It amuses Terry no end that homeowners believe their homes are worth more than recent comps.  So she always makes it a point to ask them what they think their home is worth and why.  Inevitably, they cite the research they’ve done at various websites and how much they’ve spent on minor upgrades. (1114)

Steve kicks off Real Estate Round-Up with a focus on mortgage rates. He notes, with significant satisfaction, that he bought a house five years ago with a 3.75% rate on a 30-y mortgage.  Terry adds that mortgage rates are currently in the 4.5% range, so they are still low by historical standards.

That said, if your finances are tight, a 0.75% increase can be sizable.

Potential buyers could opt for a lower rate of about 4% with a 15-year mortgage.

However, because the loan needs to be paid back sooner, monthly mortgage payments are a lot higher. (103)

Where once beachfront property was considered prime real estate, rising sea levels are changing things dramatically.  Homes in eight U.S. states have lost $14.1 billion in market value due to rising sea levels, rising river levels, floods, etc.

Florida leads the pack in almost every category.  The other states include Georgia, North Carolina, South Carolina, Virginia; and in the tristate area of New Jersey, New York, and Connecticut,  pricey homes lost $7 billion in value.  Homes in Ocean City, New Jersey lost $530 million versus $337 million lost in the Miami Beach area.

Steve adds that insurance premiums should go up for homes in high-risk areas. (1010)

In the past, if you wanted a mortgage, you’d go to a bank. But today, non-banking financial institutions have entered the mortgage-lending business. As a result, it’s much easier to get a mortgage loan today.

In her own experience, Terry Story finds that getting loans from non-bank mortgage lenders is far easier, quicker, and more convenient.

Non-bank lender, Quicken Loans, for instance, is the third largest mortgage originator after Wells Fargo and JP Morgan Chase.

Steve attributes this to fewer regulations on non-bank mortgage lenders than on banks, which were chastened for the 2007 mortgage crisis. (926)

Some home buyers are concerned that pictures of their homes and properties continue to stay on real estate websites long after the sale has closed.  They cite privacy and security issues.  Often, homeowners’ requests for removal go unheeded. (919)

We are familiar with the term, single-family homes.  Yet, only a few know what that means.

Terry defines single family homes as ones that:

• share no walls with neighboring homes

The one big benefit of buying single-family homes is that you can do whatever you want with them, provided your city permits it.

Townhomes, on the flip side, have shared walls and strong limits on property modifications.   (912)

A recent report from CoreLogic shows a 12.4 percent year-over-year increase in mortgage fraud risk for the second quarter of 2018.  The report notes that the fraud risk index has steadily climbed over the past seven quarters and that those states with heavy outside investment are at risk for significantly higher mortgage fraud.

New York, New Jersey, and Florida topped the list of fraudulent applications.  Risk increased at each of the top 10 riskiest states, with the greatest increases in New Mexico, Mississippi, Illinois, Oklahoma, and Texas.

CoreLogic’s analysis showed that about one in 109 mortgage applications contained some type of fraud, up from one in 122 a year ago.  Mortgage applicants incorrectly reported data on identity, income falsification, undisclosed real estate liabilities, credit repair issues, and questionable down-payment sources.

Terry notes that the recent upsurge in home prices has led to a situation where bona fide home buyers are “lying a little” on their mortgage applications to get approved for loans.  (1017)

A recent CoreLogic report on April 2018 home prices, highlights 12 markets with the largest annual increases. This distinction could mean there is a danger of a housing bubble.

CoreLogic defines an overvalued market as one where home prices are at least 10% above long-term sustainable levels.  Conversely, an undervalued market is one where home prices are at least 10% below sustainable levels. (618)

Here’s how you can protect yourself.  Before you go to see a property for sale or rent, do an online search on its owner.  If you meet someone at the house, ask the person you’re meeting for a copy of their driver’s license.  If they claim to be an agent, ask them for the owner’s name and number.  This way, you’ll know if you’re dealing with the owner or a scammer. (718)

Recent tariffs on lumber imports from Canada will increase construction costs by $9,000 per home.  Additionally, tariffs on steel, aluminum, and other raw materials, will add to cost. Overall, Trump’s tariffs could increase construction costs by about $10,000 per home, on average. (718)