Sept. 13, 2021

Fannie Mae is Changing Credit Score Calculations

Fannie Mae is changing the way credit scores are calculated on its loans to allow more people to qualify.  Lenders will now be averaging the median score of the borrowers, as opposed to using the lower of the borrowers' median scores as previously required.

 

Example:

Borrower credit scores: 590, 619, 648
Co-borrower credit scores: 661, 693, 693
The old guidelines required to use the 619 as the determining score.  Now we will be able to use 656 (average of 693 & 619).
This change should allow many more borrowers to qualify for Fannie Mae mortgages.
HOWEVER interest rates and mortgage insurance will continue to use the lower of the median credit scores.
See a full list of Fannie Changes set for 9/18/2021 by clicking this link.
Thinking of Buying? To start the mortgage pre-approval process CLICK HERE to answer 6 quick questions, or call The Heyward Homes Team directly at (240) 203-8991.

July 24, 2021

Just Listed! 4442 Swindon Terrace

Must See In Upper Marlboro, MD

View 3D TOUR Below and See The Full Listing HERE

Newly updated and move-in ready! This beautiful townhome conveniently located in the heart of Upper Marlboro boost 3 bedrooms, 2 full & 2 half baths, new floors, granite countertops in the kitchen, newer appliances, large deck and more! With just a short ride to DC, VA, National Harbor, Baltimore & Southern Maryland, AND is Metro accessible! But why leave home when you can enjoy the community pool, tennis & basketball courts, baseball & soccer fields, in a friendly neighborhood. Don't take long on this one...it won't last long.

Thinking of Buying a New Home? Click HERE to qualify with a short 6 question survey.

Or Contact Charles TODAY at www.buysellinvest.homes

June 10, 2021

Heyward Homes is now a Realty ONE Group Affiliate!

I'm proud to announce that The Heyward Homes Team has a new home with Realty One Group! Same Excellent Service. Same Impeccable Integrity. And now, better positioned to effectively assist you with a broader range of real estate advise and consultation.

From 1st Time Home Buyers to the Experienced Developers, Residential or Commercial, ANYWHERE in the Maryland, DC, Northern Virginia area....we are here to serve your real estate needs effectively and profitably.

Thank you to all who have supported us the last 20 years. We look forward to successfully serving you for another 20 years plus! Visit www.BuySellInvest.Homes TODAY!

Charles C. Heyward, Jr.

Associate Broker

The Heyward Homes Team of Realty One Group

June 5, 2021

Congratulations on Your New Home Humu!

CONGRATULATIONS to the latest homebuyer with Heyward Homes! Goal set, goal met!

Welcome to the club Humu!

Thank you for allowing Heyward Homes to serve you on your journey! I'll let you take a small breather.....I'll call you tomorrow to start setting you up for the first investment property, lol. 😉

April 25, 2021

Coming Soon in Cheverly, MD!

An Absolute Must See!
4 Bedrooms, 3.5 Bathrooms. Minutes to DC, Rte 50 & BW Parkway, this home is convenient to everything. Offering new upgrades and renovations, deck, 2 car garage, wet bar, hardwood floors, a private oasis in the backyard and much, much more! You will be very happy to get your hands on this gem! Don't wait long, this one won't last.
See the full listing HERE...or contact Charles directly at buysellinvest.homes to inquire.
March 27, 2021

Coming Soon In Springdale Maryland!

2810 Citrus Lane

An absolute must see for the fastidious buyer with high expectations. Offering a beautifully maintained single family home in the sought-after Bellehaven Estates neighborhood of Sprindale, Maryland.

Just minutes from The Capital Beltway & Rte 50, this pristine home has recently received a new roof (2017), new hardwood floors (2019), new low maintenance deck (2019), new private basketball court (2019), a luxury renovation of the master bathroom (2019) and numerous maintenance updates to ensure that the major systems are in top working order!

Add to the mix 4 large bedrooms, 3.5 bathrooms, a large walkout basement perfect for entertaining...pocket doors, cathedral ceilings, large fenced back yard AND a two car garage equipped with a private charging station for your electric vehicle!

For icing, you still get all the bells and whistles you expect...the granite countertops, recessed lights, walk-in closets fireplace, ceiling fans, updated kitchen appliances and even the mounted tv will stay. AND THEN...THERE'S THE PRICE! 

March 23, 2021

Congratulations Tishma & Crew!

March 17, 2021

6 Simple Graphs Proving This Is Nothing Like Last Time

Last March, many involved in the residential housing industry feared the market would be crushed under the pressure of a once-in-a-lifetime pandemic. Instead, real estate had one of its best years ever. Home sales and prices were both up substantially over the year before. 2020 was so strong that many now fear the market’s exuberance mirrors that of the last housing boom and, as a result, we’re now headed for another crash.

However, there are many reasons this real estate market is nothing like 2008. Here are six visuals to show the dramatic differences.

1.    1. Mortgage standards are nothing like they were back then.

During the housing bubble, it was difficult not to get a mortgage. Today, it’s tough to qualify. Recently, the Urban Institute released their latest Housing Credit Availability Index (HCAI) which “measures the percentage of owner-occupied home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.

The index shows that lenders were comfortable taking on high levels of risk during the housing boom of 2004-2006. It also reveals that today, the HCAI is under 5 percent, which is the lowest it’s been since the introduction of the index. The report explains:

“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”

This is nothing like the last time.

2.     2. Prices aren’t soaring out of control.

Below is a graph showing annual home price appreciation over the past four years compared to the four years leading up to the height of the housing bubble. Though price appreciation was quite strong last year, it’s nowhere near the rise in prices that preceded the crash.

 

There’s a stark difference between these two periods of time. Normal appreciation is 3.8%. So, while current appreciation is higher than the historic norm, it’s certainly not accelerating out of control as it did in the early 2000s.

This is nothing like the last time.

3. We don’t have a surplus of homes on the market. We have a shortage.

The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. As the next graph shows, there were too many homes for sale in 2007, and that caused prices to tumble. Today, there’s a shortage of inventory, which is causing an acceleration in home values.

 

This is nothing like the last time.

4. New construction isn’t making up the difference in inventory needed.

Some may think new construction is filling the void. However, if we compare today to right before the housing crash, we can see that an overabundance of newly built homes was a major challenge then, but isn’t now.

 

This is nothing like the last time.

 

5. Houses aren’t becoming too expensive to buy.

The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fifteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased, and the mortgage rate is about 3%. That means the average homeowner pays less of their monthly income toward their mortgage payment than they did back then. Here’s a chart showing that difference:

 

As Mark Fleming, Chief Economist for First Americanexplains:

“Lower mortgage interest rates and rising incomes correspond with higher house prices as home buyers can afford to borrow and buy more. If housing is appropriately valued, house-buying power should equal or outpace the median sale price of a home. Looking back at the bubble years, house prices exceeded house-buying power in 2006, but today house-buying power is nearly twice as high as the median sale price nationally.”

This is nothing like the last time.

6. People are equity rich, not tapped out.

In the run-up to the housing bubble, homeowners were using their homes as personal ATM machines. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over 50% of homes in the country having greater than 50% equity – and owners have not been tapping into it like the last time. Here’s a table comparing the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out almost $500 billion dollars less than before:

 

During the crash, home values began to fall, and sellers found themselves in a negative equity situation (where the amount of the mortgage they owed was greater than the value of their home). Some decided to walk away from their homes, and that led to a wave of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area. With the average home equity now standing at over $190,000, this won’t happen today.

This is nothing like the last time.

Bottom Line

If you’re concerned that we’re making the same mistakes that led to the housing crash, take a look at the charts and graphs above to help alleviate your fears. Call Charles today to see if now is the right time to buy or sell your home.

Feb. 23, 2021

Where Have All the Houses Gone?

In today’s housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of record-low mortgage rates and purchase a home, housing inventory dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market while buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.comexplains:

“With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.”

Every month, realtor.com releases new data showing the year-over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:

Does this mean houses aren’t being put on the market for sale?

Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they’re being counted as current inventory. The market is that competitive! It’s like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. That’s what’s happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.

In the same realtor.com report, Hale explains:

Time on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful. Today’s buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster-paced housing market.”

The Good News for Homeowners

The health crisis has been a major reason why potential sellers have held off this long, but as vaccines become more widely available, homeowners will start making their moves. Ali Wolf, Chief Economist at Zondaconfirms:

“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.”

With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listing shines brighter than the rest.

When you’re ready to sell your house, you’ll likely want it to sell as quickly as possible, for the best price, and with little to no hassle. If you’re looking for these selling conditions, you’ll find them in today’s market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.

Bottom Line

Today’s housing market is a big win for sellers, but these conditions won’t last forever. If you’re in a position to sell your house now, you may not want to wait for your neighbors to do the same. Call Charles & The Heyward Homes Team today, for professional advice on how to sell your house safely so you’re able to benefit from today’s high demand and low inventory.

Feb. 18, 2021

Sanko Spotlight with Wellspring Manor & Spa

The Sankofa Asylum by Heyward Homes sits down with the owners of Wellspring Manor & Spa, Lisa and Kevin Alexander. Learn more at WellspringManor.com