East Tennessee Real Estate BlogRecently posted or modified blog postshttps://www.herohomesgroup.com/blog/Copyright HeroHomesGroup.com2024-03-12T11:51:33-07:00tag:herohomesgroup.com,2012-09-20:8816Why Access Is So Important When Selling Your HouseWhy Access Is So Important When Selling Your House
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240229/20240306-Why-Access-Is-So-Important-When-Selling-Your-House.png" width="600" /><br /><br />
If you’re gearing up to <a href="https://www.simplifyingthemarket.com/en/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell your house</a> this spring, one of the early conversations you’ll have with your agent is about how much access you want to give buyers. And you may not realize just how important it is to make your house easy to tour.
Spring is the peak homebuying season, so opening up your house to as many showings as possible can really help you <a href="https://www.simplifyingthemarket.com/en/2024/02/06/houses-are-still-selling-fast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">capitalize</a> on all the extra buyer activity we see at this time of year.
Since buyer competition ramps up in the spring, buyers are going to want to move fast to see your house once they find <a href="https://www.simplifyingthemarket.com/en/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">your listing</a>. And, if they see it and fall in love with it at a time they know they’re competing with other buyers, you may be more likely to get the offer you’re looking for on your home.
It’s understandable you want to keep the disruptions to your own schedule to a minimum, and you may be stressed about having to keep it clean, but it’s worth it. As an article from Investopedia <a href="https://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp" rel="noopener noreferrer" target="_blank">explains</a>:
“If someone wants to view your house, you need to accommodate them, even if it inconveniences you. Clean and tidy the house before every single visit. A buyer won’t know or care if your house was clean last week. It’s a lot of work, but stay focused on the prize.”
To figure out what’s best for you, your agent will walk you through options like the ones below. This list breaks things down, starting with what’s most convenient for buyers and getting less buyer-focused as the list goes on:
Lockbox on the Door – A key is available via a lockbox, which makes it easy for agents to show the home to potential buyers. This gives the most flexibility because the key is on-site and convenient.
Providing a Key to the Home – An agent would have to stop by an office to pick up the key with this option. This is still pretty convenient for showings, but not quite as simple.
Open Access with a Phone Call – You allow a showing with just a phone call’s notice, which can be great for someone who sees your house while driving by.
By Appointment Only – This gives you a more advanced warning so you can get the house tidied up and be sure you have somewhere else you can go in the meantime. But it’s also a bit more restrictive.
Limited Access – You might go this route if you only want to have your house available on specific days or at certain times of day. But realize this is the most difficult and least flexible of the choices.
As an article from U.S. News Real Estate <a href="https://realestate.usnews.com/real-estate/slideshows/secrets-to-selling-your-home-faster?slide=15" rel="noopener noreferrer" target="_blank">says</a>:
“Buyers like to see homes on their schedule, which often means evenings and weekends. Plus, they want to be able to tour a home soon after they find it online, especially if they're competing with other buyers. If your home can be shown with little or no notice, more prospective buyers will see it. If you require 24 hours’ notice, they may choose to skip your home altogether.”
<a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Your agent</a> is going to help you find the right path forward based on your schedule and what’s working for other sellers in your area. And if you’ve got a hardline on granting buyers more access or have interested out of town buyers that just can’t be there in person, your agent will get creative and help you explore other options like video tours, virtual showings, and more.
Bottom Line
When it comes to selling your house, you want to be sure to get as much buyer activity as you can. Let’s connect to talk about which level of access helps make that possible.2024-03-18T04:00:00-07:002024-03-12T11:51:33-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8815The Benefits of Downsizing When You RetireThe Benefits of Downsizing When You Retire
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If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by <a href="https://www.simplifyingthemarket.com/en/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">downsizing</a> to a smaller home.
When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com <a href="https://www.realtor.com/advice/move/how-to-downsize-your-home-with-zero-regrets/" rel="noopener noreferrer" target="_blank">shares</a>:
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”
That windfall is thanks to your <a href="https://www.simplifyingthemarket.com/en/2024/02/08/home-equity-can-be-a-game-changer-when-you-sell/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home equity</a>. If you’ve been in your house for a while, odds are you’ve built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley, <a href="https://www.morganstanley.com/articles/using-home-equity-in-retirement" rel="noopener noreferrer" target="_blank">explains</a>:
“Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth. . . . Retirement planning can be complex, but your home equity shouldn't be overlooked.”
And when you’re ready to use that equity to fuel your <a href="https://www.simplifyingthemarket.com/en/2024/02/06/houses-are-still-selling-fast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">next move</a>, your real estate agent will be your guide through every step of <a href="https://www.simplifyingthemarket.com/en/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">the process</a>. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.
What This Means for You
If you’re thinking about downsizing, ask yourself these questions:
Do the original reasons I bought my current house still stand, or have my needs changed since then?
Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
What are my housing expenses right now, and how much do I want to try to save by downsizing?
Then, meet with a <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a> to get an answer to this one: What are my options in the market right now? A local real estate agent can walk you through how much equity you have in your house and how it positions you to win when you downsize.
Bottom Line
Want to save money in retirement? Consider downsizing – it could really help you out. When you’re ready, <a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">let’s connect</a> about your goals in the housing market this year.2024-03-15T05:00:00-07:002024-03-12T11:50:26-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8814The Spring Market Is a Sweet Spot if You’re Looking To Sell [INFOGRAPHIC]The Spring Market Is a Sweet Spot if You’re Looking To Sell [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240307/20240308-The-Spring-Market-Is-a-Swet-Spot-for-Homeowners-Looking-to-Sell-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240307/The-Spring-Market-Is-a-Swet-Spot-for-Homeowners-Looking-to-Sell-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240307/The-Spring-Market-Is-a-Swet-Spot-for-Homeowners-Looking-to-Sell-MEM.png" alt="a screenshot of a phone" /></a>
Some Highlights
Wondering if now’s a good time to <a href="https://www.simplifyingthemarket.com/en/2024/03/06/why-access-is-so-important-when-selling-your-house/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell your house</a>? Based on <a href="https://www.realtor.com/research/january-2024-data/" rel="noopener noreferrer" target="_blank">how many homes</a> are on the market, there are two big reasons why this spring is looking so <a href="https://www.simplifyingthemarket.com/en/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">good for sellers</a>.
Thanks to an uptick in inventory over last year, you’ve got more options for your <a href="https://www.simplifyingthemarket.com/en/2024/02/08/home-equity-can-be-a-game-changer-when-you-sell/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">next home</a>. But there are still fewer homes for sale than there’d normally be, meaning your house should stand out and get a lot of attention from buyers.
If you want to <a href="https://www.simplifyingthemarket.com/en/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell your house</a>, this spring is the <a href="https://www.calculatedriskblog.com/2024/03/housing-march-4th-weekly-update.html" rel="noopener noreferrer" target="_blank">sweet spot</a>. When you’re ready, <a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">let’s chat</a> to get the <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">ball rolling</a>.
2024-03-14T03:45:00-07:002024-03-12T11:50:39-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8813Finding Your Perfect Home in a Fixer UpperFinding Your Perfect Home in a Fixer Upper
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240308/Header-Image-202302-SG.png" width="600" /><br /><br />
If you’re trying to <a href="https://www.simplifyingthemarket.com/en/2024/02/26/the-truth-about-down-payments/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a> and are having a hard time finding one you can afford, it may be time to consider a fixer-upper. That’s a house that needs a little elbow grease or some updates, but has good bones. Fixer-uppers can be a really great option if you’re looking to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">break into</a> the housing market or want to stretch your budget further. <a href="https://www.nerdwallet.com/article/mortgages/buying-a-fixer-upper" rel="noopener noreferrer" target="_blank">According</a> to NerdWallet:
“Buying a fixer-upper can provide a path to homeownership for first-time home buyers or a way for repeat buyers to afford a larger home or a better neighborhood. With the relatively low inventory of homes for sale these days, a move-in ready home can be hard to find, especially if you’re on a budget.”
Basically, since the number of homes for sale is still so low, if you’re only willing to tour homes that have all your dream features, you may be cutting down your options too much and making it harder on yourself than necessary. It may be time to cast a wider net.
Sometimes the perfect home is the one you perfect after buying it.
Here’s some information that can help you pinpoint what you truly need so you can be strategic in your <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home search</a>. First, make a list of all the features you want in a home. From there, work to break those features into categories like this:
Must-Haves - If a house doesn’t have these features, it won’t work for you and your lifestyle.
Nice-To-Haves - These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender.
Dream State - This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner.
Once you’ve sorted your list in a way that works for you, share it with your <a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a>. They’ll help you find homes that deliver on your top needs right now and have the potential to be your dream home with a little bit of sweat equity. Lean on their expertise as you think through what’s possible, what features are easy to change or add, and how to make it happen. <a href="https://www.progressive.com/answers/buying-a-fixer-upper/" rel="noopener noreferrer" target="_blank">According</a> to Progressive:
“Many real estate agents specialize in finding fixer-uppers and have a network of inspectors, contractors, electricians, and the like.”
Your agent can also offer advice on which upgrades and renovations will set you up to get the greatest return on your investment if you ever decide to sell down the line.
Bottom Line
If you haven’t found a home you love that’s in your budget, it may be worth thinking through all your options, including fixer-uppers. Sometimes the perfect home for you is the one you perfect after buying it. To see what’s available in our area, let’s connect.2024-03-13T04:00:00-07:002024-03-12T11:48:08-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8812What Mortgage Rate Do You Need To Move?What Mortgage Rate Do You Need To Move?
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If you’ve been thinking about <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying a home</a>, mortgage rates are probably top of mind for you. They may even be why you’ve put your plans on hold for now. When <a href="https://www.simplifyingthemarket.com/en/2024/02/12/whats-really-happening-with-mortgage-rates/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">rates</a> climbed <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">near 8%</a> last year, some buyers found <a href="https://www.simplifyingthemarket.com/en/2024/02/23/how-changing-mortgage-rates-impact-you-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">the numbers</a> just didn’t make sense for their <a href="https://www.simplifyingthemarket.com/en/2024/01/18/3-key-factors-affecting-home-affordability/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">budget</a> anymore. That may be the case for you too.
<a href="https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024" rel="noopener noreferrer" target="_blank">Data</a> from Bright MLS shows the top reason buyers delayed their plans to move is due to high mortgage rates (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" alt="a graph of blue rectangles with text" /></a>
David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent <a href="https://www.youtube.com/watch?v=wD0su_jp9lk" rel="noopener noreferrer" target="_blank">How’s The Market</a> podcast:
“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”
That’s because <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down off their peak last October. And while there’s still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates <a href="https://www.simplifyingthemarket.com/en/2024/02/21/some-experts-say-mortgage-rates-may-fall-below-6-later-this-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">below 6%</a> by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from Realtor.com <a href="https://mediaroom.realtor.com/2024-02-21-Americans-Hold-on-to-the-Dream-of-Homeownership" rel="noopener noreferrer" target="_blank">says</a>:
“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead. If your plans were delayed, there’s light at the end of the tunnel again. That means it may be time to start thinking about your move. The best question you can ask yourself right now, is this:
What number do I want to see rates hit before I’m ready to move?
The exact <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">percentage</a> where you feel comfortable kicking off your search again is personal. Maybe it’s 6.5%. Maybe it’s 6.25%. Or maybe it’s once they drop below 6%.
Once you have that number in mind, here’s what you do. Connect with a local <a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate professional</a>. They’ll help you stay informed on what’s happening. And when rates hit your target, they’ll be the first to let you know.
Bottom Line
If you’ve put your plans to move on hold because of where mortgage rates are, think about the number you want to see rates hit that would make you ready to re-enter the market.
Once you have that number in mind, let’s connect so you have someone on your side to let you know when we get there.2024-03-12T11:46:09-07:002024-03-12T11:46:43-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8744Why You Want an Agent’s Advice for Your MoveWhy You Want an Agent’s Advice for Your Move
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No matter how you slice it, <a href="https://www.simplifyingthemarket.com/en/2024/02/14/why-so-many-people-fall-in-love-with-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2024/01/22/3-must-dos-when-selling-your-house-in-2024/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a> a home is a big decision. And when you’re going through any change in your life and you need some guidance, what do you do? You get advice from people who know what they’re talking about.
Moving is no exception. You need insights from the pros to help you feel confident in your decision. Freddie Mac <a href="https://myhome.freddiemac.com/buying/finding-your-team" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“As you set out to find the right home for your family, be sure to select experienced, trusted professionals who will help you make informed decisions and avoid pitfalls.”
And while perfect advice isn’t possible – not even from the experts, what you can get is the very best advice out there.
The Power of Expert Advice
For example, let’s say you need an attorney. You start off by finding an expert in the type of law required for your case. Once you do, they won’t immediately tell you how the case is going to end, or how the judge or jury will rule. But what a good attorney can do is walk you through the most effective strategies based on their experience and help you put a plan together. They’ll even use their knowledge to adjust that plan as new information becomes available.
The job of a real estate agent is similar. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. That’s because it’s impossible to know everything that’s going to happen throughout your transaction. Their role is to give you the best advice they can.
To do that, an agent will draw on their experience, <a href="https://www.simplifyingthemarket.com/en/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">industry knowledge</a>, and market data. They know the latest trends, the ins and outs of the <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homebuying</a> and <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a> processes, and what’s worked for other people in the same situation as you.
With that expertise, a real estate advisor can anticipate what could happen next and work with you to put together a <a href="https://www.simplifyingthemarket.com/en/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">solid plan</a>. Then, they’ll guide you through the process, helping you make decisions along the way. That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with a real estate advisor.
Bottom Line
If you’re looking to buy or sell a home, you want an expert on your side to help you each step of the way. Let’s connect so you have advice you can count on.2024-03-08T06:00:00-07:002024-03-05T13:25:02-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8742The First Step: Getting Pre-Approved for a Mortgage [INFOGRAPHIC]The First Step: Getting Pre-Approved for a Mortgage [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240229/The-First-Step-Getting-Pre-Approved-for-a-Mortgage-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240229/The-First-Step-Getting-Pre-Approved-for-a-Mortgage-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240229/The-First-Step-Getting-Pre-Approved-for-a-Mortgage-MEM.png" alt="a screenshot of a website" /></a>
Some Highlights
If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a> in 2024, getting <a href="https://www.ftc.gov/sites/default/files/documents/one-stops/real-estate-competition/realestateglossary.pdf" rel="noopener noreferrer" target="_blank">pre-approved</a> is a key piece of the puzzle. <a href="https://www.simplifyingthemarket.com/en/2024/02/07/why-pre-approval-is-even-more-important-this-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Mortgage pre-approval</a> means a lender checks your finances and decides how much you’re qualified to borrow.
As more buyers re-enter the market, it’ll help you make a <a href="https://www.bankrate.com/mortgages/pre-approval/#faq" rel="noopener noreferrer" target="_blank">strong offer</a> that stands out from the crowd.
Talk to a <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">trusted professional</a> to <a href="https://finance.yahoo.com/personal-finance/mortgage-pre-approval-182545770.html" rel="noopener noreferrer" target="_blank">learn more</a> and begin your <a href="https://www.simplifyingthemarket.com/en/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homebuying process</a> today.
2024-03-07T06:15:00-07:002024-03-05T13:20:00-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8741What To Know About Credit Scores Before Buying a HomeWhat To Know About Credit Scores Before Buying a Home
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240229/20240304-What-To-Know-About-Credit-Scores-Before-Buying-a-Home.png" width="600" /><br /><br />
If you want to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a>, you should know your credit score is a critical piece of the puzzle when it comes to <a href="https://www.simplifyingthemarket.com/en/2024/02/07/why-pre-approval-is-even-more-important-this-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">qualifying for a mortgage</a>. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.”
That means your credit score may feel even more important to your <a href="https://www.simplifyingthemarket.com/en/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homebuying plans</a> right now since <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> are a key factor in <a href="https://www.simplifyingthemarket.com/en/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">affordability</a>. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q4" rel="noopener noreferrer" target="_blank">770</a>. But that doesn’t mean your credit score has to be perfect. The same article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“Your credit score (commonly called a FICO Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">says</a>:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian <a href="https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/" rel="noopener noreferrer" target="_blank">highlights</a> some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
Bottom Line
Finding ways to make your credit score better could help you get a lower <a href="https://www.simplifyingthemarket.com/en/2024/02/12/whats-really-happening-with-mortgage-rates/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rate</a>. If you want to learn more, talk to a <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">trusted lender</a>.2024-03-06T05:00:00-07:002024-03-05T13:21:01-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8740Why There Won’t Be a Recession That Tanks the Housing MarketWhy There Won’t Be a Recession That Tanks the Housing Market
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Why-There-Won-t-Be-a-Recession-That-Tanks-the-Housing-Market.png" width="600" /><br /><br />
There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.
<a href="https://www.builderonline.com/data-analysis/how-the-election-and-unemployment-could-impact-the-2024-housing-market_c" rel="noopener noreferrer" target="_blank">According</a> to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:
“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”
That might be why a <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">recent survey</a> from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" alt="a graph of the economic growth of the economy" /></a>
Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from <a href="https://www.macrotrends.net/countries/USA/united-states/unemployment-rate" rel="noopener noreferrer" target="_blank">Macrotrends</a>, the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">Bureau of Labor Statistics</a> (BLS), and <a href="https://tradingeconomics.com/united-states/unemployment-rate#:~:text=Unemployment%20Rate%20in%20the%20United,percent%20in%20May%20of%201953." rel="noopener noreferrer" target="_blank">Trading Economics</a>. When we do, it’s clear the unemployment rate today is still very low (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" alt="a graph of a graph showing the number of employment rate" /></a>
The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).
But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">survey</a> to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" alt="a graph of blue bars" /></a>
As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.
Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?
Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn't expect a wave of foreclosures that would impact the housing market in a big way.
Bottom Line
Most experts now think we won't have a recession in the next year. They also don't expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.2024-03-05T11:19:42-07:002024-03-05T11:22:27-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:85012 of the Factors That Impact Mortgage Rates
2 of the Factors That Impact Mortgage Rates
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240129/20240130-2-of-the-factors-that-impact-mortgage-rates.png" width="600" /><br /><br />
If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2024/01/18/3-key-factors-affecting-home-affordability/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a>, you’ve probably been paying close attention to <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a>. Over the last couple of years, they hit record lows, rose dramatically, and are now dropping back down a bit. Ever wonder why?
The answer is complicated because there’s a lot that can influence mortgage rates. Here are just a few of the most impactful factors at play.
Inflation and the Federal Reserve
The Federal Reserve (Fed) doesn’t directly determine mortgage rates. But the Fed does move the Federal Funds Rate up or down in response to what’s happening with inflation, the economy, employment rates, and more. As that happens, mortgage rates tend to respond. Business Insider <a href="https://www.businessinsider.com/personal-finance/how-does-fed-impact-mortgage-rates" rel="noopener noreferrer" target="_blank">explains</a>:
“The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. High inflation and investor expectations of more Fed rate hikes can push mortgage rates up. If investors believe the Fed may cut rates and inflation is decelerating, mortgage rates will typically trend down.”
Over the last couple of years, the Fed raised the Federal Fund Rate to try to fight inflation and, as that happened, mortgage rates jumped up, too. Fortunately, the expert outlook for inflation and mortgage rates is that both should become more favorable over the course of the year. As Danielle Hale, Chief Economist at Realtor.com, <a href="https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/" rel="noopener noreferrer" target="_blank">says</a>:
“[M]ortgage rates will continue to ease in 2024 as inflation improves . . .”
There’s even talk the Fed may actually cut the Fed Funds Rate this year because inflation is cooling, even though it’s not yet back to their ideal target.
The 10-Year Treasury Yield
Additionally, mortgage companies look at the 10-Year Treasury Yield to decide how much interest to charge on home loans. If the <a href="https://www.simplifyingthemarket.com/en/2023/07/19/explaining-todays-mortgage-rates/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">yield goes up</a>, mortgage rates usually go up, too. The opposite is also true. <a href="https://www.investopedia.com/mortgage/mortgage-rates/factors-affect-mortgage-rates/" rel="noopener noreferrer" target="_blank">According</a> to Investopedia:
“One frequently used government bond benchmark to which mortgage lenders often peg their interest rates is the 10-year Treasury bond yield.”
Historically, the spread between the 10-Year Treasury Yield and the 30-year fixed mortgage rate has been fairly consistent, but that’s not the case recently. That means, there’s room for mortgage rates to come down. So, keeping an eye on which way the treasury yield is trending can give experts an idea of where mortgage rates may head next.
Bottom Line
With the Fed meeting later this week, experts in the industry will be keeping a close watch to see what they decide and what impact it’ll have on the economy. To navigate any mortgage rate changes and their impact on your <a href="https://www.simplifyingthemarket.com/en/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">moving plans</a>, it’s best to have a team of professionals on your side.
2024-02-07T08:00:00-07:002024-02-02T13:32:51-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8500Foreclosure Activity Is Still Lower than the NormForeclosure Activity Is Still Lower than the Norm
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Have you seen headlines talking about the increase in foreclosures in today’s <a href="https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>? If so, they may leave you feeling a bit uneasy about <a href="https://www.simplifyingthemarket.com/en/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">what’s ahead</a>. But remember, these clickbait titles don’t always give you the full story.
The truth is, if you compare the current numbers with what usually happens in the market, you’ll see there’s no need to worry.
Putting the Headlines into Perspective
The increase the media is calling attention to is misleading. That’s because they’re only comparing the most recent numbers to a time where foreclosures were at historic lows. And that’s making it sound like a bigger deal than it is.
In 2020 and 2021, the moratorium and forbearance program helped millions of homeowners stay in their homes, allowing them to get back on their feet during a very challenging period.
When the moratorium came to an end, there was an expected rise in foreclosures. But just because foreclosures are up doesn’t mean the <a href="https://www.simplifyingthemarket.com/en/2023/11/29/why-the-economy-wont-tank-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a> is in trouble.
Historical Data Shows There Isn’t a Wave of Foreclosures
Instead of comparing today’s numbers with the last few abnormal years, it’s better to compare to long-term trends – specifically to the housing crash – since that’s what people worry may happen again.
Take a look at the graph below. It uses foreclosure <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-2023-year-end-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank">data</a> from ATTOM, a property data provider, to show foreclosure activity has been consistently lower (shown in orange) since the crash in 2008 (shown in red):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240130/20240131-us-forclosure-activity-increases-from-2022-but-still-below-pre-pandemic-levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240130/20240131-us-forclosure-activity-increases-from-2022-but-still-below-pre-pandemic-levels.png" /></a>
So, while foreclosure filings are up in the latest report, it’s clear this is nothing like it was back then.
In fact, we’re not even back at the levels we’d see in more normal years, like 2019. As Rick Sharga, Founder and CEO of the CJ Patrick Company, <a href="https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/" rel="noopener noreferrer" target="_blank">explains</a>:
“Foreclosure activity is still only at about 60% of pre-pandemic levels. . .”
That’s largely because buyers today are more qualified and less likely to default on their loans. Delinquency rates are still low and most homeowners have <a href="https://www.simplifyingthemarket.com/en/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">enough equity</a> to keep them from going into foreclosure. As Molly Boesel, Principal Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/loan-performance-insights-january-2024/" rel="noopener noreferrer" target="_blank">says</a>:
“U.S. mortgage delinquency rates remained healthy in October, with the overall delinquency rate unchanged from a year earlier and the serious delinquency rate remaining at a historic low… borrowers in later stages of delinquencies are finding alternatives to defaulting on their home loans.”
The reality is, while increasing, the data shows a foreclosure crisis is not where the market is today, or where it’s headed.
Bottom Line
Even though the housing market is experiencing an expected rise in foreclosures, it’s nowhere near the crisis levels seen when the housing bubble burst. If you have questions about what you’re hearing or reading about the housing market, let’s connect.2024-02-06T05:00:00-07:002024-02-02T13:31:28-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8523Spotlight at Posture Solutions Therapy located in Chattanooga, TN2024-02-05T09:43:34-07:002024-02-05T09:44:51-07:00Darren Millertag:herohomesgroup.com,2012-09-20:8522Spotlight with Meishah at Pristine State located in Sweetwater, TN2024-02-05T09:40:11-07:002024-02-05T09:43:28-07:00Darren Millertag:herohomesgroup.com,2012-09-20:8499Don’t Wait Until Spring To Sell Your House
Don’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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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.
2024-02-05T05:30:00-07:002024-02-02T13:29:52-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8498There’s No Foreclosure Wave in Sight [INFOGRAPHIC]There’s No Foreclosure Wave in Sight [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240201/Theres-No-Foreclosure-Wave-in-Sight-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240201/20240202-Why-Its-More-Affordable-To-Buy-A-Home-This-Year-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240201/20240202-Why-Its-More-Affordable-To-Buy-A-Home-This-Year-MEM.png" /></a>
Some Highlights
Headlines saying <a href="https://www.simplifyingthemarket.com/en/2024/01/31/foreclosure-activity-is-still-lower-than-the-norm/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">foreclosures</a> are rising might make you feel uneasy. But the truth is, there’s no need to worry.
If you look at the <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-2023-year-end-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank">latest numbers</a>, they’re still below <a href="https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/" rel="noopener noreferrer" target="_blank">pre-pandemic norms</a> and way below what happened during the crash.
If you're worried about a flood of foreclosures, the data shows a foreclosure crisis is not where the <a href="https://www.simplifyingthemarket.com/en/2023/11/29/why-the-economy-wont-tank-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">market is today</a> and is not <a href="https://www.corelogic.com/intelligence/loan-performance-insights-january-2024/" rel="noopener noreferrer" target="_blank">where it’s headed</a>.
2024-02-02T13:25:06-07:002024-02-02T13:28:32-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8150Is Owning a Home Still the American Dream for Younger Buyers?Is Owning a Home Still the American Dream for Younger Buyers?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Is-Owning-a-Home-Still-the-American-Dream-for-Younger-buyers.png" width="600" /><br /><br />
Everyone has their own idea of the American Dream, and it's different for each person. But, in a recent <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/#faq" rel="noopener noreferrer" target="_blank">survey</a> by Bankrate, people were asked about the achievements they believe represent the American Dream the most. The answers show that owning a home still claims the #1 spot for many Americans today (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Homeownership-Remains-the-1-feature-of-the-american-dream.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Homeownership-Remains-the-1-feature-of-the-american-dream.png" /></a>
In fact, according to the graph, owning a home is more important to people than retiring, having a successful career, or even getting a college degree. But is the dream of homeownership still alive for younger generations?
A recent <a href="http://www.1000wattinside.com/" rel="noopener noreferrer" target="_blank">survey</a> by 1000watt dives into how the two generations many people believed would be the renter generations (Gen Z and millennials) feel about homeownership. Specifically, it asks if they want to buy a home in the future. The resounding answer is yes (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Gen-Z-and-millenials-do-you-want-to-buy-a-home-at-some-point-in-the-future.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Gen-Z-and-millenials-do-you-want-to-buy-a-home-at-some-point-in-the-future.png" /></a>
While there are plenty of reasons why someone might prefer <a href="https://www.simplifyingthemarket.com/en/2023/11/23/why-homeowners-are-thankful-they-own/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeownership</a> to renting, the same 1000watt survey shows, that for 63% of <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Gen Z</a> and millennials, it’s that your place doesn’t feel like “home” unless you own it – maybe you feel the same way.
That emotional draw is further emphasized when you look at the reasons why Gen Z and millennials want to become homeowners. For all the <a href="https://www.simplifyingthemarket.com/en/2023/11/07/homeowner-net-worth-has-skyrocketed/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">financial benefits</a> homeownership provides, in most cases it’s about the lifestyle or <a href="https://www.simplifyingthemarket.com/en/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">emotional benefits</a> (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Whats-the-primary-reason-you-want-to-own-a-home.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231130-Whats-the-primary-reason-you-want-to-own-a-home.png" /></a>
What Does This Mean for You?
If you’re a part of Gen Z or are a millennial and you’re ready, willing, and able to <a href="https://www.simplifyingthemarket.com/en/2023/11/08/thinking-about-using-your-401k-to-buy-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a>, you’ll want a great real estate agent by your side. Their experience and expertise in the local housing market will help you overcome today’s high <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a>, <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">low inventory</a>, and rising <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> to find your first home and turn your dream into a reality.
Working with a local real estate agent to find your dream home is the key to unlocking the American Dream.
Bottom Line
<a href="https://www.mykcm.com/2023/11/03/the-benefits-of-buying-a-multi-generational-home-infographic/" rel="noopener noreferrer" target="_blank">Buying a home</a> is a big, important decision that represents the heart of the American Dream. If you want to accomplish your goal, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let’s connect</a> to start the process today.2024-01-26T05:00:00-07:002024-01-01T14:13:19-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8149How To Turn Homeownership into a Side HustleHow To Turn Homeownership into a Side Hustle
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-How-to-Turn-Homeownership-into-a-Side-Hustle.png" width="600" /><br /><br />
Does the rising cost of just about everything these days make your dream of owning your own home feel less within reach? <a href="https://www.bankrate.com/personal-finance/side-hustle-survey/#millennial-gen-z" rel="noopener noreferrer" target="_blank">According</a> to Bankrate, many people are seeking additional income through side hustles, possibly to cope with those increasing expenses and save for a home. This trend is particularly popular with younger individuals who may be dealing with student loan debt (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Nearly-two-in-five-US-adults-have-a-side-hustle.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Nearly-two-in-five-US-adults-have-a-side-hustle.png" /></a>
Here are two strategies that can not only make <a href="https://www.simplifyingthemarket.com/en/2023/11/23/why-homeowners-are-thankful-they-own/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeownership</a> more affordable in the short term, but turn it into a lucrative side hustle that can pay off down the road.
Transforming the Challenge of a Fixer-Upper into an Opportunity
One thing you could do to help you break into homeownership is consider purchasing a fixer-upper. That’s a <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home</a> that may be a bit less appealing and as a result has lingered on the market longer than normal. <a href="https://realestate.usnews.com/real-estate/articles/buying-a-fixer-upper-everything-you-need-to-know" rel="noopener noreferrer" target="_blank">According</a> to a recent article from U.S. News:
“The current state of the housing market may have you expanding your options to try to find a home that you can afford. A fixer-upper that needs some updating and a little love can feel like a welcome alternative to move-in ready houses that go off the market before you can even take a tour.”
By opting for a home that requires some work, you may see two big benefits. For starters, you may find it’s easier to find a home because you’re not looking for that perfect option. Plus, it may also help you enter the housing market at a lower <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">price point</a>. This strategy provides a more affordable way to <a href="https://www.simplifyingthemarket.com/en/2023/11/08/thinking-about-using-your-401k-to-buy-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">become a homeowner</a> while also offering the potential for future profits.
Yes, the home may need a little elbow grease, but investing time and effort into gradually enhancing your house not only makes it a home but also increases its future market value. So, while you enjoy the satisfaction of turning a house into a home, you're also <a href="https://www.simplifyingthemarket.com/en/2023/11/07/homeowner-net-worth-has-skyrocketed/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">building equity</a> that can be unlocked when it's time to sell.
Renting Out a Portion of Your Home To Make It More Affordable
Another savvy strategy is to <a href="https://www.simplifyingthemarket.com/en/2023/11/03/the-benefits-of-buying-a-multi-generational-home-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">purchase a home</a> with the upfront intention of renting out a portion of it. <a href="https://zillow.mediaroom.com/2023-11-16-Interest-in-house-hacking-explodes-among-Millennial-and-Gen-Z-home-buyers-seeking-extra-income" rel="noopener noreferrer" target="_blank">According</a> to a recent press release from Zillow, renting out a part of their home is already very important for most young homebuyers (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Percent-of-buyers-who-find-it-very-or-extremely-important.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Percent-of-buyers-who-find-it-very-or-extremely-important.png" /></a>
This approach serves a strong purpose. As Manny Garcia, Senior Population Scientist at Zillow, <a href="https://zillow.mediaroom.com/2023-11-16-Interest-in-house-hacking-explodes-among-Millennial-and-Gen-Z-home-buyers-seeking-extra-income" rel="noopener noreferrer" target="_blank">says</a>:
“For those first-time buyers navigating the ‘side hustle culture,’ where a regular 9-to-5 might not quite cut it for homeownership dreams, rental income can step in to help . . .”
Basically, it can help you afford your monthly mortgage payments. So if you’re open to it, renting out a portion of your home not only helps with <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">affordability</a>, but it also positions you as an investor and turns <a href="https://www.simplifyingthemarket.com/en/2023/11/01/what-are-accessory-dwelling-units-and-how-can-they-benefit-you/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">your home</a> into a source of income.
Bottom Line
In the face of today’s <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">affordability challenges</a>, both of these strategies offer more attainable paths to <a href="https://www.mykcm.com/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/" rel="noopener noreferrer" target="_blank">homeownership</a>, especially for younger buyers. If you want to discuss these options and see how they might play out for you in our local market, let’s connect.2024-01-25T07:00:00-07:002024-01-01T14:13:17-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8148Why You Should Use a Real Estate Agent When You Buy a HomeWhy You Should Use a Real Estate Agent When You Buy a Home
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231207-Why-You-Need-To-Use-a-Real-Estate-Agent-When-You-Buy-a-Home.png" width="600" /><br /><br />
If you’ve recently decided you’re ready to become a <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeowner</a>, chances are you’re trying to figure out what to do first. It can feel a bit overwhelming to know where to start, but the good news is you don’t have to navigate all of that alone.
When it comes to buying a home, there are a lot of moving pieces. And that’s especially true in today’s <a href="https://www.simplifyingthemarket.com/en/2023/11/15/the-latest-2024-housing-market-forecast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>. The number of <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homes for sale</a> is still low, and <a href="https://www.simplifyingthemarket.com/en/2023/11/14/home-prices-keep-climbing-in-most-markets/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> and <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> are still high. That combination can be tricky if you don’t have reliable expertise and a trusted advisor on your side. That’s why the best place to start is connecting with a local real estate agent.
Agents Are the #1 Most Useful Source in the Buying Process
The latest <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">annual report</a> from the National Association of Realtors (NAR) finds recent homebuyers agree the #1 most useful source of information they had in the home buying process was a real estate agent. Let’s break down why.
How an Agent Helps When You Buy a Home
When you think about a <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a>, you may think of someone taking you on home showings and putting together the paperwork, but a great agent does so much more than that. It’s not just being the facilitator for your purchase, it’s being your guide through every step.
The visual below shows some examples from that same <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">NAR release</a> of the many ways an agent adds value. It includes the percentage of homebuyers in that report who highlighted each of these benefits:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231207-Benefits-Provided-by-Real-Estate-Agent-During-Home-Purchase-Process.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231207-Benefits-Provided-by-Real-Estate-Agent-During-Home-Purchase-Process.png" /></a>
Here’s a bit more context on how the survey results noted an agent continually helps buyers in these situations:
Helped Buyer’s Understand the Process: Do you know the difference between an inspection and an appraisal, what each report tells you, and why they’re both important? Or that there are things you shouldn’t do after applying for a mortgage, like buying appliances or furniture? An agent knows all of these best practices and will share them with you along the way, so you don’t miss any key steps by the time you get to the closing table.
Pointed Out Unnoticed Features or Faults with the Home: An agent also has a lot of experience evaluating homes. They’ve truly seen it all. They’ll be able to pinpoint some things you may not have noticed about the home that could help inform your decision or at least what repairs you ask for.
Provided a Better List of Service Providers: In a real estate transaction, there are a lot of people involved. An agent has experience working with various professionals in your area, like home inspectors, and can help connect you with the pros you need for a successful experience.
Negotiated Better Contract Terms and Price: Did something pop up in the home inspection or with the appraisal? An agent will help you re-negotiate as needed to get the best terms and price possible for you, so you feel confident with your big purchase.
Improved Buyer’s Knowledge of the Search Area: Moving to a new town and you’re not familiar with the area, or you’re staying nearby, but don’t know which neighborhoods are most affordable? Either way, an agent knows the local area like the back of their hand and can help you find the perfect location for your needs.
Expanded Buyer’s Search Area: And if you’re not finding anything you’re interested in within your initial search radius, an agent will know other neighborhoods nearby you should consider based on what you like, what amenities you want, and more.
Bottom Line
If you’re looking to <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">buy a home</a>, don’t forget about the many ways an agent is essential to that process. Any hurdle that pops up, a negotiation that needs to take place, and more, your agent will know how to handle it while they make sure to minimize your stress along the way. Let’s connect to tackle this together.2024-01-24T05:45:00-07:002024-01-01T14:11:42-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8147Your Homebuying Adventure [INFOGRAPHIC]Your Homebuying Adventure [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/Your-Homebuying-Adventure-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/Your-Homebuying-Adventure-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/Your-Homebuying-Adventure-MEM.png" /></a>
Some Highlights
Here are the key milestones you’ll encounter on your path to <a href="https://www.mykcm.com/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/" rel="noopener noreferrer" target="_blank">homeownership</a>.
From <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">building your team</a>, to house hunting, all the way to moving into your new home – it’s an <a href="https://www.mykcm.com/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/" rel="noopener noreferrer" target="_blank">exciting adventure</a>.
Your <a href="https://www.mykcm.com/2023/11/23/why-homeowners-are-thankful-they-own/" rel="noopener noreferrer" target="_blank">journey</a> starts here. Let’s connect so you have <a href="https://www.mykcm.com/2023/11/08/thinking-about-using-your-401k-to-buy-a-home/" rel="noopener noreferrer" target="_blank">expert guidance</a> each step of the way.
2024-01-23T05:00:00-07:002024-01-01T14:10:23-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8146The Perfect Home Could Be the One You Perfect After BuyingThe Perfect Home Could Be the One You Perfect After Buying
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231211-The-Perfect-Home-Could-Be-the-One-You-Perfect-After-Buying.png" width="600" /><br /><br />
There’s no denying <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates </a>and <a href="https://www.simplifyingthemarket.com/en/2023/11/14/home-prices-keep-climbing-in-most-markets/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> are higher now than they were last year and that’s impacting what you can <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">afford</a>. At the same time, there are still fewer homes <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">available for sale</a> than the norm. These are two of the biggest hurdles buyers are facing today. But there are ways to overcome these things and still make your dream of <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeownership</a> a reality.
As you set out to <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">make a purchase</a> this season, you’ll want to be strategic. This includes taking a close look at your wish list and considering what features you really need in your next home versus which ones are nice-to-have. This will help you avoid overextending <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">your budget</a> or limiting your pool of options too much because you’re searching for that perfect home.
Danielle Hale, Chief Economist at Realtor.com, <a href="https://twitter.com/RDC_Economics/status/1590722818639269889" 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, . . . Another key point is to avoid stretching your budget, as tempting as it may be . . .”
To help identify what you truly need, make a list of all the features you’ll want to see. From there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
If you’re only willing to tour homes that have all of your dream features, you may be cutting down your options too much and making it harder on yourself (and your budget) than necessary.
While you’d love to have granite countertops or a pool in the backyard, those are both things you could potentially add after you move. Instead, it may be best to focus on finding the things that you can’t change (like location or a certain number of rooms). Then, you can upgrade or add some of the other features or finishes you want later on.
Sometimes the perfect home is the one you perfect after buying it.
Once you’ve categorized your list in a way that works for you, discuss your top priorities with your <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a>. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.
Bottom Line
With the current affordability challenges and limited housing supply, you’ll want to be strategic so you can find a home that meets your needs while staying within your budget. Let’s connect to make that possible.2024-01-22T05:30:00-07:002024-01-01T14:09:17-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8145Down Payment Assistance Programs Can Help Pave the Way to HomeownershipDown Payment Assistance Programs Can Help Pave the Way to Homeownership
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Down-Payment-Assistance-Programs-Can-Help-Pave-the-Way-to-Homeownership.png" width="600" /><br /><br />
If you’re looking to buy a home, your down payment doesn’t have to be a big hurdle. <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR), 38% of first-time homebuyers find saving for a down payment the most challenging step. But the reality is, you probably don’t need to put down as much as you think:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Todays-Median-Down-Payment-Is-Much-Lower.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Todays-Median-Down-Payment-Is-Much-Lower.png" /></a>
Data from NAR <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-profile-of-home-buyers-and-sellers-highlights-11-13-2023.pdf" rel="noopener noreferrer" target="_blank">shows</a> the median down payment hasn’t been over 20% since 2005. In fact, the median down payment for all homebuyers today is only 15%. And it’s even lower for first-time homebuyers at 8%. But just because that’s the median, it doesn’t mean you have to put that much down. Some qualified buyers put down even less.
For example, there are loan types, like <a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.simplifyingthemarket.com/en/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">VA loans</a> and <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program" rel="noopener noreferrer" target="_blank">USDA loans</a> with no down payment requirements for qualified applicants. But let’s focus in on another valuable resource that may be able to help with your down payment: down payment assistance programs.
First-Time and Repeat Buyers Are Often Eligible
According to <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>, there are thousands of programs available for homebuyers – and 75% of these are down payment assistance programs.
And it’s not just first-time <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homebuyers</a> that are eligible. That means no matter where you are in your homebuying journey, there could be an option available for you. As Down Payment Resource <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">notes</a>:
“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
The best place to start as you search for more information is with a trusted real estate professional. They’ll be able to share more information about what may be available, including additional programs for specific professions or communities.
Additional Down Payment Resources That Can Help
Here are a few down payment assistance programs that are helping many of today’s buyers achieve the dream of homeownership:
Teacher Next Door is designed to help teachers, first responders, health providers, government employees, active-duty military personnel, and veterans reach their down payment goals.
<a href="https://www.fanniemae.com/casa" rel="noopener noreferrer" target="_blank">Fannie Mae</a> provides down-payment assistance to eligible first-time homebuyers living in majority-Latino communities.
<a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" rel="noopener noreferrer" target="_blank">Freddie Mac</a> also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.
The <a href="https://3by30.org/homeownership-101/get-help-buying-a-home/" rel="noopener noreferrer" target="_blank">3By30</a> program lays out actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier for them to secure down payments and realize their dream of homeownership.
For Native Americans, <a href="https://downpaymentresource.com/homebuyer-resource/highlighting-42-native-american-homebuyer-assistance-programs-in-honor-of-native-american-heritage-month/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a> highlights 42 U.S. homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.
Even if you don’t qualify for these types of programs, there are many other federal, state, and local options available to look into. And a real estate professional can help you find the ones that meet your needs as you explore what’s available.
Bottom Line
Achieving the dream of having a home may be more within reach than you think, especially when you know where to find the right support. To learn more about your options, let’s connect.2024-01-19T05:00:00-07:002024-01-01T14:08:19-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8144The Surprising Trend in the Number of Homes Coming onto the MarketThe Surprising Trend in the Number of Homes Coming onto the Market
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231213-The-Surprising-Trend-in-the-Number-of-Homes-Coming-onto-the-Market.png" width="600" /><br /><br />
If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">moving</a>, it's important to know what's happening in the <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>. Here's an update on the supply of homes currently for sale. Whether you're <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a>, the number of homes in your area is something you should pay attention to.
In the housing market, there are regular patterns that happen every year, called <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">seasonality</a>. Spring is the peak homebuying season and also when the most homes are typically listed for sale (homes coming onto the market are known in the industry as new listings). In the second half of each year, the number of new listings typically decreases as the pace of sales slows down.
The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to provide a visual of this seasonality. It shows how this year (the black line) is breaking from the norm (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231213-New-Listings-Stabilizing.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231213-New-Listings-Stabilizing.png" /></a>
Looking at this graph, three things become clear:
2017-2019 (the blue and gray lines) follow the same general pattern. These years were very typical in the housing market and their lines on the graph show normal, seasonal trends.
Starting in 2020, the data broke from the normal trend. The big drop down in 2020 (the orange line) signals when the pandemic hit and many sellers paused their plans to move. 2021 (the green line) and 2022 (the red line) follow the normal trend a bit more, but still are abnormal in their own ways.
This year (the black line) is truly unique. The steep drop off in new listings that usually occurs this time of year hasn’t happened. If 2023 followed the norm, the line representing this year would look more like the dotted black line. Instead, what’s happening is the number of new listings is stabilizing. And, there are even more <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">new listings</a> coming to the market this year compared to the same time last year.
What Does This Mean for You?
For buyers, new listings stabilizing is a positive sign. It means you have a more steady stream of options coming onto the market and more choices for your next home than you would have at the same time last year. This opens up possibilities and allows you to explore a variety of homes that suit your needs.
For sellers, while new listings are breaking seasonal norms, inventory is still well below where it was before the pandemic. If you look again at the graph, you’ll see the black line for this year is still lower than normal, meaning inventory isn’t going up dramatically and prices aren’t heading for a crash. And with less competition from other sellers than you’d see in a more typical year, <a href="https://www.simplifyingthemarket.com/en/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">your house</a> has a better chance to be in the spotlight and attract eager buyers.
Bottom Line
Whether you're on the hunt for your next home or thinking of selling, now might just be the perfect time to make <a href="https://www.mykcm.com/2023/11/13/life-changing-events-that-move-the-housing-market/" rel="noopener noreferrer" target="_blank">your move</a>. If you have questions or concerns about the availability of homes in our local area, let’s connect.2024-01-18T05:00:00-07:002024-01-01T14:07:19-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8143If Your House Hasn’t Sold Yet, It May Be OverpricedIf Your House Hasn’t Sold Yet, It May Be Overpriced
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231205/20231214-If-Your-House-Hasn-t-Sold-Yet-It-May-Be-Overpriced.png" width="600" /><br /><br />
Has your house been sitting on <a href="https://www.simplifyingthemarket.com/en/2023/11/15/the-latest-2024-housing-market-forecast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">the market</a> a while without <a href="https://www.simplifyingthemarket.com/en/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a>? If so, you should know that’s pretty unusual, especially right now. That’s because the <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">supply of homes</a> available for sale is still far lower than what we’d see in a normal year. That means buyers have fewer options than they usually would, so your house should be an oasis in an <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">inventory</a> desert.
So, if homebuyers have limited choices and your house still hasn’t sold, there’s a reason why. Let’s break one potential sticking point that may be turning buyers away: your asking price.
Especially with today’s higher mortgage rates already putting a stretch on their budget, <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buyers</a> are being a bit more sensitive about price. As a recent article from the Wall Street Journal (WSJ) <a href="https://www.wsj.com/articles/is-now-a-good-time-to-sell-your-home-ac27dc9b" rel="noopener noreferrer" target="_blank">says</a>:
“If you are serious about selling your home now, don’t get greedy with the asking price. This is still a seller’s home market as there simply aren’t enough affordable homes for sale in many parts of the country. But with average 30-year mortgage rates above 6%, buyers are much more price-sensitive than they were a year ago.”
Why Setting the Right Price Matters
While you want to maximize the return on your investment when you <a href="https://www.simplifyingthemarket.com/en/2023/10/19/the-risks-of-selling-your-house-on-your-own/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell your house</a>, you also need to be realistic based on current market conditions. The simple truth is your house is only going to sell for what people are willing to pay right now.
This can be a hard thing to accept. Especially since emotions can run high during the selling process, which only complicates matters more. After all, you may have lived in this house for years, so it’s only natural you’re emotionally tied to it – and those heartstrings can make it harder to be objective.
But it’s important to acknowledge that a bigger-than-expected price tag deters buyers and may make them dismiss your house as a possibility before even seeing it. And if no one’s looking at it, how will it sell?
If you want to get your house sold, you’ll need to do something to spark interest in your home again. That’s where a local <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a> comes in. They’ll help use data to find out if it’s priced too high for your local market. They balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more to find the right price for your house, so you can close this chapter and start your next one.
Bottom Line
While it’s true there aren’t that many homes available for sale right now, your home’s asking price still matters. And, if it’s not selling, it may be priced too high. 2024-01-17T14:05:00-07:002024-01-01T14:06:24-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8142What You Need To Know About Down Payments [INFOGRAPHIC]What You Need To Know About Down Payments [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231214/20231214-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231214/What-You-Need-To-Know-About-Down-Payments-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231214/What-You-Need-To-Know-About-Down-Payments-MEM.png" /></a>
Some Highlights
If you want to <a href="https://www.mykcm.com/2023/12/06/how-to-turn-homeownership-into-a-side-hustle/" rel="noopener noreferrer" target="_blank">buy a home</a>, you may not need as much for your <a href="https://www.mykcm.com/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/" rel="noopener noreferrer" target="_blank">down payment</a> as you think.
There are various loan options for qualified buyers with down payments as low as 3.5% or even no down payment requirement. There are also thousands of programs available to help <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">homebuyers</a> with their down payments.
With the right resources, your down payment may be more within reach than you realize. To learn more about your options, <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>.
2024-01-16T07:30:00-07:002024-01-01T14:05:48-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8141Why Now Is Still a Great Time To Sell Your HouseWhy Now Is Still a Great Time To Sell Your House
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Why-Now-Is-Still-a-Great-Time-To-Sell-Your-House.png" width="600" /><br /><br />
If you were worried <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buyer demand</a> disappeared when mortgage rates went up, the data shows there are plenty of <a href="https://www.simplifyingthemarket.com/en/2023/12/01/3-reasons-to-sell-your-house-before-the-new-year-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">interested buyers</a> still out there. The <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a> isn't as frenzied as it was during the <a href="https://www.simplifyingthemarket.com/en/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> when buyer demand was through the roof, mortgage rates were historically low, and home values rose like we’ve never seen before. But that doesn’t mean the market is at a standstill.
Nationally, demand is still high compared to the last normal years in the housing market and plenty of buyers are making moves right now. Here’s the data to prove it.
Showing Traffic Is Up
The <a href="https://www.showingtime.com/showingtime-showing-index/" rel="noopener noreferrer" target="_blank">ShowingTime Showing Index</a> is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity over the past eight Octobers:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Showing-Traffic-Above-Pre-Unicorn-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Showing-Traffic-Above-Pre-Unicorn-Years.png" /></a>
In the graph, the ‘unicorn’ years are shown in pink. You can see demand has dipped some since then. That’s in response to higher mortgage rates. But, when you compare 2023 to the blue bars on the left that represent the last normal years in the market (2018-2019), you can tell <a href="https://www.simplifyingthemarket.com/en/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buyers</a> are still more active than the norm.
But showing traffic isn’t the only way to see <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buyer demand</a> is still high. The number of offers other sellers are getting and the average days homes are on the market tell the same story.
Sellers Are Still Seeing Multiple Offers
According to the latest <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">data</a> from the National Association of Realtors (NAR), sellers are receiving an average of <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-10-realtors-confidence-index-11-21-2023.pdf" rel="noopener noreferrer" target="_blank">2.5 offers</a> on their houses. Let’s look at how that compares to recent years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Average-Number-of-Offers-Still-Higher-Than-Pre-Unicorn-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Average-Number-of-Offers-Still-Higher-Than-Pre-Unicorn-Years.png" /></a>
It’s true that’s fewer than the number of offers sellers were receiving during the ‘unicorn’ years (shown in pink). But compared to last year, the number is up slightly. And it’s higher than it was in the more normal, pre-‘unicorn’ years in the housing market too.
Homes Priced Right Are Selling Fast
And it’s not just that sellers are still typically getting multiple offers more than the norm, they’re also seeing their homes sell fast. That’s a direct result of strong buyer demand. According to <a href="https://zillow.mediaroom.com/2023-11-13-Buyer-demand-hanging-tough,-despite-rates-and-seasonal-cooldown" rel="noopener noreferrer" target="_blank">Zillow</a>:
“. . . low inventory levels are spurring surprisingly strong competition . . . demand has remained resilient, and attractive, appropriately priced listings are moving quickly.”
To help showcase that homes for sale are still going quickly, let’s look at <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">data</a> from NAR on the median days on market for this same time of year from 2018 through now (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Median-Days-On-The-Market-Fewer-Than-Pre-Unicorn-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Median-Days-On-The-Market-Fewer-Than-Pre-Unicorn-Years.png" /></a>
As the graph shows, this year homes are sitting on the market only slightly longer than they were during the frenzy of the ‘unicorn’ years. And compared to the last normal years in the market, homes are still selling much faster than they did back then. That’s good news for sellers because it means there are eager buyers out there right now.
Bottom Line
You haven't missed your chance to sell at a time when sellers are receiving multiple offers, and homes are selling fast. When you’re ready to sell your house, let’s connect to get the ball rolling.2024-01-15T06:00:00-07:002024-01-01T14:04:26-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8140Expert Quotes on the 2024 Housing Market ForecastExpert Quotes on the 2024 Housing Market Forecast
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If you’re thinking about <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=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a> a home soon, you probably want to know what you can expect from the <a href="https://www.simplifyingthemarket.com/en/2023/11/17/2024-housing-market-forecast-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a> in 2024. In 2023, higher mortgage rates, confusion over <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home price</a> headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the <a href="https://www.simplifyingthemarket.com/en/2023/11/15/the-latest-2024-housing-market-forecast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">new year</a>?
The good news is, many experts are optimistic we’ve turned a corner and are headed in a positive direction.
Mortgage Rates Expected To Ease
Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024" rel="noopener noreferrer" target="_blank">explains</a> how they may continue to drop:
“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-december-7-2023" rel="noopener noreferrer" target="_blank">says</a>:
“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”
The Supply of Homes for Sale May Grow
As rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homes for sale</a> will grow – <a href="https://www.simplifyingthemarket.com/en/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">a trend</a> we’ve already started to see this year. Lisa Sturtevant, Chief Economist at Bright MLS, <a href="https://brightmls.com/article/2024-national-housing-market-outlook" rel="noopener noreferrer" target="_blank">says</a>:
“Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”
Home Price Growth Should Moderate
And mortgage rates pulling back isn’t the only positive sign for <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">affordability</a>. <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Home price</a> growth is expected to moderate too, as inventory improves but is still low overall. As the Home Price Expectation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing market analysts, <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q4-2023-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">says</a>:
“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”
To wrap it up, experts project 2024 will be a better year for the <a href="https://www.simplifyingthemarket.com/en/2023/11/29/why-the-economy-wont-tank-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>. So, if you’re thinking about making a move next year, know that early signs show we’re turning a corner. As Mike Simonsen, President and Founder of Altos Research, <a href="https://www.housingwire.com/articles/promising-signs-abound-for-housing-market-in-2024/" rel="noopener noreferrer" target="_blank">puts it</a>:
“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”
Bottom Line
Experts are optimistic about what 2024 holds for the housing market. If you’re looking to buy or sell a home in the new year, the best way to ensure you’re up to date on the latest forecasts is to partner with a trusted real estate agent. Let’s connect.2024-01-12T05:00:00-07:002024-01-01T14:03:25-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8139Why 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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.2024-01-11T06:30:00-07:002024-01-01T14:02:38-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8138Sell Smarter: Why Working with a Real Estate Agent May Beat Going SoloSell Smarter: Why Working with a Real Estate Agent May Beat Going Solo
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If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling your house</a> on your own, called “For Sale by Owner” or FSBO, there are some important things to consider. Going this route means taking on a lot of responsibilities by yourself – and that can be a bit of a headache.
A recent <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">report</a> from the National Association of Realtors (NAR) found two of the most difficult tasks for people who sell their house on their own are getting the price right and understanding and performing paperwork.
Here are just a few of the ways an agent helps with those difficult tasks.
Getting the Price Right
Setting the right price for your house is important when you're trying to <a href="https://www.simplifyingthemarket.com/en/2023/12/01/3-reasons-to-sell-your-house-before-the-new-year-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell</a> it. If you're selling your house on your own, two common issues can happen. For starters, you might ask for too much money (overpricing). Alternatively, you might not ask for enough (underpricing). Either can make it hard to sell your house. <a href="https://www.nerdwallet.com/article/mortgages/price-home-sell" rel="noopener noreferrer" target="_blank">According</a> to NerdWallet:
“When selling a home, first impressions matter. 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.”
To avoid these problems, it's a good idea to team up with a real estate agent. Real estate agents know how to figure out the perfect price because they understand the local housing market. They can use their expertise to set a price that matches what buyers are <a href="https://www.simplifyingthemarket.com/en/2023/12/14/if-your-house-hasnt-sold-yet-it-may-be-overpriced/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">willing to pay</a>, giving your house the best chance to impress from the start.
Understanding and Performing Paperwork
<a href="https://www.simplifyingthemarket.com/en/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Selling a house</a> involves a bunch of paperwork and legal documentation that has to be just right. There are a lot of rules and regulations to follow, making it a bit tricky for homeowners to manage everything on their own. Without a pro by your side, you could end up facing liability risks and legal complications.
Real estate agents are experts in all the contracts and paperwork needed for <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling a house</a>. They know the rules and can guide you through it all, reducing the chance of mistakes that might lead to legal problems or delays.
So, instead of dealing with the growing pile of documents on your own, team up with an agent who can be your advisor, helping you avoid any legal bumps in the road.
Bottom Line
Selling your house is a big deal, and it can be complicated. Having a real estate agent can make a huge difference with setting the right price and managing all the details, so you can sell confidently. Let’s connect to make the process smooth and take the stress off your plate.2024-01-10T05:00:00-07:002024-01-01T14:01:08-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8137Get Your House Ready To Sell This Winter [INFOGRAPHIC]Get Your House Ready To Sell This Winter [INFOGRAPHIC]
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<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231219/Get-Your-House-Ready-To-Sell-This-Winter-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231219/Get-Your-House-Ready-To-Sell-This-Winter-MEM.png" /></a>
Some Highlights
As you get ready to <a href="https://www.mykcm.com/2023/12/21/sell-smarter-why-working-with-a-real-estate-agent-may-beat-going-solo/?override=8vwUl3FwQmvWpiwh" rel="noopener noreferrer" target="_blank">sell your house</a>, there are a few things you should add to your to-do list to make it<a href="https://www.mykcm.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank"> inviting</a> and boost curb appeal.
To name just a couple, it’s a good idea to declutter, take down personal photos and items, touch up any scuffs on the walls, and tidy up your landscaping.
Connect with a trusted real estate professional for advice on what else you may want to do to get your house <a href="https://www.mykcm.com/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/" rel="noopener noreferrer" target="_blank">ready to sell</a> this season.
2024-01-09T06:00:00-07:002024-01-01T14:00:13-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8136These Non-Financial Benefits Turn a House into a Happy HomeThese Non-Financial Benefits Turn a House into a Happy Home
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There’s no denying the long-term financial benefits of owning a home, but today’s housing market may have you wondering if now’s still the <a href="https://www.simplifyingthemarket.com/en/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">time to buy</a>. While the financial aspects of homeownership are important, the non-financial and emotional reasons are too. Here’s why.
The word <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home</a> truly means something different to everyone. Whether it’s sharing memories with loved ones around the kitchen table or settling in to read a book in your favorite chair, the emotional connections we have to our homes can be just as important as the financial ones. Here are some of the things that turn a house into a happy home.
1. You Can Be Proud of Your Accomplishment
<a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Buying a home</a> is a major life milestone. Whether you’re ready to buy your first home or your fifth, congratulations will be in order once you’ve achieved your goal. The sense of accomplishment you’ll feel at the end of your journey will truly make your home feel like your special place. Go ahead and smile – you’ve earned it.
2. You Have Your Own Designated Happy Place
<a href="https://www.simplifyingthemarket.com/en/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Owning your home</a> offers not only safety and security, but also a comfortable place where you can relax and unwind after a long day. Sometimes that’s just what you need to feel refreshed and recharged.
3. You Can Find the Space To Meet Your Needs
Whether you want more room for your changing lifestyle (like a large backyard for entertaining or room for a home office) or you simply want to move closer to your loved ones, you can invest in a <a href="https://www.simplifyingthemarket.com/en/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home</a> that truly works for your evolving needs.
4. You Can Customize Your Surroundings
Looking to try one of those decorative wall treatments you saw online? Tired of paying an additional pet deposit for your apartment building? Or maybe you want to create an in-house yoga studio. You can do these things and much more when you <a href="https://www.simplifyingthemarket.com/en/2023/11/23/why-homeowners-are-thankful-they-own/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">own your home</a>.
Bottom Line
Whether you’re planning to buy your first home, or you’re ready to move into a different one to meet your changing needs, think about the emotional benefits that can turn a house into a happy home. <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">When you’re ready</a> to make a 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>.2024-01-08T05:00:00-07:002024-01-01T13:59:34-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8135Get Ready To Buy a Home by Improving Your Credit ScoreGet Ready To Buy a Home by Improving Your Credit Score
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As the new year approaches, the idea of <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying a home</a> might be on your mind. It’s an exciting goal to set, and it's never too early to start laying the groundwork. One crucial step to prepare for <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeownership</a> is building a solid credit score.
Lenders review your credit to assess your ability to make payments on time, pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from CNBC <a href="https://www.cnbc.com/2023/09/23/credit-score-you-need-to-buy-a-home.html" rel="noopener noreferrer" target="_blank">explains</a>:
“When it comes to mortgages, a higher credit score can save you thousands of dollars in the long run. This is because your credit score directly impacts your mortgage rate, which determines the amount of interest you’ll pay over the life of the loan.”
This means your credit score may feel even more important to your homebuying plans right now since <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> are a key factor in <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">affordability</a>, especially today.
According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q3" rel="noopener noreferrer" target="_blank">770</a>. But that doesn’t mean your credit score has to be perfect. An article from Business Insider <a href="https://www.businessinsider.com/personal-finance/what-credit-score-is-needed-to-buy-a-house" rel="noopener noreferrer" target="_blank">explains</a> generally how your FICO score range can make an impact:
“. . . you don’t need a perfect credit score to buy a house. . . . Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799).”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate. As FICO <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">says</a>:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian <a href="https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/" rel="noopener noreferrer" target="_blank">highlights</a> some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
A lender will help you navigate the process from start to finish, from assessing which range your score falls in to telling you more about the specifics for each loan type.
Bottom Line
As you set your sights on <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">buying a home</a> in the upcoming year, a focus on boosting your credit score could help you get a better mortgage rate when the time comes. If you want to learn more, connect with a trusted lender.2024-01-05T05:00:00-07:002024-01-01T13:58:46-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8134Retiring Soon? Why Moving Might Be the Perfect Next StepRetiring Soon? Why Moving Might Be the Perfect Next Step
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If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.
Fortunately, you may be in a better position to <a href="https://www.simplifyingthemarket.com/en/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">make a move</a> than you realize. Here are a few things to think about as you decide whether or not to sell and make a move.
How Long You’ve Been in Your Home
From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">rising</a> today, meaning many homeowners are living in their houses even longer (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Homeowners-Are-Living-In-Their-Homes-Longer-In-Recent-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Homeowners-Are-Living-In-Their-Homes-Longer-In-Recent-Years.png" /></a>
When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">life changes</a> and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
How Much Equity You’ve Gained
Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home price appreciation</a>. Data from the Federal Housing Finance Agency (FHFA) <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" rel="noopener noreferrer" target="_blank">illustrates</a> that point (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-How-Home-Prices-Have-Grown-over-Time.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-How-Home-Prices-Have-Grown-over-Time.png" /></a>
While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.
Consider Your Retirement Goals
Whether you're looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">shares</a> that for recent home sellers, the primary reason to move was to be closer to loved ones.
Whatever your home goals are, a trusted <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=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a> can work with you to find the best option. They’ll help you <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell</a> your current house and <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">guide you</a> through buying the home that’s right for your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore the available homes in our area.2024-01-04T05:45:00-07:002024-01-01T13:56:40-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8133What You Need To Know About Saving for a Home in 2024What You Need To Know About Saving for a Home in 2024
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If you’re planning to <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a>, knowing what to budget for and how to save may sound intimidating – but it doesn’t have to be. One way to ease those concerns is to make sure you understand some of the costs you may encounter up front. And to do that, always turn to trusted <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=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate professionals</a>. They can help you set a plan and take a strategic look at your budget and your process before you even get started.
Here are just a few things experts say you should be thinking about.
1. Down Payment
Saving for your <a href="https://www.simplifyingthemarket.com/en/2023/12/15/what-you-need-to-know-about-down-payments-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">down payment</a> is likely top of mind as you set out to buy a home. But do you know how much you’ll need? While every buyer’s situation is different, there’s a common misconception that putting 20% of the purchase price down is required. An article from the Mortgage Reports <a href="https://themortgagereports.com/18520/20-percent-downpayment-risk-mortgage-interest-rate" rel="noopener noreferrer" target="_blank">explains</a> why that’s not always the case:
“The idea that you have to put 20% down on a house is a myth. . . . The right amount depends on your current savings and your home buying goals.”
To understand your options, partner with trusted real estate professionals to go over the various loan types, down payment <a href="https://www.simplifyingthemarket.com/en/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">assistance programs</a>, and what each one requires. The more you know ahead of time, the easier the process will be.
2. Closing Costs
Make sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction. Bankrate <a href="https://www.bankrate.com/mortgages/what-are-closing-costs/" rel="noopener noreferrer" target="_blank">explains</a>:
“Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage so it’s important to be financially prepared for this expense.”
The best way to understand what you’ll need at the closing table is to work with a trusted lender. They can provide you with answers to the questions you might have.
3. Earnest Money Deposit
If you want to cover all your bases, you can also consider saving for an earnest money deposit (EMD). An EMD is money you pay as a show of good faith when you make an offer on a house. According to <a href="https://www.realtor.com/advice/finance/understanding-the-earnest-money-deposit-2/" rel="noopener noreferrer" target="_blank">Realtor.com</a>, it’s usually between 1% and 2% of the total home price.
This deposit works like a credit. It’s not an added expense – it’s paying a portion of your costs upfront. You’re using some of the money you’ve already saved for your purchase to show the seller you’re committed and serious about buying their house. Realtor.com <a href="https://www.realtor.com/advice/finance/understanding-the-earnest-money-deposit-2/" rel="noopener noreferrer" target="_blank">describes</a> how it works as part of your sale:
“It tells the real estate seller you’re in earnest as a buyer . . . Assuming that all goes well and the buyer’s good-faith offer is accepted by the seller, the earnest money funds go toward the down payment and closing costs. In effect, earnest money is just paying more of the down payment and closing costs upfront.”
Keep in mind, an EMD isn’t required, and it doesn’t guarantee your offer will be accepted. It’s important to work with a real estate advisor to understand what’s best for your situation and any specific requirements in your local area. They’ll advise you on what moves you should make so you can make the best possible decisions throughout the buying process.
Bottom Line
When <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">buying a home</a>, being informed about what to save for is key. Let’s connect so you’ll have an expert on your side to answer any questions you have along the way.2024-01-03T05:30:00-07:002024-01-01T13:55:59-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8132The Benefits of Working With an Agent When You Sell Your House [INFOGRAPHIC]The Benefits of Working With an Agent When You Sell Your House [INFOGRAPHIC]
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Some Highlights
When it comes to <a href="https://www.mykcm.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank">selling your house</a>, the expertise of a trusted real estate agent can make a big difference.
They’ll explain <a href="https://www.mykcm.com/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/" rel="noopener noreferrer" target="_blank">what’s happening</a> today, what that means for you, and how to <a href="https://www.mykcm.com/2023/12/14/if-your-house-hasnt-sold-yet-it-may-be-overpriced/" rel="noopener noreferrer" target="_blank">price</a> and market your house. They’re also skilled negotiators and well versed in the <a href="https://www.mykcm.com/2023/12/21/sell-smarter-why-working-with-a-real-estate-agent-may-beat-going-solo/?override=8vwUl3FwQmvWpiwh" rel="noopener noreferrer" target="_blank">contracts and disclosures</a> involved.
Let’s connect so you have expert advice throughout the entire process.
2024-01-02T05:00:00-07:002024-01-01T13:55:03-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:81313 Keys To Hitting Your Homeownership Goals in 20243 Keys To Hitting Your Homeownership Goals in 2024
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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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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=953024-f69a52537cd48c0c16ffbbf771f6e557" 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 2024.2024-01-01T13:51:10-07:002024-01-01T13:53:46-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:8008Weekly spotlight with Sydney Blackwell from Goosehead Insurance2023-12-15T14:58:05-07:002024-02-05T09:35:16-07:00Darren Millertag:herohomesgroup.com,2012-09-20:7880Why Homeowners Are Thankful They OwnWhy Homeowners Are Thankful They Own
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Countless people have set out on the exciting journey of <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeownership</a>. Ask around and you’ll find the vast majority are thankful they took the leap and bought a home. But why? It’s because of the many emotional and lifestyle benefits that come with being a homeowner.
So, if you’re trying to decide if you want to <a href="https://www.simplifyingthemarket.com/en/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">rent or buy</a> a home, here are just a few of the many benefits you could look forward to if you buy.
It’s a Safe Haven
Owning a home goes beyond just having a roof over your head. It provides a sense of security and safety. In fact, in a <a href="https://www.fanniemae.com/research-and-insights/perspectives/consumers-homeownership-aspirations-remain-high-despite-higher-home-prices-and-interest-rates" rel="noopener noreferrer" target="_blank">survey</a> from Fannie Mae, respondents say “having a sense of privacy and security” is one of the top reasons homeownership is preferred to renting. And in a different Fannie Mae <a href="https://www.fanniemae.com/media/47726/display" rel="noopener noreferrer" target="_blank">survey</a>, “living in a place where you and your family feels safe” is another one of the top benefits of homeownership.
Your home is a place where you can truly relax and unwind. Knowing that you have a sanctuary to return to at the end of the day is a great source of comfort.
It’s a Canvas for Self-Expression
For many homeowners, their home is a reflection of who they are. The National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-own-a-home" rel="noopener noreferrer" target="_blank">says</a>:
“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”
From the color of the front door to the art hanging on the walls, every detail contributes to a unique expression of personal style. Put simply, owning a home gives you the freedom to make changes and improvements that resonate with your personality.
It Helps You Feel More Connected to the Community
Stability is another cornerstone of homeownership. The longer you stay put, the more emotionally connected you are to your community. For example, if your neighborhood does cook-outs, block parties, or other events, you’ll feel more engaged and probably build meaningful relationships with those around you. As NAR <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-own-a-home" rel="noopener noreferrer" target="_blank">states</a>:
“Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community.”
The sense of community where you can make life-long friends helps give you more stability and predictability than you’d have if you move each time a rental lease renews.
Its Where Lifelong Memories Are Made
Not to mention, your home is where you’ll make many memories. It’s a backdrop for the stories of your life. Celebrating milestones, hosting gatherings, and building a treasure trove of special moments within the walls of your home is a heartwarming experience to be thankful for.
Bottom Line
As you start thinking about buying a home, remember why so many people are glad they did. Homeownership isn’t just a <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">financial decision</a>. It’s about having a stable place where you can make lasting memories. If you're thinking of buying a home and want advice, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let's chat</a>.2023-12-05T16:25:00-07:002023-11-29T16:26:49-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7879Why Homeowners Feel Thankful for Their Homes [INFOGRAPHIC]Why Homeowners Feel Thankful for Their Homes [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231121/Why-Homeowners-Feel-Thankful-For-Their-Homes-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231121/Why-Homeowners-Feel-Thankful-For-Their-Homes-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231121/Why-Homeowners-Feel-Thankful-For-Their-Homes-MEM.png" /></a>
Some Highlights
Here are three reasons why homeowners feel thankful for their homes. First, it’s a <a href="https://www.fanniemae.com/research-and-insights/perspectives/consumers-homeownership-aspirations-remain-high-despite-higher-home-prices-and-interest-rates" rel="noopener noreferrer" target="_blank">safe place</a> that can give you a greater sense of comfort, safety, and security.
Second, it gives you <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-own-a-home" rel="noopener noreferrer" target="_blank">freedom of expression</a>. From the color of the paint to the art on the walls, you can express your style and your personality.
Third, it provides a sense of community. Owning your home helps you build lasting friendships with neighbors and connects you to your community. If you're <a href="https://www.mykcm.com/2023/11/13/life-changing-events-that-move-the-housing-market/" rel="noopener noreferrer" target="_blank">thinking</a> of <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">buying a home</a> and want to hear more about the potential benefits, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let's talk</a>.
2023-12-04T06:30:00-07:002023-11-29T16:25:05-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7878Is Wall Street Buying Up All the Homes in America?Is Wall Street Buying Up All the Homes in America?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231127-Is-Wall-Street-Buying-Up-All-the-Homes-in-America.png" width="600" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying a home</a>, you may find yourself interested in the latest <a href="https://www.simplifyingthemarket.com/en/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate</a> headlines so you can have a pulse on all of the things that could impact your decision. If that’s the case, you’ve probably heard mention of investors, and wondered how they’re impacting the <a href="https://www.simplifyingthemarket.com/en/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a> right now. That could leave you asking yourself questions like:
How many homes do investors own?
Are institutional investors, like large Wall Street Firms, really buying up so many homes that the average person can’t find one?
To answer those questions, here’s the real story of what’s happening based on the data.
Let’s start with establishing how many single-family homes (SFHs) there are and what portion of those are rentals owned by investors. According to <a href="https://twitter.com/SFR_Investor" rel="noopener noreferrer" target="_blank">SFR Investor</a>, which studies the single-family rental market in the United States, there are eighty-two million single-family homes in this country. But how many of them are actually rentals?
According to <a href="https://twitter.com/SFR_Investor/status/1717345861141955063" rel="noopener noreferrer" target="_blank">data</a> shared in a recent post, sixty-eight million (82.93%) of those homes are owner-occupied – meaning the person who owns the home lives in it. If you subtract that sixty-eight million from the total number of single-family homes (82 million), that leaves just about fourteen million homes left that are single-family rentals (SFRs).
Do institutional investors own all of those remaining fourteen million homes? Not even close. Let’s take it one step further. There are four categories of investors:
The mom & pop investor who owns between 1-9 SFRs
The regional investor who owns between 10-99 SFRs
Smaller national investor who owns between 100-999 SFRs
The institutional investor who owns over 1,000 SFRs
These categories show that not all investors are large institutional investors. To help convey that even more clearly, here are the percentages of rental homes owned by each type of investor (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231127-Who-Owns-All-the-Single-Family-Rentals.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231127-Who-Owns-All-the-Single-Family-Rentals.png" /></a>
As you can see in the chart, despite what the news and social media would have you believe, the green shows the vast majority are not owned by large institutional investors. Instead, most are owned by small mom & pop investors, like your friends and neighbors.
What’s actually happening is, that there are people out there, just like you, who believe in homeownership, and they view buying a home (or a second home) as an investment. Maybe they saw an opportunity to buy a second home over the last few years to use it as a rental and generate additional income. Or maybe they just decided to keep their first house rather than sell it when they moved up.
So, don’t believe everything you read or hear about institutional investors. They aren’t buying up all the homes and making it impossible for the average person to buy. That’s just not what the numbers show. Institutional investors are actually the smallest piece of the pie chart.
Bottom Line
While it’s true that institutional investors are a player in the single-family rental marketplace, they’re not buying up all of the houses on the market. If you have other questions about things you’re hearing about the housing market, let’s connect so you have an expert to give you the context you need.2023-12-01T05:15:00-07:002023-11-29T16:23:25-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7877Are the Top 3 Housing Market Questions on Your Mind?Are the Top 3 Housing Market Questions on Your Mind?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Are-The-Top-3-Housing-Market-Questions-on-your-mind.png" width="600" /><br /><br />
When it comes to what’s happening in the <a href="https://www.simplifyingthemarket.com/en/2023/11/15/the-latest-2024-housing-market-forecast/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>, there’s a lot of confusion going around right now. You may hear one thing in conversation with your friends, see something totally different on the news, and read something on social media that contradicts both of those thoughts. And, if you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">making a move</a>, that can leave you with a lot of lingering questions. That’s where a trusted local <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a> comes in.
Here are the top 3 questions people are asking about today’s housing market, and the data to help answer them.
1. What’s Next for Mortgage Rates?
<a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Mortgage rates</a> are higher than they’ve been in recent years. And, if you’re looking to buy a home, that impacts how much you can <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">afford</a>. That’s why so many <a href="https://www.simplifyingthemarket.com/en/2023/10/12/growing-your-net-worth-with-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buyers</a> want to know what’s ahead for mortgage rates. The answer to that question is: no one can say for certain, but here’s what we know based on historical trends.
There’s a long-standing relationship between mortgage rates and <a href="https://www.simplifyingthemarket.com/en/2023/08/03/how-inflation-affects-mortgage-rates/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">inflation</a>. Basically, when inflation is high, <a href="https://www.simplifyingthemarket.com/en/2023/09/06/mortgage-rates-past-present-and-possible-future/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> tend to follow suit. Over the past year, inflation was up, so mortgage rates were as well. But inflation is easing now. And this is why the Federal Reserve has recently paused their federal funds rate hikes, which means many experts believe mortgage rates will begin to come down.
And in some ways, we’ve started to see hints of slightly lower <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">mortgage rates</a> in recent weeks. But it’s certainly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is, that in 2024, we’ll see a downward trend. As Aziz Sunderji, Strategist at Home Economics, <a href="https://www.home-economics.us/p/mortgage-rates-are-set-to-fall" rel="noopener noreferrer" target="_blank">says</a>:
“The bottom line is that interest rates are likely to be lower-perhaps even lower than many optimists think - in the weeks and months to come.”
2. Where Are Home Prices Headed?
While there’s been a <a href="https://www.simplifyingthemarket.com/en/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">lot of concern</a> prices would come crashing down this year, data shows that didn’t happen. In fact, home prices are rising in <a href="https://www.simplifyingthemarket.com/en/2023/11/14/home-prices-keep-climbing-in-most-markets/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">most of the nation</a>. Experts say that <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">trend will continue</a>, just at a slower pace that’s much more <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">normal</a> for the housing market – and that’s a good thing.
To help show just how <a href="https://www.simplifyingthemarket.com/en/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">confident experts</a> are in this continued appreciation, take a look at the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> from Pulsenomics. It’s a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. As the graph below shows, the consensus is, that prices will keep climbing next year, and in the years to come.
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Estimated-Home-Price-Performance.png" /></a>
3. Is a Recession Around the Corner?
While recession talk has been a common thing over the past few years, there’s good news on that front.
The <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">Wall Street Journal</a> (WSJ) polls experts on this topic regularly. And last year at this time, most of them thought a recession would have happened by now. But as experts look at all the leading indicators today, they’re changing their minds and saying a recession is getting less and less likely. The latest results show that more experts now think we’re not headed for another recession (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Do-Experts-Think-a-Recession-is-Coming.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Do-Experts-Think-a-Recession-is-Coming.png" /></a>
This is big news for the <a href="https://www.simplifyingthemarket.com/en/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>. And while the 48% to 52% split may seem close to half and half, the key thing to focus on is that the majority of these experts think we’ve avoided a recession already.
Bottom Line
The big takeaway? The data shows there isn’t cause for concern – there are actually more signs of hope. Let’s connect to talk more about the housing market questions on your mind as we head into the new year. 2023-11-30T06:45:00-07:002023-11-29T16:19:44-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7876Why the Economy Won’t Tank the Housing MarketWhy the Economy Won’t Tank the Housing Market
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Why-the-Economy-Wont-crash-the-housing-market.png" width="600" /><br /><br />
If you’re worried about a coming recession, you’re not alone. Over the past couple of years, there’s been a lot of recession talk. And many people worry, if we do have one, it would cause the unemployment rate to skyrocket. Some even fear that a spike in unemployment would lead to a rash of <a href="https://www.simplifyingthemarket.com/en/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">foreclosures</a> similar to what happened 15 years ago.
However, the latest <a href="https://www.wsj.com/economy/a-recession-is-no-longer-the-consensus-3ad0c3a3" rel="noopener noreferrer" target="_blank">Economic Forecasting Survey</a> from the Wall Street Journal (WSJ) reveals that, for the first time in over a year, less than half (48%) of economists believe a recession will actually occur within the next year:
“Economists are turning optimistic on the U.S. economy . . . economists lowered the probability of a recession within the next year, from 54% on average in July to a more optimistic 48%. That is the first time they have put the probability below 50% since the middle of last year.”
If over half of the experts no longer expect a recession within the next year, you might naturally think those same experts also don’t expect the unemployment rate to jump way up – and you’d be right. The graph below uses <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">data</a> from that same WSJ survey to show exactly what the economists project for the unemployment rate over the next three years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Projections-for-the-next-3-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Projections-for-the-next-3-Years.png" /></a>
If those expert projections are correct, more people will lose their jobs in the upcoming year. And job losses of any kind are devastating for those people and their loved ones.
However, the question here is: will there be enough job losses to cause a wave of foreclosures that will crash the housing market? Based on historical context from <a href="https://www.macrotrends.net/countries/USA/united-states/unemployment-rate" rel="noopener noreferrer" target="_blank">Macrotrends</a> and the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">Bureau of Labor Statistics</a> (BLS), the answer is no. That’s because the unemployment rate is currently near all-time lows (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Rate-Near-All-Time-Lows.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Rate-Near-All-Time-Lows.png" /></a>
As the orange bar in the graph shows, the average unemployment rate dating back to 1948 is 5.7%. The red bar shows, the last time the housing market crashed, in the immediate aftermath of the 2008 financial crisis, the average unemployment rate was up to 8.3%. Both of those bars are much higher than the unemployment rate today (shown in the blue bar).
Moving forward, projections show the unemployment rate is likely to stay beneath the 75-year average. And that means we won’t see a wave of foreclosures that would severely impact the housing market.
Bottom Line
Most economists no longer expect a recession to occur in the next 12 months. That’s why they also don’t expect a dramatic rise in the unemployment rate that would lead to a rash of foreclosures and another <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">housing market crash</a>. If you have questions about unemployment and its impact on the housing market, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let’s connect</a>.2023-11-29T16:16:19-07:002023-11-29T16:18:13-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7817The Latest 2024 Housing Market ForecastThe Latest 2024 Housing Market Forecast
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231115-The-Latest-2024-Housing-Market-Forecast.png" width="600" /><br /><br />
The new year is right around the corner, and you might be wondering if 2024 will be the right time to <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy</a> or <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sell a home</a>. If you want to make the most informed decision possible, it’s important to know what the experts have to say about what's ahead for the housing market. Spoiler alert: the projections may be better than you think. Here’s why.
Experts Forecast Ongoing Home Price Appreciation
Take a look at the latest home price forecasts from <a href="https://www.fanniemae.com/media/49326/display" rel="noopener noreferrer" target="_blank">Fannie Mae</a>, the <a href="https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-oct-2023.pdf" rel="noopener noreferrer" target="_blank">Mortgage Bankers Association</a> (MBA), and the <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q4-2023-us-economic-outlook-10-26-2023.pdf" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231115-Home-Price-Forecasts-for-2023-and-2024.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231116/20231115-Home-Price-Forecasts-for-2023-and-2024.png" /></a>
As you can see in the orange bars on the left, on average, experts forecast <a href="https://www.simplifyingthemarket.com/en/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">prices</a> will end this year up about 2.8% overall, and increase by another 1.5% by the end of 2024. That’s big news, considering so many people thought prices <a href="https://www.simplifyingthemarket.com/en/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">would crash</a> this year. The truth is, prices didn’t come tumbling way down in <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">2023</a>, and that’s because there just weren’t enough homes for sale compared to the number of people who wanted or needed to buy them, and that inventory crunch is still very real. This is the general rule of supply and demand, and it continues to put upward pressure on prices as we move into the new year.
Looking forward, experts project <a href="https://www.simplifyingthemarket.com/en/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> will continue to rise next year, but not quite as much as they did this year. Even though the expected rise in 2024 isn't as big as in 2023, it's important to understand home price appreciation is cumulative. In simpler terms, this means if the experts are right, according to the national average, after your home's value goes up by 2.8% this year, it should go up by another 1.5% next year. That ongoing price growth is a big part of why <a href="https://www.simplifyingthemarket.com/en/2023/11/07/homeowner-net-worth-has-skyrocketed/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">owning a home</a> can be a smart decision in the long run.
Projections Show Sales Should Increase Slightly Next Year
While 2023 hasn’t seen a lot of home sales relative to more normal years in the housing market, experts are forecasting a bit more activity next year. Here’s what those same three organizations project for the rest of this year, and in 2024 (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231114/20231115-Total-Home-Sales-Forecasts-for-2023-and-2024.png?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231115-Total-Home-Sales-Forecasts-for-2023-and-2024.png" /></a>
While expectations are for just a slight uptick in total sales, improved activity next year is a good thing for the housing market, and for <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buyers</a> and sellers like you. As people continue to move, that opens up options for hopeful buyers who are looking for a home.
So, what do these forecasts show? The housing market is expected to be more active in 2024. That may be in part because there will always be people who <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">need to move</a>. People will get new jobs, have children, get married or divorced – these and other major life changes lead people to move regardless of housing market conditions. That will remain true next year, and for years to come. And if mortgage rates come down, we’ll see even more activity in the housing market.
Bottom Line
If you’re thinking about buying or selling, it’s important to know what the experts are forecasting for the future of the housing market. When you’re in the know about what’s ahead, you can make the most informed decision possible. <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">Let's chat</a> about the latest forecasts together, and craft a plan for your next move.2023-11-24T07:00:00-07:002023-11-21T17:43:46-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:78152024 Housing Market Forecast [INFOGRAPHIC]2024 Housing Market Forecast [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231114/2024-Housing-Market-Forecast-KCM-Share.png" width="600" /><br /><br />
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231114/2024-Housing-Market-Forecast-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231114/2024-Housing-Market-Forecast-MEM.png" /></a>
Some Highlights
Thinking of <a href="https://www.mykcm.com/2023/11/07/homeowner-net-worth-has-skyrocketed/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" rel="noopener noreferrer" target="_blank">selling a house</a> and wondering what the new year holds for the housing market? <a href="https://www.fanniemae.com/media/49326/display" rel="noopener noreferrer" target="_blank">Experts forecast</a> home <a href="https://www.mykcm.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/" rel="noopener noreferrer" target="_blank">prices</a> to end this year up 2.8% and to rise another 1.5% in 2024. And climbing <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">prices</a> help make <a href="https://www.mykcm.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">homeownership</a> a <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">good investment</a>.
Plus, home sales are <a href="https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-oct-2023.pdf" rel="noopener noreferrer" target="_blank">projected to increase</a> in 2024. That’s good news because it means experts are forecasting more activity as people <a href="https://www.mykcm.com/2023/11/13/life-changing-events-that-move-the-housing-market/" rel="noopener noreferrer" target="_blank">continue to move</a>.
If you're planning to buy or sell, it’s helpful to know what <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q4-2023-us-economic-outlook-10-26-2023.pdf" rel="noopener noreferrer" target="_blank">experts project</a> for the housing market. <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">Let’s connect</a> to talk about the latest forecasts and craft a plan together.
2023-11-23T06:00:00-07:002023-11-21T17:40:26-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7816People Are Still Moving, Even with Today’s Affordability ChallengesPeople Are Still Moving, Even with Today’s Affordability Challenges
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-People-Are-Still-Moving-Even-With-Todays-Affordability-Challenges.png" width="600" /><br /><br />
If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/11/06/reasons-to-sell-your-house-before-the-new-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
<a href="https://www.simplifyingthemarket.com/en/content/images/20231113/20231116-Affordability-Historically-Low.png?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-Affordability-Historically-Low.png" /></a>
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index/methodology" rel="noopener noreferrer" target="_blank">explains</a> how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You may be wondering how other <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">sellers</a> are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">today’s market</a> and the current affordability situation, and their insight is invaluable right now.
True professionals will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean <a href="https://www.simplifyingthemarket.com/en/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">broadening your search</a>, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the <a href="https://www.simplifyingthemarket.com/en/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">affordability challenges</a> today.
Bottom Line
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect. 2023-11-23T06:00:00-07:002023-11-21T17:41:41-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7814Is Your House the Top Thing on a Buyer’s Wish List this Holiday Season?Is Your House the Top Thing on a Buyer’s Wish List this Holiday Season?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231114/20231120-Is-Your-House-the-Top-Thing-on-a-Buyers-wish-list-this-holiday-season.jpg" width="600" /><br /><br />
This time every year, homeowners who are planning to move have a decision to make: sell now or wait until after the holidays? Some sellers with homes already on the market may even remove their listing until the new year.
But the truth is, <a href="https://www.simplifyingthemarket.com/en/2023/11/06/reasons-to-sell-your-house-before-the-new-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">many buyers</a> want to purchase a home for the holidays, and your house might be just what they’re looking for. As an article from Fortune Builders <a href="https://www.fortunebuilders.com/selling-a-home/" rel="noopener noreferrer" target="_blank">explains</a>:
“ . . . while a majority of people take a step back from the real estate market during the holiday months, you may find when the temperature drops, your potential for a great real estate deal starts to rise.”
To help prove that point, here are four reasons you shouldn’t wait to sell your house.
1. The desire to own a home doesn’t stop during the holidays. While a few buyers might opt to delay their moving plans until January, others may <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">need to move</a> now because something in their life has changed. The buyers who look for homes at this time of year are usually motivated to make their move happen and are eager to buy. A recent article from Investopedia <a href="https://www.investopedia.com/articles/personal-finance/102615/why-holidays-are-good-time-sell-your-house.asp" rel="noopener noreferrer" target="_blank">says</a>:
“Anyone shopping for a new home between Thanksgiving and New Year’s is likely going to be a serious buyer. Putting your home on the market at this time of year and attracting a serious buyer can often result in a quicker sale.”
2. While the supply of <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homes for sale</a> has increased a little bit lately, overall inventory is still lower than it was before the pandemic. What does that mean for you? If you work with <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">an agent</a> to price your house at market value, it could still sell quickly because today’s buyers are craving more options – and your home may be exactly what they’re searching for.
3. You can determine the days and times that are most convenient for you for home showings. That can help you minimize disruptions to your own schedule, which can be especially important during this busy time of year. Plus, you may find buyers are more flexible on when they’ll tour a house this time of year because they have more time off from work around the holidays.
4. And finally, homes decorated for the holidays appeal to many buyers. For those buyers, it’s easy to picture gathering with their loved ones in the home and making memories of their own. An <a href="https://www.ramseysolutions.com/real-estate/selling-your-home-in-winter" rel="noopener noreferrer" target="_blank">article</a> on selling at this time of year offers this advice:
“If you’re selling around a holiday and have decorations up, make sure they accent—not overpower—a room. Less is more.”
Bottom Line
There are plenty of good reasons to put your house on the market during the holiday season. Let's chat and see if it's the right time for you to sell.2023-11-22T05:45:00-07:002023-11-21T17:39:12-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7813Are There Actually More Homes for Sale Right Now?Are There Actually More Homes for Sale Right Now?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Are-There-Actually-More-Homes-For-Sale-Right-Now.png" width="600" /><br /><br />
If you’re looking to <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">make a move</a>, you want to be sure you have the latest information on the housing market. To help make that possible, here’s an update on the supply of homes for sale today. Whether you’re <a href="https://www.simplifyingthemarket.com/en/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">looking to buy</a> or sell, the number of homes available in your local market matters to you. Take a look below.
What’s the Truth About Today’s Housing Inventory?
While the story for the past few years has been how few homes are on the market, recent national data may leave you feeling a bit confused. That’s because Realtor.com <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">shows</a> inventory is actually growing a bit month-over-month in many parts of the country (see the blue states in the map below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Change-In-Inventory.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Change-In-Inventory.png" /></a>
As the map shows, nationally, housing supply increased just over 5% last month.
Does That Mean the Days of Limited Inventory Are Over?
That might make you wonder: are the days of tight housing supply behind us? The short answer is no. Context is important. While you may see headlines saying inventory is up, <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> also shows there are still significantly fewer homes for sale than there would usually be in a more normal market.
The graph below compares the latest active listing counts (homes currently available for sale) with the most recent normal years in the housing market (2017-2019):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Active-Listing-Count.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Active-Listing-Count.png" /></a>
As Lance Lambert, Founder, ResiClub Analytics, <a href="https://www.resiclubanalytics.com/p/housing-market-inventory-far-prepandemic-levels-octobers-big-jump-still-just-drop-bucket" rel="noopener noreferrer" target="_blank">explains</a>:
“Housing market inventory is so far below pre-pandemic levels that October's big jump is still just a drop in the bucket.”
What does that mean for you? Remember, real estate is hyper-local. Partnering with a trusted real estate agent will help you gain a better understanding of the inventory situation in your specific market.
If you’re <a href="https://www.simplifyingthemarket.com/en/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">looking to buy</a>, you may have slightly more options than you did in recent months, but you still need to brace for low inventory. A great agent will be able to share their expertise and key strategies that have helped other buyers navigate today’s ongoing low housing supply.
And, if you’re <a href="https://www.simplifyingthemarket.com/en/2023/11/06/reasons-to-sell-your-house-before-the-new-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">trying to sell</a>, rest assured you haven’t missed your window of opportunity to potentially get multiple offers or see your house sell quickly. While inventory has ticked up some nationally, overall, it’s still low and may be down even more in your area.
Bottom Line
If you’re looking to buy or sell a home, let’s connect so you can make sure you’re up to date on all the latest trends that could impact your move, including today’s housing supply. 2023-11-21T17:36:02-07:002023-11-21T17:38:21-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7719Thinking About Using Your 401(k) To Buy a Home?Thinking About Using Your 401(k) To Buy a Home?
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231107/20231108-Thinking-About-Using-Your-401k-to-buy-a-house.png" width="600" /><br /><br />
Are you dreaming of <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying</a> your <a href="https://www.simplifyingthemarket.com/en/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">own home</a> and wondering about how you’ll save for a down payment? You're not alone. Some people think about tapping into their 401(k) savings to make it happen. But before you decide to dip into your retirement to <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a>, be sure to consider all possible alternatives and talk with a financial expert. Here’s why.
The Numbers May Make It Tempting
The <a href="https://www.cnbc.com/2023/06/03/fidelity-how-much-americans-have-in-their-401ks-at-every-age.html" rel="noopener noreferrer" target="_blank">data</a> shows many Americans have saved a considerable amount for retirement (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/images/20231107/20231108-Average-401-balance-by-age.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231107/20231108-Average-401-balance-by-age.png" /></a>
It can be really tempting when you have a lot of money saved up in your 401(k) and you see your dream <a href="https://www.simplifyingthemarket.com/en/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home</a> on the horizon. But remember, dipping into your retirement savings for a home could cost you a penalty and affect your finances later on. That's why it's important to explore all your options when it comes to saving for a down payment and buying a home. As Experian <a href="https://www.experian.com/blogs/ask-experian/use-401k-to-buy-house/" rel="noopener noreferrer" target="_blank">says</a>:
“It’s possible to use funds from your 401(k) to buy a house, but whether you should depends on several factors, including taxes and penalties, how much you’ve already saved and your unique financial circumstances.”
Alternative Ways To Buy a Home
Using your 401(k) is one way to finance a <a href="https://www.simplifyingthemarket.com/en/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home</a>, but it's not the only option. Before you decide, consider a couple of other methods, courtesy of <a href="https://www.experian.com/blogs/ask-experian/use-401k-to-buy-house/" rel="noopener noreferrer" target="_blank">Experian</a>:
<a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank">FHA Loan</a>: FHA loans allow qualified buyers to put down as little as 3.5% of the home's price, depending on their credit scores.
<a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Assistance Programs</a>: There are many national and local programs that can help first-time and repeat homebuyers come up with the necessary down payment.
Above All Else, Have a Plan
No matter what route you take to purchase a home, be sure to talk with a financial expert before you do anything. Working with a team of experts to develop a concrete plan prior to starting your journey to <a href="https://www.simplifyingthemarket.com/en/2023/10/12/growing-your-net-worth-with-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">homeownership</a> is the key to success. Kelly Palmer, Founder of The Wealthy Parent, <a href="https://www.investmentnews.com/think-twice-before-borrowing-from-401k-for-a-home-down-payment-advisors-say-241461" rel="noopener noreferrer" target="_blank">says</a>:
“I have seen parents pausing contributions to their retirement plans in favor of affording a larger home often with the hope they can refinance in the future… As long as there is a tangible plan in place to get back to saving for their retirement goals, I encourage families to consider all their options.”
Bottom Line
If you’re still thinking about using your 401(k)-retirement savings for a home down payment, consider all your options and work with a financial professional before you make any decisions.2023-11-17T08:30:00-07:002023-11-14T14:36:42-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7717VA Loans Help Heroes Achieve Homeownership [INFOGRAPHIC]VA Loans Help Heroes Achieve Homeownership [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231107/VA-Loans-Help-Heroes-Achieve-Homeownership-KCM-Share.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/content/images/20231107/VA-Loans-Help-Heroes-Achieve-Homeownership-MEM.png?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231107/VA-Loans-Help-Heroes-Achieve-Homeownership-MEM.png" /></a>
Some Highlights
<a href="https://www.va.gov/housing-assistance/home-loans/eligibility/" rel="noopener noreferrer" target="_blank">VA home loans</a> can help people who served our country become <a href="https://www.nerdwallet.com/article/mortgages/va-home-improvement-loan-options" rel="noopener noreferrer" target="_blank">homeowners</a>.
<a href="https://www.homesforheroes.com/blog/first-time-va-home-buyer-what-to-know/" rel="noopener noreferrer" target="_blank">These loans</a> can help qualified individuals <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">purchase</a> a VA-approved <a href="https://www.mykcm.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/" rel="noopener noreferrer" target="_blank">home or condo</a>, build a new <a href="https://www.mykcm.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">home</a>, or enhance their current one.
<a href="https://www.mykcm.com/2023/11/07/homeowner-net-worth-has-skyrocketed/" rel="noopener noreferrer" target="_blank">Owning a home</a> is the American Dream, and one way to show our appreciation to <a href="https://www.military.com/money/va-loans/what-can-you-buy-with-a-va-loan.html" rel="noopener noreferrer" target="_blank">veterans</a> is by providing them with <a href="https://www.veteransunited.com/va-loans/va-home-loan-advantages/" rel="noopener noreferrer" target="_blank">important information</a> about the advantages of VA home loans.
2023-11-16T05:00:00-07:002023-11-14T14:34:17-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7716Life-Changing Events That Move the Housing MarketLife-Changing Events That Move the Housing Market
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231108/20231113-Life-Changing-Events-That-Move-the-Housing-Market.png" width="600" /><br /><br />
Life is a journey filled with unexpected twists and turns, like the excitement of welcoming a new addition, retiring and starting a new adventure, or the bittersweet feeling of an empty nest. If something like this is changing in your own life, you may be considering <a href="https://www.simplifyingthemarket.com/en/2023/11/03/the-benefits-of-buying-a-multi-generational-home-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/11/06/reasons-to-sell-your-house-before-the-new-year/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling</a> a house. That’s because through all these life-altering events, there is one common thread—the <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">need to move</a>.
Reasons People Still Need To Move Today
<a href="https://www.realtormagdigital.com/realtor/library/item/fall_2023/4139952/" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR) there have been a lot of this type of milestone or life change over the last two years (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231108/20231113-Life-Changing-Events-That-Took-Place-Over-the-Last-2-Years.png?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231108/20231113-Life-Changing-Events-That-Took-Place-Over-the-Last-2-Years.png" /></a>
And, these big life changes are going to continue to impact people moving forward, even with the current affordability challenges brought on by higher <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">mortgage rates</a> and rising <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a>.
As Claire Trapasso, Executive News Editor at Realtor.com, <a href="https://www.prnewswire.com/news-releases/realtorcom-october-housing-report-home-prices-stable-amid-inventory-drought-and-rising-rates-301975362.html" rel="noopener noreferrer" target="_blank">says</a>:
"Because high mortgage rates, elevated home prices, and stubbornly low inventory make today's housing market particularly challenging, many of today's buyers are motivated by life changes, such as growing families, supporting elderly parents or grown children, or accommodating professional needs. . .”
Lean On a Real Estate Professional for Help
Whether you're beginning <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">your search</a> for a home or preparing to sell your current house, you don't have to go it alone. With their expertise, a <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a> is an invaluable partner who can help you smoothly transition through these big moments in your life. Here are just a few examples.
When Buying a Home
If you’re welcoming a new addition and want more space, the need for a <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">new home</a> may be a top priority. While higher <a href="https://www.simplifyingthemarket.com/en/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> and mortgage rates are creating challenges for buyers, you may have to find a way to meet your changing needs, even with today’s mortgage rates.
A skilled real estate agent can help. Their expertise and knowledge of the local housing market can save you a considerable amount of time and stress. An agent will take the time to understand your specific needs, budget, and preferences, allowing them to narrow down your search and present you with suitable options.
When Selling a House
If you’re retiring or going through a separation or divorce, your main focus may be to make the most out of your investment when <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling your house</a>, so you can find one that works better for you moving forward.
This is another place where a real estate agent's expertise truly shines. They can accurately assess your home's market value, suggest improvements to enhance its appeal, and craft a strategic marketing plan. Their negotiation skills are a big asset when it comes to making sure you get a fair price for your house, allowing you to move on to the next chapter of your life with confidence and peace of mind.
No matter your situation, lean on a trusted professional for help as you buy or sell a home.
Bottom Line
If recent life-changing events have you wanting or needing to move, let’s connect.2023-11-15T05:30:00-07:002023-11-14T14:33:00-07:00Joyce Velardetag:herohomesgroup.com,2012-09-20:7715These Top Cities Show Home Prices Are Still ClimbingThese Top Cities Show Home Prices Are Still Climbing
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231114-Home-Prices-Keep-Climbing-in-Most-Markets.png" width="600" /><br /><br />
If you’re considering <a href="https://www.simplifyingthemarket.com/en/2023/10/12/growing-your-net-worth-with-homeownership/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buying a home</a> or selling your current one to find something that better suits <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">your needs</a>, you may have questions about what’s happening with <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">home prices</a> today. Here’s what you need to know.
There’s still a lot of confusion and misinformation out there. So, no matter what you may have heard, the national <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#news-research" rel="noopener noreferrer" target="_blank">data</a> shows they've actually been climbing again (see graphs below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231113/20231114-Percent-Change-in-Home-Values.png?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231114-Percent-Change-in-Home-Values.png" /></a>
As you can see, in the first half of 2022, <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx" rel="noopener noreferrer" target="_blank">home prices</a> went way up. Those increases were dramatic and unsustainable. So, in the second half of 2022, prices adjusted. Those dips were small and didn't last very long. Still, the news made a big deal about these slight declines, which may have made you worry.
But what's important to know is that, in 2023, prices are going up again, and this time it's at a more <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">normal pace</a>. The fact that all three <a href="https://www.corelogic.com/category/intelligence/reports/home-price-insights/" rel="noopener noreferrer" target="_blank">reports</a> now show more typical price increases this year is good news for the <a href="https://www.simplifyingthemarket.com/en/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">housing market</a>.
Home Prices Are Rising Across the Top Cities in the U.S.
After seeing steady home price growth at the national level for the last several months, you may wonder if prices are going up in your local area, too. Know this: while this will vary from one area to the next, home prices are appreciating in these top cities <a href="https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-continues-to-trend-upward-in-august/" rel="noopener noreferrer" target="_blank">Case-Shiller</a> reports on in their monthly price index (see chart below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231113/20231114-Case-Shiller-Home-Price-Movement.png?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231114-Case-Shiller-Home-Price-Movement.png" /></a>
That’s why so many experts are able to <a href="https://www.simplifyingthemarket.com/en/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">forecast home prices</a> will end the year in the positive and continue going up in 2024.
Here’s How This Affects You
For Buyers: If you've been waiting to <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">buy a home</a> because you were concerned it might lose value, the fact that home prices are going up should ease your worries. <a href="https://www.simplifyingthemarket.com/en/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">Buying a home</a> before prices climb higher can be a smart move since home values typically appreciate over time.
For Sellers: If you've been postponing <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">selling your house</a> because you were worried about how changing home prices would affect its value, now might be a good time to work with a <a href="https://www.simplifyingthemarket.com/en/2023/10/19/the-risks-of-selling-your-house-on-your-own/?a=953024-f69a52537cd48c0c16ffbbf771f6e557" rel="noopener noreferrer" target="_blank">real estate agent</a> to put your house on the market. You don't have to wait any longer because the data shows home prices are in your favor.
Bottom Line
If you delayed moving because you were concerned home prices would drop, don't worry – the numbers show they're going up nationally. To better understand how home prices are changing in your local area, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let’s connect</a>.2023-11-14T14:45:00-07:002023-11-14T14:31:21-07:00Joyce Velarde