Yonkers, NY Real Estate News

By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.The results of their latest survey:Home values will appreciate by 3.7% over the course of 2016, 3.3% in 2017 and 3.2% in the next two years, and finally 3.1% in 2020 (as shown below). That means the average annual appreciation will be 3.3% over the next 5 years: The prediction for cumulative appreciation slowed slightly from 21.6% to 17.7% by 2020. The experts ...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
During the recession, many young adults graduating from college were forced to move back in with their parents. This caused new household formations to drop dramatically from the long term average of 1.2 million formations annually to half that number. However, this may be the year this turns back around. According to the Urban Land Institute’s report, Emerging Trends in Real Estate, household formations will increase dramatically. They project that 3.68 million additional households will be formed in the next three years. This brings household formations back to pre-recession numbers of 1.2 million a year.What will happen in 2016?One of the key indicators to an improving housing market is household formation: How many people are moving out and forming an independent living unit? Many o...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). In a Forbes article the National Association of Realtors’ (NAR) Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater. The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction: Put Your Housing Cost to Work For You Simply put, home ownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contribut...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
You’ve decided to sell your house. You begin to interview potential real estate agents to help you through the process. You need someone you trust enough to:1.    Set the market value on possibly the largest asset your family owns (your home)2.    Set the time schedule for the successful liquidation of that asset3.    Set the fee for the services required to liquidate that assetAn agent must be concerned first and foremost about you and your family in order to garner that degree of trust. Make sure this is the case.Be careful if the agent you are interviewing begins the interview by:§ Bragging about their success§ Bragging about their company’s successAn agent’s success and the success of their company can be important considerations when deciding on the right real estate professional t...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Recently, on CNBC’s Closing Bell, Shark Tank investor Kevin O’Leary, also known as “Mr. Wonderful,” said Millennials “don’t give a poo-poo about owning a house.” This thinking couldn’t be further from the truth. Let’s give a few examples to make this point. 1.) In the recent National Housing Market Survey conducted by Fannie Mae, it was revealed that:“…data indicates that millennial renters today have as much desire to own a home as the general population of renters. According to NHS data, the substantial majority of renters age 25-34 say that owning makes more sense than renting from a financial perspective. A majority also agree that owning makes more sense than renting from a lifestyle perspective. The vast majority of millennial renters tell us they plan to own a home at some point ...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
First American Title issues a quarterly report, the Real Estate Sentiment Index (RESI), which “measures title agent sentiment on a variety of key market metrics and industry issues”. Their 2015 4th Quarter Edition revealed some interesting information regarding possible challenges with appraisal values as we head into 2016.“The fourth quarter RESI found that title agents continue to believe that property valuation issues will be the most likely cause of title order cancellation over the coming year.” This shouldn’t come as a surprise. In a housing market where supply is very low and demand is very high, home values increase rapidly. One major challenge in such a market is the bank appraisal. If prices are jumping, it is difficult for appraisers to find adequate, comparable sales (simila...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season. Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages. Here are five reasons to sell now. 1. Demand is StrongFoot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now! Take advantage of the strong buyer activity currently in...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
To keep you sharp and smart in 2016, be sure to remember these tips:1. Get The Blood FlowingIn a 2014 study at the University of British Columbia, women who walked briskly for an hour twice weekly for six months—but not those who strength-trained or did no exercise—increased brain volume in the areas that control thinking and memory.2. Eat Your GreensA team of researchers with the federally funded Nurses’ Health Study tracked 13,388 women over decades and discovered that the more leafy vegetables they ate, the better they performed on learning and memory tests. That might be due in part to folic acid in veggies: A long-term study of 60 Roman Catholic nuns in Minnesota identified folic acid as a key factor in delaying the onset of dementia.3. Avoid refined sugar – not only for your wais...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home. Here are three takeaways:§ 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary§ 86% of Americans either don’t know (59%) or are misinformed (25%) about what an appropriate Back End Debt-to-Income (DTI) ratios is§ 76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment requiredTo help correct these misunderstandings, let’s take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans.FICO SCORESBACK END DTIDOWN PAYMENTSB...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO. The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover.1. What do you do with all this paperwork?Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of pape...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent. The Census Bureau recently released their third quarter median rent numbers. Here is a graph showing rent increases from 1988 until today: A recent Wall Street Journal article reports that rents rose “faster last year than at any time since 2007, a boon for landlords but one that has stoked concerns about housing affordability for renters.”  The article also cited results from a recent Reis Inc report which revealed that average effective rents rose 4.6% in 2015, the biggest gain since before the recession. Over the past 15 years, rents have risen at a rate of 2.7% annually.Where ...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
In 1907, famed psychologist William James claimed, “We are making use of only a small part of our possible mental and physical resources.” A journalist later misquoted him as saying the average person develops on 10% of his mental capacity. Scans, however, show that we use every part of our brain, though not all regions are active at once. That’s why damage to any area of the brain—like what happens during a stroke –usually results in mental and behavioral effects.Playing classical music to infants makes them smarter.The state of Georgia began distributing classical-¬music CDs to the families of newborns in 1998. Each CD included a message from the governor: “I hope both you and your baby enjoy it—and that your little one will get off to a smart start.” While the sentiment is appealing...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
In a recent post, Trulia examined whether homeownership was again being seen by adults in the US as a “part of their personal American Dream.” Over the last five years:§ The percentage of U.S. adults who believe homeownership is part of their American Dream increased from 70% to 75%§ The percentage of 18-34 Year-olds who believe homeownership is part of their American Dream increased from 65% to 80%Here is a graph of the survey over the last five years:Bottom LineAs the housing industry recovers from the crisis of 2008-2010, Americans belief in homeownership as part of their own personal American Dream has also made a strong comeback.
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
Last week, an article in the Washington Post discussed a new ‘threat’ homebuyers will soon be facing: higher mortgage rates. The article revealed:“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”How can this impact the housing market?The article reported that recent analysis from Realtor.com found that -“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with s...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
On the 11th hour of the 11th day of the 11th month of 1918, an armistice, or temporary cessation of hostilities, was declared between the Allied nations and Germany in the First World War, then known as “the Great War.” Commemorated as Armistice Day beginning the following year, November 11th became a legal federal holiday in the United States in 1938. In the aftermath of World War II and the Korean War, Armistice Day became Veterans Day, a holiday dedicated to American veterans of all wars.The Great War and Armistice Though the Treaty of Versailles was signed on June 28, 1919, November 11 remained in the public imagination as the date that marked the end of the Great War. In November 1918, U.S. President Woodrow Wilson proclaimed November 11 as the first commemoration of Armistice Day....
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
The Mortgage Bankers’ Association (MBA) recently released a report: ‘Housing Demand: Demographics And The Numbers Behind The Coming Multi-Million Increase In Households’. In this study, the MBA “utilized a comprehensive analysis of data from 1976 to 2014, a period encompassing several market and housing cycles, to provide a projection of much stronger housing demand over the next decade.” According to the report: “by 2024, demographic and economic changes will bring what could be one of the largest expansions in the history of the U.S housing market with 13.9 million additional households.”But, what did they say about the Impact of the Hispanic community? The Impact of Demographics on Housing Demand§ Over the next decade, Hispanic household growth will increase by 5.7 million households...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
“Most people overestimate what they can do in one year and underestimate what they can do in ten years.” ― Bill Gates Taking control of your life is a choice. A lot of people don’t really stop to think about it, but it’s true. Believe it or not, you choose how you live your life. You might choose to do what is going to lead you to success, or you might choose to waste your time letting naysayers and negative people drag you down—but either way, it is you who makes the choice. This can be a surreal realization. To realize that you can literally choose success is a pretty amazing concept. And yet, so many people fail to realize how important it is to embrace this mentality. And not surprisingly, many people also fail to realize how much they can truly accomplish with such a mindset. When ...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
How did Halloween begin? The holiday traces back to the ancient Celtic festival known as Samhain. The ancient Celts from Britain and Ireland observed the start of the new year on November 1, All Souls Day. The day marked the end of summer and the harvest. Folks came to believe that on October 31, the worlds of the living and dead overlapped before the start of the new year. October 31 became All Hallows Eve, a time where the ghosts of the dead could return to destroy the harvest that was stored for winter. People set bonfires on hilltops to ward off the evil spirits before the start of the winter season.  How Americans celebrate Halloweens?Every October 31, both children and adults slip into the night as ghouls and goblins, princesses and pirates. Many Americans celebrate the traditions...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago. There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could neve...
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By Rummy Dhanoa, Rummy Dhanoa
(New York Real Estate Experts)
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States. The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide! The other interesting findings in the report include: Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation. “In the past year, these two trends have made homeownership even more affordable compared with renting.” Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economis...
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