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Ott Realty Group
Senior Real Estate Specialist SRES
Accredited Buyer's Representative ABR
Mobile: 414-405-5200 (Chris), Other: 262-894-0142 (Jean)
chrisottrealtor@gmail.com
4650 N Port Washington Rd, Glendale, WI 53212-0970
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Greetings!
If you're thinking of selling, let Me determine if now is the right time for you to sell your home. There may be benefits to beating the spring rush. And there's no cost or obligation to get started. Buying or selling, contact Me today to ensure your best move forward!
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WISCONSIN’S REAL ESTATE OUTLOOK
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PLEASE NOTE: Market conditions can change rapidly across the state. Contact Ott Realty Group for the latest updates.
2018 Housing Market Remains Strong Despite Limited Inventories
SALES
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Statewide home sales fell 2.2 percent below the record sales seen in 2017, making 2018 the third strongest year for home sales. The 2018 median price was $184,000 which is 7.0 percent above prices for 2017. With the exception of higher priced homes, supply has been very low, giving sellers the clear advantage in most of the markets across Wisconsin. Declining energy prices helped to keep inflation in check, especially late in 2018.
"We are closing in on the longest economic expansion in post war history, but the economy remains strong nationally and statewide," said WRA President & CEO Michael Theo.
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INVENTORY
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The WRA expects some small inventory improvements in 2019. Total listings of existing homes for sale in December 2018 were similar to the levels of December 2017, falling just 1.9 percent over the last 12 months. This is a departure from previous months where double-digit declines in listings occurred.
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AFFORDABILITY
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Housing affordability definitely slipped in 2018. The strong economy has increased family income levels, which tend to improve affordability, but that's countered by strong price appreciation and the upward drift in mortgage rates. The affordability index fell from 227 in December 2017 to 203 this past December.
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SELLERS: We had a very solid year for sales, even though we had weak inventories in 2018. Most buyers are still facing a strong seller's market.
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Jean Stefaniak
WRA Chairman
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BUYERS: The WRA predicts moderating demand and a slightly improving supply in 2019. It may be just the break that some families need to finally buy a home.
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Michael Theo
WRA President & CEO
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Source: Wisconsin REALTORS Association, December 2018 Home Sales Report, January 21, 2019.
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HOUSING MARKET AT NEVER BEFORE SEEN RECORD WORTH
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"Seen from the rearview mirror, 2018 was a year of unusually strong, stable home value growth across the country, but cracks in the foundation are clearly starting to emerge," says Aaron Terrazas, senior economist at Zillow. "During the second half of the year, appreciation slowed sharply in the priciest corners of the country while it picked up in affordable hotspots. Periods of stability often precede periods of instability, and the outlook for 2019 is certainly both cloudier and blurrier than the outlook a year ago. Housing wealth may have touched new highs this year, but home value gains don't translate into dollars in the bank account unless homeowners opt to sell or borrow against their home and, in contrast to previous housing booms, many Americans have been more reluctant in recent years to spend against their home's worth," says Terrazas. "Moving toward an uncertain future, that may prove to be a prescient choice."
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and blurrier than the outlook a year ago. Housing wealth may have touched new highs this year, but home value gains don't translate into dollars in the bank account unless homeowners opt to sell or borrow against their home and, in contrast to previous housing booms, many Americans have been more reluctant in recent years to spend against their home's worth," says Terrazas. "Moving toward an uncertain future, that may prove to be a prescient choice."
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Sources: RISMedia, Housing Market at Never Before Seen Record Worth, by Suzanne De Vita, January 10, 2019.
Zillow.com.
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6 WAYS TO SAVE MORE THIS YEAR
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Photo Credit: RISMedia.com
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...AND IMPROVE YOUR FINANCIAL HEALTH
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Automate Everything
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You can't forget to save if it's automated. Whether it's your 401(k) contribution taken pre-tax from your salary or automatic transfers from your checking account into a savings account or money market account, automating will help you save without even thinking about it.
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Evaluate Your Banking
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Take a look at your savings account. Yields have climbed in the past year, and a number of savings accounts are offering more than 2 percent APY. Also, if you are incurring a monthly maintenance fee for going under a required minimum balance in your checking account, you should be able to find a way to avoid that, whether through a low minimum balance checking account or by having a recurring direct deposit.
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Attack Your Debt
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If you have any debt, make paying it off a priority. The interest you're paying on a credit card is likely a lot more than what you're earning on a savings account. A balance transfer card or ones with zero percent introductory periods are exceptions. There were four Federal Reserve rate increases in 2018. Each of which directly impact most variable credit card annual percentage rates (APRs) increasing the amount of interest paid on credit cards if you had an outstanding balance.
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Maximize Your Cash Back
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Maximize your savings and cash back. Weigh whether you'd be better off earning more cash back with a credit card that has an annual fee but higher cash back rewards, or a no annual fee card that has a lower cash back percentage. By going through a site like Ebates, you're earning cash back in addition to what you earn on your cash back credit card.
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Evaluate Your Budget
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The new year is a great time to make sure you're not overpaying or paying for monthly items that aren't being used. It's easy to start a budget and it can help you maximize your savings. Check your insurance to make sure you're getting the best rate for the coverage you're carrying.
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Review Your Employee Benefits
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You may still be able to adjust your withholding for taxes or how much you're putting away for retirement, which may reduce your taxable income and potentially save you money. Consult with a tax advisor to make sure your strategy makes sense for your situation.
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FOR HOMEOWNERS, THE FIVE YEAR RULE STILL MAKES SENSE (most of the time)
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The five year rule states that new homeowners should generally stay put for at least 5 years before selling their property or risk losing money.
The reason for this rule is that your home will have to appreciate up to the costs of buying and selling just to break even. If you want to make money, then the value must exceed those fees.
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Sources: RISMedia, Home Spun Wisdom, 6 Ways to Save More This Year, by Matthew Goldberg, January 8, 2019. Bankrate.com.
RISMedia, Home Spun Wisdom, Why the 5 Year Home Sale Rule Still Makes Sense (Most of the Time), by Natalie Campisi, December 26, 2018. Bankrate.com.
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Photo Credit: RISMedia.com
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THE PROS AND CONS OF
PAYING OFF YOUR MORTGAGE EARLY
Most homeowners want to own their homes free and clear. For some, that means using inheritance, or savings to pay off their mortgage early.
This seemingly responsible move may not always be in your best financial interest. According to financial experts, paying off your mortgage early actually comes with a cost to your bottom line. The reason is simple math: The amount you'll save in interest likely won't exceed what you would earn in other long-term investments such as stocks and real estate.
For investments to make more sense than paying off a mortgage early, the annualized rate of return over a certain number of years would only need to make more than the mortgage interest - and since most people are sitting on relatively low mortgage rates, between 3.5 to 5.5 percent, beating that rate isn't tough.
It's not an easy call however, because no one can give you a guarantee on an investment. If you decide to pay off your mortgage early, be sure you have at least a six-month emergency fund saved before you commit a big chunk of cash to your mortgage payment.
FULL STORY
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Source: RISMedia, The Pros and Cons of Paying Off Your Mortgage Early, by Natalie Campisi, December 20, 2018
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MORTGAGE RATES SLIDE IN THE NEW YEAR
to the Lowest Level in Nine Months
In Response, Mortgage Applications Jumped More than 20 Percent
...according to Sam Khater, chief economist at Freddie Mac. "Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales," said Khater.
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Source: RISMedia, Mortgage Rates Slide, Where Are They Now? by RISMedia Staff, Freddie Mac, January 11, 2019.
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