Ruhl&Ruhl REALTORS
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17
Market Shifting Due To Rising Mortgage Rates
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.
3
Iowa and Illinois Housing Costs Are a Bargain
The Council For Community and Economic Research has released its Cost of Living Index for Quarter 3, 2022. The index compares the cost of living data for 265 urban areas throughout the country with the goal of providing an accurate measurement of living cost differences among these areas. Many cities from Iowa and Illinois were included in the report, which compares data on everything from home prices and rental costs to a breakdown of grocery items, transportation, and community goods and services. Housing costs and overall cost of living in our area are well below the national average as noted below:
Cost of Living Index – Housing Costs vs. Overall Cost-of-Living
| Housing Costs | Overall Cost-of-Living | |
| Burlington, IA | 57.3% | 85.6% |
| Cedar Rapids, IA |
30
Real Estate Slowdown Indicates a Healthy Housing Market
30
Sell Smart or Sell Fast? You Can Do Both!
Earlier in the year, homes were selling at breakneck speeds. Freddie Mac reported that "Nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations." With that kind of demand, home improvements took a back seat. However, today, the market is finding a new equilibrium - and so are sellers. Buyers have more options and can afford to be more selective. So now more than ever, sellers need to be smart about what renovations they choose to take on before listing their homes. Here is the latest data on cost recovery on remodeling projects for both interior and exterior remodeling projects.
Graph provided by the National Association of Realtors
30
What is Loan-to-Value (LTV) and Why is it Important?
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%
