Posts made by author 'Alaina Benoit'

Each quarter the Federal Housing Finance Agency (FHFA) releases home appreciation data that reflect changes to our regional markets or Metropolitan Statistical Areas (MSAs).  The third quarter data shows percent changes in the last year and over a 5-year range. In the past year, home prices in our area have increased: +0.45% in Dubuque; -0.66% in Iowa City; +0.34% in Cedar Rapids; and -1.06% in the Quad Cities. This compares to other cities: Des Moines +1.34% and Chicago +0.84%. Of course, there is variation based on price range and location of properties, with more affordable properties appreciating more and expensive properties appreciating less.   "House prices were flat for the third quarter but continued to remain above levels from a year ago," said William Doerner, Ph.D., Supervisory Economist in FHFA's Division of Research and Statistics. "The rate of U.S. house price growth has substantially decelerated. This deceleration is widespread with about one-third of all states and metropolitan statistical areas registering annual growth below 10 percent."  

Information courtesy of the Federal Housing Finance Agency (FHFA) for the third quarter of 2022. FHFA stats always run one-quarter behind. Their full report is available at www.fhfa.gov.   The National Association of Realtors also shared their 2022 summary and 2023-2024 housing market forecast all predicting a positive home price and dollar volume gain by end of 2024. In 2022 Ruhl&Ruhl markets performed better than many national markets with a +9% home price game and +0.4% dollar volume increase over the national -5%.

Analyzing The Data

For sellers, the market has changed where homes will stay active longer, as affordability may be a concern for some home buyers, but much more in line with days on market (DoM) numbers we have seen in previous years. Median home prices are expected to advance 5.4% nationally, meaning significate equity opportunities can still be had with the sale of your home.  Buyers will have more options than they did previously as housing inventory is expected to increase by 22.8% nationally. It's a good idea to be in constant communication with your real estate agent and mortgage lender to stay informed on changing market conditions and trends. Because although it's true that mortgage rates are higher than they were last year, the mindset of, " date the rate and marry the home," can be helpful for buyers to remember as the opportunity to refinance when rates are lower can be a consideration later down the road.  It's important to note that housing market predictions and forecasts are helpful resources for homebuyers and sellers, but it's best to contact your real estate agent and loan officer for local, real-time data to have the most accurate outlook on what is going on in your area. Real estate tends to move fast and information that is relevant today can change. Your real estate agent can provide you with a home valuation, real estate review, market reports, and reputable recommendations to help you along.

According to Selma Hepp, Economist at CoreLogic, "For many households, home equity is the only source of wealth creation. As a result, recent record gains in equity and record declines in loan-to-value ratios will provide many owners with a financial buffer in case economic conditions worsen. In addition, record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas." Note: the Quad Cities have recently ranked the 4th most affordable market in the country. The net worth of a homeowner is 40 times greater than that of a renter. So when you compare homeownership to renting, it's a huge differentiator for peoples' long-term wealth gain.

Additional benefits of homeownership:

• Security and stability
• Priv...

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Earlier this month, our Fall 2022 Facts & Trends Newsletter was released. Ruhl&Ruhl CEO, Caroline Ruhl wrote the lead article tackling the topics of mortgage rates and listing inventory. For more market-specific articles you can view our quarterly Facts & Trends on our website. 

Market Shifting Due To Rising Mortgage Rates

10% fewer properties sold across our region during the third quarter of 2022 compared to the third quarter of 2021. Recall that we are comparing today's market to the best market ever in 2021 in terms of real estate sales. Because homes are still appreciating, sales volume was only down 1% during the third quarter, and year to date across our region sales volume is still up 6%. See the activity chart on page 2 for the significant variations from market to market.

By Chris Schneider, Vice President of Ruhl Mortgage  The loan-to-value (LTV) ratio is a metric lenders use to measure the amount of debt used to buy a home compared to the value of the home being purchased. LTV is important because lenders use it when considering whether to approve a loan and/or what terms to offer. The higher the LTV, the higher the risk for the lender - if the borrower defaults, the lender is less likely to be able to recoup their money by selling the house.

What is LTV?

The loan-to-value ratio is a simple formula. (LOAN AMOUNT / HOME VALUE) * 100 = LTV% EXAMPLE: ($80,000 LOAN / $100,000 HOME VALUE) * 100 = 80% LTV Hint: This could also be considered in the reverse. For example, a borrower with 20% down payment has an LTV of 80% 

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As Iowa's one-time Capital City, Iowa City is a beloved town for many Iowas. Those local to Iowa City appreciate the town's nod to historic roots which are visible throughout the city, most evidently in the downtown district. The city has also embraced its notoriety as one of Iowa's biggest, if not thee biggest, sporting town. That may be controversial to say, especially to a Cyclone fan, but not controversial is naming Iowa City an exciting and buzzing town to explore, shop and dine. It's a town like no other, so if visiting the area, don't rush through, stop and stay awhile! You'll need some time anyway after trying a variety of the city's most delicious restaurants. And, as good Hawkeyes do, our Iowa City agents shared their favorite, most frequented cafes, restaurants, and diners.

Breakfast

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