Silicon Valley Real Estate BlogRecently posted or modified blog postshttps://www.reagentexpert.com/blog/Copyright REAgentExpert.com2024-03-14T10:56:12-07:00tag:reagentexpert.com,2012-09-20:33475What Mortgage Rate Do You Need To Move?If you’ve been thinking about <a href="https://www.keepingcurrentmatters.com/2024/02/20/strategic-tips-for-buying-your-first-home/" 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.keepingcurrentmatters.com/2024/02/12/whats-really-happening-with-mortgage-rates/" 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.keepingcurrentmatters.com/2024/02/23/how-changing-mortgage-rates-impact-you-infographic/" rel="noopener noreferrer" target="_blank">the numbers</a> just didn’t make sense for their <a href="https://www.keepingcurrentmatters.com/2024/01/18/3-key-factors-affecting-home-affordability/" 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" class="lightbox-added"><img decoding="async" 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" class="mfp-iframe lightbox-added">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.keepingcurrentmatters.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" 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.keepingcurrentmatters.com/2024/02/21/some-experts-say-mortgage-rates-may-fall-below-6-later-this-year/" 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.keepingcurrentmatters.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" 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.keepingcurrentmatters.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" 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, connect with a real estate professional so you have someone on your side to let you know when we get there.2024-03-18T10:00:00-07:002024-03-14T10:56:12-07:00David Florestag:reagentexpert.com,2012-09-20:33195Why You Want an Agent’s Advice for Your MoveNo matter how you slice it, <a href="https://www.keepingcurrentmatters.com/2024/02/14/why-so-many-people-fall-in-love-with-homeownership/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.keepingcurrentmatters.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" 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.keepingcurrentmatters.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" 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.keepingcurrentmatters.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">homebuying</a> and <a href="https://www.keepingcurrentmatters.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" 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.keepingcurrentmatters.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" 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. Connect with a real estate professional so you have advice you can count on.2024-03-04T11:00:00-07:002024-02-29T12:06:43-07:00David Florestag:reagentexpert.com,2012-09-20:32970It’s Time To Prepare Your House for a Spring ListingIf you’re thinking of <a href="https://www.keepingcurrentmatters.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">selling</a> your house this spring, now is the perfect <a href="https://www.keepingcurrentmatters.com/2024/02/01/dont-wait-until-spring-to-sell-your-house/" rel="noopener noreferrer" target="_blank">time</a> to start getting it ready. With the market gearing up for its busiest time of year, it’ll be important to make sure your house shines bright among the competition.
Here are some valuable tips you can use to get your house <a href="https://www.keepingcurrentmatters.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">market-ready</a>.
Declutter and Organize
First impressions matter, and if your house is a mess, that can easily turn off potential buyers. Before listing, take the time to declutter and organize each room. Decluttering is about more than just tidying up – it’s about creating a sense of space and openness that allows potential buyers to envision themselves living in your home. <a href="https://www.moving.com/tips/how-to-declutter-your-home-before-moving/" rel="noopener noreferrer" target="_blank">According</a> to Moving.com:
“Decluttering and organizing your space will go a long way in appealing to potential buyers. . . .decluttering will help the buyers see themselves living in your home. Less clutter inside a home also helps a place appear larger and cleaner, which should attract more buyers.”
Deep Clean Your Kitchen and Bathrooms
The kitchen and bathrooms are focal points for many buyers, and often influence their overall opinion of the house. Ensure these spaces dazzle by giving them a thorough deep cleaning. Pay attention to details like scrubbing grout lines, polishing fixtures, and decluttering countertops. A sparkling kitchen and bathroom can leave a lasting positive impression on potential buyers.
Maintain Your Yard
Your home’s exterior is the first thing potential buyers see, so it’s important to make a good impression from the moment they arrive. A well-maintained yard not only enhances curb appeal, but also shows buyers the home has been well taken care of.
Take the time to spruce up your yard by mowing the lawn, trimming bushes, and clearing away any debris or dead plants. Remember, the goal is to create a welcoming environment that entices buyers to step inside and imagine themselves living there. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/easy-ways-to-add-curb-appeal-to-your-home-this-fall" rel="noopener noreferrer" target="_blank">says</a>:
“A beautifully landscaped front yard can elevate an ordinary house into a charming home and will help homes sell faster and for more money.”
Find a Listing Agent
A skilled <a href="https://www.keepingcurrentmatters.com/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">listing agent</a> is your partner in minimizing <a href="https://www.keepingcurrentmatters.com/2024/01/02/things-to-consider-if-your-house-didnt-sell/" rel="noopener noreferrer" target="_blank">stress</a> when selling your home. Lean on your agent for advice on decluttering, staging, and enhancing your home’s appeal to potential buyers. Their insights into market trends and recommendations for reliable contractors and stagers are invaluable. As Realtor.com <a href="https://www.realtor.com/advice/sell/what-should-i-expect-from-my-realtor/" rel="noopener noreferrer" target="_blank">says</a>:
“A good listing agent will help you price your home . . . recommend a photographer and stager to make it look its best, and put your home on the multiple listing service.”
Bottom Line
By decluttering, deep cleaning, and tidying up your house, you can create a welcoming environment that resonates with buyers and increases your chances of a successful <a href="https://www.keepingcurrentmatters.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank">sale</a>. Connect with a trusted real estate agent for advice on what you need to do to get your house ready to sell this spring.2024-02-19T11:00:00-07:002024-02-19T09:36:06-07:00David Florestag:reagentexpert.com,2012-09-20:32746Houses Are Still Selling FastHave you been thinking about <a href="https://www.keepingcurrentmatters.com/2024/02/01/dont-wait-until-spring-to-sell-your-house/" rel="noopener noreferrer" target="_blank">selling your house</a>? If so, here’s some good news. While the housing market isn’t as frenzied as it was during the <a href="https://www.keepingcurrentmatters.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> when houses were selling quicker than ever, they’re still selling faster than normal.
The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes are selling compared to more normal years:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Homes-Spent-Less-Time-on-Market.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Homes-Spent-Less-Time-on-Market.png" /></a>
When you look at the most recent data (shown in green), it’s clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). <a href="https://www.realtor.com/research/january-2024-data/" rel="noopener noreferrer" target="_blank">According</a> to Realtor.com:
“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”
What Does This Mean for You?
Homes are <a href="https://www.keepingcurrentmatters.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">selling faster</a> than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that <a href="https://www.keepingcurrentmatters.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down, but there still aren’t <a href="https://www.keepingcurrentmatters.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank">enough homes</a> to go around. Mike Simonsen, Founder of Altos Research, <a href="https://www.housingwire.com/articles/the-strong-spring-real-estate-market-will-surprise-you-altos/" rel="noopener noreferrer" target="_blank">says</a>:
“. . . 2024 is starting stronger than last year. And demand is increasing each week.”
Bottom Line
If you’re wondering if it’s a good time to <a href="https://www.keepingcurrentmatters.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">sell your home</a>, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the <a href="https://www.keepingcurrentmatters.com/2024/01/29/will-a-silver-tsunami-change-the-2024-housing-market/" rel="noopener noreferrer" target="_blank">latest updates</a> on what’s happening in your local market, connect with a real estate agent.2024-02-05T11:00:00-07:002024-02-09T12:00:41-07:00David Florestag:reagentexpert.com,2012-09-20:32394Ways Your Home Equity Can Help You Reach Your GoalsIf you’ve owned your house for at least a <a href="https://www.keepingcurrentmatters.com/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/" rel="noopener noreferrer" target="_blank">couple of years</a>, there’s something you’re going to want to know more about – and that’s home equity. If you’re not familiar with that term, Freddie Mac <a href="https://myhome.freddiemac.com/owning/equity-and-appreciation" rel="noopener noreferrer" target="_blank">defines</a> it like this:
“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”
That means your equity grows as you pay down your home loan over time and as <a href="https://www.keepingcurrentmatters.com/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home values climb</a>. While it’s true <a href="https://www.keepingcurrentmatters.com/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/" rel="noopener noreferrer" target="_blank">home prices</a> dipped slightly last year, they <a href="https://www.keepingcurrentmatters.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">rebounded</a> and have been climbing in many areas since then. Here’s why that price growth is good news for you.
In the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2023/" rel="noopener noreferrer" target="_blank">Equity Insights Report</a>, Selma Hepp, Chief Economist at CoreLogic, explains:
“With price gains continuing to help homeowners build wealth, equity has reached a new high and regained losses that resulted from declines last year. And while the average U.S. homeowner gained over $20,000 in additional equity compared with the third quarter of 2022, some markets are seeing larger increases as price growth catches up.”
And that figure is just for the last year. To help you really understand how that number can add up over time, the report also says the average homeowner with a mortgage has more than $300,000 in equity. That much equity can have a big impact.
Here are a few examples of how you can put your home equity to work for you.
1. Buy a Home That Fits Your Needs
If your current space no longer meets your needs, it might be time to think about <a href="https://www.keepingcurrentmatters.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">moving</a> to a bigger home. And if you’ve got too much space, downsizing to a smaller one could be just right. Either way, you can put your equity toward a down payment on something that fits your changing lifestyle.
2. Reinvest in Your Current Home
And, if you’re not ready to move just yet, you can use the equity you have to improve your current home. But it’s important to consider the long-term benefits certain upgrades can bring to your home’s value. A real estate agent is a great resource on which projects to prioritize to get the greatest return on your investment when you sell later on.
3. Pursue Personal Ambitions
Home equity can also serve as a catalyst for realizing your life-long dreams. That could mean investing in a new business venture, retirement, or funding an education. While you shouldn’t use your equity for unnecessary spending, using it responsibly for something meaningful and impactful can really make a difference in your life.
4. Understand Your Options to Avoid Foreclosure
While the number of <a href="https://www.keepingcurrentmatters.com/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/" rel="noopener noreferrer" target="_blank">foreclosure filings</a> remains below the norm, there are still some homeowners who go into foreclosure each year. If you’re in a tough spot financially, having a clear understanding of your options can help. Equity can act as a cushion if you’re not able to make your mortgage payments on time.
Bottom Line
If you want to know how much equity you have in your home, connect with a local real estate agent. They can do a professional equity assessment report on how much you’ve built up over time and talk you through how you can use it to help you reach your goals.2024-01-22T11:00:00-07:002024-01-18T12:57:36-07:00David Florestag:reagentexpert.com,2012-09-20:32393Avoid These Common Mistakes After Applying for a MortgageIf you’re getting ready to <a href="https://www.keepingcurrentmatters.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a>, it’s exciting to jump a few steps ahead and think about moving in and making it <a href="https://www.keepingcurrentmatters.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">your own</a>. But before you get too far down the emotional path, there are some key things to keep in mind after you apply for your <a href="https://www.keepingcurrentmatters.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage</a> and before you close. Here’s a list of things to remember when you apply for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Cosign Loans for Anyone
When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count them against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When your credit report is run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower <a href="https://www.keepingcurrentmatters.com/2023/12/26/get-ready-to-buy-a-home-by-improving-your-credit-score/" rel="noopener noreferrer" target="_blank">credit scores</a> can determine your interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those parts of your score.
Do Discuss Changes with Your Lender
Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.2024-01-08T11:00:00-07:002024-01-18T12:49:31-07:00David Florestag:reagentexpert.com,2012-09-20:32019Why Mortgage Rates Could Continue To DeclineWhen you read about the <a href="https://www.keepingcurrentmatters.com/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/" 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.keepingcurrentmatters.com/2023/11/29/why-the-economy-wont-tank-the-housing-market/" 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.keepingcurrentmatters.com/2023/11/28/are-the-top-3-housing-market-questions-on-your-mind/" 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" class="lightbox-added"><img decoding="async" 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.keepingcurrentmatters.com/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/" 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" class="lightbox-added"><img decoding="async" 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.keepingcurrentmatters.com/2023/11/17/2024-housing-market-forecast-infographic/" 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.keepingcurrentmatters.com/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/" 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. Rely on a trustworthy <a href="https://www.keepingcurrentmatters.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">real estate expert</a> to give you expert advice about changes in the housing market and how they affect you.2023-12-18T11:00:00-07:002023-12-27T10:13:50-07:00David Florestag:reagentexpert.com,2012-09-20:32025When You Sell Your House, Where Do You Plan To Go?If you’re thinking about selling your house, you may have heard the <a href="https://www.keepingcurrentmatters.com/2023/11/21/are-there-actually-more-homes-for-sale-right-now/" rel="noopener noreferrer" target="_blank">supply of homes</a> for sale is still low, and that means your house should stand out to buyers who are <a href="https://www.keepingcurrentmatters.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">craving more options</a>. But you may also be wondering, once you sell, how does the current supply impact your own move? And, will you be able to find a home you want to buy with inventory this low?
One thing that can help you find your next home is exploring all your options, including both homes that have been lived in before as well as newly built ones. Let’s look at the benefits of each one.
The Pros of Newly Built Homes
First, let’s look at the advantages of purchasing a newly constructed home. With a brand-new home, you’ll be able to:
Create your perfect home. If you build a home from the ground up, you’ll have the option to select the custom features you want, including appliances, finishes, landscaping, layout, and more.
Cash-in on energy efficiency. When building a home, you can choose energy-efficient options to help lower your utility costs and reduce your carbon footprint.
Minimize the need for repairs. Many builders offer a warranty, so you’ll have peace of mind on unlikely repairs. Plus, you won’t have as many little projects to tackle.
Have brand new everything. Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.
The Pros of Existing Homes
Now, let’s compare that to the perks that come with buying an existing home. With a pre-existing home, you can:
Explore a wider variety of home styles and floorplans. With decades of homes to choose from, you’ll have a broader range of floorplans and designs available.
Join an established neighborhood. Existing homes give you the option to get to know the neighborhood, community, or traffic patterns before you commit.
Enjoy mature trees and landscaping. Established neighborhoods also have more developed landscaping and trees, which can give you additional privacy and curb appeal.
Appreciate that lived-in charm. The character of older homes is hard to reproduce. If you value timeless craftsmanship or design elements, you may prefer an existing home.
The choice is yours. When you start your search for the perfect home, remember that you can go either route – you just need to decide which features and benefits are most important to you. As an article from The Mortgage Reports <a href="https://themortgagereports.com/107938/new-home-construction-process" rel="noopener noreferrer" target="_blank">says</a>:
“When building, you gain more freedom to tailor the design, materials, and features, but it demands more time and involvement. Conversely, buying an established home offers immediate occupancy . . . yet may require compromises. Your choice should align with your budget, timeline, customization preferences, and the local real estate landscape.”
Either way, working with a local <a href="https://www.keepingcurrentmatters.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a> throughout the process is mission-critical to your success. They’ll help you explore all of your options based on what matters most to you in your next home. Together, you can find the home that’s right for you.
Bottom Line
If you have questions about the options in your area, connect with a local real estate agent to discuss what's available and what's right for you. That way you’ll be ready to make your next move with confidence.2023-12-04T11:00:00-07:002023-12-27T10:17:43-07:00David Florestag:reagentexpert.com,2012-09-20:31550Is Your House the Top Thing on a Buyer’s Wish List this Holiday Season?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.keepingcurrentmatters.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" 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.keepingcurrentmatters.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" 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.keepingcurrentmatters.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" 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.keepingcurrentmatters.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" 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. Connect with a real estate agent and see if it's the right time for you to sell.2023-11-20T11:00:00-07:002023-11-23T12:39:50-07:00David Florestag:reagentexpert.com,2012-09-20:31537People Are Still Moving, Even with Today’s Affordability ChallengesIf you’re thinking about <a href="https://www.keepingcurrentmatters.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.keepingcurrentmatters.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.keepingcurrentmatters.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.keepingcurrentmatters.com/2023/10/23/why-home-prices-keep-going-up/" 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://files.keepingcurrentmatters.com/content/branded/images/20231113/20231116-Affordability-Historically-Low.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/branded/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.keepingcurrentmatters.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.keepingcurrentmatters.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" 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.keepingcurrentmatters.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.keepingcurrentmatters.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" 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.keepingcurrentmatters.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" 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.keepingcurrentmatters.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" 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 real estate agents. Want to talk to a trusted professional about your own move? Connect with a local real estate agent. 2023-11-06T11:00:00-07:002023-11-22T10:13:37-07:00David Florestag:reagentexpert.com,2012-09-20:31082Invest in Yourself by Owning a HomeAre you wondering if it makes sense to <a href="https://www.keepingcurrentmatters.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">buy a home</a> right now? While today’s <a href="https://www.keepingcurrentmatters.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> might seem a bit intimidating, here are two compelling reasons why it still may be a good time to become a <a href="https://www.keepingcurrentmatters.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">homeowner</a>.
Home Values Appreciate over Time
There’s been a lot of confusion around what’s happened with home prices over the past two years. While they did dip ever so slightly in late 2022, this year they’ve been <a href="https://www.keepingcurrentmatters.com/2023/10/03/home-prices-are-not-falling/" rel="noopener noreferrer" target="_blank">appreciating</a> at a more normal pace, which is <a href="https://www.keepingcurrentmatters.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">good news</a> for the housing market. And while looking at price movement over just a year or two can make you worry prices are usually this unpredictable, history shows in the long run, <a href="https://www.keepingcurrentmatters.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">home values rise</a> (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png" /></a>
Using data from the Federal Reserve for the past <a href="https://fred.stlouisfed.org/series/ASPUS" rel="noopener noreferrer" target="_blank">60 years</a>, you can see the overall trend is home prices have climbed quite steadily. Sure, there was an exception around the housing <a href="https://www.keepingcurrentmatters.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">crash of 2008</a> that caused prices to break the usual trend for a time, but overall, home values have been consistently on the <a href="https://www.keepingcurrentmatters.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">rise</a>.
Increasing home values is one great reason why buying may make more sense than renting. As prices rise, and as you pay down your mortgage, you build equity. Over time, that growing equity gives your <a href="https://www.keepingcurrentmatters.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">net worth</a> a boost.
Rent Keeps Going Up Through the Years
Another reason you may want to consider buying a home instead of <a href="https://www.keepingcurrentmatters.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/" rel="noopener noreferrer" target="_blank">renting</a> is the never-ending rent hike. If you’ve ever felt the pinch of rent increasing year after year, you’re not alone. That’s because, rents have <a href="https://ipropertymanagement.com/research/average-rent-by-year" rel="noopener noreferrer" target="_blank">climbed steadily</a> over the past six decades (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png" /></a>
By <a href="https://www.keepingcurrentmatters.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buying a home</a>, you can lock in your monthly housing costs and bid farewell to those pesky rent hikes. That stability is a game-changer.
In the end, it all boils down to this: your housing payments are an investment, and you’ve got a choice to make. Do you want to invest in yourself or your landlord?
By becoming a <a href="https://www.keepingcurrentmatters.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">homeowner</a>, you’re investing in your own future. When you rent, that’s money you never get back.
When you factor in home values consistently rising, plus the opportunity to get relief from never-ending rent hikes, homeownership can be a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), <a href="https://www.forbes.com/advisor/mortgages/real-estate/is-buying-a-home-worth-it/" rel="noopener noreferrer" target="_blank">states</a>:
“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”
Bottom Line
When it comes down to it, buying a home offers more benefits than renting, even when mortgage rates are high. If you want to avoid increasing rents and take advantage of long-term home price appreciation, connect with a local real estate agent to go over <a href="https://www.keepingcurrentmatters.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">your options</a>.2023-10-23T10:00:00-07:002023-10-30T11:40:11-07:00David Florestag:reagentexpert.com,2012-09-20:31079The Perks of Selling Your House When Inventory Is LowWhen it comes to <a href="https://www.keepingcurrentmatters.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">selling your house</a>, you’re probably trying to juggle the current market conditions and your <a href="https://www.keepingcurrentmatters.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">own needs</a> as you plan your move.
One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current <a href="https://www.keepingcurrentmatters.com/2023/08/25/todays-housing-market-has-only-half-the-usual-inventory-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> situation and what it means for you.
The Supply of Homes for Sale Is Far Below the Norm
When you’re selling something, it helps if what you’re selling is in demand, but is also in <a href="https://www.keepingcurrentmatters.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">low supply</a>. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale.
To tell the story of just how low <a href="https://www.keepingcurrentmatters.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">inventory</a> is, here’s the latest information on active listings, or homes available for sale. The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to show how many active listings there were in September of this year compared to what’s more typical in the market.
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" /></a>
As you can see in the graph, if you look at the last normal years for the market (shown in the blue bars) versus the latest numbers for this year (shown in the red bar), it’s clear <a href="https://www.keepingcurrentmatters.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> is still far lower than the norm.
What That Means for You
<a href="https://www.keepingcurrentmatters.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">Buyers</a> have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average <a href="https://www.keepingcurrentmatters.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">seller</a> is getting multiple offers from eager buyers. Based on the latest data from the <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">Confidence Index</a> from the National Association of Realtors (NAR):
69% of homes sold in less than a month.
2.6 offers: the average number of offers on recently sold homes.
An <a href="https://www.realtor.com/research/september-2023-data/" rel="noopener noreferrer" target="_blank">article</a> from Realtor.com also explains how the limited number of houses for sale benefits you if you’re selling:
“. . . homes spent two weeks less on the market this past month than they did in the average September from 2017 to 2019 . . . as still-limited supply spurs homebuyers to act quickly . . .”
Bottom Line
Because the supply of homes for sale is so low, buyers desperately want more options – and your house may be just what they’re looking for. If you work with a trusted local agent to get your house listed at the right price for today’s market. You could still see it sell quickly and potentially get multiple offers.2023-10-09T10:00:00-07:002023-10-30T11:36:45-07:00David Florestag:reagentexpert.com,2012-09-20:30402Are More Homes Coming onto the Market?An important factor shaping today’s market is the number of <a href="https://www.keepingcurrentmatters.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">homes for sale</a>. And, if you’re considering whether or not to <a href="https://www.keepingcurrentmatters.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">list your house</a>, that’s one of the biggest advantages you have right now. When housing <a href="https://www.keepingcurrentmatters.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">inventory</a> is this low, your house will stand out, especially if it’s priced right.
But there are some early signs that more listings are coming. According to the latest <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a>, new listings (homeowners who just put their house up for sale) are trending up. Here’s a look at why this is noteworthy and what it may mean for you.
More Homes Are Coming onto the Market than Usual
It’s well known that the busiest time in the <a href="https://www.keepingcurrentmatters.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">housing market</a> each year is the spring buying season. That’s why there’s a predictable increase in the volume of newly listed homes throughout the first half of the year. <a href="https://www.keepingcurrentmatters.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">Sellers</a> are anticipating this and ramping up for the months when buyers are <a href="https://www.keepingcurrentmatters.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">most active</a>. But, as the school year kicks off and as the holidays approach, the market cools. It’s what’s expected.
But here’s what’s surprising. Based on the <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">latest data</a> from Realtor.com, there’s an increase in the number of sellers listing their houses later this year than usual. A peak this late in the year isn’t typical. You can see both the normal seasonal trend and the unusual August in the graph below:<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230912/20230918-New-Listings-Tick-Up.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230912/20230918-New-Listings-Tick-Up.png" /></a>As Realtor.com <a href="https://www.realtor.com/research/july-2023-data/" rel="noopener noreferrer" target="_blank">explains</a>:
“While inventory continues to be in short supply, August witnessed an unusual uptick in newly listed homes compared to July, hopefully signaling a return in seller activity heading toward the fall season . . .”
While this is only one month of data, it’s unusual enough to note. It’s still too early to say for sure if this trend will continue, but it’s something you’ll want to stay ahead of if it does.
What This Means for You
If you’ve been putting off selling your house, now may be the sweet spot to make your move. That’s because, if this trend continues, you’ll have more competition the longer you wait. And if your neighbor puts their house up for sale too, it means you may have to share buyers’ attention with that other homeowner. If you sell now, you can beat your neighbors to the punch.
But, even with more homes coming onto the market, the market is still well <a href="https://www.keepingcurrentmatters.com/2023/08/25/todays-housing-market-has-only-half-the-usual-inventory-infographic/" rel="noopener noreferrer" target="_blank">below normal</a> supply levels. And, that <a href="https://www.keepingcurrentmatters.com/2023/9/14/why-is-housing-inventory-so-low/?override=K79ZdLFQniS5" rel="noopener noreferrer" target="_blank">inventory deficit</a> isn’t going to be reversed overnight. The graph below helps put this into context, so you can see the opportunity you still have now:<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230912/20230918-New-Listing-Count-in-August-Each-Year.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230912/20230918-New-Listing-Count-in-August-Each-Year.png" /></a>
Bottom Line
Even though inventory is still low, you don’t want to wait for more competition to pop up in your neighborhood. You still have an incredible opportunity if you sell your house today. Connect with a real estate agent to explore the benefits of selling now before more homes come to the market.2023-09-18T10:00:00-07:002023-09-22T09:36:27-07:00David Florestag:reagentexpert.com,2012-09-20:30350Your Home Equity Can Offset Affordability ChallengesAre you thinking about <a href="https://www.keepingcurrentmatters.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">selling your house</a>? If so, today’s <a href="https://www.keepingcurrentmatters.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a> may be making you wonder if that’s the right decision. Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is <a href="https://www.keepingcurrentmatters.com/2023/09/11/planning-to-retire-your-equity-can-help-you-make-a-move/" rel="noopener noreferrer" target="_blank">home equity</a>. Here’s what you need to know.
Bankrate <a href="https://www.bankrate.com/home-equity/reasons-to-use-home-equity/" rel="noopener noreferrer" target="_blank">explains</a> exactly what equity is and how it grows:
“Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.”
In other words, equity is how much your home is worth now, minus what you still owe on your home loan.
How Much Equity Do Homeowners Have Now?
Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">says</a>:
“. . . the average U.S. homeowner now has about $290,000 in equity.”
That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the market has started to normalize, there are still more people wanting to <a href="https://www.keepingcurrentmatters.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">buy homes</a> than there are homes available <a href="https://www.keepingcurrentmatters.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">for sale</a>. This high demand is causing <a href="https://www.keepingcurrentmatters.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home prices</a> to go up again.
According to the <a href="https://www.fhfa.gov/Media/Blog/Pages/Homeowners-Equity-Remains-High.aspx" rel="noopener noreferrer" target="_blank">Federal Housing Finance Agency</a> (FHFA), the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a>, and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230914/20230919-Americans-Sitting-On-Tremendous-Equity.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230914/20230919-Americans-Sitting-On-Tremendous-Equity.png" /></a>
That means nearly 70% of homeowners have a tremendous amount of equity right now.
How Equity Helps with Your Affordability Concerns
With today’s affordability challenges, your equity can make a big difference when you decide to move. After you <a href="https://www.keepingcurrentmatters.com/2023/09/13/should-baby-boomers-buy-or-rent-after-selling-their-houses/" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use the equity you’ve built up in your home to help you buy your next one. Here’s how:
Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy a new house without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/cash-rules" rel="noopener noreferrer" target="_blank">states</a>:
“These all-cash home buyers are happily avoiding the higher mortgage interest rates . . .”
Make a larger down payment: Your <a href="https://www.keepingcurrentmatters.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">equity</a> could be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money so today’s rates become less of a sticking point. Experian <a href="https://www.experian.com/blogs/ask-experian/does-your-down-payment-affects-your-mortgage/" rel="noopener noreferrer" target="_blank">explains</a>:
“Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender.”
Bottom Line
If you're thinking about <a href="https://www.keepingcurrentmatters.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">moving</a>, the equity you've built up can make a big difference, especially today. To find out how much equity you've got in your current house and how you can use it for your next home, get in touch with a trusted real agent.2023-09-04T10:00:00-07:002023-09-20T09:28:52-07:00David Florestag:reagentexpert.com,2012-09-20:30037Expert Home Price Forecasts Revised Up for 2023Toward the end of last year, there were a number of headlines saying <a href="https://www.keepingcurrentmatters.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">home prices</a> were going to fall substantially in 2023. That led to a lot of fear and questions about whether there was going to be a repeat of the housing crash that happened back in 2008. But the headlines got it wrong.
While there was a slight home price correction after the sky-high price appreciation during the <a href="https://www.keepingcurrentmatters.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, nationally, <a href="https://www.keepingcurrentmatters.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank">home prices</a> didn’t come crashing down. If anything, <a href="https://www.keepingcurrentmatters.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">prices</a> were a lot more resilient than many people expected.
Let’s take a look at some of the expert forecasts from late last year stacked against their most recent <a href="https://www.keepingcurrentmatters.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">forecasts</a> to show that even the experts recognize they were overly pessimistic.
Expert Home Price Forecasts: Then and Now
This visual shows the <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">2023</a> home price <a href="https://www.mba.org/news-and-research/forecasts-and-commentary/mortgage-finance-forecast-archives" rel="noopener noreferrer" target="_blank">forecasts</a> from seven <a href="https://www.fanniemae.com/research-and-insights/forecast/forecast-monthly-archive" rel="noopener noreferrer" target="_blank">organizations</a>. It provides the original 2023 forecasts (released in late <a href="https://ustoday.news/a-20-drop-in-house-prices-7-forecast-models-tend-to-crash-here-the-other-13-models-show-the-housing-market-in-2023/" rel="noopener noreferrer" target="_blank">2022</a>) for what would happen to <a href="https://twitter.com/NewsLambert/status/1671900591113609216" rel="noopener noreferrer" target="_blank">home prices</a> by the end of <a href="https://twitter.com/NewsLambert/status/1671556169712672768" rel="noopener noreferrer" target="_blank">this year</a> and their most recently <a href="about:blank" rel="noopener noreferrer" target="_blank">revised</a> 2023 <a href="https://twitter.com/NewsLambert/status/1691799764466008217" rel="noopener noreferrer" target="_blank">forecasts</a> (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230831/20230905-2023-Year-end-home-price-forecasts.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230831/20230905-2023-Year-end-home-price-forecasts.png" /></a>As the red in the middle column shows, in all instances, their original forecast called for home prices to fall. But, if you look at the right column, you’ll see all experts have updated their projections for the year-end to show they expect prices to either be flat or have positive growth. That’s a significant change from the original negative numbers.
There are a number of reasons why <a href="https://www.keepingcurrentmatters.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">home prices</a> are so resilient to falling. As Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-reconomy-podcast-why-us-homeowners-have-a-big-advantage-in-a-rising-mortgage-rate-environment" rel="noopener noreferrer" target="_blank">says</a>:
“One thing is for sure, having long-term, fixed-rate debt in the U.S. protects homeowners from payment shock, acts as an inflation hedge – your primary household expense doesn’t change when inflation rises – and is a reason why home prices in the U.S. are downside sticky.”
A Look Forward To Get Ahead of the Next Headlines
For home prices, you’re going to continue to see misleading media coverage in the months ahead. That’s because there’s <a href="https://www.keepingcurrentmatters.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> to home price appreciation and they’re going to misunderstand that. Here’s what you need to know to get ahead of the next round of negative headlines.
As activity in the housing market slows at the end of this year (as it typically does each year), home price growth will slow too. But, this doesn’t mean prices are falling – it’s just that they’re not increasing as quickly as they were when the market was in the peak homebuying season.
Basically, deceleration of appreciation is not the same thing as home prices depreciating.
Bottom Line
The headlines have an impact, even if they’re not true. While the media said home prices would fall significantly in their coverage at the end of last year, that didn’t happen. Connect with a real estate agent so you have a trusted resource to help you separate fact from fiction with reliable data.2023-08-21T10:00:00-07:002023-09-05T10:41:47-07:00David Florestag:reagentexpert.com,2012-09-20:30034Why You May Still Want To Sell Your House After AllEven though you may feel reluctant to <a href="https://www.keepingcurrentmatters.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">sell your house</a> because you don’t want to take on a <a href="https://www.keepingcurrentmatters.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rate</a> that’s higher than the one you have now, there’s more to consider. While the financial side of things does matter, your personal needs may actually matter just as much. As an article from <a href="https://www.bankrate.com/real-estate/should-i-sell-my-house-now-or-wait/#sell-now" rel="noopener noreferrer" target="_blank">Bankrate</a> says:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market.”
So, ask yourself this: why did I want to move in the first place?
Chances are your primary motivation wasn’t just financial in nature. Why you’re really thinking about <a href="https://www.keepingcurrentmatters.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">selling</a> likely has more to do with something changing in your life or a shift in what you need out of your house.
Reasons Homeowners Still Need To Sell Today
Let’s explore some of the most common reasons sellers are <a href="https://www.keepingcurrentmatters.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">moving</a> today. A recent <a href="https://www.builderonline.com/data-analysis/whats-behind-this-years-high-sales-volume-despite-the-lock-in-effect_o" rel="noopener noreferrer" target="_blank">article</a> from Builder Online helps shed light on this. In this research, they identified the following categories:
Marriage – If you just got married, you may find you either need more space than you currently have, or the two of you want to find a new place you picked out together.
Divorce – If you’re getting separated or are divorcing your partner, chances are it’ll be difficult to live under the same roof. Selling the place you have, so you can own get your own spot, may be necessary.
Births – If your household is growing, you may need more square footage, including more bedrooms. If you’re running out of room for everyone, you may not be able to wait to move.
Deaths – If you’ve recently lost a loved one, it can be hard to spend time in that home. You may need to move for financial reasons or because you no longer need all the space.
Retirement – If you’re in the process of retiring, or you just did, you may be looking to downsize to cut costs, relocate to be closer to loved ones, or move to a dream location. In this new phase of life, your current home may not be able to deliver what you need.
You may find you share one of these top motivators. If any of these resonate with you, it may be <a href="https://www.keepingcurrentmatters.com/2023/08/10/about-11000-houses-will-sell-today/" rel="noopener noreferrer" target="_blank">time to move</a> so you can find a house better suited to your changing needs. A survey from Realtor.com finds other sellers are in the same boat. It <a href="https://mediaroom.realtor.com/2023-04-17-Realtor-com-R-Survey-82-of-Those-Looking-to-Buy-and-Sell-a-Home-Feel-Locked-In-by-Low-Mortgage-Rate" rel="noopener noreferrer" target="_blank">says</a>, 1 in 4 sellers are choosing to move for personal reasons, even with current <a href="https://www.keepingcurrentmatters.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>:
“. . . more than half of seller-buyers (56%) who are planning to sell in the next 12 months said they are waiting for rates to come down, while 25% need to sell soon for personal reasons.”
If you need to sell now because something in your own life has changed, don’t let rates hold you back from what you want. You have options to help make that move possible. You can use the <a href="https://www.keepingcurrentmatters.com/2023/08/07/four-ways-you-can-use-your-home-equity/" rel="noopener noreferrer" target="_blank">equity</a> you already have in your current home toward your next purchase. And with <a href="https://www.keepingcurrentmatters.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">how much</a> equity homeowners have right now, you may be able to finance less than you’d expect, or pay all cash to avoid borrowing at all.
Bottom Line
When you're ready to prioritize your changing needs, reach out to a trusted real estate professional. They can help you list your house and find a home that delivers on everything you're looking for.2023-08-07T10:00:00-07:002023-09-05T10:24:56-07:00David Florestag:reagentexpert.com,2012-09-20:28531Two Questions To Ask Yourself if You’re Considering Buying a HomeIf you’re thinking of <a href="https://www.keepingcurrentmatters.com/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/" rel="noopener noreferrer" target="_blank">buying a home</a>, chances are you’re paying attention to just about everything you hear about the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, overhearing someone chatting at the local supermarket, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot.
To help cut through the noise and give you the information you need most, take a look at what the data says. Here are the top two questions you need to ask yourself about home prices and mortgage rates as you make your decision:
1. Where Do I Think Home Prices Are Heading?
One reliable place you can turn to for that information is the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists.
According to the latest release, the experts surveyed are projecting slight depreciation this year (see the red in the graph below). But here’s the context you need most. The worst home price declines are already behind us, and prices are actually <a href="https://www.keepingcurrentmatters.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank">appreciating again</a> in many markets. Not to mention, the small 0.37% depreciation HPES is showing for 2023 is far from <a href="https://www.keepingcurrentmatters.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank">the crash</a> some people originally said would happen.
Now, let’s look to the future. The green in the graph below shows prices have turned a corner and are expected to appreciate in 2024 and beyond. After this year, the HPES is forecasting home price appreciation returning to more normal levels for the next several years.
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230703/20230705-extimated-home-price-performance.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230703/20230705-extimated-home-price-performance.png" /></a>
So, why does this matter to you? It means your home will likely <a href="https://www.keepingcurrentmatters.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank">grow in value</a> and you should gain <a href="https://www.keepingcurrentmatters.com/2023/06/14/a-drop-in-equity-doesnt-mean-low-equity/" rel="noopener noreferrer" target="_blank">home equity</a> in the years ahead, but only if you buy now. If you wait, based on these forecasts, the home will only cost you more later on.
2. Where Do I Think Mortgage Rates Are Heading?
Over the past year, <a href="https://www.keepingcurrentmatters.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have risen in response to economic uncertainty, <a href="https://www.keepingcurrentmatters.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank">inflation</a>, and more. We know based on the latest reports that inflation, while still high, has moderated from its peak. This is an encouraging sign for the market and for mortgage rates. Here’s why.
When inflation cools, mortgage rates generally fall in response. This may be why some <a href="https://www.fanniemae.com/media/47986/display" rel="noopener noreferrer" target="_blank">experts</a> are saying <a href="https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-jun-2023.pdf" rel="noopener noreferrer" target="_blank">mortgage rates</a> will pull back slightly over the <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q3-2023-us-economic-outlook-04-27-2023.pdf" rel="noopener noreferrer" target="_blank">next few quarters</a> and settle somewhere around roughly 5.5 and 6% on average.
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230703/20230705-mortgage-rate-projections.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230703/20230705-mortgage-rate-projections.png" /></a>
But, not even the experts can say with absolute certainty where <a href="https://www.keepingcurrentmatters.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> will be next year, or even next month. That’s because there are so many factors that can impact what happens. So, to give you a lens into the various possible outcomes, here’s what you should consider:
If you buy now and mortgage rates don’t change: You made a good move since home prices are projected to grow with time, so at least you beat rising prices.
If you buy now and mortgage rates fall (as projected): You probably still made a good decision because you got the house before home prices appreciated more. And, you can always refinance your home later on if rates are lower.
If you buy now and mortgage rates rise: If this happens, you made a great decision because you bought before both the price of the home and the mortgage rate went up.
Bottom Line
If you’re thinking about buying a home, you need to know what’s expected with home prices and mortgage rates. While no one can say for certain where they’ll go, expert projections can give you powerful information to keep you informed. Lean on a trusted real estate professional who can add in an expert opinion on your local market.2023-07-24T10:00:00-07:002023-07-11T10:29:33-07:00David Florestag:reagentexpert.com,2012-09-20:28431Today’s Housing Inventory Is a Sweet Spot for SellersOne of the biggest challenges in the housing market right now is how <a href="https://www.keepingcurrentmatters.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank">few homes</a> there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s take a look at the latest information on active listings, or homes for sale in a given month, as it compares to more normal levels.
According to a recent report from <a href="https://news.move.com/2023-06-29-Realtor-com-R-June-Housing-Report-Home-Prices-Post-Their-First-Annual-Decline-Since-Before-2017" rel="noopener noreferrer" target="_blank">Realtor.com</a>:
“On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”
The <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">graph</a> below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230705/20230706-the-supply-of-homes-for-sale-is-still-low.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230705/20230706-the-supply-of-homes-for-sale-is-still-low.png" /></a>
It’s worth noting that 2020-2022 are not included in this graph. That’s because they were truly <a href="https://www.keepingcurrentmatters.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">abnormal years</a> for the housing market. To make the comparison fair, those have been omitted so they don’t distort the data.
When you compare the orange bars for 2023 with the last normal years for the housing market (2017-2019), you can see the count of active listings is still far below the norm.
What Does This Mean for You?
If you’re thinking about <a href="https://www.keepingcurrentmatters.com/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/" rel="noopener noreferrer" target="_blank">selling your house</a>, that low inventory is why this is a <a href="https://www.keepingcurrentmatters.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank">great time</a> to do so. Buyers have fewer choices now than they did in more normal years, and that’s continuing to impact some key statistics in the housing market. For example, sellers will be happy to see the following data from the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-05-realtors-confidence-index-06-22-2023.pdf" rel="noopener noreferrer" target="_blank">Confidence Index</a> from the National Association of Realtors (NAR):
The percent of homes that sold in less than a month ticked up slightly to 74%.
The median days on market went down to 18 days, showing homes are still selling fast when priced right.
The average number of offers on recently sold homes went up to 3.3 offers.
Bottom Line
When supply is so low, your house is going to be in the spotlight. That’s why sellers are seeing their homes sell a little faster and get more offers right now. If you’ve thought about <a href="https://www.keepingcurrentmatters.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">selling</a>, now’s the time to <a href="https://www.keepingcurrentmatters.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank">make a move</a>. Connect with a trusted real estate professional to get the process started.2023-07-10T10:00:00-07:002023-07-06T10:15:22-07:00David Florestag:reagentexpert.com,2012-09-20:27985This Real Estate Market Is the Strongest of Our LifetimeWhen you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime – if not the strongest housing market of our lifetime. Here are two fundamentals that prove this point.
1. The Current Mortgage Rate on Existing Mortgages
First, let’s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency (<a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" rel="noopener noreferrer" target="_blank">FHFA</a>), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That’s significant. And, to take that one step further, over 50% of mortgages have a rate below 4% (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-current-rate-on-existing-mortgages.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-current-rate-on-existing-mortgages.png" /></a>
Now, there’s a lot of talk in the media about a potential <a href="https://www.keepingcurrentmatters.com/2023/04/27/why-todays-foreclosure-numbers-are-nothing-like-2008/" rel="noopener noreferrer" target="_blank">foreclosure</a> crisis or a rise of homeowners defaulting on their loans, but consider this. Homeowners with such good mortgage rates are going to work as hard as they can to keep that mortgage and stay in their homes. That’s because they can’t go out and buy another house, or even rent an apartment, and pay what they do today. Their current mortgage payment is more affordable. Even if they <a href="https://www.keepingcurrentmatters.com/2023/05/04/how-homeowners-win-when-they-downsize/" rel="noopener noreferrer" target="_blank">downsize</a>, with today’s higher mortgage rates, it could cost more.
Here’s why this gives the housing market such a solid foundation today. Having so many homeowners with such low mortgage rates helps us avoid a crisis with a flood of foreclosures coming to market like there was back in 2008.
2. The Amount of Homeowner Equity
Second, Americans are sitting on tremendous equity right now. According to the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a> and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, roughly two-thirds (around 68%) of homeowners have either paid off their mortgage or have at least 50% equity (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" /></a>
In the industry, the term for this is <a href="https://www.keepingcurrentmatters.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank">equity</a> rich. This is significant because if you think back to 2008, some people had to make the difficult decision to walk away from their homes because they owed more on the home than it was worth.
But this time, things are different because homeowners have built up so much equity over the past few years alone. And, when homeowners have that much equity, it helps us avoid another wave of distressed properties coming onto the market like we saw during the crash. It also creates an extremely strong foundation for today’s housing market.
Bottom Line
We are in one of the most foundationally strong housing markets of our lifetime because homeowners are going to fight to keep their current mortgage rate and they have a tremendous amount of equity. This is yet another reason things are fundamentally different than in 2008.2023-06-19T10:00:00-07:002023-06-28T09:00:21-07:00David Florestag:reagentexpert.com,2012-09-20:27926What Homebuyers Need To Know About Credit ScoresIf you’re thinking about <a href="https://www.keepingcurrentmatters.com/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/" rel="noopener noreferrer" target="_blank">buying a home</a>, you should know your credit score’s a critical piece of the puzzle when it comes to qualifying for a home loan. Lenders review your credit to assess your ability to make payments on time, to pay back debts, and more. It’s also a factor that helps determine your <a href="https://www.keepingcurrentmatters.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">mortgage rate</a>. An article from Bankrate <a href="https://www.bankrate.com/real-estate/what-credit-score-do-you-need-to-buy-a-house/" rel="noopener noreferrer" target="_blank">explains</a>:
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
This means your credit score may feel even more important to your homebuying plans right now since <a href="https://www.keepingcurrentmatters.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are a key factor in <a href="https://www.keepingcurrentmatters.com/2023/05/31/keys-to-success-for-first-time-homebuyers/" 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_2023Q1" rel="noopener noreferrer" target="_blank">765</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 <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">FICO</a> 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’s 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, don’t apply for other credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
When you’re ready to start the <a href="https://www.keepingcurrentmatters.com/2023/06/02/reasons-to-own-your-home-infographic/" rel="noopener noreferrer" target="_blank">homebuying</a> process, a lender will be able to assess which range your score falls in and tell you more about the specifics for each loan type.
Bottom Line
With affordability challenges today, prioritizing ways you can have a positive impact on your credit score could help you get a better mortgage rate. If you want to learn more, connect with a trusted lender.2023-06-05T10:00:00-07:002023-06-26T11:44:12-07:00David Florestag:reagentexpert.com,2012-09-20:26980Why Buyers Need an Expert Agent by Their SideThe process of <a href="https://www.keepingcurrentmatters.com/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/" rel="noopener noreferrer" target="_blank">buying a home</a> can feel a bit intimidating, even under normal circumstances. But today’s market is still anything but normal. There continues to be a very limited number of <a href="https://www.keepingcurrentmatters.com/2023/05/08/it-may-be-time-to-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">homes for sale</a>, and that’s creating bidding wars and driving <a href="https://www.keepingcurrentmatters.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank">home prices</a> back up as buyers compete over the available homes.
Navigating all of this can be daunting if you’re trying to do it alone. That’s why having a skilled expert to guide you through the homebuying process is essential, especially today. Bankrate <a href="https://www.bankrate.com/real-estate/should-i-sell-my-house-now-or-wait/#recession" rel="noopener noreferrer" target="_blank">shares</a> this perspective:
“Advice and guidance from a professional real estate agent can be invaluable, particularly amid a hot or unpredictable housing market.”
Here are just a few of the ways a real estate expert makes a big difference:
Experience – Real estate professionals know the ins and outs of what’s happening today, how it impacts buyers, and how to navigate any hurdles that may pop up.
Education – Knowledge is power when it comes to buying a home. Your advisor will simply and effectively explain market conditions and translate what they mean for you so you can feel confident in your decision.
Negotiations – Your real estate advisor advocates for your best interests. Having an expert on your side provides assistance with the purchase agreement. An agent can also help you negotiate potential seller concessions if the inspection reveals issues with the home.
Contracts – Real estate advisors guide you through the disclosures and contracts necessary in today’s heavily regulated environment.
Pricing – Making an offer and negotiating with a seller can be one of the most difficult and stressful parts of the homebuying process. A skilled agent will help you understand what similar homes are selling for so you have the full picture of what you may want to offer.
All of these reasons combined may be why 86% of recent buyers used an agent according to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank">Home Buyers and Sellers Generational Trends Report</a> from the National Association of Realtors (NAR). NAR also has this to <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-work-with-a-realtor" rel="noopener noreferrer" target="_blank">say</a> about why an agent is so essential today:
“A great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget. Agents are also a great source when you have questions about local amenities, utilities, zoning rules, contractors, and more.”
What’s the Key To Choosing the Right Expert?
It starts with trust. You’ll want to know you can trust the advice they’re giving you, so you need to make sure you’re connected with a true professional. No one can provide perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in today’s market. But a true professional can give you the best possible advice based on the information and situation at hand.
They’ll help advocate for you throughout the process and coach you on the essential knowledge you need to make confident decisions. That’s exactly what you want and deserve.
Bottom Line
It’s critical to have an expert on your side who is skilled in navigating today’s housing market. If you’re planning to buy a home this year, connect with a real estate advisor who will give you the best advice and guide you along the way.2023-05-22T10:00:00-07:002023-05-22T11:31:54-07:00David Florestag:reagentexpert.com,2012-09-20:26913What You Need To Know About Home Price NewsThe National Association of Realtors (NAR) will release its latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">Existing Home Sales Report</a> tomorrow. The information it contains on <a href="https://www.keepingcurrentmatters.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank">home prices</a> may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report <a href="https://www.investopedia.com/terms/r/repeatsales-method.asp" rel="noopener noreferrer" target="_blank">repeat sales prices</a>. The vast majority of the repeat sales indices show prices are <a href="https://www.keepingcurrentmatters.com/2023/05/12/the-worst-home-price-declines-are-behind-us-infographic/" rel="noopener noreferrer" target="_blank">starting to appreciate</a> again. But the median price reported on Thursday may tell a different story.
Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. <a href="https://realestate.wichita.edu/question/hpi-vs-median-price/#:~:text=The%20median%20sale%20price%20measures,and%20half%20sold%20for%20less" rel="noopener noreferrer" target="_blank">According</a> to the Center for Real Estate Studies at Wichita State University:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.
For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
People <a href="https://www.keepingcurrentmatters.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" target="_blank">buy homes</a> based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense <a href="https://www.keepingcurrentmatters.com/2023/04/28/ways-to-overcome-affordability-challenges-in-todays-housing-market-infographic/" rel="noopener noreferrer" target="_blank">affordable</a>. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march" rel="noopener noreferrer" target="_blank">explains</a>:
“Changes in the composition of sales can distort median price data.”
For clarification, here’s a simple explanation of median value:
You have three coins in your pocket. Line them up in ascending value (lowest to highest).
If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.
The same thing applies to today’s <a href="https://www.keepingcurrentmatters.com/2023/05/09/why-todays-housing-market-is-not-about-to-crash/" rel="noopener noreferrer" target="_blank">real estate market</a>.
Bottom Line
Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, reach out to a local real estate professional.2023-05-08T10:00:00-07:002023-05-18T11:04:39-07:00David Florestag:reagentexpert.com,2012-09-20:26289Falling out of Love with Your House? It May Be Time To MoveOwning a home means having a place that’s solely your own and provides the space, features, and location you and your loved ones need. But what happens when your needs change? If this hits home for you, it may be time to make a move.
According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank">Home Buyers and Sellers Generational Trends Report</a> from the National Association of Realtors (NAR), the average person has lived in their current house for ten years. If you’ve been in your home for a while, think about how much in your life has changed since you moved in. Even if you thought it would be your forever home when you bought it, it doesn’t have to be. Work with a local real estate agent to explore all your options in today’s market before settling for your current home.
That’s actually what a lot of homeowners are doing right now. A recent <a href="https://www.realtor.com/research/2023-q1-sellers-survey/" rel="noopener noreferrer" target="_blank">survey</a> from Realtor.com finds that, of people who are considering <a href="https://www.keepingcurrentmatters.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank">selling</a> in 2023, one in three are thinking about <a href="https://www.keepingcurrentmatters.com/2023/03/24/have-you-thought-about-why-you-might-want-to-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">moving</a> because their home no longer meets their needs. And according to the same report from NAR, that’s consistent with this year’s top reasons for selling, which include:
Want to move closer to friends or family
Moving due to retirement
Home is too small or too large
Change in family situation
Job relocation
If things in your life have changed, it may be time to make a move. And there’s good news: it’s still a great time to <a href="https://www.keepingcurrentmatters.com/2023/04/04/two-reasons-you-should-sell-your-house/" rel="noopener noreferrer" target="_blank">sell</a>. Here’s why.
We’re in a strong <a href="https://www.keepingcurrentmatters.com/2023/03/30/were-in-a-sellers-market-what-does-that-mean/" rel="noopener noreferrer" target="_blank">sellers’ market</a>. That means homes listed at <a href="https://www.keepingcurrentmatters.com/2023/04/13/want-to-sell-your-house-this-spring-price-it-right/" rel="noopener noreferrer" target="_blank">market value</a> and in <a href="https://www.keepingcurrentmatters.com/2023/04/14/home-inspections-for-sellers-what-you-need-to-know-infographic/" rel="noopener noreferrer" target="_blank">good condition</a> are getting attention from buyers and selling quickly. Lean on your expert real estate advisor for the best advice on getting your house ready to sell.
Your equity can power your next move. There’s a good chance you have a significant amount of equity right now thanks to record levels of price appreciation in recent years. When you sell, you can use that <a href="https://www.keepingcurrentmatters.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">equity</a> to help afford your next home. In fact, NAR’s report from above shows 38% of recent buyers used the money from the sale of their previous home to cover the down payment on their next one. Work with a local real estate agent to learn how much equity you have and what you can do with it in today’s housing market.
Bottom Line
If your home no longer meets your needs, consider selling it so you can find your dream home. Work with a real estate professional so you can learn about your options.2023-04-24T10:00:00-07:002023-04-20T09:34:09-07:00David Florestag:reagentexpert.com,2012-09-20:26287Think Twice Before Waiting for Lower Home PricesAs the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on <a href="https://www.keepingcurrentmatters.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank">buying a home</a> until prices drop significantly. But that’s not the best strategy.
A recent <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">survey</a> from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-april-2023/" rel="noopener noreferrer" target="_blank">reports</a>:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below <a href="https://www.blackknightinc.com/wp-content/uploads/2023/04/BKI_MM_FEB2023_Report.pdf" rel="noopener noreferrer" target="_blank">compares</a> home price trends in November to those in February:
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" /></a>
So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">data</a> shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
Bottom Line
If you’re waiting to buy a home until prices come down, you may want to reconsider. Work with an agent to make sure you understand what’s happening in your local housing market.2023-04-10T10:00:00-07:002023-04-20T09:34:23-07:00David Florestag:reagentexpert.com,2012-09-20:25755Why Buying a Home Is a Sound DecisionIf you’re <a href="https://www.keepingcurrentmatters.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/" rel="noopener noreferrer" target="_blank">thinking</a> about <a href="https://www.keepingcurrentmatters.com/2023/03/09/4-tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">buying</a> a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are <a href="https://www.keepingcurrentmatters.com/2023/03/20/whats-ahead-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">projected to do</a> in the coming years and how that could impact your investment.
This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the <a href="https://www.keepingcurrentmatters.com/2023/02/27/one-major-benefit-of-investing-in-a-home/" rel="noopener noreferrer" target="_blank">long-term</a> view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.
Home Price Appreciation in the Years Ahead
Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230321/20230327-estimated-national-price-performance-MEM.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230321/20230327-estimated-national-price-performance-MEM.png" /></a>
The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.
What Does This Mean for You?
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/branded/images/20230321/20230327-potential-growth-in-household-wealth-hpes-MEM.png" rel="noopener noreferrer" target="_blank" class="lightbox-added"><img src="https://files.keepingcurrentmatters.com/content/branded/images/20230321/20230327-potential-growth-in-household-wealth-hpes-MEM.png" /></a>
In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.
Bottom Line
According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a <a href="https://www.keepingcurrentmatters.com/2023/03/06/is-it-really-better-to-rent-than-to-own-a-home-right-now/" rel="noopener noreferrer" target="_blank">homeowner</a>, know that <a href="https://www.keepingcurrentmatters.com/2023/03/07/could-a-multigenerational-home-be-the-right-fit-for-you/" rel="noopener noreferrer" target="_blank">buying</a> today can set you up for long-term success as home values (and your own net worth) are projected to grow. Partner with a <a href="https://www.keepingcurrentmatters.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">local real estate agent</a> to begin the homebuying process today.2023-03-27T10:00:00-07:002023-03-27T09:46:37-07:00David Florestag:reagentexpert.com,2012-09-20:257122 Things Sellers Need To Know This SpringA lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.
1. Houses That Are Priced Right Are Still Selling
Houses that are <a href="https://www.keepingcurrentmatters.com/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/" rel="noopener noreferrer" target="_blank">updated and priced</a> at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, <a href="https://www.forbes.com/sites/brendarichardson/2023/02/16/expect-the-spring-housing-market-to-be-calm-but-competitive/?sh=6fc73d8357bd" rel="noopener noreferrer" target="_blank">says</a>:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, <a href="https://news.move.com/2023-03-02-Realtor-com-R-February-Housing-Report-More-Choices-for-Buyers-as-Inventory-Recovery-Continues-at-Breakneck-Speed" rel="noopener noreferrer" target="_blank">explains</a>:
“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”
While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on <a href="https://www.keepingcurrentmatters.com/2023/01/23/want-to-sell-your-house-price-it-right/" rel="noopener noreferrer" target="_blank">pricing</a> their house well are still finding success. And that’s great news if you’re thinking about <a href="https://www.keepingcurrentmatters.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">selling</a>.
2. Buyers Are Still Out There
As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of <a href="https://www.keepingcurrentmatters.com/2023/02/14/why-its-easy-to-fall-in-love-with-homeownership-1/" rel="noopener noreferrer" target="_blank">reasons</a> people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, <a href="https://www.usnews.com/news/economy/articles/2023-02-27/pending-home-sales-crush-estimates-rise-8-1-in-january" rel="noopener noreferrer" target="_blank">spells out</a> the mindset of today’s buyers:
“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”
That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.
Bottom Line
There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, connect with a trusted real estate advisor.2023-03-13T10:00:00-07:002023-03-24T09:33:39-07:00David Florestag:reagentexpert.com,2012-09-20:25128Spring into Action: Boost Your Home’s Curb Appeal with Expert GuidanceTo sell your home this spring, it may need more preparation than it would have a year or two ago. Today’s housing market has a different feel. There are more homes for sale than there were at this time last year, but <a href="https://www.keepingcurrentmatters.com/2023/02/08/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years/">inventory</a> is still historically low. So, if a house has been sitting on the market for a while, that’s a sign it may not be hitting the mark for potential buyers. But here’s the thing. Right now, homes that are updated and <a href="https://www.keepingcurrentmatters.com/2023/01/23/want-to-sell-your-house-price-it-right/">priced</a> at market value are still selling fast.
Today, homes with curb appeal that are presented well are still selling quickly, and sometimes over asking <a href="https://www.keepingcurrentmatters.com/2023/01/20/whats-really-happening-with-home-prices-infographic/">price</a>. According to Danielle Hale, Chief Economist at <a href="https://www.realtor.com/news/trends/a-tale-of-2-housing-markets-why-some-homes-still-cause-heated-bidding-wars-while-others-sit-unsold/">realtor.com</a>:
“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing.”
With the spring buying season just around the corner, now’s the time to start getting your house ready to sell. And the best way to determine where to spend your time and money is to work with a trusted real estate agent who can help you understand which improvements are most valuable in your local market.
Curb Appeal Wins
One way to prioritize updates that could bring a good return on your investment is to find smaller projects you can do yourself. Little updates that boost your curb appeal usually work well. <a href="https://www.investopedia.com/investing/types-home-renovation-which-ones-boost-value/">Investopedia</a> puts it this way:
“Curb-appeal projects make the property look good as soon as prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help your home sell faster—and you can do a lot of the work yourself to save money and time.”
Small cosmetic updates, like refreshing some paint and power washing the exterior of your home, create a great first impression for buyers and help it stand out. Work with a real estate professional to find the low-cost projects you can tackle around your house that will appeal to buyers in your area.
Not All Updates Are Created Equal
When deciding what you need to do to your house before selling it, remember you’re making these repairs and updates for someone else. Prioritize projects that will help you sell faster or for more money over things that appeal to you as a homeowner.
The 2022 Remodeling Impact Report from the National Association of Realtors (NAR) <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf">highlights</a> popular home improvements and what sort of return they bring for the investment (see graph below):
<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16133853/typical-cost-recovery-for-common-remodeling-projects-MEM-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-48833 lazy-loaded" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16133853/typical-cost-recovery-for-common-remodeling-projects-MEM-1.png" data-lazy-type="image" data-src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16133853/typical-cost-recovery-for-common-remodeling-projects-MEM-1.png" alt="Spring into Action: Boost Your Home’s Curb Appeal with Expert Guidance | Simplifying The Market" width="650" height="488" /></a>
Remember to lean on your trusted real estate advisor for the best advice on the updates you should invest in. They’ll know what local buyers are looking for and have the latest insights of what your house needs to sell quickly this spring.
Bottom Line
As we approach the spring season, now’s the time to get your house ready to <a href="https://www.keepingcurrentmatters.com/2023/02/06/the-top-reasons-for-selling-your-house/">sell</a>. Connect with a local real estate agent today so you can find out which updates make the most sense.2023-02-20T11:00:00-07:002023-02-24T11:17:18-07:00David Florestag:reagentexpert.com,2012-09-20:25073The Two Big Issues the Housing Market’s Facing Right NowThe biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-housing-market-potential-increased-for-the-second-straight-month">explains</a> the root causes of today’s low supply:
“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”
Let’s break down these two big issues in today’s housing market.
Rate-Locked Homeowners
According to the Federal Housing Finance Agency (FHFA), the <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx">average interest rate</a> for current homeowners with mortgages is less than 4% (see graph below):
<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16150229/average-mortgage-rate-is-less-than-4-percent-MEM.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-48836 lazy-loaded" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16150229/average-mortgage-rate-is-less-than-4-percent-MEM.png" data-lazy-type="image" data-src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/02/16150229/average-mortgage-rate-is-less-than-4-percent-MEM.png" alt="The Two Big Issues the Housing Market’s Facing Right Now | Simplifying The Market" width="650" height="488" /></a>
But today, the typical mortgage rate offered to buyers is <a href="https://www.freddiemac.com/pmms">over 6%</a>. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.
When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project <a href="https://www.keepingcurrentmatters.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/">mortgage rates</a> will gradually fall this year, and that could mean more people will be willing to move as that happens.
The Fear of Not Finding Something To Buy
The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your <a href="https://www.keepingcurrentmatters.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/">options</a>. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate <a href="https://www.keepingcurrentmatters.com/2023/2/15/should-you-consider-buying-a-newly-built-home/">buydowns</a>.
What Does This Mean for You?
These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a <a href="https://www.keepingcurrentmatters.com/2023/2/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic">sweet spot</a> that can work to your advantage.
Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2022-u-s-home-equity-and-underwater-report/">ATTOM</a>:
“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”
This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.
Bottom Line
Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.2023-02-06T11:00:00-07:002023-02-22T11:39:48-07:00David Florestag:reagentexpert.com,2012-09-20:24426The 3 Factors That Affect Home AffordabilityIf you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to <a href="https://www.keepingcurrentmatters.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/">experts</a>, the key factors that determine housing affordability are projected to improve this year. Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-january-2023/">shares</a>:
“. . . with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”
The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.
1. Mortgage Rates
<a href="https://www.keepingcurrentmatters.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/">Mortgage rates</a> shot up to over 7% last year, causing many <a href="https://www.keepingcurrentmatters.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/">buyers</a> to put their plans on hold. But things are looking different today as rates are starting to come down. George Ratiu, Senior Economist at realtor.com, <a href="https://www.realtor.com/news/trends/mortgage-rates-are-sliding-could-they-fall-below-6-soon/">explains</a>:
“Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”
Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-12-2023">context</a>:
“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”
If 7% rates paused your homebuying plans last year, this could be the <a href="https://www.keepingcurrentmatters.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/">opportunity</a> you need to get back in the game. Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market.
2. Home Prices
The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy">says</a>:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to a trusted real estate professional.
3. Wages
The final component in the affordability equation is wages. The graph below uses <a href="https://www.bls.gov/charts/usual-weekly-earnings/usual-weekly-earnings-over-time-total-men-women.htm#%E2%80%8B">data</a> from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:
<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2023/01/23134726/american-wage-growth-since-2000-MEM-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-48701 lazy-loaded" src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/01/23134726/american-wage-growth-since-2000-MEM-1.png" data-lazy-type="image" data-src="https://files.simplifyingthemarket.com/wp-content/uploads/2023/01/23134726/american-wage-growth-since-2000-MEM-1.png" alt="The 3 Factors That Affect Home Affordability | Simplifying The Market" width="650" height="488" /></a>
When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many <a href="https://www.keepingcurrentmatters.com/2023/01/04/avoid-the-rental-trap-in-2023/">buyers</a> have renewed opportunity in the market.
While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), <a href="https://finance.yahoo.com/news/real-estate-ceos-economists-other-113600300.html">says</a>:
“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges.”
Bottom Line
If you have questions, reach out to a trusted real estate professional to explore your options. You may be closer to <a href="https://www.keepingcurrentmatters.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/">owning a home</a> than you think.2023-01-23T11:00:00-07:002023-01-30T12:14:38-07:00David Florestag:reagentexpert.com,2012-09-20:24425Why It Makes Sense To Move Before SpringSpring is usually the busiest season in the housing market. Many buyers wait until then to make their move, believing it’s the best time to find a home. However, that isn’t always the case when you factor in the competition you could face with other buyers at that time of year. If you’re ready to buy a home, here’s why it makes sense to move before the spring market picks up.
Spring Should Bring a Wave of Buyers to the Market
In most years, the housing market goes through predictable seasonal trends in activity. Winter is typically a quiet point in the year, while spring sees a surge of buyers begin their search. And experts project that this year will be no exception.
Right now, buyer demand is low due to a combination of normal seasonal trends and a reaction to last year’s rise in mortgage rates. But rates have started to come down since last November, which has more and more potential buyers planning to jump into the market. That means right now is a sweet spot if you’re in a good position to buy, before more buyers reappear. Affordability is beginning to improve, but demand is still low — for now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.housingwire.com/articles/existing-home-sales-ended-the-year-with-a-whimper-in-2022/">shares</a>:
“. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”
If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market.
Today’s Sellers Are Motivated
Low demand from buyers often means sellers are more motivated to work with you, and that can set you up to buy a home on your terms. In fact, sellers have been more willing to <a href="https://www.keepingcurrentmatters.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/">negotiate</a> this winter because there are fewer buyers in the market. According to a recent article from <a href="https://www.forbes.com/sites/brendarichardson/2023/01/05/a-record-share-of-home-sellers-gave-concessions-to-buyers-in-the-4th-quarter/?sh=58dc6ba3fbee">Forbes</a>:
“. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.”
But keep in mind, the advantages buyers have this winter won’t last forever. The competition you face could be greater if you wait until spring to make a move, and increased buyer demand means sellers will have less motivation to negotiate with you. Be sure to work with a trusted real estate professional to learn what you can expect in your local market right now.
Bottom Line
If you’re in a position to buy a home, it may make sense to move before spring. Working with your team of expert real estate advisors is the best way to learn about the current market and what it means for you. Connect with a professional today to determine the best plan to achieve your homebuying goals.2023-01-09T11:00:00-07:002023-01-30T12:02:53-07:00David Florestag:reagentexpert.com,2012-09-20:23614Mortgage Rates Are Dropping. What Does That Mean for You?Mortgage rates have been a hot topic in the housing market over the past 12 months. Compared to the beginning of 2022, rates have <a href="https://www.freddiemac.com/pmms/archive">risen dramatically</a>. Now they’re dropping, and that has to do with everything happening in the economy.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), explains it well by <a href="https://twitter.com/NAR_Research/status/1603455050390577152">saying</a>:
“Mortgage rates dropped even further this week as two main factors affecting today’s mortgage market became more favorable. Inflation continued to ease while the Federal Reserve switched to a smaller interest rate hike. As a result, according to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.”
So, what does that mean for your homeownership plans? As mortgage rates fluctuate, they impact your purchasing power by influencing the cost of buying a home. Even a small dip can help boost your purchasing power. Here’s how it works.
The median-priced home according to the National Association of Realtors (NAR) is <a href="https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october">$379,100</a>. So, let’s assume you want to buy a $400,000 home. If you’re trying to shop at that price point and keep your monthly payment about $2,500-2,600 or below, here’s how your purchasing power can change as mortgage rates move up or down (see chart below). The red shows payments above that threshold and the green indicates a payment within your target range.
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/16162634/buyers-purchasing-power-NM.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2086311 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/16162634/buyers-purchasing-power-NM.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/16162634/buyers-purchasing-power-NM.png" alt="Mortgage Rates Are Dropping. What Does That Mean for You? | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/16162634/buyers-purchasing-power-NM.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/16162634/buyers-purchasing-power-NM-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/16162634/buyers-purchasing-power-NM-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
This goes to show, even a small quarter-point change in mortgage rates can impact your monthly mortgage payment. That’s why it’s important to work with a trusted real estate professional who follows what the experts are projecting for mortgage rates for the days, months, and year ahead.
Bottom Line
Mortgage rates are likely to fluctuate depending on what happens with inflation moving forward, but they have dropped slightly in recent weeks. If a 7% rate was too high for you, it may be time to contact a lender to see if the current rate is more in line with your goal for a monthly housing expense.2022-12-19T11:00:00-07:002022-12-19T11:31:47-07:00David Florestag:reagentexpert.com,2012-09-20:23613Ready To Sell? Today’s Housing Supply Gives You Two Opportunities.At first glance, the increase in housing supply compared to last year may not sound like good news for prospective <a href="https://www.keepingcurrentmatters.com/2022/11/16/top-questions-about-selling-your-home-this-winter/">sellers</a>, but it actually gives you two key opportunities in <a href="https://www.keepingcurrentmatters.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/">today’s housing market</a>.
An <a href="https://www.calculatedriskblog.com/2022/12/housing-december-12th-weekly-update.html">article</a> from Calculated Risk helps put the inventory gains the market has seen in 2022 into perspective by comparing it to recent years (see graph below). It shows supply has surpassed 2021 levels by 58%. But the further back you look, the more you’ll understand the bigger picture. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 35% below the <a href="https://www.keepingcurrentmatters.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/">housing supply</a> we had at that time.
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/12132252/housing-supply-is-still-historically-low-NM.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2086209 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/12132252/housing-supply-is-still-historically-low-NM.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/12132252/housing-supply-is-still-historically-low-NM.png" alt="Ready To Sell? Today’s Housing Supply Gives You Two Opportunities. | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/12132252/housing-supply-is-still-historically-low-NM.png 960w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/12132252/housing-supply-is-still-historically-low-NM-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/12/12132252/housing-supply-is-still-historically-low-NM-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
Opportunity #1: Take Advantage of More Options for Your Move
If your current house no longer <a href="https://www.keepingcurrentmatters.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/">meets your needs</a> or lacks the space and features you want, this inventory growth gives you even more <a href="https://www.keepingcurrentmatters.com/2022/11/28/your-house-could-be-the-1-item-on-a-homebuyers-wish-list-during-the-holidays/">opportunity to sell</a> and move into the home of your dreams. With more houses on the market, you’ll have more to choose from when you search for your next home.
Partnering with a local real estate professional can help you make sure you’re up to date on the homes available in your area. And when you do find the one, a professional can advise you on how to write a winning offer.
Opportunity #2: Sell While Inventory Is Still Low Overall
But again, despite the growth, inventory is still low compared to more normal years, and that isn’t going to change overnight. For you, that means your house should still be in demand among potential buyers if you price it right.
As an article from realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-sep-17-2022-2/">says</a>:
“Today’s shoppers generally have more homes to consider than last year’s shoppers did, but the market is still not back to pre-pandemic inventory levels.”
Bottom Line
If you’re a homeowner <a href="https://www.keepingcurrentmatters.com/2022/11/02/sell-your-house-before-the-holidays/">looking to sell</a>, you have more homes to choose from and can still sell your house while inventory is low overall. If you’re ready to get started, reach out to a local real estate professional who can help you get the best of both worlds.2022-12-05T11:00:00-07:002022-12-19T11:29:31-07:00David Florestag:reagentexpert.com,2012-09-20:23229Mortgage Rates Will Come Down, It’s Just a Matter of TimeThis past year, rising mortgage rates have slowed the red-hot housing market. Over the past <a href="https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october">nine months</a>, we’ve seen fewer homes sold than the previous month as home price growth has slowed. All of this is due to the fact that the average 30-year fixed mortgage rate has doubled this year, severely limiting homebuying power for consumers. And, this month, the <a href="https://www.freddiemac.com/pmms/archive">average rate</a> for financing a home briefly rose <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-rise-above-seven-percent">over 7%</a> before coming back down into the high 6% range. But we’re starting to see a hint of what mortgage interest rates could look like next year.
Inflation Is the Enemy of Long-Term Interest Rates
As long as inflation is high, we’ll see higher mortgage rates. Over the past couple of weeks, we’ve seen indications that inflation may be cooling, giving us a glimpse into what may happen in the future. The mortgage market is eagerly awaiting positive news on inflation. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.builderonline.com/data-analysis/a-look-at-the-relationship-between-the-10-year-treasury-and-30-year-mortgage-rate_o">says</a>:
“The housing market is expected to face continued uncertainty heading into 2023 as consumers, financial markets, and policymakers work through their respective challenges in today’s economy. . . . we are watching for any additional stability in the MBS market, signs of cooling inflation, and/or less aggressive Federal Reserve action to give us confidence that mortgage rates are past their peak.”
What Does This Mean for the Future of Mortgage Rates?
As we get through the inflation battle and start to see that coming down, we should expect mortgage rates to follow. We’ve seen nods of this over the past couple of weeks. As the Federal Reserve works to bring inflation down, mortgage rates will come down as well. Bill McBride from Calculated Risk <a href="https://calculatedrisk.substack.com/p/housing-and-inflation">says</a>:
“My current view is inflation will ease quicker than the Fed currently expects.”
As we look toward next year, we certainly hope he’s right.
Bottom Line
Mortgage rates will come down – it’s just a matter of time. The hope is we continue to see more positive news on inflation, and that’ll bring mortgage rates down. This will give prospective homebuyers more buying power and lead to more homeowners throughout the country.2022-11-21T11:00:00-07:002022-11-29T09:25:44-07:00David Florestag:reagentexpert.com,2012-09-20:23222What Homeowners Want To Know About Selling in Today’s MarketIf you’re thinking about <a href="https://www.keepingcurrentmatters.com/2022/11/02/sell-your-house-before-the-holidays/">selling your house</a>, you’re likely hearing about the cooling housing market and wondering what that means for you. While it’s not the peak intensity we saw during the pandemic, we’re still in a sellers’ market. That means you haven’t missed your window. Realtor.com <a href="https://www.realtor.com/advice/sell/home-selling-rules-youve-heard-lately-that-you-might-want-to-break/">explains</a>:
“. . . while prospective home sellers may lament that they missed their prime window, in reality, this is still a terrific time to sell. In fact, according to a recent Realtor.com® home seller survey, 95% of sellers who sold their home in the past year got more than they paid for it.
Nonetheless, some of the more prominent pandemic trends have changed, so sellers might wish to adjust accordingly to get the best deal possible.”
The key to success today is being realistic and working with a trusted real estate advisor who can help you set your expectations based on where the market is now, not where it was over the past few years.
Here are a few things experts say today’s sellers need to consider.
Be Willing To Negotiate
At the peak of the pandemic frenzy, sellers held all the leverage because inventory was at record lows and buyers were willing to enter bidding wars over homes that were available. This year, the <a href="https://www.keepingcurrentmatters.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/">supply of homes</a> for sale has increased as the market cooled. Even though inventory is still low overall, buyers today have more options, and with that comes more <a href="https://www.keepingcurrentmatters.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/">negotiation power</a>.
As a seller, that means you may see more buyers getting an inspection, requesting repairs, or asking for help with closing costs today. You need to be prepared to have those conversations. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.realtor.com/advice/sell/reasons-home-sales-fall-through/">says</a>:
“Today’s market is different than it was just six months ago. . . Sellers that want the contract to move forward should be willing to work with the buyer. . . Consider helping with the closing costs or addressing many of the items on the home inspection list.”
Price Your Home at Market Value
It’s not just that the number of homes for sale has grown this year. <a href="https://www.keepingcurrentmatters.com/2022/10/27/millennials-are-still-a-driving-force-of-todays-buyer-demand/">Buyer demand</a> has also pulled back in light of higher <a href="https://www.keepingcurrentmatters.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/">mortgage rates</a>. As a result, pricing your house appropriately so you can catch the eyes of serious buyers is important. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-trends/">explains</a>:
“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
You don’t want to overreach with your price and deter buyers. At the same time, you don’t want to undervalue your home and leave money on the table. This is another area where an <a href="https://www.keepingcurrentmatters.com/2022/06/24/why-an-agent-is-essential-when-pricing-your-house-infographic/">agent’s expertise</a> comes in handy.
Think About Your First Impression on Buyers
Buyers have more options and are more particular about their investment since it costs more to buy a home given today’s mortgage rates. As a result, you need to make sure your house shows well. As an article from realtor.com <a href="https://www.realtor.com/advice/sell/how-home-sellers-can-prepare-for-a-recession-and-still-sell-their-home/">says</a>:
“To stand out in the market, sellers should make their home attractive to buyers, which usually means some selective updates.”
This could include everything from staging the home, to making small <a href="https://www.keepingcurrentmatters.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/">cosmetic updates</a>, tackling repairs, or undergoing renovations. A trusted real estate professional will help you assess what may be worthwhile to do compared to other recently sold homes in your area.
Bottom Line
To sum it all up, your house should still sell today and move quickly if you’re realistic about today’s market. As a <a href="https://zillow.mediaroom.com/2022-10-31-Pressure-is-back-on-sellers-to-attract-buyers-as-demand-softens">press release</a> from Zillow puts it:
“. . . sellers need to do things right to attract the attention of these buyers — pricing their home competitively and making their listing attractive to online home shoppers.”
For expert advice on how to sell your house in a shifting market, lean on a local real estate professional.2022-11-07T11:00:00-07:002022-11-28T13:20:10-07:00David Florestag:reagentexpert.com,2012-09-20:21998Three Things Buyers Can Do in Today’s Housing MarketIt’s clear the 2022 housing market has been defined by rising <a href="https://www.keepingcurrentmatters.com/2022/09/07/expert-forecasts-on-mortgage-rates/">mortgage rates</a>. With rates on the rise, it’s also become more costly to purchase a home. According to the <a href="https://www.nar.realtor/blogs/economists-outlook/housing-affordability-conditions-fade-as-mortgage-rates-push-monthly-payments-higher-in-june-2022">National Association of Realtors</a> (NAR):
“Compared to one year ago, the monthly mortgage payment rose to $1,944 from $1,265, an increase of 53.7%.”
If you’re thinking of <a href="https://www.keepingcurrentmatters.com/2022/08/31/buyers-you-may-face-less-competition-as-bidding-wars-ease/">buying a home</a> or have been trying to recently, that’s a big increase in a monthly mortgage payment – and it may be causing you to press pause on your plans. This jump is making homes less affordable, especially compared to the last two years when mortgage rates were at historic lows.
The good news is you can navigate today’s housing market and this rising rate environment with a few <a href="https://www.keepingcurrentmatters.com/2022/08/22/3-tips-for-buying-a-home-today/">simple tips</a>. Here are three things you may want to consider to help make your <a href="https://www.keepingcurrentmatters.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/">homeownership</a> goals a reality.
1. Expand Your Search Area and Criteria
If you’ve been looking for a home in the city center or a specific area that’s starting to feel out of your price range, you may want to try looking a little further out in a location that could be more affordable. Expanding your search location or re-prioritizing the items on your wish list can open up opportunities you haven’t considered, and that could help you afford more of what you need (and want) in a home. As CNET <a href="https://www.cnet.com/personal-finance/mortgages/6-tips-for-buyers-in-competitive-real-estate-markets/">notes</a>:
“Area growth is likely to keep pace with the market, which means that the outskirts of town might be hopping within five years. Consider stepping out of your ideal location by searching in the nearby cities. You may find better prices and more square footage.”
2. Explore Alternative Financing Options
Working with a trusted lender to learn about the different loan types and options is essential too. According to <a href="https://www.nerdwallet.com/article/mortgages/tips-for-first-time-home-buyers">Nerd Wallet</a>:
“A variety of mortgages are available with varying down payment and eligibility requirements.”
Experts know how to point you in the right direction when it comes to exploring ways to find the best home loan for your situation. With rising mortgage rates making it more costly to finance a home today, there may be an ideal option out there your loan officer can introduce you to. This could make a home purchase more affordable and within your financial reach over the life of your loan.
3. Look for Grants, Gift Funds, and Down Payment Assistance
There are also many options available when it comes to securing the funding you need to purchase a home. One valuable resource to explore is <a href="https://downpaymentresource.com/">downpaymentresource.com</a>. Searching for specific down payment assistance options available in your local community could be a game changer when it comes to taking your first step toward homeownership. As <a href="https://www.nar.realtor/first-time-homebuyers/first-time-homebuyer-loans-grants">NAR</a> indicates:
“Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”
Plus, there are programs and special benefits for individuals working in certain professions or with unique statuses, including teachers, doctors and nurses, and veterans.
Ultimately, that means there are many federal, state, and local programs available for you to explore. The best way to do that is to connect with a local <a href="https://www.keepingcurrentmatters.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/">real estate professional</a> and your lender to learn more about what’s available in your area.
Bottom Line
If you’ve been searching for a home and have found yourself stepping out of the process because you’re worried about rising costs, connect with a trusted real estate expert. Having a team of local advisors on your side may be just what you need to guide your search in a new and more affordable direction.2022-09-19T10:00:00-07:002022-09-19T08:30:16-07:00David Florestag:reagentexpert.com,2012-09-20:21927Should I Sell My House This Year?There’s no denying the housing market is <a href="https://www.keepingcurrentmatters.com/2022/08/23/what-sellers-need-to-know-in-todays-housing-market/">undergoing a shift</a> this season as buyer demand slows and the number of homes for sale grows. But that shift actually gives you some unique benefits when you sell. Here’s a look at the key opportunities you have if you list your house this fall.
Opportunity #1: You Have More Options for Your Move
One of the biggest stories today is the growing supply of homes for sale. <a href="https://www.keepingcurrentmatters.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/">Housing inventory</a> has been increasing since the start of the year, primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, that actually could benefit you.
If you’re selling your house to make a move, it means you’ll have <a href="https://www.keepingcurrentmatters.com/2022/09/01/new-homes-may-have-the-incentives-youre-looking-for-today/">more options</a> for your own home search. That gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find <a href="https://www.keepingcurrentmatters.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/">somewhere to go</a>, know your options have improved.
Opportunity #2: The Number of Homes on the Market Is Still Low
Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there would need to be a six months’ supply of homes. According to the <a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-5-9-in-july">latest report</a> from the National Association of Realtors (NAR), in July, there was only a 3.3 months’ supply.
While you’ll have more options for your own home search, <a href="https://www.keepingcurrentmatters.com/2022/08/24/why-todays-housing-inventory-proves-the-market-isnt-headed-for-a-crash/">inventory</a> is still low, and that means your home will still be in demand if you <a href="https://www.keepingcurrentmatters.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/">price it right</a>. That’s why the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf">most recent data</a> from NAR also shows the average home sold in July still saw multiple offers and sold in as little as 14 days.
Opportunity #3: Your Equity Has Grown by Record Amounts
The <a href="https://www.keepingcurrentmatters.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/">home price appreciation</a> the market saw over the past few years has likely given your <a href="https://www.keepingcurrentmatters.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/">equity</a> (and your net worth) a considerable boost. Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-july-2-2022/">explains</a>:
“Home owners trying to decide if now is the time to list their home for sale are still in a good position in many markets across the country as a decade of rising home prices gives them a substantial equity cushion . . .”
If you’ve been holding off on selling because you’re worried about how <a href="https://www.keepingcurrentmatters.com/2022/08/30/whats-actually-happening-with-home-prices-today/">rising prices</a> will impact your next home search, rest assured your <a href="https://www.keepingcurrentmatters.com/2022/07/06/how-your-equity-can-grow-over-time/">equity</a> can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.
Bottom Line
If you’re thinking about selling your house this season, work with a real estate professional so you have the expert insights you need to make the best possible move today.2022-09-12T10:00:00-07:002022-09-14T08:36:53-07:00David Florestag:reagentexpert.com,2012-09-20:216543 Tips for Buying a Home TodayIf you put off your home search at any point over the past two years, you may want to consider picking it back up based on today’s housing market conditions. Recent data shows the <a href="https://www.keepingcurrentmatters.com/2022/07/29/three-reasons-to-buy-a-home-in-todays-shifting-market-infographic/">supply of homes</a> for sale is increasing, giving buyers like you additional options.
But it’s important to keep in mind that while <a href="https://www.keepingcurrentmatters.com/2022/07/22/great-news-about-housing-inventory-infographic/">inventory is improving</a>, it’s still a <a href="https://www.keepingcurrentmatters.com/2022/08/04/why-its-still-a-sellers-market/">sellers’ market</a>. And that means you need to be prepared as you set out on your home search. Here are three tips for buying the home of your dreams today.
1. Understand How Mortgage Rates Impact Your Homebuying Power
Mortgage rates have <a href="https://www.freddiemac.com/pmms/archive">increased</a> significantly this year, and over the past few weeks, they’ve been fluctuating quite a bit. It’s important to stay up to date on what’s happening with rates and understand how they can impact your purchasing power when you’re thinking of buying a home. The chart below can help.
Let’s say your budget allows for a monthly mortgage payment in the $2,100-$2,200 range. The green in the chart indicates a payment within or below that range, while the red is a payment that exceeds it.
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/18145944/20220822-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2084562 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/18145944/20220822-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/18145944/20220822-NM-Eng-1.png" alt="3 Tips for Buying a Home Today | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/18145944/20220822-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/18145944/20220822-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/18145944/20220822-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
As the chart shows, even a small change in mortgage rates can have a big impact on your monthly payments. If rates rise, you could exceed your budget unless you pursue a lower home loan amount. If rates fall, your purchasing power may increase, which could give you additional options for your search.
2. Be Open to Exploring Different Options During Your Search
The <a href="https://www.keepingcurrentmatters.com/2022/07/27/want-to-buy-a-home-now-may-be-the-time/">supply of homes</a> for sale is improving, which gives you more homes to choose from. But historically, supply is still low. That means as you search for homes, if you still don’t find something that meets your needs, it may be worth expanding your search.
A <a href="https://www.washingtonpost.com/business/2022/07/28/navigating-crazy-housing-market/">recent article</a> from the Washington Post highlights a few things buyers can consider today. It encourages opening yourself up to more areas. For example, if there’s a location you’ve previously ruled out (like a particular town, for example) it may be worth taking another look.
And if you’re able to, opening your search up to include other housing types, like newly built homes, condominiums, or townhomes can further increase your pool of options. Even as the inventory of <a href="https://www.keepingcurrentmatters.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/">homes for sale</a> improves today, finding ways to cast a wider net during your search could help you find a hidden gem.
3. Work with a Local Real Estate Professional for Expert Guidance
Ultimately, you need to be prepared when you set out to buy a home. Jeff Ostrowski, Senior Mortgage Reporter for Bankrate, <a href="https://www.bankrate.com/real-estate/how-to-buy-a-house/">explains</a>:
“Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.”
No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a <a href="https://www.keepingcurrentmatters.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/">real estate professional</a>. If you’re just starting your search, a real estate professional can help you understand your local market and search for available homes. And when it’s time to make an offer, they’ll be an expert advisor and negotiator to help yours stand out above the rest.
Bottom Line
Strategically planning your home search by understanding today’s mortgage rates, casting a wide net, and building a team of experts can be the keys to finding the home of your dreams. To make sure you have expert advice each step of the way, partner with a local real estate advisor.2022-08-22T10:00:00-07:002022-08-29T09:05:51-07:00David Florestag:reagentexpert.com,2012-09-20:21653What Sellers Need To Know in Today’s Housing MarketIf you’re thinking about <a href="https://www.keepingcurrentmatters.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/">selling your house</a>, you may have heard about the housing market slowing down in recent months. While it’s still a sellers’ market, the peak frenzy the market saw over the past two years has cooled some. If you’re asking yourself if you’ve missed your chance to sell your house and make a move, the good news is you haven’t – motivated buyers are still out there. But you do need to price your house right for today’s market. Here’s why.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june">says</a>:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
It’s true buyer demand has slowed over the past few months as higher mortgage rates made it more expensive to buy a home. The result is fewer <a href="https://www.keepingcurrentmatters.com/2022/08/10/is-the-shifting-market-a-challenge-or-an-opportunity-for-homebuyers/">bidding wars</a> and less competition among buyers (see visual below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/22152818/20220823-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2084607 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/22152818/20220823-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/22152818/20220823-NM-Eng-1.png" alt="What Sellers Need To Know in Today’s Housing Market | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/22152818/20220823-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/22152818/20220823-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/08/22152818/20220823-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
But don’t forget – that’s compared to the severely overheated market we saw over the past two years. According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf">Confidence Index</a> from NAR:
“. . . 39% of homes sold above list price, down from 51% a month ago and 50% a year ago.”
While this is a slower pace than even one month ago, serious buyers are still actively in the market, and they’re buying homes that are priced right. In fact, the Confidence Index also notes the average home is selling in just 14 days.
If you’re aiming to sell your house, be sure you’re working with your agent to price it for today’s housing market. As buyer demand softens, it’s important to understand this isn’t the same market as last year. It’s not even the same market as just a few months ago. But it is still a <a href="https://www.keepingcurrentmatters.com/2022/08/04/why-its-still-a-sellers-market/">sellers’ market</a>.
If you’re ready to sell your house, seek the advice of a <a href="https://www.keepingcurrentmatters.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/">real estate professional</a>. In some cases, you’ll need to adjust your expectations accordingly to meet the market where it is today. Selma Hepp, Interim Lead, Deputy Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-august-2022/">explains</a> what’s happening and what it means when you sell:
“Signs of a broader slowdown in the housing market are evident, . . . This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates. . . . Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
Bottom Line
While the housing market has cooled from its overheated frenzy, it’s still a sellers’ market. Work with a real estate professional to understand what’s happening with buyer demand and home prices in your local area as you get ready to enter the market.2022-08-08T10:00:00-07:002022-08-29T09:04:04-07:00David Florestag:reagentexpert.com,2012-09-20:21050What’s Causing Ongoing Home Price Appreciation?If you’re thinking about <a href="https://www.keepingcurrentmatters.com/2022/07/13/should-i-buy-a-home-right-now/">making a move</a>, you probably want to know what’s going to happen to <a href="https://www.keepingcurrentmatters.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/">home prices</a> for the rest of the year. While experts say <a href="https://www.keepingcurrentmatters.com/2022/07/21/think-home-prices-are-going-to-fall-think-again/">price growth</a> will moderate due to the shifting market, ongoing appreciation is expected. That means home prices won’t fall. Here’s a look at two key reasons experts forecast continued price growth: supply and demand.
While Growing, Housing Supply Is Still Low
Even though <a href="https://www.keepingcurrentmatters.com/2022/06/28/a-key-opportunity-for-homebuyers/">inventory is increasing</a> this year as the <a href="https://www.keepingcurrentmatters.com/2022/06/14/is-the-housing-market-correcting/">market moderates</a>, supply is still low. The graph below helps tell the story of why there still aren’t enough homes on the market today. It uses <a href="http://www.census.gov/construction/nrc/xls/co_cust.xls">data</a> from the Census to show the number of single-family homes that were built in this country going all the way back to the 1970s.
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163306/20220725-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2084021 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163306/20220725-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163306/20220725-NM-Eng-1.png" alt="What’s Causing Ongoing Home Price Appreciation? | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163306/20220725-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163306/20220725-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163306/20220725-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
The blue bars represent the years leading up to the housing crisis in 2008. As the graph shows, right before the crash, homebuilding increased significantly. That’s because buyer demand was so high due to loose <a href="https://www.keepingcurrentmatters.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/">lending</a> standards that enabled more people to qualify for a home loan.
The resulting oversupply of homes for sale led to prices dropping during the crash and some builders leaving the industry or closing their businesses – and that led to a long period of underbuilding of new homes. And even as more new homes are constructed this year and in the years ahead, this isn’t something that can be resolved overnight. It’ll take time to build enough homes to meet the deficit of underbuilding that took place over the past 14 years.
Millennials Will Create Sustained Buyer Demand Moving Forward
The frenzy the market saw during the pandemic is because there was more demand than homes for sale. That drove home prices up as buyers competed with one another for available homes. And while buyer demand has moderated today in response to higher mortgage rates, <a href="https://data.census.gov/cedsci/table?q=United%20States&t=Populations%20and%20People&g=0100000US&tid=ACSST5Y2020.S0101">data</a> tells us demand will continue to be driven by the large generation of millennials aging into their peak homebuying years (see graph below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163254/20220725-NM-Eng-2.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2084022 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163254/20220725-NM-Eng-2.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163254/20220725-NM-Eng-2.png" alt="What’s Causing Ongoing Home Price Appreciation? | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163254/20220725-NM-Eng-2.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163254/20220725-NM-Eng-2-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/21163254/20220725-NM-Eng-2-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/millennials-continued-to-drive-homeownership-demand-in-2021">explains</a>:
“. . . millennials continue to transition to their prime home-buying age and will remain the driving force in potential homeownership demand in the years ahead.”
That combination of millennial demand and low housing supply continues to put upward pressure on home prices. As Bankrate <a href="https://www.bankrate.com/real-estate/june-2022-fed-housing-comments/">says</a>:
“After all, supplies of homes for sale remain near record lows. And while a jump in mortgage rates has dampened demand somewhat, demand still outpaces supply, thanks to a combination of little new construction and strong household formation by large numbers of millennials.”
What This Means for Home Prices
If you’re worried home values will fall, rest assured that experts forecast ongoing home price appreciation thanks to the lingering imbalance of supply and demand. That means home prices won’t decline.
Bottom Line
Based on today’s factors driving supply and demand, experts project home price appreciation will continue. It’ll just happen at a more moderate pace as the housing market continues its shift back toward pre-pandemic levels.2022-07-25T10:00:00-07:002022-07-27T11:35:54-07:00David Florestag:reagentexpert.com,2012-09-20:20727The Drop in Mortgage Rates Brings Good News for HomebuyersOver the past few weeks, the average 30-year fixed mortgage rate from <a href="https://www.freddiemac.com/pmms">Freddie Mac</a> fell by half a percent. The drop happened over concerns about a <a href="https://www.keepingcurrentmatters.com/2022/07/07/what-does-an-economic-slowdown-mean-for-the-housing-market/">potential recession</a>. And since mortgage rates have risen dramatically this year, <a href="https://www.keepingcurrentmatters.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/">homebuyers</a> across the country should see this decline as welcome news.
Freddie Mac <a href="https://www.freddiemac.com/pmms/archive">reports</a> that the average 30-year rate was down to 5.30% from 5.81% two weeks prior (see graph below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08140512/20220711-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2083849 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08140512/20220711-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08140512/20220711-NM-Eng-1.png" alt="The Drop in Mortgage Rates Brings Good News for Homebuyers | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08140512/20220711-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08140512/20220711-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08140512/20220711-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>But why is this recent dip such good news for <a href="https://www.keepingcurrentmatters.com/2022/06/28/a-key-opportunity-for-homebuyers/">homebuyers</a>? As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.instagram.com/p/Cft5YXTO5UR/?hl=en">explains</a>:
“According to Freddie Mac, the 30-year fixed mortgage rate dropped sharply by 40 basis points to 5.3 percent. . . . As a result, home buying is about 5 percent more affordable than a week ago. This translates to about $100 less every month on a mortgage payment.”
That’s because when rates go up (as they have for the majority of this year), they impact how much you’ll pay in your monthly mortgage payment, which directly affects how much you can comfortably afford. The inverse is also true. A decrease in mortgage rates means an increase in your purchasing power.
The chart below shows how a half-point, or even a quarter-point, change in mortgage rates can impact your monthly payment:
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08145816/20220711-NM-Eng-02.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2083856 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08145816/20220711-NM-Eng-02.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08145816/20220711-NM-Eng-02.png" alt="" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08145816/20220711-NM-Eng-02.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08145816/20220711-NM-Eng-02-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/07/08145816/20220711-NM-Eng-02-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>Bottom Line
If your home doesn’t meet your needs, this may be the opportunity you’ve been waiting for. Contact a local real estate advisor today to see how you can benefit from the current drop in mortgage rates.2022-07-11T10:00:00-07:002022-07-12T08:22:50-07:00David Florestag:reagentexpert.com,2012-09-20:20304A Majority of Consumers Say It’s a Good Time To Sell Your HouseIf you’re a homeowner thinking about selling your house, you’re probably looking for the best time to make your move. That means you’re likely balancing a number of factors, like your <a href="https://www.keepingcurrentmatters.com/2022/05/27/bright-days-are-ahead-when-you-move-up-this-summer-infographic/">changing needs</a>, where you’ll go when you sell, and today’s <a href="https://www.keepingcurrentmatters.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/">mortgage rates</a> in order to time it just right.
According to recent data, that sweet spot could already be here. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae finds that 76% of consumers believe now is a <a href="https://www.fanniemae.com/research-and-insights/surveys/national-housing-survey">good time to sell</a>.
The graph below shows the percentage of survey respondents who say it’s a good time to sell a house. The big dip in March and April of 2020 reflects how consumer sentiment dropped at the beginning of the pandemic as uncertainty about the health crisis grew. Since then, the percentage has grown consistently as more people feel confident it’s a good time to sell.
In fact, survey respondents think it’s an even better time to sell a house today than they did in 2019, which was a strong year for the housing market. The latest survey results indicate one of the strongest peaks in seller sentiment in nearly three years (see graph below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/06/14132125/20220615-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2083532 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/06/14132125/20220615-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/06/14132125/20220615-NM-Eng-1.png" alt="A Majority of Consumers Say It’s a Good Time To Sell Your House | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/06/14132125/20220615-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/06/14132125/20220615-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/06/14132125/20220615-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
What Makes Today a Good Time To Sell?
One reason so many people think it’s a good time to sell is because there are still more buyers in today’s market than there are homes for sale. That’s driving <a href="https://www.keepingcurrentmatters.com/2022/05/24/sellers-have-an-opportunity-with-todays-home-prices/">home prices</a> up, making it a good time to sell your house.
And if you’re on the fence about whether or not to sell because you don’t know where you’ll go once you do, know that you might have more options today than in previous months. That’s because the <a href="https://www.keepingcurrentmatters.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/">number of homes</a> coming onto the market has grown each month since the start of the year. When more homes come onto the market, it gives you more opportunities to find one that meets your changing needs.
Bottom Line
While the number of homes available for sale is growing and giving you more options for your move, inventory is still low overall. That could mean it’s a great time for you to sell. If you’re ready to address your changing needs and take advantage of today’s favorable conditions, contact a local real estate advisor.2022-06-20T10:00:00-07:002022-06-22T08:39:19-07:00David Florestag:reagentexpert.com,2012-09-20:20302Things To Avoid After Applying For A Home LoanOnce you’ve applied for a mortgage to <a href="https://www.keepingcurrentmatters.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/">buy a home</a>, there are some key things to keep in mind. While it’s exciting to start thinking about moving in and decorating, be careful when it comes to making any big purchases. Here are a few things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgages. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Co-Sign Loans for Anyone
When you co-sign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count the payments against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower credit scores can determine your mortgage interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those aspects of your score.
In Short, Consult an Expert
To sum it up, be upfront about any changes when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your <a href="https://www.keepingcurrentmatters.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/">home loan</a> can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
Bottom Line
You want your <a href="https://www.keepingcurrentmatters.com/2022/06/02/how-homeownership-impacts-you/">home purchase</a> to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make any major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.2022-06-06T10:00:00-07:002022-06-22T08:21:34-07:00David Florestag:reagentexpert.com,2012-09-20:19733If You’re a Homeowner, You Have Incredible Leverage When You Sell TodayIn today’s <a href="https://www.keepingcurrentmatters.com/2022/05/06/2022-housing-market-forecast-infographic/">housing market</a>, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. That’s because there’s a <a href="https://www.keepingcurrentmatters.com/2022/04/14/on-the-fence-of-whether-or-not-to-move-this-spring-consider-this/">limited number</a> of homes for sale, which is creating competition among buyers. Right now, homebuyers want three things:
To be the <a href="https://www.keepingcurrentmatters.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/">winning bid</a> on their dream home
To buy before <a href="https://www.keepingcurrentmatters.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/">mortgage rates</a> rise more
To buy before <a href="https://www.keepingcurrentmatters.com/2022/05/02/todays-home-price-appreciation-is-great-news-for-existing-homeowners/">home prices</a> go even higher
These buyer needs give you an amazing advantage – also known as leverage – when you sell.
What Does This Mean for Sellers Today?
You might already realize this enables you to sell at a <a href="https://www.keepingcurrentmatters.com/2022/04/25/is-it-enough-to-offer-asking-price-in-todays-housing-market/">good price</a>, but you’re also in a great position to get the best terms to suit your needs.
According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf">Realtors Confidence Index</a> from the National Association of Realtors (NAR), the average home sold is receiving 4.8 offers. That’s why there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, you should look closely at the terms of each offer to find out which one has the best options for you.
And if you have questions at any point in the process, remember your trusted <a href="https://www.keepingcurrentmatters.com/2022/04/12/why-a-real-estate-professional-is-key-when-selling-your-house/">real estate advisor</a> can help. They’re experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation.
Bottom Line
If you’re thinking of selling your home, know buyer demand in today’s market gives you a great opportunity to get the best terms and price when you sell your house. Connect with a real estate professional today to discuss how much leverage you have as a seller in today’s market.2022-05-23T10:00:00-07:002022-05-30T09:33:56-07:00David Florestag:reagentexpert.com,2012-09-20:19732How Homeownership Can Bring You JoyIf you’re trying to decide whether to rent or buy a home, you’re probably weighing a few different factors. The <a href="https://www.keepingcurrentmatters.com/2022/04/26/how-homeownership-can-help-shield-you-from-inflation/">financial benefits</a> of homeownership might be one of the reasons you want to make a purchase if you’re a renter, but the decision can also be motivated by having a place that’s uniquely your own.
If you want to express yourself by upgrading and customizing your living space but are feeling held back by your rental agreement, it might be time to consider the perks of owning your home.
A Little Change Can Bring Lots of Joy
There’s a significant level of pride that comes from <a href="https://www.keepingcurrentmatters.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/">owning a home</a>. That’s because it’s a space that truly belongs to you.
A <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf">recent report</a> from the National Association of Realtors (NAR) shows making updates or remodeling your home can help you feel more at ease and comfortable in your living space. NAR measures this with a Joy Score that indicates how much happiness specific home upgrades bring. According to NAR:
“There were numerous interior projects that received a perfect Joy Score of 10: paint entire interior of home, paint one room of home, add a new home office, hardwood flooring refinish, new wood flooring, closet renovation, insulation upgrade, and attic conversion to living area.”
The report also breaks down just how much each of these projects can enhance your emotional attachment to your home, even leading you to want to spend even more time in the space (see graph below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/05/17120433/20220518-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2082803 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/05/17120433/20220518-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/05/17120433/20220518-NM-Eng-1.png" alt="How Homeownership Can Bring You Joy | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/05/17120433/20220518-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/05/17120433/20220518-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/05/17120433/20220518-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
And while many of the items NAR highlights are larger tasks, some, like painting rooms, are much smaller. Even those quicker projects can still bring you a greater sense of joy and accomplishment. Not to mention when you make upgrades in your home, you could be increasing its value which also gives your <a href="https://www.keepingcurrentmatters.com/2022/03/28/a-key-to-building-wealth-is-homeownership/">net worth</a> a boost if you invest your time and effort wisely.
You’re Free To Update Your Home to Your Heart’s Content
These types of updates can result in additional <a href="https://www.keepingcurrentmatters.com/2022/02/01/why-a-move-could-bring-you-more-happiness-this-year/">happiness</a> when you complete them, but there’s another reason you can feel good as a homeowner. In most situations, you’re free to renovate or update the interior of your home without needing additional permission. But as Business Insider <a href="https://www.businessinsider.com/personal-finance/renting-vs-buying-a-house-2022-3">points out</a>, renters may not have the same freedom:
“Your landlord won’t always approve changes when you rent. But you have the power to update the home when you’re the owner. (Just make sure any big changes are approved by your homeowner’s association, if necessary.)”
If you do make changes as a renter, there’s a good chance you’ll need to revert them back at the end of your lease based on your rental agreement. That can add additional costs when you move out. That’s one major <a href="https://www.keepingcurrentmatters.com/2022/03/22/the-many-benefits-of-homeownership/">benefit</a> of owning your own home. Unless there are specific homeowner’s association requirements, you typically won’t have to worry about the changes you can and can’t make.
Bottom Line
Deciding whether to rent or buy is a personal decision. The financial benefits are critical, but don’t overlook the emotional impact homeownership can have. Connect with a trusted real estate advisor to discuss all the benefits you can enjoy when you purchase your own home.2022-05-09T10:00:00-07:002022-05-30T09:29:20-07:00David Florestag:reagentexpert.com,2012-09-20:18874Where Are Mortgage Rates Headed?There’s never been a truer statement regarding forecasting mortgage rates than the one offered last year by <a href="https://blog.firstam.com/economics/reconomy-podcast-2021-housing-market-outlook">Mark Fleming</a>, Chief Economist at First American:
“You know, the fallacy of economic forecasting is: Don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”
Coming into this year, most experts projected mortgage rates would <a href="https://www.keepingcurrentmatters.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/">gradually increase</a> and end 2022 in the high three-percent range. It’s only April, and rates have already blown past those numbers. Freddie Mac <a href="https://www.freddiemac.com/pmms/archive">announced</a> last week that the 30-year fixed-rate mortgage is already at 4.72%.
Danielle Hale, Chief Economist at realtor.com, <a href="https://twitter.com/RDC_Economics/status/1509534325234098179">tweeted on March 31</a>:
“Continuing on the recent trajectory, would have mortgage rates hitting 5% within a matter of weeks. . . .”
Just five days later, on April 5, the Mortgage News Daily <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed">quoted</a> a rate of 5.02%.
No one knows how swiftly mortgage rates will rise moving forward. However, at least to this point, they haven’t significantly impacted purchaser demand. Ali Wolf, Chief Economist at Zonda, <a href="https://www.builderonline.com/data-analysis/mortgage-rates-continue-climbing-while-applications-decrease-in-latest-weekly-surveys_o">explains</a>:
“Mortgage rates jumped much quicker and much higher than even the most aggressive forecasts called for at the end of last year, and yet housing demand appears to be holding steady.”
Through February, <a href="https://www.corelogic.com/intelligence/find-stories/record-home-price-appreciation-led-by-sun-belt-states-in-february/">home prices</a>, the <a href="https://www.showingtime.com/blog/february-2022-showing-index-results/">number of showings</a>, and the number of homes receiving <a href="https://twitter.com/EricFinnigan/status/1508575208738721794">multiple offers</a> all saw a substantial increase. However, much of the spike in mortgage rates occurred in March. We will not know the true impact of the increase in mortgage rates until the March housing numbers become available in early May.
Rick Sharga, EVP of Market Intelligence at ATTOM Data, <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2022-u-s-home-affordability-report/">recently</a> put rising rates into context:
“Historically low mortgage rates and higher wages helped offset rising home prices over the past few years, but as home prices continue to soar and interest rates approach five percent on a 30-year fixed rate loan, more consumers are going to struggle to find a property they can comfortably afford.”
While no one knows exactly where rates are headed, experts do think they’ll continue to rise in the months ahead. In the meantime, if you’re looking to buy a home, know that rising rates do have an impact. As rates rise, it’ll cost you more when you purchase a house. If you’re ready to buy, it may make sense to do so sooner rather than later.
Bottom Line
Mark Fleming got it right. Forecasting mortgage rates is an impossible task. However, it’s probably safe to assume the days of attaining a 3% mortgage rate are over. The question is whether that will soon be true for 4% rates as well.2022-04-25T10:00:00-07:002022-04-18T11:19:43-07:00David Florestag:reagentexpert.com,2012-09-20:18871Why a Real Estate Professional Is Key When Selling Your HouseWith today’s real estate market moving as fast as it is, working with a <a href="https://www.keepingcurrentmatters.com/2022/03/01/an-expert-advisor-will-give-you-the-best-advice-in-todays-market/">real estate professional</a> is more essential than ever. They have the skills, experience, and expertise it takes to navigate the highly detailed and involved process of selling a home. That may be why the percentage of people who list their houses on their own, known as a FSBO or For Sale By Owner, has reached its <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers">lowest point</a> since 1985 (see graph below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/04/11104811/20220412-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2081943 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/04/11104811/20220412-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/04/11104811/20220412-NM-Eng-1.png" alt="Why a Real Estate Professional Is Key When Selling Your House | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/04/11104811/20220412-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/04/11104811/20220412-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/04/11104811/20220412-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
Here are five reasons why selling with a real estate professional makes more sense, even in today’s <a href="https://www.keepingcurrentmatters.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/">hot market</a>:
1. They Know What Buyers Want To See
Before you decide which projects and repairs to take on, connect with a real estate professional. They have first-hand experience with today’s buyers, what they expect, and what you need to do to make sure your house <a href="https://www.keepingcurrentmatters.com/2022/03/18/spring-cleaning-checklist-for-sellers-infographic/">shows well</a>.
If you don’t lean on their expertise, you may spend your time and money on something that isn’t essential. That’s because, in today’s low-inventory market, buyers are willing to take on more of the renovation work themselves. A <a href="https://myhome.freddiemac.com/blog/homeownership/breathing-new-life-old-buying-fixer-upper-and-distressed-homes">survey</a> from Freddie Mac finds that:
“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.” 
A professional can help you decide what you need to tackle. It’s not canned advice you could find online – it’s recommendations specific to your house and your area.
2. They Help Maximize Your Buyer Pool
Today, the average home is getting 4.8 offers per sale according to <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-02-realtors-confidence-index-03-18-2022.pdf">recent data</a> from the National Association of Realtors (NAR), and that competition is pushing prices up. While that’s promising for you as a seller, it’s important to understand your agent’s role in bringing buyers in.
Real estate professionals have an assortment of tools at their disposal, such as social media followers, agency resources, and the MLS to ensure your house is viewed by the most buyers. According to <a href="https://www.realtor.com/advice/buy/what-is-fsbo-for-sale-by-owner/">realtor.com</a>:
“Only licensed real estate agents can list homes on the MLS, which is a one-stop online shop of sorts for getting a house seen by thousands of agents and home buyers. . . . This is certainly one of many good reasons why the majority of home sellers decide to employ the services of a listing agent rather than going it alone.”
Without access to these tools, your buyer pool is limited. And you want more buyers to view your house since buyer competition can drive your final sales price higher.
3. They Understand the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. That’s why Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp">says</a>:
“One of the biggest risks of FSBO is not having the experience or expertise to navigate all of the legal and regulatory requirements that come with selling a home.”
A real estate professional knows exactly what needs to happen, what all the paperwork means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
4. They’re Trained Negotiators
If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
Instead of going toe-to-toe with all these parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
5. They Know How To Set the Right Price for Your House
If you sell your house on your own, you may over or undershoot your asking price. That could mean you’ll leave money on the table because you priced it too low or your house will sit on the market because you priced it too high. <a href="https://www.keepingcurrentmatters.com/2022/03/07/why-its-critical-to-price-your-house-right/">Pricing a house</a> requires expertise. Investopedia <a href="https://www.investopedia.com/ask/answers/072915/how-market-value-determined-real-estate-market.asp#:~:text=Unfortunately%2C%20there%20is%20no%20easy,appraisals%20and%20recent%20comparable%20sales.">explains</a> it like this:
“. . . There is no easy or universal way to determine market value for real estate.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your house. These factors are key to making sure it’s priced to move quickly while still getting you the highest possible final sale price.
Bottom Line
There’s a lot that goes into selling your house. Instead of tackling it alone, reach out to a trusted real estate advisor to make sure you have an expert on your side throughout the entire process.2022-04-04T10:00:00-07:002022-04-18T08:52:13-07:00David Florestag:reagentexpert.com,2012-09-20:18284This Spring Presents Sellers with a Golden OpportunityI
f you’re thinking of <a href="https://www.keepingcurrentmatters.com/2022/01/27/why-right-now-is-a-once-in-a-lifetime-opportunity-for-sellers/">selling your house</a> this year, timing is crucial. After all, you’ll want to balance getting the most out of the sale of your current home and making the <a href="https://www.keepingcurrentmatters.com/2022/01/21/americans-choose-real-estate-as-the-best-investment-infographic/">best investment</a> when you buy your next one.
If that’s the case, you should know – you may be able to get the best of both worlds today. Here are four reasons why this spring may be your golden window of opportunity.
1. The Number of Homes on the Market Is Still Low
Today’s <a href="https://www.keepingcurrentmatters.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/">limited supply</a> of houses for sale is putting sellers in the driver’s seat. There are far <a href="https://www.keepingcurrentmatters.com/2022/02/18/whats-driving-todays-high-buyer-demand-infographic/">more buyers</a> in the market today than there are <a href="https://www.keepingcurrentmatters.com/2022/02/24/the-1-reason-to-sell-your-house-today/">homes available</a>. That means purchasers are eagerly waiting for your house.
Listing your house now makes it the center of attention. And if you work with a real estate professional to price your house correctly, you can expect it to sell quickly and likely get multiple strong offers this season.
2. Your Equity Is Growing in Record Amounts
According to the most recent <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/">Homeowner Equity Insight</a> report from CoreLogic, homeowners are sitting on record amounts of equity thanks to recent home price appreciation. The report finds that the average homeowner has gained $55,300 in equity over the past year.
That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help fuel your move. It may be just what you need to cover a large portion – if not all – of the down payment on your next home.
3. Mortgage Rates Are Increasing
While it’s true mortgage rates have already been climbing this year, current mortgage rates are still below what they’ve been in <a href="https://www.freddiemac.com/pmms/archive">recent decades</a>. In the 2000s, the average mortgage rate was 6.27%. In the 1990s, the average rate was 8.12%.
For context, the current average 30-year fixed mortgage rate, according to Freddie Mac, is 3.85%. And while recent <a href="https://www.keepingcurrentmatters.com/2022/03/08/how-global-uncertainty-is-impacting-mortgage-rates/">global uncertainty</a> caused rates to dip slightly in the near-term, experts project rates will rise in the months ahead. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/economic-growth-expected-slow-fed-wrangles-inflation">says</a>:
“For homebuyers, we believe that borrowing costs will likely rise with the increase in mortgage rates….”
When that happens, it’ll cost you more to purchase your next home. That’s why it’s important to act now if you’re ready to sell. Work with a trusted advisor to kickstart the process so you can take key steps to making your next purchase before rates climb further.
4. Home Prices Are Climbing Too
<a href="https://www.keepingcurrentmatters.com/2022/03/03/are-home-prices-continuing-to-rise/">Home prices</a> have been skyrocketing in recent years because of the imbalance of supply and demand. And as long as that imbalance continues, so will the rise in home values.
What does that mean for you? If you’re selling so you can move into the home of your dreams or downsize into something that better suits your current needs, you have an opportunity to get ahead of the curve by leveraging your growing equity and purchasing your next home before prices climb higher.
And, once you make your purchase, you can find <a href="https://www.keepingcurrentmatters.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/">peace of mind</a> in knowing ongoing home price appreciation is growing the value of your new investment.
Bottom Line
If you want to win when you sell and when you buy, this spring could be your golden opportunity. Get connected with a local real estate professional so you have the insights you need to take advantage of today’s incredible sellers’ market.2022-03-21T10:00:00-07:002022-03-15T09:46:16-07:00David Florestag:reagentexpert.com,2012-09-20:18283How To Navigate a Market Where Multiple Offers Is the New NormalIf you’re thinking of <a href="https://www.keepingcurrentmatters.com/2022/01/31/owning-is-more-affordable-than-renting-in-the-majority-of-the-country/">buying a home</a> today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, <a href="https://www.keepingcurrentmatters.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/">low housing supply</a> coupled with high buyer demand means you should be prepared to navigate a highly <a href="https://www.keepingcurrentmatters.com/2022/02/11/how-to-win-as-a-buyer-in-a-sellers-market-infographic/">competitive market</a> where homes sell fast and get multiple offers. Realtor.com has this to <a href="https://www.realtor.com/news/trends/today-housing-market-compared-with-before-covid-19-pandemic/">say</a>:
“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”
In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-01-realtors-confidence-index-02-18-2022.pdf">Realtors Confidence Index</a> from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers. That’s the most offers we’ve seen in January for the last 5 years (see graph below):
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/03/09113951/20220310-NM-Eng.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2081351 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/03/09113951/20220310-NM-Eng.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/03/09113951/20220310-NM-Eng.png" alt="How To Navigate a Market Where Multiple Offers Is the New Normal | Keeping Current Matters " width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/03/09113951/20220310-NM-Eng.png 960w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/03/09113951/20220310-NM-Eng-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/03/09113951/20220310-NM-Eng-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. They know what’s worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.
1. Know Your Numbers​
Knowing your budget and what you can afford is critical to your <a href="https://www.keepingcurrentmatters.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/">success as a homebuyer</a>. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. <a href="https://www.keepingcurrentmatters.com/2022/01/24/why-pre-approval-is-key-for-homebuyers-in-2022/">Pre-approval</a> shows sellers you’re serious, which can give you a competitive edge. You should also know making an offer at the home’s asking price may not be enough. Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.
2. Be Ready To Move Fast​
Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy.​
3. Make a Strong but Fair Offer​
​When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember there are certain contingencies you don’t want to give up, like the <a href="https://www.keepingcurrentmatters.com/2022/01/28/why-your-home-inspection-matters-infographic/">home inspection</a>.
​Bottom Line
No matter what, your agent is your best resource for making an offer that stands out in a competitive market. If you’re ready to get started, reach out to a real estate professional to talk through what you can expect as a buyer and how to kick off a successful home search.2022-03-07T11:00:00-07:002022-03-15T08:37:49-07:00David Florestag:reagentexpert.com,2012-09-20:17333Why Pre-Approval Is Key for Homebuyers in 2022You may have heard that it’s important to get <a href="https://www.keepingcurrentmatters.com/2021/05/07/the-power-of-mortgage-pre-approval-infographic/">pre-approved</a> for a mortgage at the beginning of the <a href="https://www.keepingcurrentmatters.com/2021/11/19/your-journey-to-homeownership-infographic/">homebuying process</a>, but what does that really mean, and why is it so important? Especially in today’s market, with rising <a href="https://www.keepingcurrentmatters.com/2022/01/13/whats-going-to-happen-with-home-prices-this-year/">home prices</a> and high <a href="https://www.keepingcurrentmatters.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/">buyer competition</a>, it’s crucial to have a pre-approval letter prior to making an offer. Here’s why.
Being intentional and competitive are musts when buying a home this year. Pre-approval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Just as important, being able to present a pre-approval letter shows sellers you’re a qualified buyer, something that can really help you land your dream home in an ultra-competitive market.
With limited housing inventory, there are many more buyers active in the market than there are sellers, and that’s creating some serious competition. According to the National Association of Realtors (NAR), homes today are receiving an average of <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index">3.8 offers</a> for sellers to consider. As a result, bidding wars are still common. Pre-approval gives you an <a href="https://www.keepingcurrentmatters.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home/">advantage</a> if you get into a multiple-offer scenario, and these days, it’s likely you will. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war.
Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/20180926_strategies_for_winning_the_bidding_war.page">explains</a>:
“By having a <a href="https://myhome.freddiemac.com/blog/homeownership/20201001_get_pre_approved.page">pre-approval letter</a> from your lender, you’re telling the seller that you’re a serious buyer, and you’ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don’t already have one.”<br />
Every step you can take to gain an advantage as a buyer is crucial when today’s market is constantly <a href="https://www.keepingcurrentmatters.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/">changing</a>. Interest rates are rising, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals such as a loan officer and a trusted real estate advisor making sure you take the right steps and can show your qualifications as a buyer when you find a home to purchase.
Bottom Line
In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. Not only does being pre-approved bring clarity to your homebuying budget, but it shows sellers how serious you are about purchasing a home.2022-01-24T11:00:00-07:002022-01-28T10:27:47-07:00David Florestag:reagentexpert.com,2012-09-20:17331Why Right Now Is a Once-in-a-Lifetime Opportunity for SellersIf you’re thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for strong demand for the item coupled with a limited supply. That maximizes your leverage when you’re negotiating the sale. Home sellers are in that exact situation right now. Here’s why.
Demand Is Very Strong
According to the latest <a href="https://www.nar.realtor/newsroom/annual-existing-home-sales-hit-highest-mark-since-2006">Existing Home Sales Report</a> from the National Association of Realtors (NAR), 6.18 million homes were sold in 2021. This was the largest number of home sales in 15 years. Lawrence Yun, Chief Economist for NAR, explains:
“Sales for the entire year finished strong, reaching the highest annual level since 2006. . . . With mortgage rates expected to rise in 2022, it’s likely that a portion of December buyers were intent on avoiding the inevitable rate increases.”
Demand isn’t expected to weaken this year, either. In addition, the <a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary">Mortgage Finance Forecast</a>, published last week by the Mortgage Bankers’ Association (MBA), calls for existing-home sales to reach 6.4 million homes this year.
Supply Is Very Limited
The same sales report from NAR also reveals the months’ supply of inventory just hit the lowest number of the century. It notes:
“Total housing inventory at the end of December amounted to 910,000 units, down 18% from November and down 14.2% from one year ago (1.06 million). Unsold inventory sits at a 1.8-month supply at the present sales pace, down from 2.1 months in November and from 1.9 months in December 2020.”
The reality is, inventory decreases every year in December. That’s just how the typical seasonal trend goes in real estate. However, the following graph emphasizes how this December was lower than any other December going all the way back to 1999.
<a href="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/01/26135002/20220127-NM-Eng-1.png" class="lightbox-added aligncenter"><img loading="lazy" class="aligncenter wp-image-2080813 lazy-loaded" src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/01/26135002/20220127-NM-Eng-1.png" data-lazy-type="image" data-src="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/01/26135002/20220127-NM-Eng-1.png" alt="Why Right Now Is a Once-in-a-Lifetime Opportunity for Sellers | Keeping Current Matters" width="550" height="413" srcset="https://files.keepingcurrentmatters.com/wp-content/uploads/2022/01/26135002/20220127-NM-Eng-1.png 1000w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/01/26135002/20220127-NM-Eng-1-300x225.png 300w, https://files.keepingcurrentmatters.com/wp-content/uploads/2022/01/26135002/20220127-NM-Eng-1-768x576.png 768w" data-srcset="" sizes="(max-width: 550px) 100vw, 550px" /></a>
Right Now, Sellers Have Maximum Leverage
As mentioned above, when there’s strong demand for an item and a limited supply of it available, the seller has maximum <a href="https://www.keepingcurrentmatters.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/">leverage</a> in the negotiation. In the case of homeowners who are thinking about selling, there may never be a better time than right now. While demand is this high and <a href="https://www.keepingcurrentmatters.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/">inventory</a> is this low, you’ll have leverage in all aspects of the sale of your house.
Today’s buyers know they need to be <a href="https://www.keepingcurrentmatters.com/2021/12/28/5-tips-for-making-your-best-offer-on-a-home/">flexible negotiators</a> that make very <a href="https://www.keepingcurrentmatters.com/2021/09/27/if-youre-a-buyer-is-offering-asking-price-enough/">competitive offers</a>, so here are a few areas that could tip in your favor when your house goes on the market:
Competitive sales price
Flexible closing date
Potential for a leaseback to allow you more time to find a home
Minimal offer contingencies
Bottom Line
If you’re thinking of selling your house this year, now is the optimal time to list it. Contact a local real estate professional to learn more about putting your house on the market today.2022-01-10T11:00:00-07:002022-01-28T10:28:00-07:00David Flores