Here are four great reasons to consider buying a home today instead of waiting.
1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Insight report revealed that home prices have appreciated by 5.6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.7% over the next year.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.
2. Mortgage Interest Rates are Projected to Increase
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have hovered around 4.8%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison, projecting that rates will increase in 2019.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
3. Either Way, You are Paying a Mortgage
There are some renters who have not yet purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person building that equity.
Are you ready to put your housing cost to work for you?
4. It’s Time to Move on With Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer, or you just want to have control over renovations, maybe now is the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac's U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily throughout 2019.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly. But don’t let the prediction that rates will increase stop you from purchasing your dream home this year!
Let’s take a look at a historical view of interest rates over the last 45 years.
Be thankful that you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago.
Home sales numbers are leveling off, the rate of price appreciation has slowed to more historically normal averages, and inventory is finally increasing. We are headed into a more normal housing market.
However, some are seeing these adjustments as red flags and are suggesting that we are headed back to the same challenges we experienced in 2008. Today, let’s look at one set of statistics that prove the current market is nothing like the one that preceded the housing crash last decade.
The previous bubble was partially caused by unhealthy levels of mortgage debt. New purchasers were putting down the minimum down payment, resulting in them having little if any equity in their homes.
Existing homeowners were using their homes as ATMs by refinancing and swapping their equity for cash. When prices started to fall, many homeowners found themselves in a negative equity situation (where their mortgage was higher than the value of their home) so they walked away which caused prices to fall even further. When this happened, even more homeowners found themselves in negative equity situations which caused them to walk away as well, and so a vicious cycle formed.
Today, the equity situation is totally different. According to a new report from ATTOM Data Solutionsmore than 1-in-4 homes with a mortgage have at least 50% equity. The report explains:
“…nearly 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value…The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage.”
If we take both numbers, the 30.3% of all homes without a mortgage and the 17.9% with at least 50% equity (25.7% of the 69.3% of homes with a mortgage), we realize that 48.2% of all homes in the country have at least 50% equity.
Unlike 2008, almost half of the homeowners in the country are sitting on massive amounts of home equity. They will not be walking away from their homes if the housing market begins to soften.
Mortgage rates are still very very low. However the Federal reserve raised interest rates several times this year and that trend is expected to continue according to Bankrate.
As the chart indicates below, homeowners can still lock in lower interest rates, but you should act quickly if you are in the market for a new home. As interest rates increase, the overall price of ownership goes up and many have to look at a lower priced house. I work with a team of professionals that can help you buy or sell your home. Reach out to me if you need assistance and be sure to sign up for my blog for the latest information on Nashville real estate homes.
Check out my video on where interest rates are expected to go in 2019.
Top 3 Things You Need to Do as A First Time Home Buyer
There is a lot you need to do, and we are going to cover the first 3.
STEP 1. Get Finances in order
The first thing you want to do is alleviate your debt.Start paying your car payments, your credit cards, paying your student loans down, so you have the least debt as possible. And make sure you are current on all those payments. Your credit score will start to rise the more you pay bills off, and the more your payments are on time.
STEP 2.Save Money for Down Payment
Also you need to start saving some money for a down payment. Now there are home buying programs out there that are 0 down, 3%, 5% down, so you don't have to worry about saving a huge chunk. You can put 3% 5% down, it’s really quite simple and you have to learn how to save your money.Take a small amount out of each paycheck whether it’s 10 bucks, 20 bucks, 50 bucks and put into a savings account, and you’ll be good to go on your down payment.
You’ll want to make sure you have at least 90 days before you plan to buy your first home.. So 3 to 4 months is the time where you're going to really start your shopping and that brings us to number 2. you're going to want to find a team to work.A team is an agent that you decide to work with and a lender.So I like to use TJ from Bancorp South. He has been fantastic.He's got a lot of aggressive programs that we use.
STEP 3. Find a “Buyer’s” Real Estate Agent
You're going to want to find a buyer's agent that works in your best interest. If you find a home you like, do not call the listing agent. They will want to work with you and write up the offer, but they're going to have the seller’s back when it comes to price, your buyer’s home inspection (which is your biggest contigency) and repairs. They're just going to facilitate your end, and they're going represent the sellers best interests, not yours.
So you want to make sure you pick a buyer's agent that knows your lender, what's going on with your loan, and has your back on the transaction. So pretty easy, you want to interview multiple lenders and multiple agents. You want to make sure they have the right fit for your personality, and someone who knows what you're looking for.
The next thing you're going to want to do is go to GregFRealestate.com to start searching for homes.This is linked to the MLS, so don't use any third party sites that begin with a Z or T. GregFRealestate.com actually updates listings in real time and has all the available properties for Middle Tennessee. You can set your parameters to what you think you can afford or close to what you think.
A lot of times your monthly payment is going to be totally different than what you think the purchase price is going to be. So once you get pre-approved from a lender, you can change your search criteria.
In conclusion, when you’re about 90 days out, you want to start getting pre-approved to have that letter in place and know what your rate is going to be, and what is your maximum purchase price you can afford.
Today I am taking #GregOnTheStreets to Edgehill Village and Bella Napoli Pizzeria to chat with my friend and owner, Paolo Tramontano. Since I love this part of town and restaurant so much I thought I'd curate a perfect hit list of places to stop by next time you're visiting. For all the guys following along, read on because I mapped out an Edgehill date night in four stops! Surprise your girl with a well thought out evening of Edgehill activities, starting with dinner at Bella Napoli and ending with a goodnight kiss!
Stop 1. Neapolitan Style Pizza: I find myself stopping by this charming little village to satisfy one very common craving, pizza! Proudly Italian, I was always on the hunt for a bomb slice of old world Neapolitan style pizza in Nashville. When I first bit into a slice of Bella Napoli’s salsiccia, I knew I found my “go to”. Start your date night by grabbing your girl and bringing her by for wood-fired pizzas and authentic pasta in the outdoor courtyard. As if the delicious food isn’t enough, the string lights and romantic ambiance will totally seal the deal.
Stop 2. Gelato: Let’s keep this Italian date night going strong by hitting up Legato Gelato after dinner for a chance to indulge in your sweet tooth! This vintage inspired gelato shop offers inventive flavors of gelato like Sicilian Pistachio and Madagascar bourbon vanilla, all made fresh daily. She’ll be sweet on you in no time.
Stop 3. Shopping: We all know that shopping is the quickest way to a woman’s heart. Do a little strolling through the neighborhood and hit up some of the local boutiques. She’ll be impressed if you recommend American Threads, she’ll appreciate your style if you tell her you shop at J. Crew Men’s shop and she’ll be inspired if you pop into Castilleja.
Stop 4. Cool Cocktails: Elevate your date night by ending the evening with an after dinner drink at Old Glory Bar. The ambiance at this 1920’s boiler room is industrial and organic with SO much character. The high ceilings and grand staircase are major wow factors making the bar and restaurant feel grand while the intimate seating and brick and cement decor create a comfortable and romantic experience.
Image Via Pinterest
To all the guys following #GregOnTheStreets, you can thank me later!If you try out one of my fav’s be sure to use the hashtag #GregOnTheStreets so I can hear about your date night! Oh and to watch the full video, click here!
Now that you have the perfectly curated date night in Edgehill you need a killer list of homes in the area that are for sale! Could you imagine getting to live just minutes from this happening area? Why just visit when you can stay forever.
We are back this week with #GregOnTheStreets taking place in the very historic Germantown neighborhood of Nashville! With a ton of charm, a variety of things to do, murals to check out and restaurants galore, this part of town is a must visit. I dare you to walk down 5th street without falling in love with the atmosphere. That’s what happened to Greg’s two assistants Kimberly and Michelle! One stroll over the brick sidewalks and they were hooked. You can find them both frequenting the local bars and coffee shops when they aren’t at Village. They helped put together a killer list of suggestions for our foodie followers and you aren’t going to want to miss it.
Whether you’re stopping by for lunch at one of the 14 restaurants, scheduled for a culinary class, dropping by after a walk through Bicentennial Capitol Mall State Park or are just in need of some farm fresh ingredients for dinner, the Farmers market has something for everyone. Head on over next time you need some fresh foodspiration.
In the mood for fresh cut pasta, handmade ravioli, homemade sauces and gourmet ingredients? This little Italian market has it all. From delicious cheeses to unique olive oils, they have everything you’ll need to make a fantastic home cooked family meal. Their motto is that pasta is the center of their universe and that is a motto we can get on board with. Local Tip: On Saturdays they sell fresh Mozzarella made in house. It sells out quick so be sure to stop in before noon if you want a taste!
Truffles and JoeJoes and Salted Caramels, oh my! If you’re craving something sweet, drop everything you’re doing and run to this cute little cafe to indulge in some artisan chocolate magic. They will even pair chocolates with fine wine if you’re also in need of happy hour. Fun fact, Thursday, Friday and Saturday evenings the cafe turns into an Absinthe Lounge with signature cocktails and traditional absinthe drips! Keep your eye out for the green light in the windows. If it’s lit, go get lit too.
This Texas inspired spot is the perfect place for sipping craft cocktails and eating tacos. It’s a go to spot for date night, Sunday brunch or a patio lunch break. Our favorite menu items are the charred Brussel sprouts and beef brisket sandwich.
You know those nights when you get home from work after an exhausting day and cooking dinner is super low on the priority list? Those nights are the nights when you need a healthy dose of comfort food from Jack Brown’s. Grab a seat on the patio with a beer and a burger and let your cares fall away. If you’re gonna have a cheat meal, do it right and end the meal with a fried Oreo or two. You won’t be disappointed.
Imagine grabbing a casual bite here with your buds before heading to Nashville’s First Tennessee Park for a spring baseball game. This recently opened beer Garden & sausage house serves a variety of smoked meats and sausages and the most delicious housemade pretzels.
Now that you have a few places to try in Germantown you need a list of homes in the area that are for sale! Could you imagine getting to live just minutes from this happening area? Why just visit when you can stay forever.
If you haven’t spent a sunny Saturday afternoon strolling through Hillsboro Village then have you really lived? This quaint neighborhood has something for everyone and it just so happens that the Greg Farricielli team is lucky enough to work a couple blocks from it’s bustling Main Street! We took to the streets today for the first in a series of many segments called #GregOnTheStreets where Greg will chat about local hotspots and neighborhoods throughout Nashville! Here’s how the first episode went and 5 reasons that make lovin’ this hoppin’ part of town so easy.
1. Delicious coffee: As Village likes to say “how do I take my coffee? Seriously, Very Seriously.” Greg and his team love to frequent the popular and funky little cafe, Fido. Who wouldn’t want to sip great coffee in a converted pet shop? Bonus points that it’s pet friendly so Greg’s furry best bud, Bowser, can tag along anytime Greg needs his espresso fix!
2. Photo Ops on fleek: If you haven’t been living under a rock then you must have seen Nashville’s mural scene. Greg is a fan of a good selfie backdrop so we took a second to snap this instagrammable moment in front of the bright and beautiful Dragon Mural. It was totally worth it for Insta sake and it inspired us to slay dragon’s for the rest of the day!
3. Great Eats: With something like 27 restaurants to choose from you really can’t go wrong. Greg’s newest fav is Hop Daddy. This local burger joint serves fresh and all natural ingredients with no antibiotics or hormones. We stopped in for their fresh baked breads, tasty burgers and hand-cut fries. Oh and shakes.. because who doesn't’ love a good shake with their fries?
4. Affordable Shopping: Greg left this one to Michelle + Kimberly, the gals of team Farricielli Real Estate. For all of you ladies out there trying to find cute and affordable attire you have to check out Dress up! They offer trendy new styles every week so head on over and shop til’ you drop… those spring rompers are not gonna buy themselves ladies.
5. Solid Happy Hour Prices: You are guaranteed to find a happy hour sign sitting outside of at least one restaurant every day in Hillsboro Village. So, we chose to Sit. Stay. Eat Drink at Double Dogs for their Happy Hour! From 3pm to 7pm daily you can purchase well liquor drinks for $3.25 and select domestic beer for $2.50 and on Wednesdays we drink house wine for $3. Treat yo’self after that long work day.. you deserve it. For a list of other daily happy hours we like to refer to Nashville Guru!
If you try out one of Greg’s fav’s be sure to use the hashtag #GregOnTheStreets so we can hear what you think of it! Oh and be sure to click to watch the episode below for information on Hillsboro Real Estate!
Now that you have 5 fantastic reasons to hit up Hillsboro Village you need a killer list of homes in the area that are for sale! Could you imagine getting to live just minutes from this happening area? Why just visit when you can stay forever.
Are you looking for a home with historic charm? Something cozy that is just asking to be lived in? BUT WAIT!!!! You don’t want an old house? In fact, you would rather it be built in 2016? We got it. 1614 Litton Ave in east Nashville can be yours today.
Imagine East Nashville living at its best. Just a few minutes to Five Points and a short walk to riverside village.
This home is a step above new build. With custom finishes on just about everything, and a loft above the garage, this is not your normal 3 bed, two bath house. Oh yeah… there is an extra half bath!
At 2,380 square feet of living space, feel free to move in and stretch out.
It can be understandable that with so much amazing living space, you may feel the need to also have a great yard. With this home you don’t need to look further than your own backyard. With a privacy fence surrounding, this lush green space can be your closest vacation!
Want to see this property with no strings attached? Your chance is this Sunday, 2/12 from 2-4!You will not only have one expert on site but 3 and a mortgage specialist. Every question can be asked about this property or another.
Why East Nashville? This question is simple. Distinction. Not only do you have access to the largest open space preserve in Nashville at Shelby Park, but you can also spend your weekends exploring the one of kind neighborhoods that you are surrounded by.
East Nashville neighborhoods often meet in areas of small shops and restaurants. This distinct place truly embraces community!