All posts for the month December, 2016
Term of the day: DERIVATIVE: Teach your children about money. #MoneyMatters101; #KidPreneur101; #http://danetteonealpublishing.com
The type of investment that allows individuals to buy or sell the option on a security is called a derivative. Derivatives are types of investments where the investor does not own the underlying asset, but he or she makes a bet on the direction of the price movement of the underlying asset via an agreement with another party. There are many different types of derivative instruments, including options, swaps, futures and forward contracts. Derivatives have numerous uses as well as various risks associated with them, but are generally considered an alternative way to participate in the market. (Investopedia on Facebook)
The 5 Real Estate Trends That Will Shape 2017. Mortgage interest are rising post electing Trump. Compliments of Danette ONeal Realtors.504.365.7325 New Orleans; 770.981.1999 Atlanta
We won’t pretend to know everything that 2017 will bring—heck, 2016 sure surprised us—but we’re pretty certain there will be changes. A lot of them. And while the surprise triumph of Donald Trump in the presidential election won’t alter the fundamentals shaping the 2017 real estate market, its impact is already being felt.
We’ve seen interest rates jump since the election, a movement that’s likely to affect the youngest generation of home buyers.As we prepare to bid farewell to 2016, it looks like we’ll be saying goodbye to the last of the record-low interest rates of the past few years, too. Interest rates have shot up 40 basis points, or 0.4 percentage points, since Trump’s election.
- realtor.com 2017 housing forecast. According to the forecast, the 2017 national real estate market is predicted to slow compared with the past two years1. Millennials and boomers will dominate the market –– Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers – that will power demand for at least the next 10 years. Although increasing interest rates have prompted realtor.com® to lower its prediction of millennial market share to 33 percent of the buyer pool; millennials and baby boomers will still comprise the majority of the market. Baby boomers are expected to make up 30 percent of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.
2. Midwestern cities will continue to be hotbeds for millennials – Midwestern cities are anticipated to continue to beat the national average in millennial purchase market share in 2017 with Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, leading the pack. This year, average millennial market share in these markets is 42 percent, far higher than the U.S. average of 38 percent. With strong affordability in 15 of the 19 largest Midwestern markets, realtor.com® expects this trend to continue in 2017 even as interest rates increase.
3. Slowing price appreciation – Nationally, home prices are forecast to slow to 3.9 percent growth year over year, from an estimated 4.9 percent in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percent point or more with Greensboro-High Point, N.C.; Akron, Ohio; and Baltimore-Columbia-Towson, Md., experiencing the largest gains. Likewise, 46 markets are expected to see a slowdown in price growth of 1 percent or more with Lakeland-Winter Haven, Fla., Durham-Chapel Hill, N.C.; and Jackson, Miss., undergoing the biggest shift to slower price appreciation.
4. Fewer homes on the market and fast moving markets – Inventory is currently down an average of 11 percent in the top 100 metros in the U.S. The conditions that are limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14 percent – or 11 days – faster than U.S. overall.
5. Western cities will continue to lead the nation in prices and sales – Western metros in the U.S. are forecast to see a price increase of 5.8 percent and sales increase of 4.7 percent, much higher than the U.S. overall. These markets also dominate the ranking of the realtor.com® 2017 top housing markets, making up five of the top 10 markets on the list (Los Angeles, Sacramento and Riverside, Calif., Tucson, Ariz., and Portland, Ore.) and 11 of the top 25 (Colorado Springs, Colo.; San Diego; Salt Lake City; Provo-Orem, Utah; Seattle. and Oxnard-Thousand Oaks-Ventura, Calif.)
Top 2017 Housing Markets
Despite a more moderate housing market overall in 2017, strong local economies and population growth will continue to fuel the nation’s hottest markets. The realtor.com® 2017 top 10 housing markets based on price and sales gains are: 1. Phoenix-Mesa-Scottsdale, Ariz.; 2. Los Angeles-Long Beach-Anaheim, Calif.; 3. Boston-Cambridge-Newton, Mass.-N.H.; 4. Sacramento–Roseville–Arden-Arcade, Calif.; 5. Riverside-San Bernardino-Ontario, Calif.; 6. Jacksonville, Fla.; 7. Orlando-Kissimmee-Sanford, Fla.; 8. Raleigh, N.C.; 9. Tucson, Ariz.; and 10. Portland-Vancouver-Hillsboro, Ore.-Wash.
Did you know that… Mary Jackson, NASA’s first black female engineer, quit engineering to work in HR, where she could hire qualified minority scientists!
Owner-occupancy or home-ownership is a form of housing tenure where a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which he/she lives. This home can be house, apartment, condominium, or a housing cooperative. In addition to providing housing, owner-occupancy also functions as a real estate investment
Some homes are constructed by the owners with the intent to occupy, some are inherited, others are purchased as new construction, and still others may be acquired from a previous landlord or owner-occupier (Wikipedia). A house is usually the most expensive single purchase an individual or family makes, and often costs several times the annual household income. Trust a company whohas the experience to see you to a successful transaction. Call Danette ONeal Realtors 504.365.7325 New Orleans, 770.981.1999 Atlanta.
“I never dreamed about success, I worked for it”, Estee Lauder.Money Does Matter! #MoneyMatters101; #KidPreneur101; #http://danetteonealpurblishing.com
Money does Matter! Teach your children how money works. MONEY MATTERS 101, KidPreneur101 – On sale at http://danetteonealpublishing.com, Amazon & Barnes n’ Nobles.
For unto us a Child is born, unto us a Son is given; and the government will be upon His shoulder. And His name will be called Wonderful, Counselor, Mighty God, Everlasting Father, Prince of Peace.” (Isaiah 9:6)
A Prayer for Today
“Father, thank You for filling me with Your peace. Have Your way in my heart and remove anything that displeases You so that I can clearly hear Your voice and walk in Your ways in Jesus’ name. Amen.”