People always say that the best time to buy real estate was 20 years ago. Well, 20 years from today, people will be saying the exact same thing. On this State of the Market podcast with real estate veteran Daniel Del Real, we analyze stats and news stories to piece together a picture of what property values may look like in a decade or two. If you’re a Realtor, an investor, or a prospective homebuyer, you won’t want to miss this podcast!
Listen to today’s show and learn:
Daniel’s real estate team and sales stats [3:02]
Daniel’s first real estate deal [5:01]
Today’s insane real estate markets [9:42]
What the numbers show: Is a market shift coming? [11:02]
The end of affordable starter homes [15:20]
The ongoing lumber shortage [19:00]
Why your young clients should buy now [23:26]
Housing affordability in 1990 compared to 2021 [27:32]
What rents might look like in 10 years [33:20]
Inventory today compared to ’05, ’06, and ‘07 [39:19]
How to see market shifts before they happen [42:42]
Why competent agents will have record-breaking sales this year [45:11]
Daniel’s advice for agents and investors [50:13]
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Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Mortgage applications decreased 5.4% for the week ending Feb. 11, reflecting what the mortgage market looks like when rates eclipse 4% for the first time since 2019.
The Mortgage Bankers Association‘s seasonally adjusted refi index fell 8.9% from the previous week, bringing its share of total applications to the lowest level in 19 months. Meanwhile, the purchase index dropped a mere 1.2%.
Compared to the same week one year ago, mortgage apps overall dropped 39.8%, with a sharp decline in refi (-54.1%) compared to purchase (-6.8%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, an unrelenting inflationary pressure increased market expectations of more aggressive policy moves by the Federal Reserve. It moved Treasury yields and, consequently, mortgage rates higher.
The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) increased to 4.05% from 3.83% the week prior, above the 4% mark for the first time since 2019. For jumbo mortgage loans (greater than $647,200), rates climbed to 3.81% from 3.62% the week prior.
The keys to lending in a post-refi boom world
As record refinance volumes disappear, lenders need to get intimately familiar with their database of customers. Being a resource for all real estate financing needs for your customers will become more important in the next few years than ever before.
Presented by: CIVIC Financial
“Consistent with this period of higher mortgage rates, refinance applications fell 9% last week and stood at around half of last year’s pace. The refinance share of applications was also at its lowest level since July 2019,” Kan said.
The survey showed that the refi share of mortgage activity decreased to 52.8% of total applications last week, from 56.2% the previous week. The VA apps fell to 9.3% from 10% in the same period.
The FHA share of total applications increased to 8.3% from 8% the prior week. Meanwhile, the adjustable-rate mortgage share of activity increased from 4.5% to 5% and the USDA held steady at 0.4%.
Regarding purchases applications, the modest decline over the week was mainly due to the fall in government purchase applications. “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000.”
Economists had predicted rates would rise in 2022 as the overall economy stabilized, reducing mortgage applications.
For the coming weeks, Kan told HousingWire that If conditions stay in the current state, we’ll certainly see higher rates. However, rates could quickly head in the other direction, “if something abroad rocks the boat,” such as an armed conflict with Russia and Ukraine, an emergent Covid variant, or a sudden change in certain commodity prices.
When it comes to purchasing a home, buyers may have difficulty finding financing beyond the conforming loan limit. In this instance, you may need to apply for a jumbo loan. So whether your sights are set on a home in St. Louis or sprawling land in Jefferson City, let’s break down what a jumbo loan is in Missouri, the 2023 conforming loan limits, and what’s needed to qualify for this type of loan.
What is a jumbo loan?
So, what exactly is a jumbo loan in Missouri? It’s a mortgage loan that allows borrowers to finance a property that exceeds the conforming loan limit set by the FHFA. In simpler terms, a jumbo loan is a specialized mortgage that enables you to borrow more money than you would be able to with a conventional loan. These loans are typically used to finance high-end or luxury properties in areas with high home prices.
If you find yourself in a situation where the home you wish to purchase requires borrowing beyond the conforming loan limit (CLL), then you’ll need to pursue a jumbo loan. Missouri jumbo loans allow you to borrow more money to buy a more expensive home, but they also come with higher interest rates and stricter requirements than conventional loans.
What is the jumbo loan limit in Missouri?
In Missouri, the conforming loan limit is $726,200 across all counties. For example, the conforming loan limit in St. Louis County is $726,200, so any mortgage that surpasses the loan limit designated for your county by even one dollar is classified as a jumbo loan.
As a reminder, the amount being borrowed is what determines whether or not you’ll need a jumbo loan, not the home price. So, if you were to put $50,000 down on a $750,000 home in Chesterfield, the mortgage would be $700,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.
For more information on the conforming loan limit in your county, use the FHFA map.
What are the requirements for a jumbo loan in Missouri?
To qualify for a jumbo loan in Missouri, borrowers must meet stricter requirements than they would for a conforming loan. The specific requirements may vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan in Missouri.
Higher credit score: When it comes to jumbo mortgages, lenders generally look for a credit score of 720 or above to qualify a borrower. While some lenders may accept a score as low as 660, this is typically the lowest threshold for qualification.
Larger down payment: Jumbo loans typically require larger down payments than conforming loans. While the exact amount varies depending on the lender and the borrower’s finances, down payment requirements for jumbo loans can be as high as 20% or more. That said, some lenders may offer jumbo loans with down payments as low as 10%, provided the borrower meets certain credit and income requirements.
More assets: Jumbo loan borrowers are typically required to have additional assets. In particular, lenders may require borrowers to demonstrate sufficient liquid assets or savings to cover one year’s worth of loan payments.
Lower debt-to-income ratio (DTI): When applying for a non-conforming loan, Missouri lenders typically look for a borrower with a debt-to-income ratio (DTI) below 43%. Ideally, a DTI closer to 36% or lower is preferred. The DTI is calculated by dividing the sum of all monthly debt payments by gross monthly income. A lower DTI signifies a borrower’s ability to manage their current debt load while taking on additional mortgage payments. It also indicates greater financial stability and the ability to make on-time payments towards their jumbo mortgage.
Additional home appraisals: A home appraisal is required whenever a homebuyer receives financing for their home purchase. However, for jumbo loans, your lender may require an additional appraisal. In areas with limited comparable property sales, this appraisal can be more expensive than in cities with higher sales rates.
Protective Life Insurance Company has a great record or working with its clients and can offer some of the best term life insurance rates available.
If you have ever shopped for life insurance, then you are probably well aware that there are several important variables that you should keep in mind when determining how and where to purchase your coverage.
First, at the top of your list, should be knowing how much protection to obtain. This is because you will not want your loved ones or other survivors to fall short when it comes to proceeds. For example, if your beneficiary (or beneficiaries) will need a certain amount to pay for final expenses or other specific debts, then it will be important to purchase at least that amount of coverage.
But equally as important, though, will be ensuring that the life insurance company through which you purchase the protection is strong and stable from a financial standpoint. This is because you will want to know that the company will be there to make good on its promise if or when the time comes for the policy’s beneficiary to file a claim. One insurer that has been positive when it comes to paying out its policyholder claims for many years running is Protective Life Insurance Company.
The History of Protective Life Insurance Company
Protective Life Insurance Company has been in the business of offering life insurance coverage for nearly 110 years. In the year 1907, the company’s founder, Governor William Dorsey Jelks started the insurer, just as President Theodore Roosevelt started his 7th year as a United States President.
Just a short two years later, in 1909, Protective Life Insurance Company paid out its very first death benefit claim – and the company has been faithfully doing so ever since. By the year 1932, after just 25 years in the business, Protective had more than $65 million of insurance in force. And, by the time the company was in business for 50 years, it had nearly $1 billion.
Throughout the years, the company has grown and expanded. In part, it has done so by acquiring other insurers. For instance, in 1997, Protective acquired West Coast Life, which helped in solidifying the insurer’s national presence. And, in 2006, Protective acquired Chase Insurance Group.
By 2007, the insurance carrier’s 100th anniversary, it had more than $252 billion of insurance coverage in force. In 2015, the company became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Ltd. Protective Life Insurance Company was, and still is, headquartered in Birmingham, Alabama.
Protective Life Insurance Company Review
Protective Life Insurance Company is known for serving its customers first. Based on testimonials, the firm is known for being flexible, as well as for providing dedicated service. Also, it is also very involved in the communities in which it serves.
The company provides a learning center directly on its website. This can help consumers to learn more about life insurance and how much protection that they may need, based on their specific situation.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Protective also offers a claims center on its website, as well. Here, claims can be filed directly online. Forms can be downloaded and sent in, and questions may be asked of customer service representatives.
Reps may be contacted in a number of different ways, including via a toll-free telephone line (during business hours), email, and an email form. Business hours for reporting a life insurance claim are Monday through Thursday between 8:00 a.m. and 5:00 p.m. Central time, and Friday between 8:00 a.m. and 3:00 p.m.
Additional information is also provided within the Protective Life Insurance Company online claims filing center, such as details regarding what to do when a loved one dies, and life insurance FAQ.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
Financial Strength and Ratings
Protective Life Insurance Company is considered to be a very strong and stable company from a financial standpoint. It also is well respected for paying out its policyholder claims. In 2015 alone, Protective paid out over 20,000 life insurance claims in the amount of approximately $1.9 billion. The average processing time on a life insurance claim at Protective Life Insurance Company was 6.22 days. For this reason, the company has been given high marks from the insurer ratings agencies. These ratings include the following:
A+ from A.M. Best (Superior) This is the second highest out of a possible 15 total ratings.
AA- from Standard & Poor’s (Very Strong) This is the fourth highest out of a possible 21 total ratings.
A from Fitch (Strong) This is the sixth highest out of a possible 22 total ratings.
A2 from Moody’s (Good) This is the sixth highest out of a possible 21 total ratings.
Although Protective Life Insurance Company is not BBB (Better Business Bureau) accredited, the BBB has provided Protective with the grade of A+. This is on an overall grade scale of A+ to F.
Over the past three years, Protective Life Insurance Company has closed a total of 39 complaints through the BBB. Of these, ten were closed over the past year. Of the 39 complaints that were closed during the past three years, 18 had to do with problems with the company’s products and / or services, 10 were concerning billing and / or collection issues, 3 were with regard to advertising and / or sales issues, another 3 were having to do with guarantee / warranty issues, and five had to do with other issues.
Life Insurance Products Offered Through Protective
Protective Life Insurance Company offers a wide variety of different life insurance policies to choose from. This can help its customers to gear coverage more towards their individual protection needs.
Policy types offered through Protective include the following:
Term Life Insurance
Term life insurance can provide level death benefit protection for a set amount of time. This type of life insurance doesn’t offer cash value build up, so it is often more affordable than a comparable amount of permanent insurance such as whole life or universal life coverage. Therefore, it can be a good option for those who want a nice amount of coverage, but who may not have a lot to spend in premium.
Protective Life Insurance Company offers term life insurance plans that range from 10 to 30 years in level death benefit protection.
Universal Life (UL) Insurance
Universal life insurance is a form of permanent life insurance coverage. This means that it provides both death benefit protection, as well as cash value build up. The cash value will grow tax-deferred, meaning that there is no tax due on the gain unless or until the time that it is withdrawn by the policyholder. This can allow the funds to grow and compound exponentially over time.
A universal life insurance policy can be more flexible than some other types of permanent coverage like whole life insurance. This is because the policyholder can choose – within limits – how much of their premium dollars will go towards the death benefit, and how much will go towards the cash component of the UL policy.
@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-leader-1-0-asloadedmax-width:728px!important;max-height:90px!importantThe Protective Life Insurance Company’s Custom Choice UL policy is a very affordable way to protect one’s family’s financial security if the unexpected were to occur. It offers low premiums for life, as well as a death benefit that is non-taxable (from income tax) to beneficiaries.
The premium rates can start as low as $7.32 per month – and, provided that the premium is paid, the coverage will remain in force for the remainder of the life of the insured. Also, the premium will also remain level for an extended period.
Protective Life Insurance Company also offers a survivor universal life insurance product. This could be a good option for someone who is married or part of a couple and has estate planning needs, such as helping beneficiaries to pay estate taxes and / or helping a loved one with special needs.
These types of policies are also often referred to as second-to-die or joint life insurance coverage. They cover two individuals under just one single life insurance policy – and because of that, they are often less costly than purchasing two single policies. The death benefit that is paid out will be free of income tax to the beneficiary (or beneficiaries), and the proceeds may be used for whatever needs the survivor or survivors may have.
Variable Life Insurance
Variable life insurance is another type of permanent life insurance coverage. With variable UL, there is also a death benefit and a cash value component. However, with this type of insurance coverage, there is additional flexibility with the investments that can be chosen in the cash component. For example, equities may be chosen, which can allow for additional growth. They can, however, also pose more risk. Therefore, it is important to be aware of this before getting into any variable life insurance product.
Overall, a variable universal life insurance policy will essentially combine the “core” benefit of life insurance coverage via an income tax-free death benefit, along with a great deal of flexibility for the policyholder / investor in terms of cash value / investment build up over time. It is important to note that there may also be additional fees with variable universal life insurance because of the investments that are included in the policy.
Other Coverage Products Offered
Protective Life Insurance Company also offers a Protect My Child life insurance policy. While most people do not want to ever think about the passing of a child, the truth is that sometimes accidents or illnesses do occur. In this case, the cost of final expenses and / or uncovered medical expenses can be paid through a life insurance policy on a child.
The Protect My Child policy offers coverage of between $10,000 and $100,000. Because the policy is a permanent life insurance policy, it will also have cash value build up. Therefore, the plan will have tax-deferred savings that may be used for future college costs, the down payment on a house, a wedding, or any other need down the road.
When the child turns age 18, the amount of the life insurance coverage will automatically double – at no additional premium cost. When purchasing the Protect My Child life insurance plan, premium rates can start as low as $6.37 per month. And, because the policy is permanent, the rate is locked in never to increase. This means that the child can keep this same premium rate throughout the lifetime of the policy.
How to Find the Best Premium Quotes on Life Insurance Coverage
When seeking the very best premium quotes on life insurance coverage, whether it is through Protective Life Insurance Company, Banner Life Insurance, or any other insurer, it is typically best to do so via an agency or a company that works with more than just one life insurer. This is so that you will be able to compare and contrast all of the options that are available to you, as well as the cost of each. This is not only true when seeking the best life insurance coverage but for when shopping for other forms of coverage as well such as the best auto insurance companies and rates.
We know that buying life insurance can be somewhat confusing, There are lots of details to keep in mind – and you want to be sure that you are getting the very best deal from the best insurer for your needs. We can help you in sorting it all out so that your coverage will best meet the protection requirements that you have. We can do it all without you having to meet in person with a life insurance agent. Just simply go online or give us a call. So, contact us today – we’re here to help.
Who are the customers of LeadSquared? LeadSquared is a new-age SaaS platform providing end-to-end marketing, sales, and onboarding automation solutions. It is designed specifically to solve sales challenges for high lead-volume, high velocity companies that have numerous sales teams and channels. LeadSquared is currently working with more than 2,000 enterprises in 40 different countries to … [Read more…]
The average rate on the most popular mortgage, the 30-year fixed, fell for the third straight week, but demand for mortgages didn’t move much.
Total mortgage application volume increased 0.5% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. This after demand surged the week before.
Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) decreased to 6.73% from 6.77%, with points falling to 0.64 from 0.65 (including the origination fee) for loans with a 20% down payment.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 6.80% from 6.79% for loans with a 20% down payment. This marks the second straight week that jumbo loans have a higher rate than conforming loans.
“The last time jumbo rates were higher was in December 2021. Tighter liquidity conditions have prompted jumbo lenders to pull back, increasing rates in the process,” wrote Joel Kan, an MBA economist, in a release.
Applications to refinance a home loan decreased 2% for the week and were 40% lower than the same week one year ago.
Mortgage applications to purchase a home increased 2% for the week but were 32% lower than the same week a year ago. Homebuyers are starting to get used to higher interest rates, but the continued drop in new listings of homes for sale is keeping sales low. Federal Housing Administration demand rose more than conventional loan demand.
“First-time homebuyers account for a large share of FHA purchase loans, and this increase is a sign that while buyer interest is there, activity continues to be constrained by low levels of affordable inventory,” added Kan.
Homebuilders are benefiting from the dynamic. Mortgage applications to purchase a newly built home jumped 17% in May compared with May 2022, according to the MBA. In tandem with demand, single-family housing starts jumped 18.5% in May compared with April, according to the U.S. Census.
Mortgage rates began this week slightly lower, but that could change Wednesday as investors react to testimony from Federal Reserve Chairman Jerome Powell before the House Financial Services Committee.
Maria Quattrone is a Realtor in one of the few states that deemed real estate non-essential during the initial lockdowns of 2020. For 10 weeks, Pennsylvania real estate services were stuck in a standstill. During this period of extreme uncertainty, Maria decided to double down on her branding and marketing. On today’s show, Maria shares several of the unique moves she made last year to strengthen her business in 2021 and beyond. Listen in and learn what you can do to market and brand your business so that consumers choose you over the competition.
Listen to today’s show and learn:
About Philadelphia’s real estate market [1:55]
What will save downtown real estate [7:48]
Maria’s start in real estate [9:12]
Maria’s real estate team [14:27]
What Maria did when real estate was deemed non-essential in PA [20:44]
Maria’s sales stats for 2020 [24:41]
Why Maria doesn’t believe in the independent brokerage model [26:37]
Maria’s “Blue Box” strategy for winning new clients [30:20]
Advice on building a brand [33:33]
Maria’s advice for new agents [36:00]
How Maria turned the uncertainty of 2020 into motivation [38:03]
Maria’s advice for getting offers accepted in 2021 [44:47]
Why Maria loves Follow Up Boss [46:46]
How to reach out to Maria [49:52]
Maria’s final words for listeners [51:31]
Maria Quattrone
Maria Quattrone is an entrepreneur, real estate expert, investor, speaker, visionary, philanthropist, and Owner/CEO of Maria Quattrone and Associates and RE/MAX @ HOME. Maria is a real estate executive with over 25 years of sales, marketing, and branding experience. She is a proud Philadelphia native and Temple University graduate.
In 2005, she founded Maria Quattrone & Associates, a handpicked team of veteran professionals, who provide quality, customer-driven service throughout the Philadelphia area. Unlike her competitors who are transactional in their approach, Maria’s firm operates under the “Private Banking” model providing advisory services to their clients all over the country, at all price points. Drawing upon decades of experience and market-specific knowledge, their operating paradigm is powered by market-specific information, cutting edge innovation, and an unrivaled client database.
Under Maria’s leadership as CEO, her company has grown into one of the most successful real estate companies in Philadelphia and has assisted with her client’s acquisitions and dispositions totaling over 2,000 properties and over $500 million in sales.
As the leader of Maria Quattrone and Associates and RE/MAX @ HOME, Maria continues to oversee her company’s business development goals while offering her clients strategic guidance on commercial investments, new developments, and high-end luxury Real Estate. Her business development goals include constant growth and expansion as well as providing continued exclusive services and property acquisitions throughout the greater Philadelphia market and South Jersey.
Maria is an award-winning, recognized leader. She is a sought after speaker both locally and nationally. In 2019, Real Trends and The Wall Street Journal, awarded Maria #76 of the Top 100 agents in the country. Maria is ranked #1 among all RE/MAX agents in PA and is currently #11 among all RE/MAX agents globally! Additionally, Maria has achieved, 2018 Titan Club, 2017 Chairman’s Club Team, 2016 Hall of Fame and Platinum Club Team and 2015 Chairman’s Club. In 2009, 2010, 2011 and 2012, Maria was awarded the 5-star Overall Satisfaction Award, reserved for an elite 2 percent of Philadelphia area agents.
Maria is proud to sit on the board of Year Up Greater Philadelphia which helps young professionals transform their lives. The organization provides high school students with real skills for real jobs with real success. She is also an avid donor and a supporter of Big Brother Big Sisters, American Red Cross, Haven Women, The American Foundation of Suicide Prevention, Michael’s Giving Hand, and American Cancer Society and MANNA’s Pie in the Sky. She is a proud member of the National Association of Realtors, PA Association of Realtors, Philadelphia Association of Realtors, The Union League of Philadelphia, Building Industry Association and Center City Proprietor Association.
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Thank You Rockstars! It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email. -Aaron Amuchastegui
Home prices have been holding firm through most of 2023, but high mortgage rates and a weakening economy could send them lower through the rest of this year, according to researchers at Capital Economics.
In a June 9 report, economists forecasted that waning demand means home prices look poised to fall in the second half of 2023.
While Case-Shiller data showed home prices climbed in both February and March, that was preceded by seven consecutive months of declines. The increases stemmed from resurgent demand, which coincided with easing mortgage rates at the start of the year.
However, the economists pointed out that mortgage rates have rebounded close to the two-decade highs set in October of last year, which will crimp demand once again.
“Given this and a weakening economy, we expect sales will remain low and that price growth will turn negative again later this year,” Capital Economist researchers wrote. “In the rental sector, prices are headed for an even larger correction. We expect apartment capital values will plunge a further 20% in 2023 and 2024, resulting in a peak to trough fall of around 25%.”
Experts also anticipate home prices to decline in 2023, with most of them pointing to buyers being priced out and sitting on the sidelines, lowering demand as rates stay high.
Data from the Mortgage Bankers Association shows that Americans are facing the least affordable market ever.
The group’s Purchase Applications Payment Index, which shows what borrowers can expect to pay for a newly originated mortgage, increased 0.5% in April to a record high of 172.3. A higher reading indicates declining affordability conditions, resulting from increasing loan amounts, climbing mortgage rates, or declining earnings.
“For new home buyers, this is the worst situation since the end of the Great Recession,” Edward Seiler, MBA’s associate vice president for housing economics, told Insider earlier. “Current homeowners that were lucky enough to get a 2.75% interest rate in 2022 are in a great position, but for new home buyers looking to buy a first home, or those looking to move to another home, it’s a very daunting proposition.”
When chef Maxime Bouttier was considering a location for his first Paris restaurant, which opened in April, the Canal Saint-Martin offered an enticing mix of relatively affordable rents and excellent travel connections.
“It is much less expensive than the 6th or the 8th arrondissement, where many of my diners will travel from,” he says. “But, at the same time, you feel right in the middle of things.”
What drew Bouttier has proved popular for those seeking a good-value home in a central location, where commercial rents are mirrored by lower home prices. Waterside properties abutting the 4.6km canal, which runs through the 10th and 11th arrondissements and gives the area its name, still cost significantly less than those nearby on the Seine.
Average list prices in the 10th and 11th arrondissements are €9,806 and €10,128 per sq m respectively, according to French property website Meilleurs Agents. To the south, abutting the river in the 4th, the average is €13,813; cross the Seine into the 6th and this increases to €15,540.
Cheaper prices and a central location have made the area popular with younger buyers, including those purchasing for the first time or with smaller budgets, for years. But, with mortgages typically making up a larger share of their total home price, this group has been hard hit by France’s rising mortgage rates.
In February 2022, when Giorgia Rowe, 27, started searching the area for a home to buy, her mortgage broker said she would be able to get a mortgage with an interest rate of 1.2 per cent.
By June, she had found a one-bedroom apartment in the Canal Saint-Martin for €350,000. But, before she could agree the purchase and secure the mortgage, she needed to sell her studio flat. With mortgage rates increasing, it was a race against time: by August, when she was ready to buy, her rate was 2 per cent.
“Another month of mortgage rises and I wouldn’t have been able to afford the home,” she says.
For many, mortgage rate rises have meant they can no longer afford a purchase. Since the European Central Bank started raising interest rates in July 2022, home sales have fallen up to 35 per cent, according to Yves Romestan, chief executive of YRSA Progedim, an estate agency that covers Paris. Nationwide, the average rate for a 20-year fixed mortgage is now 4.02 per cent, according to Crédit Agricole, the French bank.
“The current situation excludes many first-time buyers from the market and many smaller, cheaper properties can now only be targeted by investors,” says Thomas Lefebvre, head of research at Meilleurs Agents in Paris.
Its growing popularity among younger residents has given the Canal Saint-Martin area a distinctive bustle, and the area is dense with a range of spots to eat, drink and shop.
It’s a walkable neighbourhood and there’s no need necessarily to go beyond it for what you need, you kind of have it all here
A 10-minute walk from Rue de la Folie Méricourt, where Géosmine, Bouttier’s restaurant, is located, independent shops, bars, restaurants and delicatessens cluster along a section of the popular Rue de Lancry, between the pedestrian canal bridge of Pont Tournant de la Grange-aux-Belles and the Metro station on Place Jacques Bonsergent.
These include bistro and natural wine specialist Le Verre Volé (The Stolen Glass), Viande & Chef, a butcher that opened in 2015, and specialist chocolatier Denver Williams, whose website claims the business is “as Parisian as the Canal Saint-Martin” and exhorts visitors to watch staff shape their wares in the chocolate workshop.
Around the corner is the celebrated covered food market on Rue du Château d’Eau, established in the 19th century. For Bouttier, who frequently makes the 15-minute walk from the restaurant to source produce, it was a draw and adds to the area’s self-contained feel. “It’s a walkable neighbourhood and there’s no need necessarily to go beyond it for what you need, you kind of have it all here,” he says.
Soon after Julie Ciraolo, 33, bought a ground-floor flat nearby in 2018, for €490,000, her section of the canal was pedestrianised and she noticed foot traffic in the neighbourhood — and the number of new local businesses — increase. These days, she says, she has lost count of the number of new bars and restaurants that have opened locally.
Aside from the prices and the waterside location, another draw for her was the fact she was within walking distance of two green spaces. To the north is the nearly 25ha Parc des Buttes-Chaumont with its distinctive Temple de la Sybille, a Roman-style monument based on the ancient Vesta temple in Tivoli. The smaller Jardin Villemin to her south includes sports facilities, a bandstand and a playground. “In Paris, being this close to two green spaces is a real luxury,” she says.
Ciraolo enjoys the noise of conversation from the bar opposite her and she dismisses local grumbling that the neighbourhood has become too fashionable among the bobo class, a popular French term for affluent professionals with pretensions to bohemian values but who lead bourgeois lives.
“They shouldn’t forget the 10th is an active, thriving district. Some people tend to think they are in 16th and expect tranquillity: let them move,” she says, referring to the upmarket westerly district accommodating many of the city’s embassies and museums.
Rowe, who has visited the area since she moved to Paris from London in 2017, has noticed the change, too. “Today, sometimes as soon as I leave my building I’m hit by the crowds.”
But despite the tourists — and the white-knuckle ride of securing her mortgage — there is nowhere she would rather move, she says.
Originally from the UK, she travels back to London seven or eight times a year via the Eurostar, which departs from Gare du Nord, a 15-minute walk from her home. With the area’s good connections — Gare du Nord, Gare de L’Est and République lie on several Metro lines — it also appeals to her friends.
When we speak in May, she has recently hosted a midweek evening picnic for eight, gathering on the grass next to the canal in front of her new apartment. The group has assembled from across the city — some arriving by bike or moped, others via Metro — for an archetypal French spread: two bottles of rosé and some Kronenbourg 1664, filling baguettes with cheese and saucisson purchased from a local shop.
“It sounds like a cliché but it’s a cliché for a reason, this is one of the best picnic spots in Paris,” she says.
At a glance
In June, the average list price for an apartment in Paris was €10,081 per sq m (Meilleurs Agents).
Trains connect Gare du Nord with the business district of La Défense in 15 minutes.
Trains from London to Paris take less than 2 hours 30 minutes; flights from New York take less than eight hours.
What you can buy . . .
Apartment, 10th arrondissement, €730,000
A two-bedroom, 73 sq m apartment on the third floor of a 1914 building with a lift, to the west of Canal Saint-Martin. A short walk to Louis Blanc Metro station, the apartment has parquet flooring and a communal cellar. For sale with Engel & Völkers.
Apartment, 10th arrondissement, €910,000
A one-bedroom apartment overlooking the canal. The flat is on the second floor of a condominium with a caretaker and a lift, and comes with a parking space. It is a five-minute walk from Gare de l’Est. For sale with Barnes International Realty.
Apartment, 10th arrondissement, €1.74mn
A three-bedroom, three-bathroom apartment on the cobbled Passage du Désir, a short walk to the west of the canal. The third-floor flat measures 145 sq m and features an open-plan kitchen and living area. Bedrooms overlook an internal courtyard. With Engel & Völkers.
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For many individuals and families, owning a home is a lifelong dream. However, with rising real estate prices, some may find themselves seeking financing beyond the conforming loan limit. This is where jumbo loans come into play.
What is a jumbo loan?
A jumbo loan in Alaska is a type of mortgage that enables homebuyers to borrow more than the limits set by the Federal Housing Finance Agency (FHFA) for conforming loans. The conforming loan limit (CLL) is the maximum amount of money that a lender will provide to borrowers at a specific interest rate and is established each year. Jumbo loans are necessary for homebuyers who want to purchase a high-value property, such as a luxury home, that exceeds the conforming loan limit.
If you’re considering purchasing a home that requires financing beyond the CLL, then you’ll need to apply for a jumbo loan. But because of the larger loan amounts and increased risk for lenders, Alaska jumbo loans often come with higher interest rates and stricter requirements than conventional loans. For instance, a larger down payment and a higher credit score may be required to qualify for a jumbo loan.
What is the jumbo loan limit in Alaska?
In Alaska, the conforming loan limit is $1,089,300 across all counties. For example, if you’re buying a home in Anchorage Municipality, where the median sale price is $400,000, a loan limit exceeding $1,089,300 would be considered a jumbo loan.
Keep in mind that the loan amount is what determines whether or not you’ll need a jumbo loan, not the price of the home. So, if you were to put $200,000 down on a $1,200,000 home in Anchorage, the mortgage would be $1,000,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.
For more information on the conforming loan limit in your county, use the FHFA map.
What are the requirements for a jumbo loan in Alaska?
The requirements to qualify for a jumbo loan are more stringent than the requirements for a conforming loan. Each lender may have different requirements or processes, but below are the typical requirements for borrowers seeking a jumbo loan.
Higher credit score: When it comes to receiving a jumbo loan in Alaska, credit score requirements are typically more stringent than for conventional mortgages. It’s possible that some lenders may accept a lower score, a credit score of at least 720 is generally required to qualify for a jumbo loan. It’s important to have a strong credit profile and a solid financial history to increase your chances of being approved for a jumbo loan.
Larger down payment: Jumbo loans are a popular financing option for homebuyers looking to buy higher-priced homes. However, compared to traditional mortgages, jumbo loans typically require a larger down payment. The exact amount required will vary depending on the lender and the borrower’s finances, but down payment requirements for jumbo loans can be as high as 20%, sometimes 30%. It’s worth noting that putting down a larger sum upfront can often help borrowers secure a better interest rate on their jumbo loan.
More assets: Jumbo loan lenders generally require borrowers to demonstrate a strong financial profile, including substantial liquid assets or savings. To qualify for a jumbo loan, borrowers must have enough reserves to cover at least one year of mortgage payments. This requirement ensures that borrowers have the financial flexibility to meet their loan obligations in the event of a financial hardship.
Lower debt-to-income ratio (DTI): Whether you’re applying for a traditional mortgage or a jumbo loan, lenders evaluate your spending habits and creditworthiness by analyzing your debt-to-income ratio (DTI). The DTI is determined by dividing the total of your monthly debt payments by your gross monthly income. While some lenders may accept a DTI as high as 50% for a conforming loan, those applying for a jumbo loan should aim for a DTI under 43% and ideally closer to 36%.
Additional home appraisals: Mortgage lenders may require a second home appraisal as an extra layer of protection when it comes to jumbo loans. The second appraisal serves as an additional opinion to ensure the property’s value aligns with the loan amount. In areas with limited comparable property sales, this extra appraisal may cost more than in neighborhoods with more frequent sales.