Why National Mortgage Trends Are Irrelevant

/in , ,

You may have read an article in The Wall Street Journal or watched Diane Sawyer on ABC talking about housing market trends and alerting you of the best times to buy or sell your home. While the trends may be accurate on a national level, they may be entirely different when you consider them from a local — or even regional — perspective.

There are a few factors that cause these incongruities between national and regional trends. This past winter was so oppressively cold that only a few brave souls were diligently working on buying or selling their homes. This left the northeast region behind some other regions in home sales. Now that the weather has improved, we’re seeing a market correction, of sorts. More people are aggressively vying to buy in a market with limited inventory.

According to the National Association of Home Builders, the Housing Opportunity Index (HOI) for a given area is defined as “the share of homes sold in that area that would have been affordable to a family earning the local median income, based on standard mortgage underwriting criteria.”

HOI is a good indicator of determining trends because it takes both median income and affordability into consideration. Statistics show that Boston’s HOI has been in decline since 2012, largely due to a decrease in median household income combined with an increase in the median price for home sales. Nationally, the average percentage of affordable homes is 66%. Locally, the percentage is just 51%, a full 15% lower than the national numbers.

We can conclude from this that national numbers can’t be assumed to coincide with the local Massachusetts housing market. So when Diane Sawyer tells you to buy, sell or hold tight, it’s best to contact me for advice that comes from a locally informed source. I will gladly discuss all the concerns you have about timing your new home purchase and give you the best advice for your individual needs.

 

July’s Home Value Improver

Garden Pest Terminator: The Ladybug

Are you fighting a losing battle in your garden? Are the bugs eating your vegetables before you get a chance to enjoy them?

It’s no wonder farmers turn to pesticides to eradicate those flying and crawling garden pests. But half the fun of raising your fruits and vegetables yourself is to enjoy your own completely organic, toxin-free foods. So what’s an enterprising gardener to do? The solution: Ditch the pesticides and order up a big batch of ladybugs.

The ladybug is a natural, cost-effective eliminator of common garden pests. They especially love aphids, but will consume other bugs, worms and mites. They may come in a cute package, but they are a generalist predator and will keep your unwanted bug population under control.

You can pick up your ladybugs at some garden centers or you can simply order them online from Amazon (yes, they really have everything at Amazon, including boxes of 1500 live ladybugs, costing under $20).

Once your ladybugs arrive, wait until evening. Watering your plants before releasing them is a good idea, as the ladybugs may feel dehydrated from being in captivity. Doing this at night gives your ladybugs the best chance to remain in your garden as they acclimate themselves quietly overnight.

Will your ladybugs fly away? Yes, many will. However, the ones that stay will almost immediately start laying eggs, keeping your ladybug population flourishing. If you happen to notice a small black and red insect that looks like a spiny little alligator, that’s a ladybug larva. They may start off homely, but they hatch ready to eat your unwanted bugs.

Put those ladybugs to work and enjoy the harvest of your own organic garden.


Mortgage Tips: Three Must-Read Resources

/in

If you’re beginning the process of buying a home or educating yourself on all that’s involved, here are three must-read resources that will empower you and make you feel more confident:

Of course, if you have any questions, contact us at any time.

Always Be Honest with Your Doctor and Your Mortgage Broker – Here’s Why

/in

A survey by WebMD suggests that nearly half of all patients lie to their doctors. Why? Fear. Embarrassment. Concerns about being judged about how they eat, what they drink, what they do (or don’t do).

The problem with lying to your doctor is that it can have adverse consequences. If you’re not honest about what you eat or drink or the medications you take, then your doctor can’t recommend the best regimen, prescriptions, or tests. Sure, you might save yourself from embarrassment in the short term, but as for the long term? Well, you can use your imagination.

What’s interesting is that I find people are sometimes equally as nervous when it comes to talking to mortgage brokers. Of course, I can understand why—opening up your financial life to someone can feel daunting, and it’s easy to worry about being judged. But just like with the doctor, if we don’t have complete information on your financial picture, we can’t provide the best “prescription” for your situation.

Here’s the GOOD news, however. Unlike a doctor who might scold your lack of exercise or fast-food diet, mortgage brokers don’t make any judgments, and there’s no need to justify anything to us. Our job isn’t to “fix” anything that’s broken (for example, if you have credit card debt). Instead, our job is to guide you, educate you, and help you understand what makes sense based on your financial goals and circumstances. That’s all.

Now, don’t you feel better?