyer of your property for sale is a veteran who assumes your existing VA mortgage. In this case, you can ask this person to substitute their entitlement for the same amount of entitlement that you originally used. In one case study, says that if they agree, possible the original entitlement will be restored.

Your entitlement to buy the house will be held hostage until the new owner fully repays the loan if they don’t agree.

Forever losing your eligibility for a VA loan.

It’s possible that you’ll be permanently disqualified from receiving a VA loan. It’s possible that the lender will be forced to refund the VA if you fail to make payments on your VA loan and your house is foreclosed and sold for less than you owe.

When the VA makes a loan payment to the lender, the amount is removed from your entitlement, and you can’t get it back.

This is also true in a short sale, where your home is sold for less than what you owe.

The one-time restoration of entitlement benefit is not available in the case of short sales or foreclosures; thus you cannot use it.

I have two VA loan specialist I can refer you to help clarify additional questions. Please call me (Dan Swing) at 904-671-9225

Is another large collapse in real estate on the horizon? Given all the headlines about a possible recession, rising inflation, significant interest rate increases, and the stock market sell-off, where are we headed? The news may be better than most people expect, say two of America’s top real estate economists.

Contributing data in this blog, comes from Leslie Appleton Young Chief economist for the California Association of Realtors and John Tuccillo the former chief economist for the Florida Association of Realtors, and Inman staff writer Bernice Ross. Young & Tuccillo, present their views on what lies ahead for the real estate market. They both agree that this is an unprecedented situation.

What to expect as we look forward to the second half of 2022 and beyond.

Here’s what Appleton-Young and Tuccillo say is ahead in the Real Estate Market! 

Inflation is expected to slow down. Inflation was 8.3 percent in April, down from 8.5% in March. However, supply restrictions are steadily easing. Prior to settling back down, interest rates may rise more. Inflationary pressures mean that we won’t see mortgage rates fall below 3% any time soon.

The war in Ukraine, China’s lockdown, and the persistent energy supply issues are still major wild cards in the global economy. In order to return to our pre-war state, it will probably take us at least two years. Inflation expectations are routinely surveyed by the New York Fed. People’s expectations are what fuel inflation.

According to recent polls, most people believe that inflation would be 6.3% by 2022, which is a decrease of 2% from now. Even so, that’s much beyond the Fed’s 2% target, which is likely to prompt an overreaction from the central bank.

New York Fed poll results show a modest increase in consumers’ three-year expectations, which had previously been low but are now slightly raised at 3.9%. For the Federal Reserve, there is some support for a return to Paul Volcker’s era of low interest rates. https://www.federalreservehistory.org/people/paul-a-volcker

To combat inflation, Volcker raised interest rates and reduced employment. Like the pandemic, there is a price to lower inflation, and the burden falls more heavily on low- and middle-income families. It’s a balancing act for the Fed, which has two goals: low prices and low unemployment.

The economy will continue to grow at a moderate pace, and the unemployment rate is expected to remain stable. Over the remainder of the year, job creation is expected to continue.

It’s predicted the Fed will raise interest rates to a maximum of 6%. An continuing shortage of supplies and construction personnel is preventing the building industry from keeping up with current demand.

Because local regulations aren’t loosening any time soon, we’ll have to deal with them for a while. Despite the current increase in interest rates discouraging purchasers, buyers will return to the market when rates drop, say to 4.5%.

The markets can turn on a dime or perform a gradual squeeze. One of the issues we’re dealing with right now is that.

Final takeaways!

Appleton-Young reiterated the importance of the housing market in building inter generational wealth, saving and having a strong asset. 

That goal is getting further and further away for many people in this market. We must get more people on the ladder to home ownership by building smaller and more affordable housing and loosening up on overly restrictive zoning. 

Tuccillo’s final takeaway is that all market conditions may not be stormy as once thought.: 

But they will be very interesting. Over the next 18 months to two years, we’re not going to see a collapse. I don’t believe we will see stagflation. I just think that every day, there will be something else to worry us. And we’ll be worried, and the markets will be skittish, and the housing market will be skittish. But if you look at the underlying long-term trends and fundamentals, we’re fine.

I respect and believe the analysis presented in this article today, but the Biden Administration’s actions to reduce housing costs may completely muddy the waters with additional consequences. We have measures in place to assist with the challenges we face, and I believe America will right itself! In my opinion, burdening America with more debt service without renewable sources of replenishment will only delay recovery. Let’s see how America handles this before enacting legislation that will only delay recovery!

I’ve written several articles on why we have no risk of a Real Estate Market Bubble popping. Here is some new data to support my convictions.

Owning a home has grown to be a crucial part of the American dream. Over 86% of buyers feel that owning a home is still part of the American dream, according to a new National Association of Realtors survey.

Less than half of Americans owned a home prior to the 1950s. The GI Bill, on the other hand, allowed many returning veterans to buy a house following World War II. There has been an increase in the percentage of homeowners in the United States since then, reaching a current level of 65.5 percent.
Since then, home values have continued to rise as a result of the strong demand for homeownership.
The following graph shows the increase in property prices since World War II ended:

This graph illustrates that only during the housing boom and recession of 2006-2008 did home values fall dramatically. You can see a similarity between the present price surge and the price spike that occurred before to 2006. That may cause some people to worry that we’re on the verge of a repeat of the housing bubble’s collapse. Let’s take a look at the past and present to see if we can allay some of those fears.
What triggered the Great Recession of the 1990s?

Foreclosures deluged the market in 2006. As a result, property values plummeted. Foreclosures were caused by two factors: As a result of buyers not being properly eligible for their mortgages, a greater number of homes were lost to foreclosure. Many homeowners took advantage of their home’s equity.
When prices fell, they ended up in a precarious position (where the home was worth less than the mortgage on the house).

Many of these homeowners decided to leave their houses, which resulted in a rise in foreclosures.
This further impacted the value of the homes in the immediate area. For years, the same thing happened. Why the Real Estate Market in the United States Is Changing The current market is very different from the one we saw 15 years ago for the following two reasons:

Homeownership has never been more in demand than it is today (Not Artificially Generated) By lowering their lending requirements and making it easy for anyone to qualify for either a home loan or a refinance in the years leading up to 2006, banks created a false demand. Mortgage lenders have raised the bar significantly for first-time buyers and those refinancing their homes. The amount of risk that banks were willing to assume, according to data from the Urban Institute,

Challenge my observation and this data? Please respond, love to hear your views!

A picture of two palm trees from underneath their branches, with a tall building in the bottom-left background.

May 17, 2022

Florida is the place to be! Jacksonville will be in the top five, soon enough! Florida has five of the hottest commercial real estate metro markets in the first quarter: Orlando, Miami, Palm Beach Fort Lauderdale, and Fort Myers, according to new research from the National Association of REALTORS®.

NAR’s Commercial Real Estate Market Conditions Index is calculated by factoring in 25 variables that reflect a metro area’s economic conditions, demographics, and employment, such as job growth, wage increases, and population growth, as well as market conditions on vacancy rates, absorption, rent growth, cap rates, and more.

Overall, the South boasts the most booming commercial markets, with 11 of the top markets.

NAR’s index identified the following 16 markets as the hottest in commercial real estate in the first quarter. (Learn more about each of these markets at NAR’s Economists’ Outlook blog.)

  • Orlando-Kissimmee-Sanford, Fla.
  • Miami-Miami Beach-Kendall, Fla.
  • West Palm Beach-Boca Raton-Delray Beach, Fla.
  • Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.
  • Fort Myers, Fla.
  • Savannah, Ga.
  • Austin, Texas
  • Boston-Cambridge-Nashua, Mass.
  • Riverside-San Bernardino-Ontario (Inland Empire), Calif.
  • Atlanta-Sandy Springs-Roswell, Ga.
  • Asheville, N.C.
  • Las Vegas-Henderson-Paradise, Nev.
  • Bend-Redmond, Ore.
  • Charleston-North Charleston, S.C.
  • Nashville-Davidson-Murfreesboro-Franklin, Tenn.
  • Provo-Orem, Utah

In February, home prices saw the strongest annual gains on record, which, when combined with a sharp rise in mortgage rates, made it the most difficult to buy a home in fifteen years!

The report from Black Knight shows that home prices rose again in February, even as interest rates kept rising. This is despite the fact that home prices rose 19.6% from a year ago, even though interest rates kept going up.

Top 10 markets for annual home price appreciation

  1. Tampa, Florida (33.2 percent)
  2. Austin, Texas (33.0 percent)
  3. Raleigh, North Carolina (32.8 percent)
  4. Phoenix, Arizona, (32.0 percent)
  5. Nashville, Tennessee (31.5 percent)
  6. Jacksonville, Florida (29.5 percent)
  7. Orlando, Florida (28.6 percent)
  8. Las Vegas, Nevada (28.6 percent)
  9. Miami, Florida (27.9 percent)
  10. San Diego, California (27.3 percent)

Tampa, Jacksonville, Orlando, and Miami were all in Florida, where four of the top 10 fastest-growing cities were. But Black Knight said that the affordability crisis is worse in western coastal markets. People in Los Angeles, San Jose, San Diego, and San Francisco now have to pay more than half of the median income each month to pay for an average-priced home (50.9 percent). From 1995 to 2003, U.S. home buyers only had to spend 25.1 percent of the average income on mortgage payments for the average-priced home. That’s now 29.1% for the whole country in March.

National payment-to-income ratio

Share of median income needed to make the monthly principal and interest payment on the purchase of the average-priced home using a 20 percent down 30-year fixed rate mortgage at the prevailing interest rate. Source: Black Knight Mortgage Monitor.

The company called Black Knight said that 82 of the 100 largest U.S. markets are now less affordable than their long-term benchmarks, up from just six at first. When payment-to-income ratios rise above 21%, that usually helps to slow down the housing market, but it’s not always true.

It’s still growing, even though it’s the most affordable in 15 years, Black Knight said. Researchers at the Federal Reserve Bank of Dallas said last week that rising home prices may have caused investors to be “fearful of missing out,” which may have led to a price correction.

Distressed properties haven’t filled the gap in the inventory.

Some experts had thought that many people who put their homes on the market would sell them.

Black Knight says that so far, about 925,000 of the 8.1 million homeowners who were in forbearance have put their homes on the market, which is a lot. During the pandemic, that led to 40,000 sales a month. But those sales haven’t filled the inventory gap, and they’ve been going down in recent months.

Status of loans in forbearance as of March 22, 2022. Source: Black Knight Mortgage Monitor.

Once forbearance programs were over and mortgage payments were put on hold, people who had their mortgage payments put on hold might put their homes up for sale.

About 744,000 loans were still in forbearance as of March 22. Another 404,000 homeowners who had their forbearance programs end were delinquent on their loans and looking into “loss mitigation” options with their lenders, like mortgage modifications, to avoid foreclosure.

Some 272,000 people, most of whom were already behind on their payments before the pandemic, are still behind on their payments even though they’ve tried both forbearance and loss mitigation.

In the last month, 74,000 more homeowners have been put into foreclosure, which is 6% more than a month ago. The number of foreclosure starts fell to 25,000, which is below the level before the housing crisis.

Mortgage delinquencies rose by 1.8 percent in February, but the national rate of delinquency stayed close to pre-pandemic levels, even though the rate of delinquency rose. People have expectations of taking advantage of this potential Distressed market, however the data and the value of real estate far overrides any delinquency rates that could plague the market!