Ruhl Blog

First Time Home Buyers: Need v Want

Friday, July 27, 2018

When shopping for your dream home, it is crucial to have your priorities listed out before embarking on your search. Spending the extra time upfront will save you headaches and heartbreaks down the road.

When determining what you need versus want, your first step should be getting pre-approved for your mortgage. This provides you with a clear budget and makes sure that you don’t fall in love with a home that is out of your price range.

The next step is to create a lists of your needs and wants. Once you have a list, the most important step of this process is figuring out why your needs are needs and why your wants are wants.

For example, you might think you need a three-car garage because you need the extra space for storage, but a basement or attic storage space would work just as well. Thinking that you need a three-car garage is problematic because your agent will search for houses with that feature and will often times raise your overall price point.

Homes are flying off the shelf in our area. Having a list will help you and your agent move quickly to secure the home of your dreams.Contact us at 1.866.441.1776 or customerservice@ruhlhomes.com to be put in touch with a local, trusted expert!

A Tale of Two Markets

Friday, July 20, 2018

Although our area has not experienced the rollercoaster of appreciation as the other parts of the country has, homes in the area have seen a steady increase in value. While there are many factors contributing to this appreciation, the main driver is a result of supply and demand.

The real estate industry uses supply and demand to determine the current state of the market. Typically, if there is a surplus of homes in the desired price range, then it is a buyer’s market. Similar to going to the grocery store, if there are more options and more competition, then the prices will be lower, and the buyer has more power.

Vice versa, if there is a shortage of those same homes, then the market shifts to a seller’s market. “Years of low inventory and pent-up buyer demand have resulted in a seller’s market in the affordable price ranges across many of our local areas,” said Caroline Ruhl, CEO of Ruhl&Ruhl Realtors.

We are mainly seeing the shortage of inventory in the more affordable price points. The upper price points simply do not have the same amount of demand. This trend is visible when looking at the average days on market. Typically homes in the upper third sit on the market for 66% longer than its lower counterpart.

Before listing your home or looking to buy a new one, it is important to understand the current market conditions, so you can get the most out of your money.

Contact us at 1.866.441.1776 or customerservice@ruhlhomes.com to be put in touch with a local, trusted expert!

Home Price Appreciation is Strong and Stable in our Region

Friday, July 06, 2018

Five-year home appreciation in our region was between 10.36% and 15.26% with all of our regional Metropolitan Statistical Areas experiencing a positive gain.

“Home prices continue to rise across the U.S. but there are signs of tapering,” said Dr. William Doerner, Senior Economist. “Since housing markets began to rebound in 2012, house price appreciation has been positive because demand has outpaced supply. In the last month, however, some regions reflect a slowing or even flattening of house price growth.”

In the past year, home prices are up: 5.14% in Dubuque; 3.11% in Iowa City; 1.89% in the Quad Cities and 3.26% in Cedar Rapids. This compares to other cities: Des Moines, IA up 4.61% and Chicago, IL up 4.50%. This data is provided by the FHFA for the first quarter of 2018 (see chart and website below). Of course, there is considerable variation based on price range and location of properties, with more affordable properties appreciating more.

Metropolitan Statistical Areas (MSAs)	Percent Change in House Prices
	1 Year	5 Year
Cedar Rapids, IA	+ 3.26%	+ 10.36%
Davenport-Moline-Rock Island, IA-IL	+ 1.89%	+ 10.41%
Des Moines-West Des Moines, IA	+ 4.61%	+ 21.73%
Dubuque, IA	+ 5.14%	+ 12.38%
Iowa City, IA	+ 3.11%	+ 15.26%
USA	+ 6.89%	+ 34.25

Information courtesy of the Federal Housing Finance Agency (FHFA) for the first quarter of 2018. FHFA stats always run one quarter behind. Their full report is available at www.fhfa.gov. *Rankings based on annual percentage change in house prices.

“Years of low inventory and pent up buyer demand have resulted in a Seller’s Market in the affordable price ranges across many of our local areas,” said Caroline Ruhl, President of Ruhl&Ruhl Realtors. “We are unsure of how long this trend will continue, especially given the trends with mortgage rates. We urge people who are on the fence about selling their home to contact your local real estate professional for a free market analysis.”

Wondering how appreciation has affected your home? Contact your Ruhl&Ruhl Realtor to receive your free market analysis! Or contact us at 1.866.441.1776 or customerservice@ruhlhomes.com to be put in touch with a local, trusted expert!

The Cost of NOT Owning Your Home

Friday, December 01, 2017

Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

What proof exists that owning is financially better than renting?

1. We recently highlighted the top 5 financial benefits of homeownership:
- Homeownership is a form of forced savings.
- Homeownership provides tax savings.
- Homeownership allows you to lock in your monthly housing cost.
- Buying a home is cheaper than renting.
- No other investment lets you live inside of it.

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!!

Bottom Line
Owning a home has always been, and will always be, better from a financial standpoint than renting. Contact us today to see how much you could be saving by owning your home. Call us at 866-441-1776 or e-mail us at customerservice@ruhlhomes.com.

Source: Keeping Current Matters

Your Friends Are Crazy Wrong If They're Telling You Not To Buy

Saturday, November 25, 2017

The current narrative is that home prices have risen so much so that it is no longer a smart idea to purchase a home. Your family and friends might suggest that buying a home right now (whether a first-time home or a move-up home) makes absolutely no sense from an affordability standpoint. They are wrong!

Homes are more affordable right now than at almost any time in our country's history except for the foreclosure years (2009-2015) when homes sold at major discounts. As an example, below is a graph from the latest Black Knight Mortgage Monitor showing the percentage of median income needed to buy a medium-priced home in the country today in comparison to prior to the housing bubble and bust.

As we can see, the percentage necessary is less now than in those time periods.

The Mortgage Monitor also explains that home affordability is better today than it was in the late 1990s in 47 of 50 states.

Bottom Line
Your friends and family have your best interests at heart. However, when it comes to buying your first home or selling your current house to buy the home of your dreams, let's get together to discuss what your best move is, now.

Contact us at 866-441-1776 or customerservice@ruhlhomes.com to be put in touch with a Ruhl&Ruhl Realtor today!