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MRIS: 2014 spring market promises higher home prices

By WTOP Staff

Home prices have been making steady annual gains in the Washington area, and it looks like that trend will continue. Over 71 percent of area real estate professionals think sales will increase this spring from a year ago, and 82 percent think the average home price will be higher than last year, according to the results of a recent survey from real estate information service MRIS.

The 2014 Spring Real Estate Outlook Survey from MRIS also found that sellers are likely to maintain the upper hand in real estate deals. Forty-five percent of MRIS real estate professionals predict 2014 will continue to be a seller’s market, while 33 percent indicated a buyer’s market for this year. Twenty-two percent of respondents were unsure.

Buyers will have a little more to choose from, but it will depend on their price range. Thirty-seven percent of respondents believe that inventory will increase compared to last year while 32 percent indicated inventory will be about the same as last year. Only 22 percent of real estate professionals predict that inventory will meet the demand they expect for 2014.

“Demand is highest for the more affordable price points, which leads to higher competition among condos and townhomes in our region,” said MRIS Vice President of Product Innovation and Marketing Andrew Strauch. “Baltimore and DC metro’s low supply of attached homes gives seller’s the advantage in our market. Detached homes have a more balanced market and, in some areas, possibly even lean toward the favor of the buyer due to less competition.”

Fifty-eight percent of survey respondents responded that the biggest shortage of supply would be for homes priced below $300,000. Twenty-nine percent said the largest shortage would be homes in the $300,000-500,000 price range.

In early January new mortgage rules issued by the Consumer Financial Protection Bureau went into effect, designed to lower the risk of defaults and foreclosures among borrowers. As a part of the rules, lenders must determine a borrower has the income and assets to afford to make payments during the life of the loan. The majority of real estate agents in the survey believe these new rules will affect home buyers.

Nearly 44 percent of real estate professionals believe the new mortgage rules will be better for the real estate industry and approximately 32 percent are still unsure of the impact on this year’s spring market. Approximately 70 percent responded that the new mortgage rules would reduce the number of people who qualify for a mortgage.

Real estate agents are split on the effect the mortgage rules could have on final sales price with approximately 39 percent who predict it will lead to a lower final sales price and 33 percent who do not think the new mortgage rules will lead to a lower sales price.

The survey drew responses from over 1,300 real estate professionals within MRIS’s geographic footprint, including Washington D.C., Baltimore, Northern Virginia and parts of West Virginia and Pennsylvania, focusing on their predictions for the spring market.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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