9/14/17 (CT) Over the past couple months I have noticed an increase in advertisements for Home Equity Loans and refinancing n Southern Connecticut. This may be indicative of increased confidence in appraised property values by lenders and investors.
While one can not say for certain what the future holds, since 2012 the Carr Value Shelf has maintained a position that the base FHFA-HPI index of 173-178 is a unique indicator of value to Connecticut, locally, and in relation to broader national markets. Connecticut trails the nation in house price value recovery, and is rated "undervalued" in September 2017 by Core Logic (a data analytic company).
Regarding home equity loans, I do not endorse using your real estate equity as a CAM (cash access method). If you have equity in your home consider investing in property that will provide income and tax advantages over time. The person, family or organization who operates within their means and invests 10% of their income will be rewarded with future financial security.
People who have debt must invest an additional 10% of their income in debt retirement to avoid the ling term consequences of interest payment servitude. This means a person who makes $60,000 gross, taking home $48,000 after taxes should strongly seek to do *whatever it takes* to invest $4800/year in their future, and $4800/year in resolving debt to assure a secure financial future.
Let me help you by offering this plan for financial independence now, so you can live a better life in five years
Thursday, September 14, 2017
Fannie Mae (Conventional Loans) is increasing their max debt to income ratio
8/1/17(CT) Fannie Mae (Conventional Loans) is increasing their max debt to income ratio from 45% to 50%. This is actually going to be a huge deal. For a couple making 80K in total income this would allow $333 in extra monthly debt payments. That actually translates to about 60K in additional purchasing power for that couple. And the more a person makes in income the more their purchasing power would increase.
FHA still goes to approx. 55% in debt ratio but this move will definitely enhance the conventional side including the conventional CHFA program.
Below is a link to an article that explains the change.
When you are thinking about Southern Connecticut Real Estate, be an expert I your market b emloyin David Carr as your exclusive fiduciary buyer's agent or marketing partner. Since 1996 I am proud to be the foundation of your success in real estate
Call me at my office 203-877-2704 x 400826 (Direct to my cell)
"On the Green" in Milford CT
Good To Know!
Wednesday, August 23, 2017
2Q2017 showed another quarter of solid strength in New Haven Milford Metro Connecticut All Transactions HPI rising to 179.57
8-22-2017 (CT) The Greater New Haven Milford Connecticut Metro
area continued to maintain stability since 2012 (despite two quarters of correction
when the index dropped 0.02 in 3Q2016 and 0.54 in 4Q2016)
to post another positive report.
2Q2017 showed another quarter of solid strength in New Haven
Milford Metro All Transactions HPI rising to 179.57, a 1.13-point 90-day gain, 2.52
higher than the 2012 creation of the Carr Value Shelf, when the 1Q2012 Value
was 177.05. Connecticut REALTORS
reported a statewide increase in median values ending June 2017 following
previous months of increased transactions with no price appreciation.
The Carr Value Shelf has been defined since 2014 as the FHFA-HPI
range of value between 173 and 178. The Milford New Haven Metro broke out of The
Carr Value Shelf lower range once in 1Q2014 for one quarter, and out of the
upper range three times, 3Q2016 at 179.1, 4Q2016 at 179.08, and 2Q2017 at
179.57
In 2012, I first identified the beginning of this buyers’ market
on my face book pages, yet lacked the statistical credibility to support my
observation, which led to the creation of the Carr Value Shelf in 2014. My goal
was not be another REALTOR crowing “now is the time to buy” because it would be
good for my industry. My commitment is
to identify conditions favorable to people who want to access the leveraged
power of real estate ownership, with it’s associated tax and investment
advantages.
In a May 22 2017 commentary about “Highest and Lowest Risk US
Housing Markets” (by CoreLogic, a data and
analytics company), Hartford and New Haven Milford presented the
two lowest (0.30% & 3.5% respectively) HPI growth since January 2012. Of
the 257 metros both Hartford and New Haven placed in the 35th (of
100 rank) for flip rankings (93 & 97 respectively). New Haven/Milford
ranked better than Hartford and Bridgeport/Stamford/Norwalk in the fraud
rankings. The data indicates lower than median risk couple with 11-12% rent
growth since 2012. This may be indicator of a more a secure market than other
metros in the United States, despite Connecticut’s financial struggles, which
seem to be priced into vales at this time. When we look at house prices and
taxes in New Jersey, Long island and New York City, property in Connecticut is
a comparable regional bargain.
Other indicators of undervaluation can be found in the FHFA Metro Area
House Price All Transaction Residential Indexes, New Haven Milford was rated in
the bottom 7% for overall appreciation (240 of 257) ending 2017Q1. For only
2017Q1, New Haven-Milford lost 0.47 point to place 201 of 257. One-year
appreciation for the area was +0.68, very close to the five years, 0.60-point
increase since 2012, indicating a possible shelf of value comparable to
1991-1997, Since 1991 the index has increased 58.71.
Homeownership was never supposed to be a cash out vehicle. Home
ownership is protected on many levels, as long as the owners don’t agree to
liens. A person buying in 1997 would have seen their estate appreciate almost
100% through 2017 if they did not assume cash out encumberences. Home ownership
(not mortgages) free people from rent payments, allows their cost of living to
go down or be stabilized, provides tax benefits, and can provide for end of
life financial and life place security
My comparable observation is that stability over the past 5 years
is a positive economic indicator for the region. Inventory of property sold in this period has
maintained a base value despite statewide economic issues caused be years of
debt loading by state government which began in the early 1990’s. This
financial situation now appears to be fully disclosed and priced into values,
leaving Connecticut a better life place choice than New York or New Jersey,
with regional rail and quality of life assets that will support further growth
of real estate values over time. Evolution in workplace structure allows more
people to consider a two hour rail commute an acceptable choice when
supplemented with wireless technologies for productivity or entertainment. Changes in climate have created new
opportunities for grape and hop cultivation. New York and New Jersey real estate values and
tax burdens make my Greater New Haven – Milford shoreline market a comparable
bargain, and may suggest that Eastern Connecticut will be the New Hamptons.
Since 1996 I, David Carr, have established licensed fiduciary
relationships with buyers and sellers of real property in Connecticut. My goal
is to provide exceptional needs assessment, value identification, transparent
transaction management, and comparable market analysis. My experience, care for
my clients, and team at Berkshire Hathaway Home Services New England (“On the
Green” in Milford, CT.) add value to the quality of service I provide. For more
information to schedule an appointment call 203-877-2704 x400826. You may find
me online at ahomeforme.com.
All-Transactions
Indexes (Estimated using Sales Prices and Appraisal Data) Aug 22, 2017
"New Haven-Milford, CT" 35300 2012 1 177.05 -1.18
"New Haven-Milford, CT" 35300 2012 2 174.8 -1.18
"New Haven-Milford, CT" 35300 2012 3 174.89 -1.17
"New Haven-Milford, CT" 35300 2012 4 175.25 -1.17
"New Haven-Milford, CT" 35300 2013 1 175.21 -1.19
"New Haven-Milford, CT" 35300 2013 2 174.89 -1.19
"New Haven-Milford, CT" 35300 2013 3 174.82 -1.23
"New Haven-Milford, CT" 35300 2013 4 173.39 -1.31
"New Haven-Milford, CT" 35300 2014 1 171.92 -1.35
"New Haven-Milford, CT" 35300 2014 2 172.38 -1.31
"New Haven-Milford, CT" 35300 2014 3 173.07 -1.29
"New Haven-Milford, CT" 35300 2014 4 173.83 -1.29
"New Haven-Milford, CT" 35300 2015 1 176.37 -1.32
"New Haven-Milford, CT" 35300 2015 2 176.73 -1.34
"New Haven-Milford, CT" 35300 2015 3 176.03 -1.36
"New Haven-Milford, CT" 35300 2015 4 176.91 -1.41
"New Haven-Milford, CT" 35300 2016 1 176.29 -1.43
"New Haven-Milford, CT" 35300 2016 2 178.04 -1.4
"New Haven-Milford, CT" 35300 2016 3 179.1 -1.35
"New Haven-Milford, CT" 35300 2016 4 179.08 -1.39
"New Haven-Milford, CT" 35300 2017 1 178.44 -1.6
"New Haven-Milford, CT" 35300 2017 2 179.57 -1.58
Tuesday, July 25, 2017
New Haven Connecticut Property Values Poised to Rise
As the two hour commute becomes more acceptable when interspersed with wireless commuting, more people will recognize the value of living along the Metro North New Haven Commuter Line.
When it's time to become an expert in Southern Connecticut, David Carr, MA; PSCS. is the person your licensed fiduciary agent (since 1996).
Read the 7/24/2017 New York Times article here:
https://www.nytimes.com/2017/07/21/realestate/extreme-commuting.html?
Friday, June 30, 2017
June 30 Mortgage Minute
It remains a great time to buy or refinance…..It may be time to get off the fence.
Rates
in general are still low and extremely competitive right now, subject
to individual FICO scores, Loan to value, and Debt to Income Ratios
Conv 30 Year Fixed (5% Down) = 4.0%
Conv 15 Year Fixed (5% Down) = 3.375%
FHA 30 Year Fixed (3.5% Down) = 3.75%
USDA 30 Year Fixed (0% Down) = 3.50%
CHFA Conv (1 point) = 3.25%
CHFA Conv (0 Points) = 3.625%
Whatever you decisions are, let me help you gather in information you need to plot the right course in real estate, no matter what the tide.
David Carr, MA
Berkshire Hathaway Home Services New England
The Second Largest Real estate team in the Nation,
The Leader in service, internet marketing and attention to detail
"On the Green" in Milford CT
Monday, May 22, 2017
May 2017 New Engalnd Mortgage Moments
The share of mortgages for home purchases increased in April 2017 according to the latest report from mortgage origination partner Ellie Mae.
The average FICO score for closed first position loans was 720 with LTV of 80% (20% down payment). Mortgage DTI was 25% of 39% total debt. Purchases made up 65%, with refis down to 35% from last year when purchases were 59% of new mortgages & refs were 40%. The average 30-year mortgage rate was 4.41% in April, up from 4.39% in March while Adjustable Rate Mortgages represented the highest level since November 2014. Loan choice remains the same from last year with Conventional loans being about 63% of new mortgages, FHAs about 23% and VAs about 10%,
As your fiduciary agent I will help you discern property inventory data, amenities and style to make the best decision about your property selection and value. Your loan officer will help you complete the application to deliver the terms the lender has agreed on. You may find different terms and costs from different lenders, particulars I and your loan officer can help you understand. Paying additional principal will shorten your loan and save money, Borrowing to pay additional costs will cost you more in interest every year, so be sure you amortize your terms
Since 1996 I have been the foundation of your success in real estate, showing you the way home, with integrity and dedication to excellence in real estate agency. Sincerely, David Carr,
Saturday, May 13, 2017
Connecticut Ranked #4 in 2017 USA Education, Economic, Civic Opportunity
Including Connecticut, ranked #4 nationally, the New England states grabbed five of the top 10 slots in the Opportunity Index, an analysis of “how opportunities measure up” in communities across the country. The Opportunity Index is an annual composite measure at the state and county levels of economic, educational and civic factors that expand opportunity.
In the Education component of the Opportunity Index, Connecticut ranked second. The state ranked sixth in the Community aspect of the index, but 20th in the Economy scorecard. The Economy rankings included data on jobs, wages, poverty, inequality, access to banking, affordable housing and internet access.
Connecticut’s overall score was 62.8, compared with the national average of 54.0. Among Connecticut’s eight counties, the best overall opportunities are in Middlesex County, which earned a 63.1 score. Next were Tolland County, 62.3; Fairfield County,62.1; Litchfield County, 60.6; Hartford County 59.5; New Haven County, 56.8; New London County, 54.3; and Windham County 51.2.
The data, according to Opportunity Nation , comes from the U.S. Census Bureau, the Bureau of Labor and Statistics, the Federal Communications Commission, the National Center for Education Statistics, the Center for Disease Control and Prevention and the U.S. Department of Justice
Since 1996 CT Licensed REALTOR David Carr has represented buyers and sellers of real property in Southern Connecticut. David has the resources available to support your goals, backed with hyper local market analysis
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