Is a Bitcoin mortgage in your future? Probably not. Mortgages will not be in Bitcoin in the near future.
But that doesn’t mean that the technology that underlies cryptocurrencies won’t be making the real estate transaction cheaper and more efficient.
Brad Finkelstein reported on the difficulties of a Bitcoin mortgage (Virtually No Chance Soon for Any Bitcoin Denominated Mortgages; National Mortgage News, 2014).
Cryptocurrencies have a history of volatility, Bitcoin most recently lost about a third of its value (see: Bitcoin at crossroads after shedding more than $27 billion in value; marketwatch.com; September 14, 2017). Instability of the currency is a major issue for a thirty-year mortgage.
Finkelstein stated that such short-term losses could cause the mortgage holder to “lose their shorts,” and cause the borrower to default. He also pointed out that regulatory hurdles will be difficult to transcend, stating that mortgage rules and closing disclosures are calculated in dollars. Not to mention the difficulty of appraising a home’s value in Bitcoin. Additionally, all parties that are part of the transaction (such as appraisers) need to accept payment in Bitcoin.
According to the National Association of Realtors 2017 Investment and Vacation Home Buyers Survey (nar.realtor), last year’s vacation home purchases plunged 21.6 percent!
Last year’s decline in vacation home sales comes at the heels of a huge drop in 2015, and has tumbled about 36 percent since the post-recession high marked in 2014.
Are the statistics telling us it’s it a good time to buy that vacation home you have been thinking about?
Or is it that Americans are rethinking their view about vacations and retirement?
Technology has made homes more efficient and environmentally friendly, while also making them more comfortable.
Technology has made the business of real estate become increasingly easier through electronic communications and electronic signatures.
Technology has also made finding a home much easier too. It’s obvious that the real estate industry has been greatly impacted by technology, but will selfdriving car technology impact real estate?
If you are a would-be first time home buyer concerned about buying a home, you’re not alone. First time home buyers have had the most difficulty getting back into the real estate market after the Great Recession. Many would-be first time home buyers lack the financial resources, while others worry about the long term value. However, there is probably no better time than now to buy your first home.
You may be one of the many would-be first time home buyers who opted to continue to rent or live with their parents until the timing was right. Many would-be home buyers did the same, as a 2106 Pew Research Center report pointed out the millennial housing trend that may be associated with the decline in the homeownership rate since the Great Recession (For First Time in Modern Era, Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds; pewsocialtrends.org; May 24, 2016). However, economic factors have significantly improved, and the housing market has stabilized. So what’s holding you back?
Green building practices have been the new home trend for over a decade. Housing experts have touted the benefits of green building as environmentally friendly and saving. Health experts have also proclaimed the benefits of green home designs. However, a revealing exposé in Remodeling Magazine discusses the health dangers of living in a green design and/or energy efficient home.
The housing market has made significant strides in the last year with regard to home sales and home prices. However, even with housing’s good news, the homeownership rate continues to be at generational lows. Economists and real estate professionals are stumped.
The home inspection has become a standard part of the home buying process. Even in very competitive buyer situations, you can still work in an inspection without hurting the chances at getting the home of your dreams. And although you should not forgo the inspection, you should know that the inspection offers the inspector’s opinion, which is not always accurate or relevant. Nick Gromicko and Kenton Shepard, of the International Association of Certified Home Inspectors, shared their thoughts on the limitations of the home inspection (The Limitations of a Home Inspection; nachi.org). First, home inspectors are “generalists.”
When I began my real estate career, every budding agent was taught we should farm neighborhoods to become the local expert. Agents would (and many still do) farm neighborhoods by spending a small fortune on promotional marketing just to tell you how smart they are about your neighborhood. The notion only one agent is “the expert” on selling homes in your neighborhood has become antiquated. However, the long standing ritual, where agents tout themselves as the “neighborhood expert” or specialist, is still alive and well.