North Shore Real Estate BlogRecently posted or modified blog postshttps://www.lyvrealty.com/blog/Copyright LyvRealty.com2024-03-25T09:59:03-07:00tag:lyvrealty.com,2012-09-20:6965What Every Homebuyer Should Know About Closing CostsWhat Every Homebuyer Should Know About Closing Costs
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240321/20240325-What-Every-Homebuyer-Should-Know-About-Closing-Costs.png" width="600" /><br /><br />
Before making the decision to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy</a> a home, it's important to plan for all the costs you’ll be responsible for. While you're busy saving for the <a href="https://www.simplifyingthemarket.com/en/2024/02/26/the-truth-about-down-payments/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">down payment</a>, don't forget you’ll want to prep for closing costs too.
Here’s some helpful information on what those costs are and how much you should budget for them.
What Are Closing Costs?
A recent article from Bankrate <a href="https://www.bankrate.com/mortgages/understanding-the-closing-process/" rel="noopener noreferrer" target="_blank">explains</a>:
“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”
Simply put, your closing costs are the additional fees and payments you have to make at closing. According to <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">Freddie Mac</a>, while they can vary by location and situation, closing costs typically include:
Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services
Tax service fees
Survey fees
Attorney fees
Underwriting Fees
How Much Are Closing Costs?
According to the same Freddie Mac <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">article</a> mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget.
Let’s say you find a home you want to purchase at today’s <a href="https://www.nar.realtor/newsroom/existing-home-sales-vaulted-9-5-in-february-largest-monthly-increase-in-a-year" rel="noopener noreferrer" target="_blank">median</a> price of $384,500. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,690 and $19,225.
But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
Make Sure You’re Prepared To Close
Freddie Mac provides great advice for homebuyers, <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">saying</a>:
“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”
The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way.
Bottom Line
Planning for the fees and payments you'll need to cover when you're closing on your <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home</a> is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process.2024-03-25T09:47:31-07:002024-03-25T09:59:03-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6806Don’t Wait Until Spring To Sell Your HouseDon’t Wait Until Spring To Sell Your House
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240131/20240201-Don-t-Wait-Until-Spring-To-Sell-Your-House.png" width="600" /><br /><br />
As you think about the year ahead, one of your big goals may be moving. But, how do you know when to make your move? While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell. Here's why.
1. Take Advantage of Lower Mortgage Rates
Last October, the 30-year fixed <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">mortgage rates</a> peaked at 7.79%. In January, they hit their <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">lowest level</a> since May. That means you may not feel as locked-in to your current mortgage rate right now. That downward trend in rates has made moving <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">more affordable</a> now than it was just a few months ago.
Another reason today’s rates make now a good time to sell? More buyers are jumping back into the market. Many had been waiting on the sidelines for rates to fall, but now that that’s happening, they’re eager and ready to buy. That means more demand for your house. <a href="https://freddiemac.gcs-web.com/node/28286/pdf" rel="noopener noreferrer" target="_blank">According</a> to Sam Khater, Chief Economist at Freddie Mac:
“Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market.”
2. Get Ahead of Your Competition
Right now, there are still more people looking to buy a home than there are houses for sale, which puts you in a great position. But keep in mind, with the recent uptick in <a href="https://www.simplifyingthemarket.com/en/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">new listings</a>, we’re seeing more sellers may already be re-entering the market.
<a href="https://www.simplifyingthemarket.com/en/2024/01/22/3-must-dos-when-selling-your-house-in-2024/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">Listing your house</a> now helps you beat your competition and makes sure your house will stand out. And if you work with an agent to price it right, it could sell fast and get multiple offers. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/understanding-housing-inventory-and-what-it-means-for-you" rel="noopener noreferrer" target="_blank">explains</a>:
“When there is low housing inventory, sellers could get top dollar for their homes.”
3. Make the Most of Rising Home Prices
<a href="https://www.simplifyingthemarket.com/en/2024/01/23/experts-project-home-prices-will-increase-in-2024/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">Experts forecast</a> home prices will keep <a href="https://www.simplifyingthemarket.com/en/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">going up</a> this year. What does that mean for you? If you're ready to sell your current house and plan to buy another one, it may be a good idea to think about moving now before prices go up more. That would give you the chance to buy your next home before it gets more expensive.
4. Leverage Your Equity
Homeowners today have tremendous amounts of <a href="https://www.simplifyingthemarket.com/en/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">equity</a>. In fact, a recent <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2023/" rel="noopener noreferrer" target="_blank">report</a> from CoreLogic says the average homeowner with a mortgage has more than $300,000 in equity.
If you've been waiting to sell because you were worried about home affordability, know your equity can really help with your next move. It might even cover a big part, or maybe all, of the down payment for your next home.
Bottom Line
If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">selling your house</a> and moving to another one, let’s connect to get the process started now so you can get a leg up on your competition.2024-02-20T06:17:19-07:002024-02-20T06:18:14-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6805What’s Really Happening with Mortgage Rates?What’s Really Happening with Mortgage Rates?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-Whats-really-happening-with-mortgage-rates.png" width="600" /><br /><br />
Are you feeling a bit unsure about what’s really happening with <a href="https://www.simplifyingthemarket.com/en/2024/01/18/3-key-factors-affecting-home-affordability/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">mortgage rates</a>? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.
The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
<a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">Mortgage rates</a> don’t move in a straight line. There are too <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">many factors</a> at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.
Take a look at the graph below. It uses <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" rel="noopener noreferrer" target="_blank">data</a> from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" /></a>
If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.
For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have <a href="https://www.simplifyingthemarket.com/en/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">trended down</a>. So, what’s the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point (October) compared to where rates are now, you can see they’ve <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">come down</a> compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">continue this year</a>.
Bottom Line
Let’s connect if you have any questions about what you’re reading or hearing about the housing market.2024-02-20T06:16:01-07:002024-02-20T06:16:54-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6804It’s Time To Prepare Your House for a Spring ListingIt’s Time To Prepare Your House for a Spring Listing
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240214/20240219-It-s-Time-To-Prepare-Your-House-for-a-Spring-Listing.png" width="600" /><br /><br />
If you're thinking of <a href="https://www.simplifyingthemarket.com/en/2024/02/06/houses-are-still-selling-fast/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">selling</a> your house this spring, now is the perfect <a href="https://www.simplifyingthemarket.com/en/2024/02/01/dont-wait-until-spring-to-sell-your-house/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">time</a> to start getting it ready. With the market gearing up for its busiest time of year, it'll be important to make sure your house shines bright among the competition.
Here are some valuable tips you can use to get your house <a href="https://www.simplifyingthemarket.com/en/2024/01/22/3-must-dos-when-selling-your-house-in-2024/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">market-ready</a>.
Declutter and Organize
First impressions matter, and if your house is a mess, that can easily turn off potential buyers. Before listing, take the time to declutter and organize each room. Decluttering is about more than just tidying up – it's about creating a sense of space and openness that allows potential buyers to envision themselves living in your home. <a href="https://www.moving.com/tips/how-to-declutter-your-home-before-moving/" rel="noopener noreferrer" target="_blank">According</a> to Moving.com:
“Decluttering and organizing your space will go a long way in appealing to potential buyers. . . .decluttering will help the buyers see themselves living in your home. Less clutter inside a home also helps a place appear larger and cleaner, which should attract more buyers.”
Deep Clean Your Kitchen and Bathrooms
The kitchen and bathrooms are focal points for many buyers, and often influence their overall opinion of the house. Ensure these spaces dazzle by giving them a thorough deep cleaning. Pay attention to details like scrubbing grout lines, polishing fixtures, and decluttering countertops. A sparkling kitchen and bathroom can leave a lasting positive impression on potential buyers.
Maintain Your Yard
Your home’s exterior is the first thing potential buyers see, so it’s important to make a good impression from the moment they arrive. A well-maintained yard not only enhances curb appeal, but also shows buyers the home has been well taken care of.
Take the time to spruce up your yard by mowing the lawn, trimming bushes, and clearing away any debris or dead plants. Remember, the goal is to create a welcoming environment that entices buyers to step inside and imagine themselves living there. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/easy-ways-to-add-curb-appeal-to-your-home-this-fall" rel="noopener noreferrer" target="_blank">says</a>:
“A beautifully landscaped front yard can elevate an ordinary house into a charming home and will help homes sell faster and for more money.”
Find a Listing Agent
A skilled <a href="https://www.simplifyingthemarket.com/en/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">listing agent</a> is your partner in minimizing <a href="https://www.simplifyingthemarket.com/en/2024/01/02/things-to-consider-if-your-house-didnt-sell/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">stress</a> when selling your home. Lean on your agent for advice on decluttering, staging, and enhancing your home's appeal to potential buyers. Their insights into market trends and recommendations for reliable contractors and stagers are invaluable. As Realtor.com <a href="https://www.realtor.com/advice/sell/what-should-i-expect-from-my-realtor/" rel="noopener noreferrer" target="_blank">says</a>:
“A good listing agent will help you price your home . . . recommend a photographer and stager to make it look its best, and put your home on the multiple listing service.”
Bottom Line
By decluttering, deep cleaning, and tidying up your house, you can create a welcoming environment that resonates with buyers and increases your chances of a successful <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sale</a>. Let’s connect on what you need to do to get your house ready to sell this spring.2024-02-20T06:14:15-07:002024-02-20T06:15:25-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6803Strategic Tips for Buying Your First HomeStrategic Tips for Buying Your First Home
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240215/20240220-Strategic-Tips-for-Buying-Your-First-Home.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/2024/02/07/why-pre-approval-is-even-more-important-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">Buying</a> your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it's a <a href="https://www.simplifyingthemarket.com/en/2024/01/15/homeownership-is-still-at-the-heart-of-the-american-dream/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">dream</a> you can make come true, but there are some hurdles you'll need to overcome in today’s housing market – specifically the limited supply of <a href="https://www.simplifyingthemarket.com/en/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">homes for sale</a> and ongoing <a href="https://www.simplifyingthemarket.com/en/2024/01/18/3-key-factors-affecting-home-affordability/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">affordability</a> challenges.
So, if you're ready, willing, and able to <a href="https://www.simplifyingthemarket.com/en/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy</a> your first home, here are three tips to help you turn your dream into a reality.
Save Money with First-Time Homebuyer Programs
Paying the initial costs of homeownership, like your down payment and closing costs, can feel a bit daunting. But there are many assistance programs for <a href="https://www.simplifyingthemarket.com/en/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">first-time homebuyers</a> that can help you get a loan with little or no money upfront. <a href="https://www.bankrate.com/mortgages/first-time-homebuyer-loans-and-programs/" rel="noopener noreferrer" target="_blank">According</a> to Bankrate:
“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”
To find out more, talk to your state's housing authority or check out websites like <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>.
Expand Your Options by Looking at Condos and Townhomes
Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhomes. Realtor.com <a href="https://www.realtor.com/news/trends/condo-townhome-biggest-savings-in-these-expensive-cities/" rel="noopener noreferrer" target="_blank">explains</a>:
“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”
One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger in the future. Hannah Jones, Senior Economic Analyst at Realtor.com, <a href="https://www.realtor.com/news/trends/condo-townhome-biggest-savings-in-these-expensive-cities/" rel="noopener noreferrer" target="_blank">says</a>:
“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”
Consider Pooling Your Resources To Buy a Multi-Generational Home
Another way to break into the market is by purchasing a home with <a href="https://www.simplifyingthemarket.com/en/2024/01/25/the-top-benefits-of-buying-a-multi-generational-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">friends or loved ones</a>. That way you can split the cost of things like the mortgage and bills, to make it easier to afford a home. <a href="https://money.com/buying-house-with-friends-pros-cons/" rel="noopener noreferrer" target="_blank">According</a> to Money.com:
“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”
Bottom Line
By exploring first-time homebuyer assistance, condos, townhomes, and multi-generational living, it can be easier to <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">find and buy</a> your <a href="https://www.simplifyingthemarket.com/en/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">first home</a>. When you’re ready, let’s connect.2024-02-20T06:11:24-07:002024-02-20T06:14:06-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6599Why Mortgage Rates Could Continue To DeclineWhy Mortgage Rates Could Continue To Decline
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231218/20231220-Why-Mortgage-Rates-Could-Continue-To-Decline.png" width="600" /><br /><br />
When you read about the <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">housing market</a>, you’ll probably come across some information about inflation or recent decisions made by the Federal Reserve (the Fed). But how do those two things <a href="https://www.simplifyingthemarket.com/en/2023/11/29/why-the-economy-wont-tank-the-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">impact you</a> and your homebuying plans? Here's what you need to know.
The Federal Funds Rate Hikes Have Stalled
One of the Fed’s primary goals is to lower inflation. In order to do that, they started raising the Federal Funds Rate to slow down the economy. Even though this doesn’t directly dictate what happens with <a href="https://www.simplifyingthemarket.com/en/2023/11/28/are-the-top-3-housing-market-questions-on-your-mind/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">mortgage rates</a>, it does have an impact.
Recently inflation has started to cool, a signal those increases worked and are bringing inflation back down. As a result, <a href="https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm" rel="noopener noreferrer" target="_blank">the Fed’s hikes</a> have gotten smaller and less frequent. In fact, there haven’t been any increases since July (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231218/20231220-Federal-Reserve-Funds-Rate-Hikes.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231218/20231220-Federal-Reserve-Funds-Rate-Hikes.png" /></a>
And not only has the Fed decided not to raise the Federal Funds Rate the last three times the committee met, they’ve signaled there may actually be rate cuts coming in 2024. <a href="https://www.nytimes.com/live/2023/12/13/business/fed-meeting-interest-rates?smtyp=cur&smid=tw-nytimes" rel="noopener noreferrer" target="_blank">According</a> to the New York Times (NYT):
“Federal Reserve officials left interest rates unchanged in their final policy decision of 2023 and forecast that they will cut borrowing costs three times in the coming year, a sign that the central bank is shifting toward the next phase in its fight against rapid inflation.”
This indicates the Fed thinks the economy and inflation are improving. Why does that matter to you and your plans to buy a home? It could end up leading to lower mortgage rates and <a href="https://www.simplifyingthemarket.com/en/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">improved affordability</a>.
Mortgage Rates Are Coming Down
Mortgage rates are influenced by a wide variety of factors, and inflation and the Fed’s actions (or as has been the case recently, inaction) play a big role. Now that the Fed has paused the increases, it looks more likely <a href="https://freddiemac.gcs-web.com/node/28106/pdf" rel="noopener noreferrer" target="_blank">mortgage rates</a> will continue their downward trend (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231218/20231220-Mortgage-Rates-Drop-Below-Seven-Percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231218/20231220-Mortgage-Rates-Drop-Below-Seven-Percent.png" /></a>
Although mortgage rates may remain volatile, their recent trend combined with <a href="https://www.simplifyingthemarket.com/en/2023/11/17/2024-housing-market-forecast-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">expert forecasts</a> indicate they could continue to go down in 2024. That would improve affordability for buyers and make it easier for <a href="https://www.simplifyingthemarket.com/en/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sellers to move</a> since they won’t feel as locked-in to their current, low mortgage rate.
Bottom Line
The Fed’s decisions have an indirect impact on mortgage rates. By not raising the Federal Funds Rate, mortgage rates are likely to continue declining. <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">Let’s connect</a> so you have expert advice about changes in the housing market and how they affect you.2024-01-08T07:57:46-07:002024-01-08T07:58:39-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:65983 Keys To Hitting Your Homeownership Goals in 20243 Keys To Hitting Your Homeownership Goals in 2024
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20240101-3-Keys-To-Hitting-Your-Homeownership-Goals-in-2024.png" width="600" /><br /><br />
If buying or selling a home is your goal for 2024, it’s important to understand today’s housing market, know your why, and work with industry <a href="https://www.simplifyingthemarket.com/en/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">experts</a> to bring your homeownership vision for the new year into focus.
Over the last year, the <a href="https://www.simplifyingthemarket.com/en/2023/11/29/why-the-economy-wont-tank-the-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">economy</a> had a big impact on the housing market, and likely on your wallet too. That’s why it’s critical to have a clear picture of not just the market today, but also on what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at Realtor.com, <a href="https://www.cnn.com/2022/11/10/homes/mortgage-rates-november-10" rel="noopener noreferrer" target="_blank">explains</a>:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”
Here are a few things to think through as you define your goals for 2024.
1. Know Your Why
You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many <a href="https://www.simplifyingthemarket.com/en/2023/11/23/why-homeowners-are-thankful-they-own/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">compelling reasons</a> to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time. Use your why and your motivation as a guidepost in partnership with an expert advisor to make sure your move gives you a lasting sense of accomplishment.
2. Figure Out What Your Next Home Needs To Look Like
You know you want to move, but how would you describe your dream home? The number of <a href="https://www.simplifyingthemarket.com/en/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">homes for sale</a> has grown recently, and that could mean more options to choose from when you buy. But overall housing supply is still <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">lower</a> than more normal years in the market, so you’ll have to work closely with a pro to find what you’re looking for. Just be sure to keep your budget in mind as you balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it will be to find a home that’s right for you.
3. Determine if You’re Ready To Buy
Getting clear on your budget and available <a href="https://www.simplifyingthemarket.com/en/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">savings</a> is essential before you get too far into the process. Partnering with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">pre-approved</a> for a home loan, and assessing your current <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home equity</a> if you’re selling your existing house.
A Professional Will Guide You Through Every Step of the Process
Buying or selling a home takes expertise to navigate. If that feels a bit overwhelming, that’s normal. Don’t let uncertainty hold you back from your goals this year. A trusted expert will help you bridge that gap and give you the facts and advice you need about today’s housing market.
Bottom Line
Let’s connect to plan how to make your homeownership dreams a reality in 2024.2024-01-08T07:55:58-07:002024-01-08T07:57:26-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6597What Lower Mortgage Rates Mean for Your Purchasing PowerWhat Lower Mortgage Rates Mean for Your Purchasing Power
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-What-Lower-Mortgage-Rates-Mean-for-Your-Purchasing-Power.png" width="600" /><br /><br />
If you want to <a href="https://www.simplifyingthemarket.com/en/2023/11/23/why-homeowners-are-thankful-they-own/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a home</a>, it's important to know how <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">mortgage rates</a> impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under <a href="https://freddiemac.gcs-web.com/node/28216/pdf" rel="noopener noreferrer" target="_blank">7%</a>, according to Freddie Mac (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Mortgage-Rates-Fall-Below-Seven-Percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Mortgage-Rates-Fall-Below-Seven-Percent.png" /></a>
This recent trend is great news for <a href="https://www.simplifyingthemarket.com/en/2023/12/15/what-you-need-to-know-about-down-payments-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buyers</a>. As a recent article from Bankrate <a href="https://www.bankrate.com/mortgages/analysis/" rel="noopener noreferrer" target="_blank">says</a>:
“The rate cool-off somewhat eases the housing affordability squeeze.”
And <a href="https://www.mba.org/news-and-research/newsroom/news/2023/12/21/mortgage-application-payments-increased-2.0-percent-to-2-199-in-october" rel="noopener noreferrer" target="_blank">according</a> to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association (MBA):
“MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .”
Here’s a bit more context on how this could help with your plans to <a href="https://www.simplifyingthemarket.com/en/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a home</a>.
How Mortgage Rates Affect Your Search for a Home
Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">become a homeowner</a>. The chart below illustrates how your ability to afford a home changes when mortgage rates shift. Imagine your budget allows for a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Buyers-Purchasing-Power.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Buyers-Purchasing-Power.png" /></a>
As you can see, even small changes in rates can affect your budget and the loan amount you can afford.
Get Help from Reliable Experts To Understand Your Budget and Plan Ahead
When you're looking to <a href="https://www.simplifyingthemarket.com/en/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a home</a>, it's important to get guidance from a local real estate agent and a trusted lender. They can help you explore different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you.
By looking at the numbers and the latest data together, then adjusting your strategy based on today's rates, you'll be better prepared and ready to buy a home.
Bottom Line
If you’re looking to <a href="https://www.mykcm.com/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a>, you should know the recent downward trend in mortgage rates is good news for your move. <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">Let’s connect</a> and plan your next steps.2024-01-08T07:50:40-07:002024-01-08T07:55:11-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6167Why Your House Didn’t SellWhy Your House Didn’t Sell
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230927/20230928-Why-your-house-didn-t-sell.png" width="600" /><br /><br />
If your listing expired and your house didn’t <a href="https://www.simplifyingthemarket.com/en/2023/09/04/why-its-still-a-sellers-market-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sell</a>, you’re likely feeling a little frustrated. Not to mention, you're also probably wondering what went wrong. Here are three questions to think about as you figure out what to do next.
Did You Limit Access to Your House?
One of the biggest mistakes you can make when <a href="https://www.simplifyingthemarket.com/en/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">selling your house</a> is restricting the days and times when <a href="https://www.simplifyingthemarket.com/en/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">potential buyers</a> can tour it. Being flexible with your schedule is important when you're selling your house, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime <a href="https://www.showingtime.com/blog/6-reasons-your-house-isnt-getting-showings-and-how-to-fix-it/" rel="noopener noreferrer" target="_blank">advises</a>:
“. . . do your best to be as flexible as possible when granting access to your house for showings.”
Sometimes, the most determined <a href="https://www.simplifyingthemarket.com/en/2023/09/20/remote-work-is-changing-how-some-buyers-search-for-their-dream-homes/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buyers</a> might come from far away. Since they're traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It’s simple. If no one’s able to look at it, how’s it going to sell?
Did You Make Your House Stand Out?
When <a href="https://www.simplifyingthemarket.com/en/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">selling your house</a>, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact upfront. As an article from U.S. News <a href="https://realestate.usnews.com/real-estate/articles/how-to-sell-your-home-while-living-in-it" rel="noopener noreferrer" target="_blank">says</a>:
“After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.”
But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Additionally, a new coat of paint or cleaning the floors can go a long way to freshening up a room.
Did You Price Your House Compellingly?
Setting the <a href="https://www.simplifyingthemarket.com/en/2023/07/31/pricing-your-house-right-still-matters-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">right price</a> is extremely important when you're selling your house. Even though it might feel tempting to push the price higher to maximize your profit, overpricing can scare away buyers and make it hard to sell quickly. Business Insider <a href="https://www.businessinsider.com/mistakes-people-make-trying-to-sell-home-real-estate-agents-tips-2019-5" rel="noopener noreferrer" target="_blank">notes</a>:
“. . . the biggest mistake sellers make is overpricing their home.”
If your house is priced higher than others like it, it could make buyers lose interest. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.
For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it <a href="https://www.simplifyingthemarket.com/en/2023/08/24/more-jobs-and-better-pay-leads-to-more-buyer-demand/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sold</a>.
Bottom Line
It’s natural to feel disappointed when your listing has expired and your house didn’t <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">sell</a>. Let’s connect to figure out what happened and what to reconsider or change if you want to get your house back on the market.2023-10-09T08:43:03-07:002023-10-09T08:45:31-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6166Home Prices Are Not FallingHome Prices Are Not Falling
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230929/20231003-Home-Prices-Are-Not-Falling.png" width="600" /><br /><br />
During the fourth quarter of last year, some housing experts projected <a href="https://www.simplifyingthemarket.com/en/2023/09/08/home-price-forecasts-revised-for-2023-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home prices</a> were going to crash in 2023. The media ran with those forecasts and put out headlines calling for doom and gloom in the housing market. All of this negative news coverage made a lot of people have doubts about the strength of the residential real estate market.
If it made you question if you should delay your own <a href="https://www.simplifyingthemarket.com/en/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">plans to move</a>, here’s what you really need to know.
Home Prices Never Crashed
Disregard what you saw in the headlines. The actual <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> shows home prices were <a href="https://www.simplifyingthemarket.com/en/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">remarkably resilient</a> and performed far better than the media would have you believe (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20230929/20231003-Percent-Change-In-Home-Values.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230929/20231003-Percent-Change-In-Home-Values.png" /></a>
This graph uses <a href="https://www.blackknightinc.com/data-reports/" rel="noopener noreferrer" target="_blank">reports</a> from three trusted <a href="https://www.freddiemac.com/research/indices/house-price-index" rel="noopener noreferrer" target="_blank">sources</a> to clearly illustrate prices have <a href="https://www.simplifyingthemarket.com/en/2023/08/11/home-prices-are-back-on-the-rise-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">already rebounded</a> after experiencing only slight declines nationally. That’s a far cry from the crash so many articles called for.
The declines that did happen (shown in red), weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), <a href="https://www.wsj.com/economy/housing/the-fall-in-home-prices-may-already-be-over-3496d6bb" rel="noopener noreferrer" target="_blank">says</a>:
“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”
Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you home prices aren’t falling anymore – they’re actually going back up.
What’s Next for Home Prices?
The consensus from experts is that <a href="https://www.simplifyingthemarket.com/en/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home price growth</a> will continue in the years ahead and is <a href="https://www.simplifyingthemarket.com/en/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">returning to normal</a> levels for the market. That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.
Some news sources will see home price growth slowing and put out stories that make you think prices are falling again. The return of misleading headlines like those is already having an impact on how homebuyers are feeling again. You can see how this affects general opinion in the <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" rel="noopener noreferrer" target="_blank">Consumer Confidence Survey</a> from Fannie Mae (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20230929/20231003---of-Americans-Who-Think-Home-Prices-Will-Go-Down-over-the-Next-12-Months.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230929/20231003---of-Americans-Who-Think-Home-Prices-Will-Go-Down-over-the-Next-12-Months.png" /></a>
While the percentage of Americans who think prices will fall has been slowly declining this year, the latest Consumer Confidence data indicates that’s ticked back up recently (shown in red). This change is surprising especially since the home price data shows prices are going up, not down. It tells you the impact the media still has on public opinion.
Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.
Bottom Line
Even though the media may make things sound doom and gloom, the data shows home prices aren’t falling anymore. So, don’t let the headlines scare you or delay your plans. Let's connect so you have a trusted resource to cut through the noise and tell you what’s really happening in our area.2023-10-09T08:39:23-07:002023-10-09T08:46:03-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6001Equity Is a Game Changer for Homeowners Looking To SellEquity Is a Game Changer for Homeowners Looking To Sell
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230815-Equity-is-a-game-changer-for-homeowners-looking-to-sell.jpg" width="600" /><br /><br />
If you’re a homeowner, you might be torn on whether or not to <a href="https://www.simplifyingthemarket.com/en/2023/07/31/pricing-your-house-right-still-matters-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sell your house</a> right now. Maybe that’s because you don’t want to take on a higher <a href="https://www.simplifyingthemarket.com/en/2023/08/03/how-inflation-affects-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">mortgage rate</a> on your next home. If that’s your <a href="https://www.simplifyingthemarket.com/en/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">biggest hurdle</a>, understanding your equity may be exactly what you need to help you feel more comfortable making your move.
What Equity Is and How It Works
Equity is the current value of your home minus what you owe on the loan. And recently, that <a href="https://www.simplifyingthemarket.com/en/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">equity</a> has been growing far faster than you may expect.
Over the last few years, home prices rose dramatically, and that gave your equity a big boost very quickly. While the market has <a href="https://www.simplifyingthemarket.com/en/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">started to normalize</a>, there’s still an imbalance between the <a href="https://www.simplifyingthemarket.com/en/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">number of homes</a> available for sale and the <a href="https://www.simplifyingthemarket.com/en/2023/07/27/homebuyers-are-still-more-active-than-usual/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">number of buyers</a> looking to make a purchase. And it’s because homes are in such high demand that <a href="https://www.simplifyingthemarket.com/en/2023/07/17/home-prices-are-rebounding/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">prices</a> are back on the rise today. Rob Barber, CEO of ATTOM, a property data provider, <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">explains</a>:
“Equity levels were high even during the recent downturn, and now they are going back up and better than ever.”
How Equity Benefits You in Today’s Market
With today’s <a href="https://www.simplifyingthemarket.com/en/2023/07/07/the-benefits-of-downsizing-for-homeowners-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">affordability challenges</a>, that equity can be a game changer when you move. Here’s why. Based on data from <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a> and the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a>, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity (see chart below):<a href="https://www.simplifyingthemarket.com/en/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png" /></a>
That means roughly 70% have a tremendous amount of equity right now.
Once you <a href="https://www.simplifyingthemarket.com/en/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use your equity to help with your next purchase. It could be some (if not all) of what you’ll need for your next down payment. It may even be enough to allow you to put a considerably larger down payment on your next home, so you don’t have to finance quite as much. And, if you’ve been in your current house for years, you may have even built up enough equity to pay in all cash. If that’s true for you, you’d be able to avoid borrowing altogether, so you wouldn’t have to worry about today’s <a href="https://www.simplifyingthemarket.com/en/2023/07/19/explaining-todays-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
How To Find Out How Much Equity You Have
The best way to learn how much you have is to reach out to a trusted real estate agent for a Professional Equity Assessment Report (PEAR).
Bottom Line
If you’re planning to <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">make a move</a>, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.2023-08-23T11:44:31-07:002023-08-23T11:45:00-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:6000Why You Need a True Expert in Today’s Housing MarketWhy You Need a True Expert in Today’s Housing Market
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230821/20230823-Why-You-Need-a-True-Expert-in-Today-s-Housing-Market.jpg" width="600" /><br /><br />
The housing market continues to <a href="https://www.simplifyingthemarket.com/en/2023/08/03/how-inflation-affects-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">shift and change</a>, and in a fast-moving landscape like we’re in right now, it’s more important than ever to have a trusted real estate agent on your side. Whether you’re buying your first home or selling once again, it’s mission critical to work with an expert who can guide you through each unique step of the process.
The reality is, not all agents operate the same way. To truly make a powerful and confident decision as you buy or sell a home, you need a real estate expert who uses their knowledge of what’s really happening with home <a href="https://www.simplifyingthemarket.com/en/2023/08/11/home-prices-are-back-on-the-rise-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">prices</a>, housing <a href="https://www.simplifyingthemarket.com/en/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">supply</a>, industry <a href="https://www.simplifyingthemarket.com/en/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">projections</a>, and more to give you the best possible advice. Someone who can provide clarity and trust like that is essential to your success. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" rel="noopener noreferrer" target="_blank">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the <a href="https://www.simplifyingthemarket.com/en/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">media</a> isn’t clear, it can generate a lot of fear and uncertainty for consumers. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" rel="noopener noreferrer" target="_blank">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying a home is a big decision, and it should be one you feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need.
The right agent can assist you in figuring out what’s going on at the national level and in your local area. They can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current <a href="https://www.simplifyingthemarket.com/en/2023/08/14/where-are-people-moving-today-and-why/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">trends</a> compare to the normal ebbs and flows in the housing market, historical data, and <a href="https://www.simplifyingthemarket.com/en/2023/07/28/key-housing-market-trends-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">more</a>.
Then, to make sure you have the full picture, an agent can tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you can use all that information to make the best possible decision.
After all, making a move is a potentially life-changing milestone. It should be something you feel <a href="https://www.simplifyingthemarket.com/en/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">ready</a> for and excited about. And that’s where a trusted expert comes in.
Bottom Line
If you want sound <a href="https://www.mykcm.com/2023/07/26/tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">advice</a> and trusted information about our local housing market, let’s connect.2023-08-23T11:43:18-07:002023-08-23T11:43:44-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5906How Remote Work Expands Your Homebuying HorizonsHow Remote Work Expands Your Homebuying Horizons
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230711/20230713-How-Remote-work-expands-your-homebuying-horizons.jpg" width="600" /><br /><br />
Even as some companies transition back into the office, remote work remains a popular choice for many professionals. So, if you currently enjoy working from home or hope to be able to soon, you’re not alone. According to a recent <a href="https://www.flexjobs.com/blog/post/exploring-the-impact-of-remote-work-on-mental-health-and-the-workplace/" rel="noopener noreferrer" target="_blank">survey</a>, most working professionals want to work either fully remote or hybrid (see below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20230711/20230713-Ideal-work-environment.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230711/20230713-Ideal-work-environment.png" /></a>
This trend is good news if you’re looking to <a href="https://www.simplifyingthemarket.com/en/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy</a> a home because a remote or hybrid work setup can help you overcome some of today’s affordability and <a href="https://www.simplifyingthemarket.com/en/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">housing inventory</a> challenges.
More Work Flexibility Equals More Home Options
Remote or hybrid work opens up a world of opportunities. That’s because it allows you to broaden your search for your next <a href="https://www.simplifyingthemarket.com/en/2023/06/27/why-homeownership-wins-in-the-long-run/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home</a> since you’re no longer limited to living close to your workplace. With the freedom to work from anywhere, you can explore more affordable areas that may be located farther away from bustling city centers or your office. This flexibility can be a game changer while higher mortgage rates are making it difficult for some homebuyers to afford a home.
An <a href="https://www.nytimes.com/interactive/2023/06/17/upshot/17migration-patterns-movers.html" rel="noopener noreferrer" target="_blank">article</a> from the New York Times (NYT) highlights how remote work can greatly assist you in overcoming that challenge:
“. . . take advantage of the opportunity remote work has presented to move to more affordable communities (either farther out in the suburbs, or in another part of the country).”
And, since the supply of homes for sale is still so low, another key challenge for you today may be finding something with all of the features you want and need. Because remote work allows you to broaden your search radius to include additional areas, you may actually have less trouble finding a home with the features you want the most because you’ll have a bigger pool of options to pick from.
Working remotely gives you the flexibility to find an affordable home with the features you <a href="https://www.simplifyingthemarket.com/en/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">want</a>. In other words, you have a better chance of getting what you need without blowing your budget.
Bottom Line
Working remotely not only gives you more flexibility in your job but also presents a great chance to broaden your search for a <a href="https://www.mykcm.com/2023/07/04/americans-still-view-homeownership-as-the-american-dream/" rel="noopener noreferrer" target="_blank">home</a>. Since you're not limited to a specific location, you have the opportunity to explore more options. Let's get in touch to discuss how this can expand your choices and help you find the perfect home.2023-07-31T10:31:02-07:002023-07-31T10:32:38-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5905Tips for Making Your Best Offer on a HomeTips for Making Your Best Offer on a Home
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230718/20230726-Tips-for-making-your-best-offer-on-a-home.jpg" width="600" /><br /><br />
While the wild ride that was the <a href="https://www.simplifyingthemarket.com/en/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> of housing is behind us, today’s market is still competitive in many areas because the <a href="https://www.simplifyingthemarket.com/en/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">supply of homes</a> for sale is still low. If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2023/07/13/how-remote-work-expands-your-homebuying-horizons/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a home</a> this season, know that the peak frenzy of bidding wars is in the rearview mirror, but you may still come up against some multiple-offer scenarios.
Here are a few things to consider to help you put your best foot forward when making an offer on a <a href="https://www.simplifyingthemarket.com/en/2023/06/27/why-homeownership-wins-in-the-long-run/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home</a>.
1. Lean on a Real Estate Professional
Rely on an agent who can support your goals and help you understand what’s happening in today’s housing market. <a href="https://www.simplifyingthemarket.com/en/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">Agents are experts</a> in the local market and on the national trends too. They’ll use both of those areas of expertise to make sure you have all the information you need to move with confidence.
Plus, they know what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out. As an article from Forbes <a href="https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/" rel="noopener noreferrer" target="_blank">says</a>:
"Getting to know a local realtor where you’re hoping to buy can also potentially give you a crucial edge in a tight housing market."
2. Get Pre-Approved for a Home Loan
Having a <a href="https://www.simplifyingthemarket.com/en/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">clear budget</a> in mind is especially important right now given the current <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">affordability</a> challenges. The best way to get a clear picture of what you can borrow is to work with a lender so you can get <a href="https://www.simplifyingthemarket.com/en/2022/09/16/a-crucial-first-step-mortgage-pre-approval-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">pre-approved</a> for a home loan.
That’ll help you be more financially confident because you’ll have a better understanding of your numbers. It shows sellers you’re serious, too. And that can give you a competitive edge if you do get into a multiple-offer scenario.
3. Make a Fair Offer
It’s only natural to want the best deal you can get on a home. However, submitting an offer that’s too low does have some risks. You don’t want to make an offer that will be tossed out as soon as it’s received just to see if it sticks. As Realtor.com <a href="https://www.realtor.com/advice/buy/five-tips-successful-lowball-offer/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
The expertise your agent brings to this part of the process will help you stay competitive and find a price that’s fair to you and the seller.
4. Trust Your Agent’s Expertise Throughout Negotiations
During the <a href="https://www.simplifyingthemarket.com/en/2023/06/09/why-you-cant-compare-now-to-the-unicorn-years-of-the-housing-market-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> of housing, some buyers skipped home inspections or didn’t ask for concessions from the seller in order to submit the winning bid on a home. An article from Bankrate <a href="https://www.bankrate.com/real-estate/smart-way-to-waive-home-inspection/" rel="noopener noreferrer" target="_blank">explains</a> this isn’t happening as often today, and that’s good news:
“While the market has largely calmed down since then, sellers are still very much in the driver’s seat in this era of scarce housing inventory. It’s not as common for buyers to waive inspections anymore, but it does still happen. . . . It’s in the buyer’s best interest to have a home inspected . . . Inspections alert you to existing or potential problems with the home, giving you not just an early heads up but also a useful negotiating tactic.”
Fortunately, <a href="https://www.simplifyingthemarket.com/en/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">today’s market</a> is different, and you may have more negotiating power than before. When putting together an offer, your trusted real estate advisor will help you think through what levers to pull and which ones you may not want to compromise on.
Bottom Line
When you buy a home this summer, let’s connect so you have an expert on your side who can help you make your best offer.2023-07-31T10:25:16-07:002023-07-31T10:25:50-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5904Pricing Your House Right Still Matters TodayPricing Your House Right Still Matters Today
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230727/20230731-Pricing-your-house-right-still-matters-today.jpg" width="600" /><br /><br />
While this isn’t the frenzied market we saw during the <a href="https://www.simplifyingthemarket.com/en/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, homes that are priced right are still selling quickly and seeing multiple offers right now. That’s because the number of <a href="https://www.simplifyingthemarket.com/en/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">homes for sale</a> is still so low. <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-06-realtors-confidence-index-07-20-2023.pdf" rel="noopener noreferrer" target="_blank">Data</a> from the National Association of Realtors (NAR) shows 76% of homes sold within a month and the average saw 3.5 offers in June.
To set yourself up to see advantages like these, you need to rely on an agent. Only an agent has the expertise needed to find the right asking price for your house. Here’s what’s at stake if that price isn’t accurate for today’s market value.
The price you set for your house sends a message to potential buyers.
Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with it. Not to mention, if you undervalue your house, you could leave money on the table, which decreases your future buying power.
On the other hand, price it too high and you run the risk of deterring buyers from ever touring it in the first place. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it <a href="https://www.simplifyingthemarket.com/en/2023/07/10/reasons-your-home-may-not-be-selling/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sits on the market</a> for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.
A <a href="https://www.nerdwallet.com/article/mortgages/price-home-sell" rel="noopener noreferrer" target="_blank">recent article</a> from NerdWallet sums it up like this:
"Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house."
Think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value.
Pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see multiple offers too. Plus, when homes are priced right, they still tend to sell quickly.
To get a high-level look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:
<a href="https://www.simplifyingthemarket.com/en/content/images/20230727/20230731-Underpriced-Market-Value-Overpriced.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230727/20230731-Underpriced-Market-Value-Overpriced.png" /></a>
Lean on a Professional’s Expertise to Price Your House Right
So why is an agent essential in finding the right price? Your local agent has the skill and the insight necessary to find the market value of your home. They’ll use their expertise to determine a realistic listing price by assessing:
The prices of recently sold homes
The current market conditions
The size and condition of your house
The location of your house
Bottom Line
Pricing your house at market value is critical, so don’t rely on guesswork. Let’s connect to make sure your house is priced right for today’s market.2023-07-31T10:20:08-07:002023-07-31T10:21:26-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5573What’s the Difference Between a Home Inspection and an Appraisal?What’s the Difference Between a Home Inspection and an Appraisal?
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230419/20230420-whats-the-difference-between-a-home-inspection-and-an-appraisal.jpg" width="600" /><br /><br />
If you’re planning to <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a home</a>, an inspection is an important step in the process. It assesses the condition of the home before you finalize the transaction. It’s also a different step in the process from an appraisal, which is a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">lending</a> a buyer money for the purchase. Here’s the breakdown of each one and why they’re both important when buying a home.
Home Inspection
Here’s the key difference between an inspection and an appraisal. Bankrate <a href="https://www.bankrate.com/real-estate/home-appraisal-vs-inspection/" rel="noopener noreferrer" target="_blank">says</a>:
“In short, while an appraisal helps you understand a home’s value, inspections help you understand a home’s condition.”
The <a href="https://www.simplifyingthemarket.com/en/2023/04/14/home-inspections-for-sellers-what-you-need-to-know-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home inspection</a> is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.
Home Appraisal
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/appraisal-valuation/residential-appraisal-process-for-home-buyers" rel="noopener noreferrer" target="_blank">explains</a>:
“A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”
When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.
This is especially critical in today’s <a href="https://www.simplifyingthemarket.com/en/2023/03/30/were-in-a-sellers-market-what-does-that-mean/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">sellers’ market</a> where low inventory is driving an increase in bidding wars, which can push home prices upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.
However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep <a href="https://www.simplifyingthemarket.com/en/2023/04/17/think-twice-before-waiting-for-lower-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">home prices</a> in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.
Bottom Line
The inspection and the appraisal are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate the entire homebuying process.2023-05-08T10:48:49-07:002023-05-08T10:49:36-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5572Why Buying a Home Makes More Sense Than Renting TodayWhy Buying a Home Makes More Sense Than Renting Today
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230428/20230501-why-buying-a-home-makes-more-sense-than-renting-today.jpg" width="600" /><br /><br />
Wondering if you should continue renting or if you should <a href="https://www.simplifyingthemarket.com/en/2023/03/10/buying-a-home-may-make-more-sense-than-renting-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a home</a> this year? If so, consider this. Rental affordability is still a challenge and has been for years. That’s because, historically, rents trend up over time. <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">Data</a> from the Census shows rents have been climbing pretty steadily since 1988.
And, data from the <a href="https://www.realtor.com/research/march-2023-rent/" rel="noopener noreferrer" target="_blank">latest rental report</a> from Realtor.com shows rents continue to grow today, even though it’s at a slower pace than we saw at the height of the pandemic:
“In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).”
With rents much higher now than they were in more normal, pre-pandemic years, owning your home may be a better option, especially if the long-term trend of rents increasing each year continues. In contrast, homeowners with a fixed-rate mortgage can lock in a monthly mortgage payment for the duration of their loan (typically 15-30 years).
Owning a Home Could Be More Affordable if You Need More Space
The graph below uses national data on the <a href="https://www.realtor.com/research/march-2023-rent/" rel="noopener noreferrer" target="_blank">median rental payment</a> from Realtor.com and <a href="https://cdn.nar.realtor/sites/default/files/documents/hai-02-2023-housing-affordability-index-2023-04-14.pdf" rel="noopener noreferrer" target="_blank">median mortgage payment</a> from the National Association of Realtors (NAR) to compare the two options. As the graph shows, depending on how much space you need, it’s typically more affordable to own than to rent if you need two or more bedrooms:
<a href="https://files.keepingcurrentmatters.com/content/images/20230428/20230501-the-cost-difference-between-renting-and-buying-based-on-the-number-of-bedrooms.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230428/20230501-the-cost-difference-between-renting-and-buying-based-on-the-number-of-bedrooms.png" /></a>
So, if you’re looking to live somewhere where you have two or more bedrooms to accommodate your household, give you more breathing room to spread out your belongings, or dedicate the extra space to practice your hobbies, it might make sense to consider homeownership.
Homeownership Allows You To Start Building Equity
In addition to shielding you from rising rents and being more affordable when you need more space, owning your home also allows you to start building your own <a href="https://www.simplifyingthemarket.com/en/2023/04/07/the-key-advantage-of-investing-in-a-home-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">equity</a>, which in turn grows your net worth.
And, as home values typically rise over time and you pay off your mortgage, you build <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">equity</a>. That equity can set you up for success later on because you can use it to help fuel a move to an even bigger space down the line. That’s why, <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">according</a> to Zonda, the top reason millennial homeowners bought their home over the past year was to build their own equity instead of someone else’s.
Bottom Line
If you’re trying to decide whether to buy a home or continue renting, let’s connect to explore your options. With rents rising, it may make more sense to pursue your dream of homeownership. 2023-05-08T10:47:24-07:002023-05-08T10:47:58-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5571Buyer Activity Is Up Despite Higher Mortgage RatesBuyer Activity Is Up Despite Higher Mortgage Rates
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230505/buyer-activity-is-up-despite-higher-mortgage-rates.jpeg" width="600" /><br /><br />
If you’re a homeowner thinking about <a href="https://www.simplifyingthemarket.com/en/2023/04/19/falling-out-of-love-with-your-house-it-may-be-time-to-move/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">making a move</a>, you may wonder if it’s still a <a href="https://www.simplifyingthemarket.com/en/2023/04/25/what-are-the-experts-saying-about-the-spring-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">good time</a> to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually <a href="https://www.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">picking up speed</a>.
Data from the latest <a href="https://www.showingtime.com/blog/february-2023-showing-index-results-buyer-activity-continues-to-normalize/" rel="noopener noreferrer" target="_blank">ShowingTime Showing Index</a>, which is a measure of buyers actively touring homes, helps paint the picture of how much buyer demand has increased in recent months (see graph below):
<a href="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-up-again-in-february.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-up-again-in-february.png" /></a>
As the graph shows, the first two months of 2023 saw a noticeable increase in buyer traffic. That’s likely because the limited number of homes for sale kept shoppers looking for homes even during colder months.
To help tell the story of why the latest report is significant, let’s compare foot traffic this February with each February for the last six years (see graph below). It shows this was one of the best Februarys for buyer activity we’ve seen in recent memory.
<a href="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-is-still-higher-than-pre-pandemic-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230502-20230503-showing-traffic-is-still-higher-than-pre-pandemic-years.png" /></a>
In the last six years, we saw the most February buyer traffic in 2021 and 2022 (shown in green above), but those years were highly unusual for the housing market. So, if we compare February 2023 with the more normal, pre-pandemic years, data shows this year still marks a clear rise in buyer activity.
The uptick in buyer traffic is even more noteworthy considering the increase in mortgage rates this February. The <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">Freddie Mac</a> 30-year fixed mortgage rate rose from 6.09% during the week of February 2nd to 6.50% in the week of February 23rd. But even with higher rates, more buyers were looking for a home.
Jeff Tucker, Senior Economist at Zillow, <a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" target="_blank">says</a> the increased buyer activity could continue:
“More buyers will keep coming out of the woodwork. We always see a seasonal uptick in home shoppers in March and April . . .”
If you’re looking to sell your house, seeing buyers still active in the market this year should be encouraging. It’s a sign buyers are out there and could be looking for a home just like yours. Working with a real estate professional to list your house now will help you get your home in front of eager buyers today.
Bottom Line
Rising foot traffic is a bright spot for this year’s housing market and indicates that buyers are looking to purchase this year, even with higher mortgage rates. If you’re ready to sell your house, let’s connect.2023-05-08T10:46:37-07:002023-05-08T10:46:58-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5570It May Be Time To Consider a Newly Built HomeIt May Be Time To Consider a Newly Built Home
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230505/20230508-it-may-be-time-to-consider-a-newly-built-home.jpg" width="600" /><br /><br />
If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">buy a house</a>, you may find today’s limited supply of homes available for sale challenging. When housing inventory is as low as it is right now, it can feel like a bit of an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you need to open up your pool of options, it may be time to consider a newly built home.
According to the <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" rel="noopener noreferrer" target="_blank">latest data</a> from the U.S. Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find:
More new homes were completed and are ready to sell. This gives you more move-in-ready options for your search.
Builders broke ground and started construction on more single-family homes. This means there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking.
The number of permits for building new single-family homes ticked up. This shows builders are ramping up to start on even more home construction soon.
And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.
Customization
When you buy a new home under construction, you can tailor it to your unique needs and taste. Bankrate <a href="https://www.bankrate.com/mortgages/build-or-buy-a-house/#building" rel="noopener noreferrer" target="_blank">says</a>:
“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.”
Brand New Everything
Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.
Minimal Repairs
And, because everything is new, you’ll likely find there are fewer maintenance and repair needs up front. As Realtor.com <a href="https://www.realtor.com/advice/buy/purchasing-new-construction-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . if something does go wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”
Energy Efficiency
Lastly, building a home gives you the opportunity to incorporate more <a href="https://www.simplifyingthemarket.com/en/2023/04/21/why-you-may-want-an-energy-efficient-home-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" rel="noopener noreferrer" target="_blank">energy-efficient</a> options that can help lower your costs over time – which can feel especially important when inflation’s raising many of the costs around you.
Bottom Line
If you’re having trouble finding your dream home in today’s market, it may be time to consider newly built homes as an option. Let’s connect so you have an expert on your side to help you explore what’s available in our local area.2023-05-08T10:45:24-07:002023-05-08T10:45:59-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5365What Buyer Activity Tells Us About the Housing MarketWhat Buyer Activity Tells Us About the Housing Market
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230315/20230316-what-buyer-activity-tells-us-about-the-housing-market-KCM.jpg" width="600" /><br /><br />
Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to <a href="https://realestate.usnews.com/real-estate/articles/when-will-the-housing-market-crash" rel="noopener noreferrer" target="_blank">U.S. News</a>:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230315/20230313-largest-jump-in-showings-for-any-january-on-record-MEM-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230315/20230313-largest-jump-in-showings-for-any-january-on-record-MEM-1.png" /></a>
The 62% <a href="https://www.showingtime.com/blog/january-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">jump</a> in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, <a href="https://www.showingtime.com/blog/january-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”
It's important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when <a href="https://www.lyvrealty.com/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are favorable, they’re ready to make their move. 2023-03-20T12:44:33-07:002023-03-20T12:45:30-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5363What’s Ahead for Home Prices in 2023What’s Ahead for Home Prices in 2023
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-whats-ahead-for-home-prices-in-2023-KCM.jpg" width="600" /><br /><br />
Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – <a href="https://www.lyvrealty.com/" rel="noopener noreferrer" target="_blank">which hasn’t happened</a>. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.
Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-march-2023/" rel="noopener noreferrer" target="_blank">says</a>:
“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”
Additionally, every quarter, Pulsenomics <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">surveys</a> a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:
<a href="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-estimated-home-price-performance-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-estimated-home-price-performance-MEM.png" /></a>
So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider <a href="https://www.lyvrealty.com/" rel="noopener noreferrer" target="_blank">making a move</a>:
Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">risen consistently</a>. The bottom line is, rent is <a href="https://www.lyvrealty.com/" rel="noopener noreferrer" target="_blank">going up</a>.
Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a <a href="https://www.lyvrealty.com/" rel="noopener noreferrer" target="_blank">renter</a>.
Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.2023-03-20T12:40:39-07:002023-03-20T12:44:00-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5110Lower Mortgage Rates Are Bringing Buyers Back to the MarketLower Mortgage Rates Are Bringing Buyers Back to the Market
<img width="750" height="410" src="https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Lower Mortgage Rates Are Bringing Buyers Back to the Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM.jpg 750w, https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling.
Now, however, rates are beginning to come down—and <a href="https://www.simplifyingthemarket.com/2023/01/26/why-it-makes-sense-to-move-before-spring/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> are starting to reenter the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows <a href="https://www.mba.org/news-and-research/newsroom/news/2023/01/25/mortgage-applications-increase-in-latest-mba-weekly-survey" title="mortgage applications" target="_blank" rel="noopener noreferrer">mortgage applications</a> increased last week by 7% compared to the week before.
So, if you’ve been planning to <a href="https://www.simplifyingthemarket.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a> but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying about buyers returning to the market as we approach spring.
Mike Fratantoni, SVP and Chief Economist, <a href="https://www.mba.org/news-and-research/newsroom/news/2023/01/18/mortgage-applications-increase-in-latest-mba-weekly-survey" title="MBA" target="_blank" rel="noopener noreferrer">MBA</a>:
“Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”
Lawrence Yun, Chief Economist, <a href="https://twitter.com/NAR_Research/status/1597970968298782720?s=20&t=RM8XMxPm_1ZkD0xfSe4N6Q" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR):
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
Thomas LaSalvia, Senior Economist, <a href="https://www.newsweek.com/housing-market-reckoning-wont-provide-salvation-homebuyers-1774415" title="Moody’s Analytics" target="_blank" rel="noopener noreferrer">Moody’s Analytics</a>:
"We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit."
Sam Khater, Chief Economist, <a href="https://freddiemac.gcs-web.com/node/26516/pdf" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>:
“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”
Bottom Line
If you’ve been thinking about making a move, now’s the time to get your house <a href="https://www.simplifyingthemarket.com/2023/01/23/want-to-sell-your-house-price-it-right/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="ready to sell" target="_blank" rel="noopener noreferrer">ready to sell</a>. Let’s connect so you can learn about buyer demand in our area the best time to put your house on the market.
2023-01-31T12:14:18-07:002023-01-31T12:14:55-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5100Planning To Sell Your House? It’s Critical To Hire a Pro.Planning To Sell Your House? It’s Critical To Hire a Pro.
<img width="750" height="410" src="https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Planning To Sell Your House? It’s Critical To Hire a Pro | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM.jpg 750w, https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/21071208/planning-to-sell-your-house-its-critical-to-hire-a-pro-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With higher mortgage rates and moderating buyer demand, conditions in the housing market are different <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="today" target="_blank" rel="noopener noreferrer">today</a>. And if you’re thinking of <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="selling your house" target="_blank" rel="noopener noreferrer">selling your house</a>, it’s important to understand how the market has changed and what that means for you. The best way to make sure you’re in the know is to work with a trusted housing market expert.
Here are five reasons working with a professional can ensure you’ll get the most out of your sale.
1. A Real Estate Advisor Is an Expert on Market Trends
Leslie Rouda Smith, 2022 President of the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
"During challenging and changing market conditions, one thing that's calming and constant is the assurance that comes from a Realtor® being in your corner through every step of the home transaction. Consumers can rely on Realtors®' unmatched work ethic, trusted guidance and objectivity to help manage the complexities associated with the home buying and selling process.”
An expert real estate advisor has the latest information about national trends and your local area too. More importantly, they’ll know what all of this means for you so they’ll be able to help you make a decision based on trustworthy, data-bound information.
2. A Local Professional Knows How To Set the Right Price for Your House
<a href="https://www.simplifyingthemarket.com/2022/12/06/whats-going-on-with-home-prices-ask-a-professional/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="Home price appreciation" target="_blank" rel="noopener noreferrer">Home price appreciation</a> has moderated this year. If you sell your house on your own, you may be more likely to overshoot your asking price because you’re not as aware of where prices are today. If you do, you run the risk of deterring buyers or seeing your house sit on the market for longer.
Real estate professionals provide an unbiased eye when they help you determine a price for your house. They’ll use a variety of factors, like the condition of your home and any upgrades you’ve made, and compare your house to recently sold homes in your area to find the best price for today’s market. These steps are key to making sure it’s set to move as quickly as possible.
3. A Real Estate Advisor Helps Maximize Your Pool of Buyers
Since buyer demand has cooled this year, you'll want to do what you can to help bring in more buyers. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house gets in front of people looking to make a purchase. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp#toc-4-agents-access-large-networks" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.”
Without access to the tools and your agent’s marketing expertise, your buyer pool – and your home’s selling potential – is limited.
4. A Real Estate Expert Will Read – and Understand – the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. NAR <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-sellers/8-reasons-to-work-with-a-realtor" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what all the fine print means and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
5. A Trusted Advisor Is a Skilled Negotiator
In today’s market, buyers are also regaining some negotiation power as bidding wars ease. If you sell without a professional, you’ll also be responsible for any back-and-forth. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all the above parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
Bottom Line
Don’t go at it alone. If you’re planning to sell your house this winter, let’s connect so you have an expert by your side to guide you in today’s market.
2023-01-27T12:15:57-07:002023-01-27T12:16:26-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5099What Experts Are Saying About the 2023 Housing MarketWhat Experts Are Saying About the 2023 Housing Market
<img width="600" height="315" src="https://files.mykcm.com/2023/01/05132532/what-experts-are-saying-about-the-2023-housing-market-BB.jpg" class="attachment-entry size-entry wp-post-image" alt="What Experts Are Saying About the 2023 Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/05132532/what-experts-are-saying-about-the-2023-housing-market-BB.jpg 600w, https://files.mykcm.com/2023/01/05132532/what-experts-are-saying-about-the-2023-housing-market-BB-100x53.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buying or selling" target="_blank" rel="noopener noreferrer">buying or selling</a> a home soon, you probably want to know what you can expect from the <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="2023" target="_blank" rel="noopener noreferrer">2023</a>?
An article from HousingWire <a href="https://www.housingwire.com/articles/the-red-hot-housing-market/" title="offers" target="_blank" rel="noopener noreferrer">offers</a> this perspective:
“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”
This year, experts agree we may see the return of greater stability and predictability in the housing market if inflation continues to ease and <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> stabilize. Here’s what they have to say.
The 2023 forecast from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”
Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/2023-national-housing-forecast/" title="adds" target="_blank" rel="noopener noreferrer">adds</a>:
“. . . buyers will not face the extreme competition that was commonplace over the past few years.”
Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy" title="explains" target="_blank" rel="noopener noreferrer">explains</a> home prices will vary by local area, but will net neutral nationwide as the market continues to adjust:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-the-housing-market-may-begin-to-stabilize-in-2023" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.”
Bottom Line
If you’re looking to buy or sell a home this year, the best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect.
2023-01-27T12:14:25-07:002023-01-27T12:14:56-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5098Think Twice Before Waiting for 3% Mortgage RatesThink Twice Before Waiting for 3% Mortgage Rates
<img width="750" height="410" src="https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Think Twice Before Waiting for 3% Mortgage Rates | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM.jpg 750w, https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% <a href="https://www.freddiemac.com/pmms/archive" title="last October" target="_blank" rel="noopener noreferrer">last October</a>. Hopeful <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.
Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-inch-3" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
That’s potentially great news if you’re a <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buyer" target="_blank" rel="noopener noreferrer">buyer</a> aiming to jump back into the housing market. Any drop in mortgage rates helps boost your <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="purchasing power" target="_blank" rel="noopener noreferrer">purchasing power</a> by bringing down your expected monthly mortgage payment. This means the lower mortgage rates <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="experts" target="_blank" rel="noopener noreferrer">experts</a> forecast <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="this year" target="_blank" rel="noopener noreferrer">this year</a> could be just what you need to reignite your homebuying goals.
While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/mortgages/mortgage-rate-forecast/#forecast" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”
It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="real estate " target="_blank" rel="noopener noreferrer">real estate </a>advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to <a href="https://www.simplifyingthemarket.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="less competition" target="_blank" rel="noopener noreferrer">less competition</a> from other buyers.
Bottom Line
The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.
2023-01-27T12:04:54-07:002023-01-27T12:05:17-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:5097Want To Sell Your House? Price It Right.Want To Sell Your House? Price It Right.
<img width="750" height="410" src="https://files.mykcm.com/2023/01/20114953/want-to-sell-your-house-price-it-right-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Want To Sell Your House? Price It Right. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/20114953/want-to-sell-your-house-price-it-right-KCM.jpg 750w, https://files.mykcm.com/2023/01/20114953/want-to-sell-your-house-price-it-right-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/20114953/want-to-sell-your-house-price-it-right-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Last year, the housing market slowed down in response to higher mortgage rates, and that had an impact on home prices. If you’re thinking of <a href="https://www.simplifyingthemarket.com/2023/01/05/3-best-practices-for-selling-your-house-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="selling" target="_blank" rel="noopener noreferrer">selling</a> your house soon, that means you’ll want to adjust your expectations accordingly. As realtor.com <a href="https://www.realtor.com/advice/sell/home-selling-rules-youve-heard-lately-that-you-might-want-to-break/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . some of the more prominent pandemic trends have changed, so sellers might wish to adjust accordingly to get the best deal possible.”
In a more moderate market, how you price your house will make a big difference to not only your bottom line, but to how quickly your house could sell. And the reality is, homes priced right are still selling in today’s market.
Why Pricing Your House Appropriately Matters
Especially today, your asking price sends a message to potential buyers.
If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.
If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what that means about the home.
To avoid either headache, price it right from the start. A <a href="https://www.simplifyingthemarket.com/2022/12/29/planning-to-sell-your-house-its-critical-to-hire-a-pro/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="real estate professional" target="_blank" rel="noopener noreferrer">real estate professional</a> knows how to determine that ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly.
The visual below helps summarize the impact your asking price can have:
<a href="https://files.mykcm.com/2023/01/20114949/price-it-right-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106994" src="https://files.mykcm.com/2023/01/20114949/price-it-right-MEM.png" alt="Want To Sell Your House? Price It Right. | MyKCM" width="600" height="338" /></a>
Bottom Line
Homes that are priced at current market value are still selling. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassle, let’s connect.
2023-01-27T12:03:29-07:002023-01-27T12:04:09-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:4751 Should You Still Buy a Home with the Latest News About Inflation?Should You Still Buy a Home with the Latest News About Inflation?
<img width="750" height="410" src="https://files.mykcm.com/2022/10/18114302/20221019-KCM-Share-2.jpg" class="attachment-entry size-entry wp-post-image" alt="Should You Still Buy a Home with the Latest News About Inflation? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/18114302/20221019-KCM-Share-2.jpg 750w, https://files.mykcm.com/2022/10/18114302/20221019-KCM-Share-2-600x328.jpg 600w, https://files.mykcm.com/2022/10/18114302/20221019-KCM-Share-2-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
While the Federal Reserve is working hard to <a href="https://www.simplifyingthemarket.com/2022/09/27/how-an-expert-can-help-you-understand-inflation-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="bring down inflation" target="_blank" rel="noopener noreferrer">bring down inflation</a>, the latest data shows the <a href="https://www.bls.gov/news.release/cpi.nr0.htm" title="inflation rate" target="_blank" rel="noopener noreferrer">inflation rate</a> is still high, remaining around 8%. This news impacted the stock market and added fuel to the fire for conversations about a recession.
You’re likely feeling the impact in your day-to-day life as you watch the cost of goods and services climb. The <a href="https://www.simplifyingthemarket.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="pinch" target="_blank" rel="noopener noreferrer">pinch</a> it’s creating on your wallet and the looming economic uncertainty may leave you wondering: “should I still <a href="https://www.simplifyingthemarket.com/2022/10/05/the-long-term-benefit-of-homeownership/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> right now?” If that question is top of mind for you, here’s what you need to know.
Homeownership Is Historically a Great Hedge Against Inflation
In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge against those rising costs because you can lock in what’s likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
And with <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="rents" target="_blank" rel="noopener noreferrer">rents</a> being as high as they are, the ability to stabilize your monthly payments and protect yourself from future rent hikes may be even more important. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-inflation-october-13-2022" title="explains" target="_blank" rel="noopener noreferrer">explains</a> what happened to rents in the latest inflation report:
“Inflation refuses to budge. In September, consumer prices rose by 8.2%. Rents rose by 7.2%, the highest pace in 40 years.”
When you rent, your monthly payment is determined by your lease, which typically renews on an annual basis. With inflation high, your landlord may be more likely to increase your payments to offset the impact of inflation. That may be part of the reason why a <a href="https://www.realtor.com/research/july-2022-rent/" title="survey" target="_blank" rel="noopener noreferrer">survey</a> from realtor.com shows 72% of landlords said they plan to raise the rent on one or more of their properties in the next year.
Becoming a homeowner, if you’re ready and able to do so, can provide lasting stability and a reliable shelter in times of economic uncertainty.
Bottom Line
The best hedge against inflation is a fixed housing cost. If you’re ready to learn more and start your journey to homeownership, let’s connect.
2022-10-20T07:44:18-07:002022-10-20T07:45:09-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:4750What’s Ahead for Home Prices?What’s Ahead for Home Prices?
<img width="750" height="410" src="https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What’s Ahead for Home Prices? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As the <a href="https://www.simplifyingthemarket.com/2022/10/11/what-are-experts-saying-about-the-fall-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> cools in response to the dramatic rise in <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>, home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. But what’s true? What’s most likely to happen moving forward?
While opinions differ, the most likely outcome is we’ll fall somewhere in the middle of slight appreciation and slight depreciation. Here’s a look at the latest expert projections so you have the best information possible today.
What the Experts Are Saying About Home Prices Next Year
The graph below shows the most up-to-date forecasts from five experts in the housing industry. These are the experts that have most recently updated their projections based on current market trends:
<a href="https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1.png" target="_blank" rel="noopener noreferrer"><img class="wp-image-105159 aligncenter" src="https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1.png" alt="What’s Ahead for Home Prices? | MyKCM" width="600" height="450" /></a>
As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, just at a more moderate rate than recent years. The red bars on the graph are experts calling for home price depreciation.
While there isn’t a clear consensus, if you take the average (shown in green) of all five of these forecasts, the most likely outcome is, nationally, home price appreciation will be fairly flat next year.
What Does This Mean?
Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more.
The good news is home prices are expected to return to more normal levels of appreciation rather quickly. The latest <a href="https://wellsfargo.bluematrix.com/links2/html/429eb828-b17e-4e47-8856-4ff59f9d3d1a" title="forecast" target="_blank" rel="noopener noreferrer">forecast</a> from Wells Fargo shows that, while they feel prices will fall in 2023, they think prices will recover and net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of <a href="https://www.forbes.com/sites/qai/2022/08/30/housing-prices-are-dropping---yes-a-house-is-still-a-good-investment/?sh=54fdefd17372" title="4%" target="_blank" rel="noopener noreferrer">4%</a> annual appreciation.
And the <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Home Price Expectation Survey" target="_blank" rel="noopener noreferrer">Home Price Expectation Survey</a> (HPES) from Pulsenomics, a poll of over one hundred industry experts, also calls for ongoing appreciation of roughly 2.6 to 4% from 2024-2026. This goes to show, even if prices decline slightly next year, it’s not expected to be a lasting trend.
As Jason Lewris, Co-Founder and Chief Data Officer for Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
Don’t let fear or uncertainty change your plans. If you’re unsure about where prices are headed or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way.
Bottom Line
The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market.
2022-10-20T07:42:15-07:002022-10-20T07:43:25-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:4589 What’s Actually Happening with Home Prices Today?What’s Actually Happening with Home Prices Today?
<img width="750" height="410" src="https://files.mykcm.com/2022/08/29125429/20220830-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What’s Actually Happening with Home Prices Today? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/08/29125429/20220830-KCM-Share.jpg 750w, https://files.mykcm.com/2022/08/29125429/20220830-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/08/29125429/20220830-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
One of the biggest questions people are asking right now is: what’s happening with home prices? There are headlines about ongoing price appreciation, but at the same time, some sellers are reducing the price of their homes. That can feel confusing and makes it more difficult to get a clear picture.
Part of the challenge is that it can be hard to understand what experts are saying when the words they use sound similar. Let’s break down the differences among those terms to help clarify what’s actually happening today.
Appreciation is when home prices increase.
Depreciation is when home prices decrease.
Deceleration is when home prices continue to appreciate, but at a slower or more moderate pace.
Experts agree that, nationally, what we’re seeing today is deceleration. That means home prices are appreciating, just not at the record-breaking pace they have over the past year. In 2021, <a href="https://www.corelogic.com/intelligence/corelogic-hpi-posted-record-year-over-year-growth-in-2021/" title="data" target="_blank" rel="noopener noreferrer">data</a> from CoreLogic tells us home prices appreciated by an average of 15% nationwide. And earlier this year, that appreciation was upward of 20%. This year, <a href="https://www.simplifyingthemarket.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="experts forecast" target="_blank" rel="noopener noreferrer">experts forecast</a> home prices will appreciate at a decelerated pace of around 10 to 11%, on average.
The graph below uses the <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights/" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from CoreLogic to help tell the story of how home prices are decelerating, but not depreciating so far this year.
<a href="https://files.mykcm.com/2022/08/29125430/20220830-MEM-Eng.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104401" src="https://files.mykcm.com/2022/08/29125430/20220830-MEM-Eng.png" alt="What’s Actually Happening with Home Prices Today? | MyKCM" width="600" height="450" /></a>
As the green bars show, home prices appreciated between 19-20% year-over-year from January to March. But over the last few months, the pace of that appreciation has decelerated to 18%. This means price growth is still climbing compared to last year but at a slower rate.
As the Monthly Mortgage Monitor from Black Knight <a href="https://www.blackknightinc.com/black-knights-june-2022-mortgage-monitor/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Annual home price growth dropped by nearly two percentage points . . . – the greatest single-month slowdown on record since at least the early 1970s. . . While June’s slowdown was record-breaking, home price growth would need to decelerate at this pace for six more months to drive annual appreciation back to 5%, a rate more in line with long-run averages.”
Basically, this means, while moderating, home prices are still far above the norm, and we’d have to see a lot more deceleration to even fall in line with more typical rates of home price growth. That’s still not home price depreciation.
The big takeaway is home prices haven’t fallen or depreciated nationwide, they’re just decelerating or moderating. While some unique and overheated markets may see declines, nationally, home prices are forecast to appreciate. And when we look at the country as a whole, none of the experts <a href="https://www.simplifyingthemarket.com/2022/08/05/housing-market-forecast-for-the-rest-of-2022-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="project" target="_blank" rel="noopener noreferrer">project</a> home prices will net depreciate or fall. They’re all projecting ongoing appreciation.
Bottom Line
If you have questions about what’s happening with home prices in our local area, let’s connect.
2022-09-08T04:47:00-07:002022-09-08T04:49:45-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:4392Expert Housing Market Forecasts for the Second Half of the YearExpert Housing Market Forecasts for the Second Half of the Year
<img width="750" height="410" src="https://files.mykcm.com/2022/07/08111814/20220712-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Expert Housing Market Forecasts for the Second Half of the Year | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/07/08111814/20220712-KCM-Share.jpg 750w, https://files.mykcm.com/2022/07/08111814/20220712-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/07/08111814/20220712-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The <a href="https://www.simplifyingthemarket.com/2022/06/14/is-the-housing-market-correcting/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> is at a turning point, and if you’re thinking of buying or selling a home, that may leave you wondering: is it still a good time to buy a home? Should I make a move this year? To help answer those questions, let’s turn to the experts for projections on what the second half of the year holds for residential real estate.
Where Mortgage Rates Will Go Depends on Inflation
While one of the big questions on all buyers’ minds is where will mortgage rates go in the months ahead, no one has a crystal ball to know exactly what’ll happen in the future. What <a href="https://www.simplifyingthemarket.com/2022/06/27/two-reasons-why-todays-housing-market-isnt-a-bubble/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> experts know for sure is that the record-low mortgage rates during the pandemic were an outlier, not the norm.
This year, rates have climbed <a href="https://www.freddiemac.com/pmms/archive" title="over 2%" target="_blank" rel="noopener noreferrer">over 2%</a> due to the Federal Reserve’s response to <a href="https://www.simplifyingthemarket.com/2022/06/23/homeownership-is-a-great-hedge-against-the-impact-of-rising-inflation/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="rising inflation" target="_blank" rel="noopener noreferrer">rising inflation</a>. If inflation continues to rise, it’s likely that mortgage rates will respond. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.marketwatch.com/picks/until-inflation-peaks-mortgage-rates-wont-either-we-asked-3-economists-and-real-estate-pros-will-mortgage-rates-climb-higher-this-summer-01655941487" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it well:
“Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.”
Whether you’re buying your <a href="https://www.simplifyingthemarket.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="first home" target="_blank" rel="noopener noreferrer">first home</a> or selling your current house to <a href="https://www.simplifyingthemarket.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="make a move" target="_blank" rel="noopener noreferrer">make a move</a>, today’s mortgage rate is an important factor to consider. When rates rise, they impact affordability and your purchasing power. That’s why it’s crucial to work with a team of professionals, so you have expert advice to help you make an informed decision about your best move.
The Supply of Homes for Sale Projected To Continue Increasing
This year, particularly this spring, the <a href="https://www.simplifyingthemarket.com/2022/06/28/a-key-opportunity-for-homebuyers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="number of homes for sale" target="_blank" rel="noopener noreferrer">number of homes for sale</a> has grown. That’s partly due to more homeowners listing their houses, but also because higher mortgage rates have helped ease the intensity of buyer demand. Moderating buyer demand slows down the pace of home sales, which in turn helps <a href="https://www.simplifyingthemarket.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="inventory rise" target="_blank" rel="noopener noreferrer">inventory rise</a>.
Experts say that growth will continue. Recently, realtor.com updated their <a href="https://news.move.com/2022-06-13-Realtor-com-R-2022-Forecast-Update-Real-Estate-Gets-a-Refresh-from-the-Frenzy" title="2022 inventory forecast" target="_blank" rel="noopener noreferrer">2022 inventory forecast</a>. In the latest release, they increased their projections for inventory gains dramatically, going from a 0.3% increase at the beginning of the year to a 15.0% jump by the end of 2022 (see graph below):
<a href="https://files.mykcm.com/2022/07/08111808/20220712-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103337" src="https://files.mykcm.com/2022/07/08111808/20220712-MEM-Eng-1.png" alt="Expert Housing Market Forecasts for the Second Half of the Year | MyKCM" width="600" height="450" /></a>
More homes to choose from is great news if you’re craving more options for your home search – just know that there isn’t a sudden surplus of inventory on the horizon. Housing supply is still low, so you’ll need to partner with an agent to stay on top of what’s available in your market and move fast when you find the one. It’s not going to be easy to find a home, but it certainly won’t be as difficult as it has been over the past two years.
Home Price Forecasts Call for Ongoing Appreciation
Due to the imbalance between the number of homes for sale and the number of buyers looking to make a purchase, the pandemic led to record-breaking increases in home prices. According to <a href="https://www.corelogic.com/intelligence/corelogic-hpi-posted-record-year-over-year-growth-in-2021/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>, homes appreciated by 15% in 2021, and they’ve continued to rise this year.
Even though housing supply is increasing today, there are still more buyers than there are homes for sale, and that’s maintaining the upward pressure on <a href="https://www.simplifyingthemarket.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a>. That’s why experts are not calling for prices to decline, rather they’re forecasting they’ll continue to climb, just at a more moderate pace this year. On average, homes are projected to appreciate by about 8.5% in 2022 (see graph below):
<a href="https://files.mykcm.com/2022/07/08111811/20220712-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103338" src="https://files.mykcm.com/2022/07/08111811/20220712-MEM-Eng-2.png" alt="Expert Housing Market Forecasts for the Second Half of the Year | MyKCM" width="600" height="450" /></a>
Selma Hepp, Deputy Chief Economist at CoreLogic, <a href="https://www.bankrate.com/real-estate/housing-market-predictions/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why the housing market will see deceleration, but not depreciation, in prices:
“The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”
For current homeowners looking to sell, know your home’s value isn’t projected to fall, but waiting to make your purchase does mean your next home could cost more as home prices continue to appreciate. That’s why, if you’re thinking about buying your first home or you’re ready to make a move, it may make sense to do so now before prices climb higher. But rest assured, once you buy a home, that price appreciation will help grow the value of your <a href="https://www.simplifyingthemarket.com/2022/06/13/more-americans-choose-real-estate-as-the-best-investment-than-ever-before/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="investment" target="_blank" rel="noopener noreferrer">investment</a>.
Bottom Line
Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can determine the best plan for your move.
2022-07-20T11:28:00-07:002022-07-20T11:37:05-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:4217 Homeownership Is a Great Hedge Against the Impact of Rising InflationHomeownership Is a Great Hedge Against the Impact of Rising Inflation
<img width="750" height="410" src="https://files.mykcm.com/2022/06/22164521/20220623-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Homeownership Is a Great Hedge Against the Impact of Rising Inflation | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/06/22164521/20220623-KCM-Share.jpg 750w, https://files.mykcm.com/2022/06/22164521/20220623-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/06/22164521/20220623-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re following along with the news today, you’ve heard about rising inflation. Today, <a href="https://www.simplifyingthemarket.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="inflation" target="_blank" rel="noopener noreferrer">inflation</a> is at a <a href="https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html" title="40-year high" target="_blank" rel="noopener noreferrer">40-year high</a>. According to the <a href="https://eyeonhousing.org/2022/06/inflation-hits-a-fresh-40-year-high-in-may/" title="National Association of Home Builders" target="_blank" rel="noopener noreferrer">National Association of Home Builders</a> (NAHB):
“Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.”
With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.
Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" title="explains" target="_blank" rel="noopener noreferrer">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both rental prices and <a href="https://www.simplifyingthemarket.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in <a href="https://www.simplifyingthemarket.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="homeownership" target="_blank" rel="noopener noreferrer">homeownership</a>.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Investing in an Asset That Historically Outperforms Inflation
While it’s true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That’s because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<a href="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103042" src="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png" alt="Homeownership Is a Great Hedge Against the Impact of Rising Inflation | MyKCM" width="600" height="450" /></a>
So, what does that mean for you? Today, experts <a href="https://www.simplifyingthemarket.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="forecast" target="_blank" rel="noopener noreferrer">forecast</a> home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your <a href="https://www.simplifyingthemarket.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="equity" target="_blank" rel="noopener noreferrer">equity</a> and your <a href="https://www.simplifyingthemarket.com/2022/03/28/a-key-to-building-wealth-is-homeownership/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a>. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if you’re ready and able, it makes sense to buy today before prices rise further.
Bottom Line
If you’ve been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home.
2022-06-29T05:50:00-07:002022-06-29T05:52:54-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:4025 If You’re a Homeowner, You Have Incredible Leverage When You Sell TodayIf You’re a Homeowner, You Have Incredible Leverage When You Sell Today
<img width="750" height="410" src="https://files.mykcm.com/2022/05/12164208/20220516-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="If You’re a Homeowner, You Have Incredible Leverage When You Sell Today | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/05/12164208/20220516-KCM-Share.jpg 750w, https://files.mykcm.com/2022/05/12164208/20220516-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/05/12164208/20220516-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In today’s <a href="https://www.simplifyingthemarket.com/2022/05/06/2022-housing-market-forecast-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a>, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. That’s because there’s a <a href="https://www.simplifyingthemarket.com/2022/04/14/on-the-fence-of-whether-or-not-to-move-this-spring-consider-this/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="limited number" target="_blank" rel="noopener noreferrer">limited number</a> of homes for sale, which is creating competition among buyers. Right now, homebuyers want three things:
To be the <a href="https://www.simplifyingthemarket.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="winning bid" target="_blank" rel="noopener noreferrer">winning bid</a> on their dream home
To buy before <a href="https://www.simplifyingthemarket.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> rise more
To buy before <a href="https://www.simplifyingthemarket.com/2022/05/02/todays-home-price-appreciation-is-great-news-for-existing-homeowners/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> go even higher
These buyer needs give you an amazing advantage – also known as leverage – when you sell.
What Does This Mean for Sellers Today?
You might already realize this enables you to sell at a <a href="https://www.simplifyingthemarket.com/2022/04/25/is-it-enough-to-offer-asking-price-in-todays-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="good price" target="_blank" rel="noopener noreferrer">good price</a>, but you’re also in a great position to get the best terms to suit your needs.
According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> from the National Association of Realtors (NAR), the average home sold is receiving 4.8 offers. That’s why there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, you should look closely at the terms of each offer to find out which one has the best options for you.
And if you have questions at any point in the process, remember your trusted <a href="https://www.simplifyingthemarket.com/2022/04/12/why-a-real-estate-professional-is-key-when-selling-your-house/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a> can help. They’re experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation.
Bottom Line
If you’re thinking of selling your home, know buyer demand in today’s market gives you a great opportunity to get the best terms and price when you sell your house. Let’s connect today to discuss how much leverage you have as a seller in today’s market.
2022-05-19T08:58:00-07:002022-05-19T08:59:27-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3675The #1 Reason To Sell Your House TodayThe #1 Reason To Sell Your House Today
<img width="750" height="410" src="https://files.mykcm.com/2022/02/23123145/20220224-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The #1 Reason To Sell Your House Today | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/02/23123145/20220224-KCM-Share.jpg 750w, https://files.mykcm.com/2022/02/23123145/20220224-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/02/23123145/20220224-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Almost every industry is currently struggling with supply chain disruptions. This also applies to the current U.S. housing market, where buyer demand far exceeds housing supply.
Purchaser demand is very strong right now. The National Association of Realtors (NAR) just released their latest <a href="https://www.nar.realtor/newsroom/existing-home-sales-surge-6-7-in-january" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> which reveals that sales surged in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions. However, there’s one big challenge.
Inventory Is at an All-Time Low
Because purchaser demand is so high, the market is running out of available homes for sale. The above-mentioned report states that the current months’ supply of inventory of homes for sale has fallen to 1.6 months. This prompts Lawrence Yun, Chief Economist at NAR, to say:
“The inventory of homes on the market remains woefully depleted, and in fact is currently at an all-time low.”
Earlier this month, realtor.com released their <a href="https://www.realtor.com/research/data/" title="inventory data" target="_blank" rel="noopener noreferrer">inventory data</a> for January. It helps confirm this point. Here’s a graph comparing inventory levels for January over the last six years:
<a href="https://files.mykcm.com/2022/02/23123141/20220224-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-101263" src="https://files.mykcm.com/2022/02/23123141/20220224-MEM-Eng-1.png" alt="The #1 Reason To Sell Your House Today | MyKCM" width="600" height="450" /></a>
As the graph shows, new listings coming on the market have decreased over the last four years (shown in blue in the graph). The graph also reveals that carry-over inventory has plummeted in recent years. This is because listings are now sold so quickly, they don’t stay on the market long enough to carry over month-to-month (shown in green in the graph). In other words, homes are not staying on the market for months as they had prior to the pandemic. In the report mentioned above, NAR reveals that:
“Seventy-nine percent of homes sold in January 2022 were on the market for less than a month.”
Odeta Kushi, Deputy Chief Economist at First American, <a href="https://twitter.com/odetakushi/status/1494695509486936067" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“A higher velocity of sales (lower [Days on Market]) helps to explain a housing market characterized by both higher sales & lower inventory. Many resale transactions are happening so quickly that they ‘flow’ in & then out of the ‘stock’ between the fixed monthly measurement of inventory.”
What Does This Mean for Sellers?
Anyone thinking of putting their home on the market shouldn’t wait. A seller will always negotiate the best deal when demand is high and supply is limited. That’s exactly the situation in the real estate market today.
Later this year, inventory (and by extension, your competition) will increase as many homeowners are waiting to put their homes on the market in the spring and early summer.
In addition, Len Kiefer, Deputy Chief Economist at Freddie Mac, <a href="https://twitter.com/lenkiefer/status/1494423003224059914" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Housing starts start off 2022 strong, just edging out 2021 for most in January since 2006.”
As these newly built homes are completed, they will also become competition for your house. This gives you a tremendous opportunity right now. Don’t wait for that increase in competition in your area. If you want to sell in 2022 and are ready to start the process, today is the day to list your house.
Bottom Line
If you’re ready to sell, let’s connect to get your house on the market while today’s inventory situation is in your favor.
2022-02-24T08:29:00-07:002022-02-24T08:30:36-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3574Why Pre-Approval Is Key for Homebuyers in 2022Why Pre-Approval Is Key for Homebuyers in 2022
<img width="750" height="410" src="https://files.mykcm.com/2022/01/21102635/20220124-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Pre-Approval Is Key for Homebuyers in 2022 | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/01/21102635/20220124-KCM-Share.jpg 750w, https://files.mykcm.com/2022/01/21102635/20220124-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/01/21102635/20220124-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
You may have heard that it’s important to get <a href="https://www.simplifyingthemarket.com/2021/05/07/the-power-of-mortgage-pre-approval-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="pre-approved">pre-approved</a> for a mortgage at the beginning of the <a href="https://www.simplifyingthemarket.com/2021/11/19/your-journey-to-homeownership-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="homebuying&nbsp;process">homebuying process</a>, but what does that really mean, and why is it so important? Especially in today’s market, with rising <a href="https://www.simplifyingthemarket.com/2022/01/13/whats-going-to-happen-with-home-prices-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home prices">home prices</a> and high <a href="https://www.simplifyingthemarket.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buyer competition">buyer competition</a>, it’s crucial to have a pre-approval letter prior to making an offer. Here’s why.
Being intentional and competitive are musts when buying a home this year. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.
With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes today are receiving an average of <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="3.8 offers" target="_blank" rel="noopener noreferrer">3.8 offers</a> for sellers to consider. As a result, bidding wars are still common. Pre-approval gives you an <a href="https://www.simplifyingthemarket.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="advantage">advantage</a> if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.
Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/20180926_strategies_for_winning_the_bidding_war.page" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“By having a <a href="https://myhome.freddiemac.com/blog/homeownership/20201001_get_pre_approved.page" title="pre-approval letter" target="_blank" rel="noopener noreferrer">pre-approval letter</a> from your lender, you’re telling the seller that you’re a serious buyer, and you’ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don’t already have one.”<br />
Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly <a href="https://www.simplifyingthemarket.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="changing">changing</a>. Interest rates are rising, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate advisor making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.
2022-01-26T13:07:00-07:002022-01-26T13:09:09-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3489 Why Waiting To Sell Your House Could Cost You a Small FortuneWhy Waiting To Sell Your House Could Cost You a Small Fortune
<img width="750" height="410" src="https://files.mykcm.com/2022/01/04142940/20220105-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/01/04142940/20220105-KCM-Share.jpg 750w, https://files.mykcm.com/2022/01/04142940/20220105-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/01/04142940/20220105-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Many homeowners who plan to sell in 2022 may think the wise thing to do is to wait for the spring buying market since historically about <a href="https://www.fortunebuilders.com/homebuyers-guide-to-the-busy-spring-selling-season/" title="40 percent" target="_blank" rel="noopener noreferrer">40 percent</a> of home sales occur between April and July. However, this year’s expected to be much different than the norm. Here are five reasons to list your house now rather than waiting until the spring.
1. Buyers Are Looking Right Now, and They’re Ready To Purchase
The ShowingTime Showing Index reports data from more than six million property showings scheduled across the country each month. In other words, it’s a gauge of how many buyers are out looking at homes at the current time.
The latest index, which covers <a href="https://www.showingtime.com/blog/november-2021-showing-index-results/" title="November showings" target="_blank" rel="noopener noreferrer">November showings</a>, reveals that buyers are still very active in the market. Comparing this November’s numbers to previous years, this graph shows that the index is higher than last year and much higher than the three years prior to the pandemic. Clearly, there’s an influx of buyers searching for your home.
<a href="https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-100496" src="https://files.mykcm.com/2022/01/04142943/20220105-MEM-Eng-1.png" alt="Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM" width="600" height="450" /></a>
Also, at this time of year, only those purchasers who are serious about buying a home will be in the market. You and your loved ones won’t be inconvenienced by casual searchers. Freddie Mac addresses this in a <a href="https://myhome.freddiemac.com/blog/homeownership/20170129-pros-cons-buying-home-in-winter" title="recent blog" target="_blank" rel="noopener noreferrer">recent blog</a>:
“The buyers who are willing to house hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”
And that theory is proving to be true right now based on the number of buyers who have put a home under contract to purchase. The National Association of Realtors (NAR) publishes a monthly Pending Home Sales Index which measures housing contract activity. It’s based on signed real estate contracts for existing single-family homes, condos, and co-ops. The <a href="https://www.nar.realtor/newsroom/pending-home-sales-subside-2-2-in-november" title="latest index" target="_blank" rel="noopener noreferrer">latest index</a> shows:
“…housing demand continues to be high. . . . Homes placed on the market for sale go from ‘listed status’ to ‘under contract’ in approximately 18 days.”
Comparing the index to previous Novembers, while it’s slightly below November 2020 (when sales were pushed to later in the year because of the pandemic), it’s well above the previous three years.
<a href="https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-100497" src="https://files.mykcm.com/2022/01/04142946/20220105-MEM-Eng-2.png" alt="Why Waiting To Sell Your House Could Cost You a Small Fortune | MyKCM" width="600" height="450" /></a>
The takeaway for you: There are purchasers in the market, and they’re ready and willing to buy.
2. Other Sellers Plan To List Earlier This Year
The law of supply and demand tells us that if you want the best price possible and to negotiate your ideal contract terms, put your house on the market when there’s strong demand and less competition.
A <a href="https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter" title="recent study" target="_blank" rel="noopener noreferrer">recent study</a> by realtor.com reveals that, unlike in previous years, sellers plan to list their homes this winter instead of waiting until spring or summer. The study shows that 65% of sellers who plan to sell in 2022 have either already listed their home (19%) or are planning to put it on the market this winter.
Again, if you’re looking for the best price and the ability to best negotiate the other terms of the sale of your house, listing before this competition hits the market makes sense.
3. Newly Constructed Homes Will Be Your Competition in the Spring
In 2020, there were over <a href="https://www.census.gov/construction/bps/" title="979,000" target="_blank" rel="noopener noreferrer">979,000</a> new single-family housing units authorized by building permits. Many of those homes have yet to be built because of labor shortages and supply chain bottlenecks brought on by the pandemic. They will, however, be completed in 2022. That will create additional competition when you sell your house. Beating these newly constructed homes to the market is something you should consider to ensure your house gets as much attention from interested buyers as possible.
4. There Will Never Be a Better Time To Move-Up
If you’re moving into a larger, more expensive home, consider doing it now. Prices are projected to appreciate by <a href="https://www.simplifyingthemarket.com/2021/12/15/what-everyone-wants-to-know-will-home-prices-decline-in-2022/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="approximately 5%">approximately 5%</a> over the next 12 months. That means it will cost you more (both in down payment and mortgage payment) if you wait. You can also lock in your 30-year housing expense with a mortgage rate in the <a href="http://www.freddiemac.com/pmms/" title="low 3’s" target="_blank" rel="noopener noreferrer">low 3’s</a> right now. If you’re thinking of selling in 2022, you may want to do it now instead of waiting, as mortgage rates are <a href="https://www.simplifyingthemarket.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="forecast to rise">forecast to rise</a> throughout the year.
5. It May Be Time for You To Make a Change
Consider why you’re thinking of selling in the first place and determine whether it’s worth waiting. Is waiting more important than being closer to your loved ones now? Is waiting more important than your health? Is waiting more important than having the space you truly need?
Only you know the answers to those questions. Take time to think about your goals and priorities as we move into 2022 and consider what’s most important to act on now.
Bottom Line
If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, let’s connect so you have expert advice on the best time to put your house on the market.
2022-01-10T06:40:00-07:002022-01-10T06:41:15-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3488 Real Estate Professionals Are Experts at Keeping You Safe When You SellReal Estate Professionals Are Experts at Keeping You Safe When You Sell
<img width="750" height="410" src="https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Real Estate Professionals Are Experts at Keeping You Safe When You Sell | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share.jpg 750w, https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re on the fence about whether or not you want to sell your house this year, there’s good news. For nearly two years, real estate professionals have worked tirelessly to ensure the safety of <a href="https://www.simplifyingthemarket.com/2021/12/20/homebuyers-be-ready-to-act-this-winter/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buyers">buyers</a> and <a href="https://www.simplifyingthemarket.com/2021/12/13/if-you-think-the-housing-market-will-slow-this-winter-think-again/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="sellers">sellers</a> during the pandemic.
Today, they’re seasoned experts, not just in the art of buying and selling homes, but also in how to keep you safe throughout the process. <a href="https://www.simplifyingthemarket.com/2021/12/30/why-selling-your-house-with-a-real-estate-professional-is-essential/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="Real estate professionals">Real estate professionals</a> have learned new technologies plus safety and sanitation measures. As new variants emerge, those lessons continue to be key ways agents add value.
Real Estate Advisors Stay Current on Guidance for In-Person Showings
Agents don’t leave your health up to chance. They follow guidance from the <a href="https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/disinfecting-your-home.html" title="Centers for Disease Control" target="_blank" rel="noopener noreferrer">Centers for Disease Control</a> (CDC) and the <a href="https://www.nar.realtor/coronavirus/guide-for-realtors" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR) to ensure in-person showings are safe. NAR maintains industry-specific resources to ensure agents are informed on the latest recommendations and best practices.
Guidance from the CDC also equips real estate professionals with the know-how to employ sanitization and disinfectant measures during the health crisis, so they’re safe for you and your potential buyers.
Digital Tools Can Enhance Your Home Sale
In addition, agents are also well versed in using technology and digital tools to sell your home efficiently. In their guidance for realtors, NAR <a href="https://www.nar.realtor/coronavirus/guide-for-realtors" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The COVID-19 pandemic is impacting members in unprecedented ways, and raises numerous unique and novel issues for the real estate industry.”
Real estate advisors have responded by reimagining the tech and tools they use. For instance, serving clients at a distance and limiting exposure to others is more important now than ever. That’s because restricting the number of people you need to interact with during the sales process is one of the best ways to keep everyone safe.
To accomplish this, agents now use a variety of <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-technology-survey-08-03-2021.pdf" title="methods" target="_blank" rel="noopener noreferrer">methods</a> to serve their clients, including:
Virtual Open Houses, Tours, and Listing Appointments
High-Quality Photos for Websites and Social Media
eSignature
Video Conferencing
Bottom Line
The health challenges we face today have fundamentally changed the way real estate professionals conduct business for the better. Let’s connect today so you have the latest tools on your side to feel safe and confident when you sell your house this year.
2022-01-10T06:37:00-07:002022-01-10T06:38:28-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3439 If You Think the Housing Market Will Slow This Winter, Think Again.If You Think the Housing Market Will Slow This Winter, Think Again.
<img width="750" height="410" src="https://files.mykcm.com/2021/12/10135057/20211213-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="If You Think the Housing Market Will Slow This Winter, Think Again. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/12/10135057/20211213-KCM-Share.jpg 750w, https://files.mykcm.com/2021/12/10135057/20211213-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/12/10135057/20211213-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
From the opportunity to take advantage of today’s low <a href="https://www.simplifyingthemarket.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="mortgage rates">mortgage rates</a> to changing <a href="https://www.simplifyingthemarket.com/2021/11/30/home-is-where-the-heart-is-more-than-ever-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="homeowner needs">homeowner needs</a>, Americans have more <a href="https://www.simplifyingthemarket.com/2021/11/16/sellers-youll-likely-get-multiple-strong-offers-this-season/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="motivation">motivation</a> than ever to buy a home. According to the experts, buyers are making moves right now, creating an unseasonably strong housing market for this time of year.
As we wrap up the fall season and move into the winter months, here’s a look at what several industry leaders have to say about the continued momentum in the current market, and what it means as we head into the early part of next year.
<a href="https://www.nar.realtor/newsroom/pending-home-sales-jump-7-5-in-october" title="Lawrence Yun, Chief Economist, National Association of Realtors (NAR)" target="_blank" rel="noopener noreferrer">Lawrence Yun, Chief Economist, National Association of Realtors (NAR)</a>
“This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low. The notable gain in October assures that total existing-home sales in 2021 will exceed 6 million, which will shape up to be the best performance in 15 years.”
<a href="https://twitter.com/odetakushi/status/1463521105407266829" title="Odeta Kushi, Deputy Chief Economist, First American" target="_blank" rel="noopener noreferrer">Odeta Kushi, Deputy Chief Economist, First American</a>
“So far in November, purchase applications point to another strong month in sales. Still low rates and demographic demand support this strength, even as affordability and inventory headwinds remain.”
<a href="https://themreport.com/daily-dose/11-19-2021/buyer-peak-levels" title="The M Report" target="_blank" rel="noopener noreferrer">The M Report</a>
“The demand for housing in the United States has reached a fever pitch, a trend that opposes the norm of this time of the year when the market cools as the winter months set in.”
<a href="https://blog.firstam.com/economics/why-housing-market-potential-keeps-rising" title="Mark Fleming, Chief Economist, First American" target="_blank" rel="noopener noreferrer">Mark Fleming, Chief Economist, First American</a>
“Strong demographic demand will continue to act as the wind in the housing market’s sails.”
What does this mean for the winter housing market?
Buyers are actively in the market, and they’re competing for homes to purchase. With the momentum coming out of this fall, all signs point to the winter housing market picking up steam, making it much busier than in a more typical year. And as we’ve seen in so many ways, 2020 and 2021 were anything but typical in real estate. It looks like 2022 may be joining that list before we know it.
Bottom Line
If you think the housing market will slow down this winter, think again. Whether you’re thinking of buying a home, selling your house, or both – let’s connect to determine if this winter is your best time to make a move too.
2021-12-22T06:03:00-07:002021-12-22T06:03:43-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3438 The Average Homeowner Gained $56,700 in Equity over the Past YearThe Average Homeowner Gained $56,700 in Equity over the Past Year
<img width="750" height="410" src="https://files.mykcm.com/2021/12/20121022/20211221-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Average Homeowner Gained over $56,700 in Equity over the Past Year | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/12/20121022/20211221-KCM-Share.jpg 750w, https://files.mykcm.com/2021/12/20121022/20211221-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/12/20121022/20211221-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
When you think of homeownership, what’s the first thing that comes to mind? Chances are you might focus on the <a href="https://www.simplifyingthemarket.com/2021/11/30/home-is-where-the-heart-is-more-than-ever-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="non-financial benefits">non-financial benefits</a>, like the security or stability a home provides. But what about equity? While it can be overlooked, a homeowner’s equity helps build long-term wealth over time. Here’s a look at what equity is and why it matters.
For a homeowner, your equity is the current value of your home minus what you owe on the loan. So, as <a href="https://www.simplifyingthemarket.com/2021/11/10/whats-happening-with-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home&nbsp;values climb">home values climb</a>, your equity does too. That’s exactly what’s happening today. There <a href="https://www.simplifyingthemarket.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="aren’t enough homes">aren’t enough homes</a> on the market to meet buyer demand, so bidding wars and multiple offers are driving <a href="https://www.simplifyingthemarket.com/2021/08/16/a-look-at-home-price-appreciation-and-what-it-means-for-sellers/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="prices">prices</a> up. That’s because people are willing to pay more to buy a home. Right now, this low supply and high demand are giving current homeowners a significant equity boost.
Dr. Frank Nothaft, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“Home price growth is the principal driver of home equity creation. The CoreLogic Home Price Index reported home prices were up 17.7% for the past 12 months ending September, spurring the record gains in home equity wealth.”
To find out just how much rising home values have impacted equity, we turn to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights</a> from CoreLogic. According to that report, the average homeowner’s equity has grown by $56,700 over the last 12 months.
Curious how your state stacks up? Check out the map below to find out the average equity gain for your area.<a href="https://files.mykcm.com/2021/12/20170247/20211221-MEM-Eng.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-100413" src="https://files.mykcm.com/2021/12/20170247/20211221-MEM-Eng.png" alt="The Average Homeowner Gained over $56,700 in Equity over the Past Year | MyKCM" width="600" height="450" /></a>
How Rising Equity Impacts You<br />
If you’re already a homeowner, equity not only builds your wealth, it also <a href="https://www.simplifyingthemarket.com/2021/11/22/4-ways-homeowners-can-use-their-equity/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="opens doors">opens doors</a> for you to achieve your goals. It works like this: when you sell your house, the equity you built up comes back to you in the sale. You can use those proceeds to fuel your next move, especially if you’ve decided your needs have <a href="https://www.simplifyingthemarket.com/2021/12/06/win-when-you-sell-and-when-you-move/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="changed">changed</a> and you’re looking for something new.
If you’re thinking about becoming a homeowner, understanding the importance of equity can help you realize why homeownership is a worthwhile goal. It builds your wealth and gives you peace of mind that your investment is a wise one, not just from a lifestyle perspective, but from a <a href="https://www.simplifyingthemarket.com/2021/10/07/111285-reasons-you-should-buy-a-home-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="financial">financial</a> one too.
Bottom Line
Whether you’re a current homeowner or you’re ready to become one, it’s important to know how equity works and why it matters. If this inspires you to make a move, let’s connect to explore your options and find out what steps you need to take next.
2021-12-22T06:01:00-07:002021-12-22T06:02:32-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3375Home Sales About To Surge? We May See a Winter Like Never Before.Home Sales About To Surge? We May See a Winter Like Never Before.
<img width="750" height="410" src="https://files.mykcm.com/2021/11/17135256/20211118-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Home Sales About To Surge? We May See a Winter Like Never Before. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/17135256/20211118-KCM-Share.jpg 750w, https://files.mykcm.com/2021/11/17135256/20211118-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/11/17135256/20211118-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Like most industries, residential real estate has a seasonality to it. For example, toy stores sell more toys in October, November, and December than they do in any other three-month span throughout the year. More cars are sold in the U.S. during the second quarter (April, May, and June) than in any other quarter of the year.
Real estate is very similar. The number of homes sold in the spring is almost always much greater than at any other time of the year. It’s even labeled as the spring buying season. Historically, the number of buyers and listings for sale significantly increase in the spring and remains strong throughout the summer. Once fall sets in, the number of buyers and sellers typically drops off.
Last year, however, that seasonality didn’t happen. The outbreak of the virus and subsequent slowing of the economy limited sales during the spring market. These sales were pushed back later in the year, and last fall and winter saw a dramatic increase in home sales over previous years. The only thing that held the market back was the extremely limited supply of homes for sale.
What About This Winter?
Some experts thought we’d return to the industry’s normal seasonality this winter with both the number of purchasers and houses available for sale falling off. However, data now shows that neither of those situations will likely occur. Buyer demand is still extremely strong, and it appears we may soon see a somewhat uncharacteristic increase in the number of homes coming to the market.
Buyer Demand Remains Strong
The latest <a href="https://www.showingtime.com/showingtime-showing-index/" title="Showing Index" target="_blank" rel="noopener noreferrer">Showing Index</a> from ShowingTime, which tracks the average number of monthly showings on available homes, indicates buyer activity was slightly lower than at the same time last year but much higher than any of the three previous years (see chart below):<a href="https://files.mykcm.com/2021/11/17135258/20211118-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99952" src="https://files.mykcm.com/2021/11/17135258/20211118-MEM-Eng-1.png" alt="Home Sales About To Surge? We May See a Winter Like Never Before. | MyKCM" width="600" height="450" /></a>A <a href="https://news.move.com/2021-11-10-Realtor-com-R-October-Housing-Report-Homes-Sell-at-Breakneck-Speed-for-the-Eighth-Month-in-a-Row" title="report" target="_blank" rel="noopener noreferrer">report</a> from realtor.com confirms buying activity remains strong in the existing home sales market:
“New housing data shows 2021's feverish home sales pace broke a yearly record in October, . . . with last month marking the eighth straight month of buyers snatching up homes more quickly than the fastest pace in previous years. . . .”
Buyer activity for newly constructed homes is also very strong. Ali Wolf, Chief Economist for Zonda, <a href="https://twitter.com/AliWolfEcon/status/1458180004366356488" title="recently reported" target="_blank" rel="noopener noreferrer">recently reported</a> that Stuart Miller, the Executive Chairman of Lennar, one of the nation’s largest home builders, said this about demand:
“There is still a great deal of demand at our sales centers with people lining up and not enough supply.”
The only question heading into this winter is whether the number of listings available could come close to meeting this buyer demand. We may have just received the answer to that question.
Sellers Are About To List – Right Now
Instead of waiting for the normal spring buying market, new research indicates that homeowners thinking about selling are about to put their homes on the market this winter.
Speaking to the release of a report on this <a href="https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter" title="recent research" target="_blank" rel="noopener noreferrer">recent research</a>, George Ratiu, Manager of Economic Research for realtor.com, said:
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.”
Here are some highlights in the report:
Of homeowners planning to enter the market in the next year:
65% - Have just listed (19%) or plan to list this winter
93% - Have already taken steps toward listing their home, including working with an agent (28%)
36% - Have researched the value of their home and others in their neighborhood
36% - Have started making repairs or decluttering
The report also discusses the reasons sellers want to move:
33% - Have realized they want different home features
37% - Say their home no longer meets their family's needs
32% - Want to move closer to friends and family
23% - Are looking for a home office
Data shows buyer demand remains unusually strong going into this winter. Research indicates the supply of inventory is about to increase. This could be a winter real estate market like never before.
Bottom Line
If you’re thinking of buying or selling, now is the time to have a heart-to-heart conversation with a real estate professional in your market, as things are about to change in an unexpected way.
2021-12-08T07:39:00-07:002021-12-08T07:39:52-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3374Why It Just Became Much Easier To Buy a HomeWhy It Just Became Much Easier To Buy a Home
<img width="750" height="410" src="https://files.mykcm.com/2021/12/06153054/20211207-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why It Just Became Much Easier To Buy a Home | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/12/06153054/20211207-KCM-Share.jpg 750w, https://files.mykcm.com/2021/12/06153054/20211207-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/12/06153054/20211207-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Since the pandemic began, Americans have reevaluated the meaning of the word home. That’s led some renters to realize the many benefits of homeownership, including the feelings of <a href="https://www.simplifyingthemarket.com/2021/11/30/home-is-where-the-heart-is-more-than-ever-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="security and stability">security and stability</a> and the financial benefits that come with rising <a href="https://www.simplifyingthemarket.com/2021/09/30/as-home-equity-rises-so-does-your-wealth/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home equity">home equity</a>. At the same time, many current homeowners have decided their house no longer meets their needs, so they moved into homes with more space inside and out, including a home office for <a href="https://www.simplifyingthemarket.com/2021/09/21/remote-work-is-here-to-stay-can-your-home-deliver-the-space-you-need/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="remote work">remote work</a>.
However, not every purchaser has been able to fulfill their desire for a new home. Here are two obstacles some homebuyers are facing:
The ability to save for a down payment
The ability to qualify for a mortgage at the current lending standards
This past week, both of those challenges have been mitigated to some degree for many purchasers. The FHFA (which handles mortgages by Freddie Mac, Fannie Mae, and the Federal Housing Administration) is raising its loan limit for prospective purchasers in 2022. The term used to describe the maximum loan amount they will entertain is the Conforming Loan Limit.
What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?
Investopedia explains the difference in a <a href="https://www.investopedia.com/federal-agency-announces-2022-conforming-limits-for-conventional-loans-5211394" title="recent post" target="_blank" rel="noopener noreferrer">recent post</a>:
“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”
What Difference Does It Make to Me as a Home Buyer?
A Forbes <a href="https://www.forbes.com/advisor/mortgages/conforming-vs-non-conforming-loan/" title="article" target="_blank" rel="noopener noreferrer">article</a> earlier this year explains the benefits of a conforming loan and why they exist:
“Since lenders can’t sell non-conforming loans to Fannie Mae or Freddie Mac to free up their cash, they’re a bit riskier for the lender. This is especially true for jumbo loans, which aren’t backed by any government guarantees. If you default on a jumbo loan, it’s a huge blow to the lender.
Thus, lenders generally charge higher interest rates to compensate, and they can have even more requirements. For example, lenders who give out jumbo loans often require that you make a down payment of at least 20% and show that you have at least six months’ worth of cash in reserve, if not more.”
What Happened Last Week?
The FHFA has significantly increased its Conforming Loan Limits for 2022. Sandra L. Thompson, FHFA Acting Director, explains in the <a href="https://www.fhfa.gov/Media/PublicAffairs/Pages/Acting-Director-Thompson-Statement-on-Increased-Conforming-Loan-Limits-for-2022.aspx" title="press release" target="_blank" rel="noopener noreferrer">press release</a> that:
“Compared to previous years, the 2022 Conforming Loan Limits represent a significant increase due to the historic house price appreciation over the last year. While 95 percent of U.S. countie​s will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.”
This means that more homes now qualify for a conforming loan with lower down payment requirements and easier lending standards – the two challenges holding many buyers back over the last year.
The Federal Housing Administration (FHA) also increased its Conforming Loan Limits for 2022. That could also mean an easier path to homeownership for many prospective buyers. As the Forbes article explains:
“FHA loans can be very beneficial if you don’t have as much savings, or if your credit score could use some work.”
Bottom Line
Buying your first or your next home may have just gotten much easier (less stringent qualifying standards) and less expensive (possibly lower mortgage rate). Let’s connect to discuss how these changes may impact you.
Resources:
To get more information on the new FHFA Conforming Loan Limits, click <a href="https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Conforming-Loan-Limits-for-2022.aspx" title="here" target="_blank" rel="noopener noreferrer">here</a>.
To get more information on the new FHA Conforming Loan Limits, click <a href="https://www.hud.gov/press/press_releases_media_advisories/HUD_No_21_197" title="here" target="_blank" rel="noopener noreferrer">here</a>.
2021-12-08T07:37:00-07:002021-12-08T07:37:49-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3343How Sellers Win When Housing Inventory Is LowHow Sellers Win When Housing Inventory Is Low
<img width="750" height="410" src="https://files.mykcm.com/2021/11/05124804/20211109-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Sellers Win When Housing Inventory Is Low | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/05124804/20211109-KCM-Share.jpg 750w, https://files.mykcm.com/2021/11/05124804/20211109-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/11/05124804/20211109-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In today’s housing market, the number of homes for sale is <a href="https://www.simplifyingthemarket.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="much lower">much lower</a> than the strong buyer demand. As a result, homeowners ready to sell have a significant <a href="https://www.simplifyingthemarket.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="advantage">advantage</a>. Here are three ways today’s <a href="https://www.simplifyingthemarket.com/2021/10/27/housing-challenge-or-housing-opportunity-it-depends/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="low inventory">low inventory</a> will set you up for a win when you sell this season.
1. Higher Prices
With so many more buyers in the market than homes available for sale, homebuyers are frequently getting into bidding wars for the houses they want to purchase. According to the latest data from the National Association of Realtors (NAR), homes are receiving an average of <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-09-realtors-confidence-index-10-21-2021.pdf" title="3.7 offers" target="_blank" rel="noopener noreferrer">3.7 offers</a> in today’s market. This buyer competition drives <a href="https://www.simplifyingthemarket.com/2021/10/19/what-does-the-future-hold-for-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home prices">home prices</a> up. As a seller, this certainly works to your advantage, potentially netting you more for your house when you close the deal.
2. Greater Return on Your Investment
Rising prices mean homes are also gaining value, which increases the equity you have in your home. In the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights Report</a>, CoreLogic explains:
“In the second quarter of 2021, the average homeowner gained approximately $51,500 in equity during the past year.”
This year-over-year growth in <a href="https://www.simplifyingthemarket.com/2021/10/22/your-home-equity-is-growing-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="equity">equity</a> gives you the ability to sell your house and then put that money toward a down payment on your next home, or to keep it as extra savings.
3. Better Terms
In a <a href="https://www.simplifyingthemarket.com/2021/08/17/what-does-being-in-a-sellers-market-mean/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="sellers’ market">sellers’ market</a> like we have today, you’re in the driver’s seat if you make a move. You have the power to sell on your terms, and <a href="https://www.myckm.com/2021/10/18/sellers-your-house-could-be-an-oasis-for-buyers-seeking-more-options/" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> are more likely to work with you if it means they can finally land their dream home.
So, is low housing inventory a big deal?
Yes, especially if you want to sell on your terms. <a href="https://www.simplifyingthemarket.com/2021/10/20/looking-to-move-it-could-be-time-to-build-your-dream-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="Moving">Moving</a> now while inventory is so low is key to maximizing your opportunities.
Bottom Line
If you’re interested in taking advantage of the current sellers’ market, let’s connect today to determine your best move.
2021-11-24T06:27:00-07:002021-11-24T06:27:42-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:33424 Ways Homeowners Can Use Their Equity4 Ways Homeowners Can Use Their Equity
<img width="750" height="410" src="https://files.mykcm.com/2021/11/18151516/20211122-KCM-share.jpg" class="attachment-entry size-entry wp-post-image" alt="4 Ways Homeowners Can Use Their Equity | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/18151516/20211122-KCM-share.jpg 750w, https://files.mykcm.com/2021/11/18151516/20211122-KCM-share-600x328.jpg 600w, https://files.mykcm.com/2021/11/18151516/20211122-KCM-share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Your <a href="https://www.simplifyingthemarket.com/2021/07/23/pop-quiz-can-you-define-these-key-terms-in-todays-housing-market-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="equity">equity</a> is a powerful tool that can help you achieve your goals as a homeowner. And chances are, your equity grew substantially over the past year. According to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Equity Insights Report" target="_blank" rel="noopener noreferrer">Equity Insights Report</a> from CoreLogic, homeowners gained an average of $51,500 in equity over the past year.
If you’re looking for the best ways to use your <a href="https://www.simplifyingthemarket.com/2021/10/22/your-home-equity-is-growing-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="growing equity">growing equity</a>, here are four options:
1. Use Your Equity To Buy a Home That Fits Your Needs
If you’re finding you no longer have the <a href="https://www.simplifyingthemarket.com/2021/09/21/remote-work-is-here-to-stay-can-your-home-deliver-the-space-you-need/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="space">space</a> you need, it might be <a href="https://www.simplifyingthemarket.com/2021/09/20/is-it-time-to-move-on-to-a-new-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="time to move">time to move</a> into a larger home. Or, it’s possible you have too much space and would like something <a href="https://www.simplifyingthemarket.com/2021/04/13/some-buyers-prefer-smaller-homes/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="smaller">smaller</a>. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle. Moving into a larger home can provide extra space for remote work or loved ones. Downsizing, on the other hand, may mean saving time and money by caring for a smaller home.
2. Move to the Location of Your Dreams
If the size of your home isn’t a challenge but your current location is, it could be time to relocate to a new area. Maybe you enjoy vacationing in the mountains, at the beach, or another area, and you’re dreaming of living there year-round. Or perhaps the distance between you and your loved ones is greater than you’d like, and you want to close the gap. No matter what, your home equity can fuel your move to the location where you really want to live.
3. Start a New Business
If you’re not ready to move into a new home, you can use your equity to invest in a new business venture. As the U.S. Small Business Administration Office of Advocacy <a href="https://cdn.advocacy.sba.gov/wp-content/uploads/2020/06/04144224/2020-Small-Business-Economic-Profile-US.pdf" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“There is an estimate of 31.7 million small business owners in the United States, many of them started their business with the equity they had in their home.”
While it’s not recommended that homeowners use their equity for unnecessary spending, leveraging your equity to start a business that you’re passionate about can potentially grow your nest egg further.
4. Fund an Education
Whether you have a loved one preparing to head off to college or you’re planning to go back to school yourself, the thought of paying for higher education can be daunting. In either situation, using a portion of your growing equity can help with those costs, so you can make an investment in someone’s future.
Bottom Line
Your equity can help you achieve your goals. If you’re unsure how much equity you have in your home, let’s connect today so you can start planning your next move.
2021-11-24T06:15:00-07:002021-11-24T06:27:08-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3305 Housing Challenge or Housing Opportunity? It Depends.Housing Challenge or Housing Opportunity? It Depends.
<img width="750" height="410" src="https://files.mykcm.com/2021/10/26142237/20211027-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Housing Challenge or Housing Opportunity? It Depends. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/26142237/20211027-KCM-Share.jpg 750w, https://files.mykcm.com/2021/10/26142237/20211027-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/10/26142237/20211027-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The biggest challenge in real estate today is the lack of available homes for sale. The low housing supply has caused homes throughout the country to appreciate at a much faster rate than what we’ve experienced historically.
There are many reasons for the limited number of homes on the market, but as you can see in the graph below, we’re well below where we’ve been for most of the past 10 years. Today, across the country, there is only a <a href="https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september" title="2.4-month" target="_blank" rel="noopener noreferrer">2.4-month</a> supply of homes available for sale.<a href="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99733" src="https://files.mykcm.com/2021/10/26142239/20211027-MEM-Eng-1.png" alt="Housing Challenge or Housing Opportunity? It Depends. | MyKCM" width="600" height="450" /></a>
The Opportunity
This lack of homes for sale is creating a challenge for many buyers who are growing frustrated in their search. On the other hand, this is a huge opportunity for sellers as low supply is driving up home values. According to <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>, the average home has appreciated by more than $50,000 over the <a href="https://www.simplifyingthemarket.com/2021/10/22/your-home-equity-is-growing-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="past year">past year</a>. And for many homeowners, that’s opening new doors as they re-think their needs and use their equity to move up or downsize.
According to <a href="https://twitter.com/DrFrankNothaft/status/1450526459483807749" title="Dr. Frank Nothaft" target="_blank" rel="noopener noreferrer">Dr. Frank Nothaft</a>, Chief Economist at CoreLogic:
“The average homeowner with a mortgage has more than $200,000 in home equity as of mid-2021.”
Today, many sellers are taking advantage of low interest rates and the equity they have in their homes to make a move.
Bottom Line
The biggest challenge in real estate is the lack of homes for sale, but this challenge is also an opportunity for sellers. If you’re thinking about selling your house, let’s connect to start the process.
2021-11-08T11:42:00-07:002021-11-08T11:44:31-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3296Renters Missed Out on $51,500 This Past YearRenters Missed Out on $51,500 This Past Year
<img width="750" height="410" src="https://files.mykcm.com/2021/10/29155117/20211101-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Renters Missed Out on $51,500 This Past Year | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/29155117/20211101-KCM-Share.jpg 750w, https://files.mykcm.com/2021/10/29155117/20211101-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/10/29155117/20211101-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Rents have increased significantly this year. The latest <a href="https://www.apartmentlist.com/research/national-rent-data" title="National Rent Report" target="_blank" rel="noopener noreferrer">National Rent Report</a> from Apartmentlist.com shows rents are rising at a rate much higher than the three years leading up to the pandemic:
“Since January of this year, the national median rent has increased by a staggering 16.4 percent. To put that in context, rent growth from January to September averaged just 3.4 percent in the pre-pandemic years from 2017-2019.”
Looking back, we can see rents rising isn’t new. The median rental price has <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" title="increased" target="_blank" rel="noopener noreferrer">increased</a> consistently over the past 33 years (see graph below):<a href="https://files.mykcm.com/2021/10/29155119/20211101-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99793" src="https://files.mykcm.com/2021/10/29155119/20211101-MEM-Eng-1.png" alt="Renters Missed Out on $51,500 This Past Year | MyKCM" width="600" height="450" /></a>If you’re thinking of <a href="https://www.simplifyingthemarket.com/2021/10/01/reasons-renters-buy-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="renting">renting</a> for another year, consider that rents will likely be even higher next year. But that alone doesn’t paint the picture of the true <a href="https://www.simplifyingthemarket.com/2021/09/23/two-reasons-why-waiting-a-year-to-buy-could-cost-you/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="cost">cost</a> of renting.
The Money Renters Stand To Lose This Year
A homeowner’s monthly mortgage payment pays for their shelter, but it also acts as an investment. That investment grows in the form of <a href="https://www.simplifyingthemarket.com/2021/01/06/the-importance-of-home-equity-in-building-wealth/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="equity">equity</a> as a homeowner makes their mortgage payment each month to pay down what they owe on their home loan. Their equity gets an additional boost from home <a href="https://www.simplifyingthemarket.com/2021/10/19/what-does-the-future-hold-for-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="price appreciation">price appreciation</a>, which is at near-record levels this year.
The latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights</a> report from CoreLogic found homeowners gained significant wealth through their <a href="https://www.simplifyingthemarket.com/2021/10/22/your-home-equity-is-growing-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="home equity">home equity</a> this past year. The research shows:
“. . . the average homeowner gained approximately $51,500 in equity during the past year.”
As a renter, you don’t get the same benefit. Your rent payment only covers the cost of shelter and any included amenities. None of your monthly rent payments come back to you as an investment. That means, by renting this year, you likely paid more in rent than you did in the previous year, and you also missed out on the potential wealth gain of $51,500 you could have had by owning your own home.
Bottom Line
When deciding whether you should rent or buy in the future, keep in mind how much renting can cost you. Another year of renting is another year you’ll pay rising rents and miss out on building your wealth through home equity. Let’s connect today to talk more about the benefits of buying over renting.
2021-11-05T06:02:00-07:002021-11-05T06:03:09-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3295Sellers Have Incredible Leverage in Today’s MarketSellers Have Incredible Leverage in Today’s Market
<img width="750" height="410" src="https://files.mykcm.com/2021/10/29121537/20211102-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Sellers Have Incredible Leverage in Today’s Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/29121537/20211102-KCM-Share.jpg 750w, https://files.mykcm.com/2021/10/29121537/20211102-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/10/29121537/20211102-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With <a href="http://www.freddiemac.com/pmms/" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> climbing above 3% for the first time in months, serious buyers are more motivated than ever to find a home before the end of the year. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), puts it best, <a href="https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
"Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year."
But the sense of urgency they feel is complicated by the <a href="https://www.simplifyingthemarket.com/2021/10/27/housing-challenge-or-housing-opportunity-it-depends/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="lack of homes">lack of homes</a> for sale in today’s market. According to the latest <a href="https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from NAR:
“From one year ago, the inventory of unsold homes decreased 13%. . . .”
What Does This Mean for Sellers Today?
With buyers eager to purchase but so few homes available, sellers who list their houses <a href="https://www.simplifyingthemarket.com/2021/09/07/reasons-you-should-consider-selling-this-fall/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="this fall">this fall</a> have a tremendous advantage – also known as leverage – when negotiating with buyers. That’s because, in <a href="https://www.simplifyingthemarket.com/2021/08/17/what-does-being-in-a-sellers-market-mean/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="today’s market">today’s market</a>, buyers want three things:
To be the winning bid on their dream home.
To buy before <a href="https://www.simplifyingthemarket.com/2021/10/05/the-main-key-to-understanding-the-rise-in-mortgage-rates/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="rates rise">rates rise</a>
To buy before <a href="https://www.simplifyingthemarket.com/2021/10/19/what-does-the-future-hold-for-home-prices/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="prices">prices</a> go even higher.
Your Leverage Can Help You Negotiate Your Best Terms
These three buyer needs give homeowners a leg up when selling their house. You might already realize this leverage enables you to sell at a good price, but it also means you can negotiate the best terms to suit your needs.
And since <a href="https://www.simplifyingthemarket.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="buyer demand">buyer demand</a> is still high, there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best perks for you.
If you have questions about what’s best for your situation, your trusted <a href="https://www.simplifyingthemarket.com/2021/09/29/dont-tackle-selling-your-home-on-your-own-an-agent-can-help/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="real estate advisor">real estate advisor</a> can help. They have the expertise and are skilled negotiators in all stages of the sales process.
Bottom Line
Today’s buyers are motivated to purchase a home this year, and that’s great news if you’re thinking of selling. Let’s connect today to discuss how much leverage you have as a seller in today’s market.
2021-11-05T05:55:00-07:002021-11-05T05:56:40-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3067 Sellers: Make Today’s Home Price Appreciation Work for YouSellers: Make Today’s Home Price Appreciation Work for You
<img width="750" height="410" src="https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Sellers: Make Today’s Home Price Appreciation Work for You | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Home prices continue to rise as we move through the summer, and that’s good news for <a href="https://www.simplifyingthemarket.com/2021/07/12/4-major-incentives-to-sell-this-summer/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="sellers">sellers</a> who are looking to maximize their home’s potential. If you’re on the fence about whether to list your house now or later, the question you should really ask is: will this price appreciation last?
Here’s what three leading industry experts have to say about what lies ahead:
<a href="https://www.nar.realtor/newsroom/existing-home-sales-expand-1-4-in-june" title="Lawrence Yun," target="_blank" rel="noopener noreferrer">Lawrence Yun,</a> Chief Economist, National Association of Realtors (NAR):
“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year.”
<a href="https://www.corelogic.com/intelligence/find-stories/us-sp-corelogic-case-shiller-rockets-to-16-6-reaches-new-records/" title="Selma Hepp" target="_blank" rel="noopener noreferrer">Selma Hepp</a>, Deputy Chief Economist, CoreLogic:
“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months . . . . Nevertheless, with more new listings and new home construction, home price acceleration that has built momentum, and continues to reach new highs, will likely slow later this summer but remain in double digits.”
<a href="https://www.bloomberg.com/news/articles/2021-07-22/u-s-mortgage-rates-slide-to-lowest-in-more-than-five-months?sref=BRvilyBN" title="George Ratiu" target="_blank" rel="noopener noreferrer">George Ratiu</a>, Chief Economist, realtor.com:
“Many sellers are going to take advantage of higher prices. This summer is going to signal the move to the next chapter, and this will very much be the year they’re going to put their home on the market.”
What It Means for You:
The experts agree that the summer months give sellers a great opportunity to capitalize on today’s home prices. And while prices aren’t expected to depreciate, the rise in prices is forecast to moderate over <a href="https://www.simplifyingthemarket.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="the next few years">the next few years</a>. That means selling your house today could set you up for a bigger win.
Bottom Line
Listen to the experts. If you’re ready to make a move, let’s connect to discuss <a href="https://www.simplifyingthemarket.com/2021/07/08/selling-your-house-make-sure-you-price-it-right/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="selling your house">selling your house</a> sooner rather than later so you can take advantage of today’s home price appreciation before it moderates.
2021-08-11T04:39:00-07:002021-08-11T04:42:07-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3043 A Look at Housing Supply and What It Means for SellersA Look at Housing Supply and What It Means for Sellers
<img width="750" height="410" src="https://files.mykcm.com/2021/07/26170117/20210727-KCM-Share0.jpg" class="attachment-entry size-entry wp-post-image" alt="A Look at Housing Supply and What It Means for Sellers | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/26170117/20210727-KCM-Share0.jpg 750w, https://files.mykcm.com/2021/07/26170117/20210727-KCM-Share0-600x328.jpg 600w, https://files.mykcm.com/2021/07/26170117/20210727-KCM-Share0-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
One of the hottest topics of conversation in today’s real estate market is the <a href="https://www.simplifyingthemarket.com/2021/06/15/hope-is-on-the-horizon-for-todays-housing-shortage/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="shortage of available homes">shortage of available homes</a>. Simply put, there are many more potential buyers than there are homes for sale. As a seller, you’ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that’s something that will change.
While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can’t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let’s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.
Where Did the Shortage Come From?
It’s not just today’s high buyer demand. Our low supply goes hand-in-hand with the number of new homes built over the past decades. According to Sam Khater, VP and Chief Economist at <a href="http://www.freddiemac.com/perspectives/sam_khater/20210415_single_family_shortage.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>:
“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”
Data in a <a href="https://cdn.nar.realtor/sites/default/files/documents/Housing-is-Critical-Infrastructure-Social-and-Economic-Benefits-of-Building-More-Housing-6-15-2021.pdf" title="recent report" target="_blank" rel="noopener noreferrer">recent report</a> from the National Association of Realtors (NAR) tells the same story. New home construction has been lagging behind the norm for quite some time. Historically, builders completed an average of 1.5 million new housing units per year. However, since the housing bubble in 2008, the level of new home construction has fallen off (see graph below):<a href="https://files.simplifyingthemarket.com/2021/07/26170119/20210727-MEM-Eng-1.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98794" src="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png" alt="A Look at Housing Supply and What It Means for Sellers | MyKCM" width="600" height="450" /></a>The same NAR report elaborates on the impact of this below-average pace of construction:
“. . . the underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years.”
“Looking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the next 10 years, while accounting for historical growth, new construction would need to accelerate to a pace that is well above the current trend, to more than 2 million housing units per year. . . .”
That means if we build even more new houses than the norm every year, it’ll still take a decade to close the underbuilding gap contributing to today’s supply-and-demand mix. Does that mean today’s ultimate <a href="https://www.simplifyingthemarket.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="sellers’ market">sellers’ market</a> is here to stay?
We’re already starting to see an increase in <a href="https://www.simplifyingthemarket.com/2021/07/05/home-builders-ramp-up-construction-based-on-demand/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="new home construction">new home construction</a>, which is great news. But newly built homes can’t bridge the supply gap we’re facing right now on their own. In the <a href="https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf" title="State of the Nation’s Housing 2021 Report" target="_blank" rel="noopener noreferrer">State of the Nation’s Housing 2021 Report</a>, the Joint Center for Housing Studies of Harvard University (JCHS) says:
“…Although part of the answer to the nation’s housing shortage, new construction can only do so much to ease short-term supply constraints. To meet today’s strong demand, more existing single-family homes must come on the market.”
Early Indicators Show More Existing-Home Inventory Is on Its Way
When we look at existing homes, the latest reports signal that <a href="https://www.simplifyingthemarket.com/2021/07/14/housing-supply-is-rising-what-does-that-mean-for-you/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="housing supply is growing">housing supply is growing</a> gradually month-over-month. This uptick in existing homes for sale shows things are beginning to shift. Based on recent data, <a href="https://twitter.com/odetakushi/status/1407344750534041615" title="Odeta Kushi" target="_blank" rel="noopener noreferrer">Odeta Kushi</a>, Deputy Chief Economist at First American, has this to say:
“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/real-estate-today" title="echoes that sentiment:" target="_blank" rel="noopener noreferrer">echoes that sentiment:</a>
“As the inventory is beginning to pick up ever so modestly, we are still facing a housing shortage, but we may have turned a corner.”
So, what does all of this mean for you? Just because life is starting to return to normal, it doesn’t mean you missed out on the best time to sell. It’s not too late to take advantage of <a href="https://www.simplifyingthemarket.com/2021/06/16/dont-wait-to-sell-your-house/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="today’s sellers’ market">today’s sellers’ market</a> and use <a href="https://www.simplifyingthemarket.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="rising equity">rising equity</a> and <a href="https://www.simplifyingthemarket.com/2021/07/19/what-you-should-do-before-interest-rates-rise/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="low interest rates">low interest rates</a> to make your next move.
Bottom Line
It’s still a great time to sell. Even though housing supply is starting to trend up, it’s still hovering near historic lows. Let’s connect to discuss how you can list your house now and use the inventory shortage to get the best possible terms for you.
2021-07-29T08:35:00-07:002021-07-29T08:39:36-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3031 Housing Supply Is Rising. What Does That Mean for You?Housing Supply Is Rising. What Does That Mean for You?
<img width="750" height="410" src="https://files.mykcm.com/2021/07/13104341/20210714-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Housing Supply Is Rising. What Does That Mean for You? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/13104341/20210714-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/13104341/20210714-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/13104341/20210714-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
An important factor in today’s market is the number of homes for sale. While inventory levels continue to sit near historic lows, there are indications we may have hit the lowest point we’ll see. Odeta Kushi, Deputy Chief Economist at First American, recently <a href="https://twitter.com/odetakushi/status/1407338876155351044" title="said" target="_blank" rel="noopener noreferrer">said</a> of our supply challenges:
“It looks like inventory may have hit a bottom (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4.”
To put it into perspective, the graph below shows levels of inventory <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="rising" target="_blank" rel="noopener noreferrer">rising</a> since the beginning of the year:<a href="https://files.simplifyingthemarket.com/2021/07/13104343/20210714-MEM-Eng-1.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98544" src="https://files.mykcm.com/2021/07/13104343/20210714-MEM-Eng-1.png" alt="Housing Supply Is Rising. What Does That Mean for You? | MyKCM" width="600" height="450" /></a>
We’re still not close to a <a href="https://www.simplifyingthemarket.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="balanced market" target="_blank" rel="noopener noreferrer">balanced market</a>, which would be a 6 months’ supply of homes for sale. However, we are seeing a slow but steady increase in homes coming up for sale. And that leaves many buyers and sellers wondering the same thing: what does that mean for me?
Buyers: More Options Are Arriving, so It’s Time To Act
If you’re a buyer, more inventory coming to market is a welcome sight. More supply means <a href="https://www.simplifyingthemarket.com/2021/06/03/dreaming-of-a-bigger-home-why-not-buy-it-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="more options" target="_blank" rel="noopener noreferrer">more options</a> and less competition, which could mean fewer bidding wars.
According to the latest <a href="https://www.realtor.com/research/june-2021-data/" title="Monthly Housing Market Trends Report" target="_blank" rel="noopener noreferrer">Monthly Housing Market Trends Report</a>, supply levels are continuing to increase, which is different from the <a href="https://www.simplifyingthemarket.com/2021/07/13/why-this-isnt-your-typical-summer-housing-market/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="typical summer" target="_blank" rel="noopener noreferrer">typical summer</a> market:
“In June, newly listed homes grew by 5.5% on a year-over-year basis, and by 10.9% on a month-over-month basis. Typically, fewer newly listed homes appear on the market in the month of June compared to May. This year, growth in new listings is continuing later into the summer season, a welcome sign for a tight housing market.”
If you’re having trouble finding your next home, this news should give you the hope and motivation to keep your buying process moving forward. Experts project <a href="https://www.simplifyingthemarket.com/2021/06/25/homebuyers-hang-in-there-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> will begin increasing, which will make purchasing a home less affordable as time passes. You can still capitalize on today’s low interest rates, so stick with your search as more homes come to market.
Sellers: Our Supply Challenges Aren’t Over Yet, so Now Is the Time To Sell
If you’ve been putting off selling your house, you shouldn’t wait much longer. The year’s month-over-month gains in homes for sale have helped buyers, but we’re still very much in a sellers’ market.
As the graph below shows, even with the number of homes for sale rising, we’re still well below the supply levels we’ve seen historically:<a href="https://files.simplifyingthemarket.com/2021/07/13104346/20210714-MEM-Eng-2.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98545" src="https://files.mykcm.com/2021/07/13104346/20210714-MEM-Eng-2.png" alt="Housing Supply Is Rising. What Does That Mean for You? | MyKCM" width="600" height="450" /></a>Of course, more homes are coming to market now, and more are expected in the coming months. Selling <a href="https://www.simplifyingthemarket.com/2021/05/13/your-house-could-be-the-oasis-in-an-inventory-desert/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="your house" target="_blank" rel="noopener noreferrer">your house</a> this summer gives you the chance to get ahead of the competition and maximize your sales potential before more homes are put up for sale in your neighborhood.
Bottom Line
More homes for sale means more options for buyers and more competition for sellers. Whether you’re looking to buy or sell, let’s connect today to discuss your options and why it’s still a good time to make your move.
2021-07-20T12:34:00-07:002021-07-20T12:36:47-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3030 What You Should Do Before Interest Rates RiseWhat You Should Do Before Interest Rates Rise
<img width="750" height="410" src="https://files.mykcm.com/2021/07/16134035/20210719-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What You Should Do Before Interest Rates Rise | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/16134035/20210719-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/16134035/20210719-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/16134035/20210719-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t refinanced lately, there’s a good chance you have a mortgage with an interest rate higher than today’s average. Here are some options you should consider if you want to take advantage of today’s current low rates before they rise.
Sell and Move Up (or Downsize)
Many of today’s homeowners are rethinking what they need in a home and redefining what their <a href="https://www.simplifyingthemarket.com/2021/06/03/dreaming-of-a-bigger-home-why-not-buy-it-this-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="dream home" target="_blank" rel="noopener noreferrer">dream home</a> means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why.
The chart below shows average <a href="http://www.freddiemac.com/pmms/" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> by decade compared to where they are today:<a href="https://files.simplifyingthemarket.com/2021/07/16134037/20210719-MEM-Eng-1.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98577" src="https://files.mykcm.com/2021/07/16134037/20210719-MEM-Eng-1.png" alt="What You Should Do Before Interest Rates Rise | MyKCM" width="600" height="450" /></a>Today’s rates are below 3%, but <a href="https://www.simplifyingthemarket.com/2021/06/30/what-do-experts-see-on-the-horizon-for-the-second-half-of-the-year/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="experts forecast" target="_blank" rel="noopener noreferrer">experts forecast</a> rates to rise over the next few years.
If the interest rate on your current mortgage is higher than today’s average, take advantage of this opportunity by making a move and securing a lower rate. <a href="https://www.simplifyingthemarket.com/2021/04/21/planning-to-move-you-can-still-secure-a-low-mortgage-rate-on-your-next-home/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="Lower rates" target="_blank" rel="noopener noreferrer">Lower rates</a> mean you may be able to get more house for your money and still have a lower monthly mortgage payment than you might expect.
Waiting, however, might mean you miss out on this historic opportunity. Below is a chart showing how your monthly payment will change if you buy a home as mortgage rates increase:<a href="https://files.simplifyingthemarket.com/2021/07/16134040/20210719-MEM-Eng-2.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98578" src="https://files.mykcm.com/2021/07/16134040/20210719-MEM-Eng-2.png" alt="What You Should Do Before Interest Rates Rise | MyKCM" width="600" height="450" /></a>
Breaking It All Down:
Using the chart above, let’s look at the breakdown of a $300,000 mortgage:
When mortgage rates rise, so does the monthly payment you can secure.
Even the smallest increase in rates can make a difference in your monthly mortgage payment.
As interest rates rise, you’ll need to look at a lower-priced home to try and keep the same target monthly payment, meaning you may end up with less home for your money.
No matter what, whether you’re looking to make a <a href="https://www.simplifyingthemarket.com/2021/06/11/have-your-day-in-the-sun-by-moving-up-this-summer-infographic/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="move up" target="_blank" rel="noopener noreferrer">move up</a> or <a href="https://www.simplifyingthemarket.com/2021/04/13/some-buyers-prefer-smaller-homes/?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" title="downsize" target="_blank" rel="noopener noreferrer">downsize</a> to a home that better suits your needs, now is the time. Even a small change in interest rates can have a big impact on your purchasing power.
Refinance
If making a move right now still doesn’t feel right for you, consider refinancing. With the current low mortgage rates, refinancing is a great option if you’re looking to lower your monthly payments and stay in your current home.
Bottom Line
Take advantage of today’s low rates before they begin to rise. Whether you’re thinking about moving up, downsizing, or refinancing, let’s connect today to discuss which option is best for you.
2021-07-20T12:31:00-07:002021-07-20T12:33:55-07:00Candice Pagliarulo Hodgsontag:lyvrealty.com,2012-09-20:3029 3 Charts That Show This Isn’t a Housing Bubble3 Charts That Show This Isn’t a Housing Bubble
<img width="750" height="410" src="https://files.mykcm.com/2021/07/19150730/20210720-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="3 Charts That Show This Isn’t a Housing Bubble | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/19150730/20210720-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/19150730/20210720-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/19150730/20210720-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons.
1. The housing market isn’t driven by risky mortgage loans.
Back in 2006, nearly everyone could qualify for a loan. The <a href="https://www.mba.org/news-research-and-resources/research-and-economics/single-family-research/mortgage-credit-availability-index" title="Mortgage Credit Availability Index" target="_blank" rel="noopener noreferrer">Mortgage Credit Availability Index</a> (MCAI) from the Mortgage Bankers’ Association is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the <a href="https://www.newyorkfed.org/microeconomics/hhdc/background.html" title="volume of mortgages" target="_blank" rel="noopener noreferrer">volume of mortgages</a> that originated when a buyer had less than a 620 credit score.<a href="https://files.simplifyingthemarket.com/2021/07/19150732/20210720-MEM-Eng-1.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98641" src="https://files.mykcm.com/2021/07/19150732/20210720-MEM-Eng-1.png" alt="3 Charts That Show This Isn’t a Housing Bubble | MyKCM" width="600" height="450" /></a>Dr. Frank Nothaft, Chief Economist for CoreLogic, reiterates this <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights/" title="point" target="_blank" rel="noopener noreferrer">point</a>:
“There are marked differences in today’s run up in prices compared to 2005, which was a bubble fueled by risky loans and lenient underwriting. Today, loans with high-risk features are absent and mortgage underwriting is prudent.”
2. Homeowners aren’t using their homes as ATMs this time.
During the housing bubble, as prices skyrocketed, people were refinancing their homes and pulling out large sums of cash. As prices began to fall, that caused many to spiral into a negative equity situation (where their mortgage was higher than the value of the house).
Today, homeowners are letting their equity build. Tappable equity is the amount available for homeowners to access before hitting a maximum 80% combined loan-to-value ratio (thus still leaving them with at least 20% equity). In 2006, that number was $4.6 billion. Today, that number stands at over <a href="https://www.blackknightinc.com/wp-content/uploads/2021/07/BKI_MM_May2021_Report.pdf" title="$8 billion" target="_blank" rel="noopener noreferrer">$8 billion</a>.
Yet, the percentage of cash-out refinances (where the homeowner takes out at least 5% more than their original mortgage amount) is <a href="http://www.freddiemac.com/research/datasets/refinance-stats/index.page" title="half of what it was in 2006" target="_blank" rel="noopener noreferrer">half of what it was in 2006</a>.<a href="https://files.simplifyingthemarket.com/2021/07/19150734/20210720-MEM-Eng-2.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98642" src="https://files.mykcm.com/2021/07/19150734/20210720-MEM-Eng-2.png" alt="3 Charts That Show This Isn’t a Housing Bubble | MyKCM" width="600" height="450" /></a>
3. This time, it’s simply a matter of supply and demand.
FOMO (the Fear Of Missing Out) dominated the housing market leading up to the 2006 housing bubble and drove up buyer demand. Back then, housing supply more than kept up as many homeowners put their houses on the market, as evidenced by the over seven months’ supply of existing housing inventory available for sale in 2006. Today, that number is barely two months.
Builders also overbuilt during the bubble but pulled back significantly over the next decade. Sam Khater, VP and Chief Economist, Economic & Housing Research at Freddie Mac, <a href="http://www.freddiemac.com/perspectives/sam_khater/20210415_single_family_shortage.page" title="explains" target="_blank" rel="noopener noreferrer">explains</a> that pullback is the major factor in the lack of available inventory today:
“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”
Here’s a chart that quantifies Khater’s remarks:<a href="https://files.simplifyingthemarket.com/2021/07/19150737/20210720-MEM-Eng-3.png?a=749114-33638cd3c598be006ec80e0f8a8c3d8f" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-98643" src="https://files.mykcm.com/2021/07/19150737/20210720-MEM-Eng-3.png" alt="3 Charts That Show This Isn’t a Housing Bubble | MyKCM" width="600" height="450" /></a>Today, there are simply not enough homes to keep up with current demand.
Bottom Line
This market is nothing like the run-up to 2006. Bill McBride, the author of the prestigious Calculated Risk blog, predicted the last housing bubble and crash. This is what he has to say about <a href="https://www.theatlantic.com/ideas/archive/2021/05/us-housing-market-records/619029/" title="today’s housing market" target="_blank" rel="noopener noreferrer">today’s housing market</a>:
“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while because Millennials need houses. Prices will keep rising for a while because inventory is so low.”
2021-07-20T12:30:00-07:002021-07-20T12:31:04-07:00Candice Pagliarulo Hodgson