If you’re thinking about buying or selling a home, you might have heard that it’s tough right now because mortgage rates are higher than they’ve been over the past few years, and home prices 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.
The National Association of Realtors (NAR) explains 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.
According 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:
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.
You may be wondering how other homebuyers and sellers are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local real estate agent. Great agents are helping other people just like you navigate today’s market 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 broadening your search, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the affordability challenges today.
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. Let’s make it happen together. Reach out and connect with a local real estate agent who’s ready to turn your dreams into keys.
Article Source: www.keepingcurrentmatters.com
I can help you find a strong buyer strategy that fits your goals. If you consider buying a property in the next 1-2 years, you need to download our free buyer guide!
Get informed with our buyer guide to understanding the best buyer strategies to get started.
Are you dreaming of buying your own home and wondering about how you’ll save for a down payment? You’re not alone. Some people think about tapping into their 401(k) savings to make it happen. But before you decide to dip into your retirement to buy a home, be sure to consider all possible alternatives and talk with a financial expert. Here’s why.
The data shows many Americans have saved a considerable amount for retirement (see chart below):
It can be really tempting when you have a lot of money saved up in your 401(k) and you see your dream home on the horizon. But remember, dipping into your retirement savings for a home could cost you a penalty and affect your finances later on. That’s why it’s important to explore all your options when it comes to saving for a down payment and buying a home. As Experian says:
“It’s possible to use funds from your 401(k) to buy a house, but whether you should depends on several factors, including taxes and penalties, how much you’ve already saved and your unique financial circumstances.”
Using your 401(k) is one way to finance a home, but it’s not the only option. Before you decide, consider a couple of other methods, courtesy of Experian:
No matter what route you take to purchase a home, be sure to talk with a financial expert before you do anything. Working with a team of experts to develop a concrete plan prior to starting your journey to homeownership is the key to success. Kelly Palmer, Founder of The Wealthy Parent, says:
“I have seen parents pausing contributions to their retirement plans in favor of affording a larger home often with the hope they can refinance in the future… As long as there is a tangible plan in place to get back to saving for their retirement goals, I encourage families to consider all their options.”
If you’re contemplating using your 401(k) retirement savings for a home down payment, it’s essential to carefully weigh all your options. I’m here to assist you, and I can connect you with my trusted financial professional to guide you before you make any decisions.
Article Source: www.keepingcurrentmatters.com
I can help you find a strong buyer strategy that fits your goals. If you consider buying a property in the next 1-2 years, you need to download our free buyer guide!
Get informed with our buyer guide to understanding the best buyer strategies to get started.
As the year winds down, you may have decided it’s time to make a move and put your house on the market. But should you sell now or wait until January? While it may be tempting to hold off until after the holidays, here are three reasons to make your move before the new year.
Typically, in the residential real estate market, homeowners are less likely to list their houses toward the end of the year. That’s because people get busy around the holidays and sometimes deprioritize selling their house until the start of the new year when their schedules and social calendars calm down. But that gives you an opportunity to get one step ahead.
Selling now, while other homeowners may hold off until after the holidays, can help you get a leg up on your competition. Start the process with a real estate agent today so you can get your house on the market before your neighbors do.
Even though the supply of homes for sale did grow compared to last year, it’s still low. That means there aren’t enough homes on the market today. While some buyers may also delay their plans to move until January, others will still need to move for personal reasons or because something in their life has changed.
Those buyers are still going to be active later this year and will be seriously motivated to make their move happen because they need to. Unfortunately, the challenge they’ll face is a shortage of available inventory to meet their needs. A recent article from Investopedia says:
“. . . if your house is up for sale in the winter and someone is looking at it, chances are that person is serious and ready to buy. 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.”
Keep in mind that homeowners today have record amounts of equity. According to CoreLogic, the average amount of equity per mortgage holder has climbed to almost $290,000. That means the equity you have in your house right now could cover some, if not all, of a down payment on the home of your dreams.
And as you weigh the reasons to sell before year-end, it’s important to remember the reasons that sparked your desire to move in the first place. Maybe it’s time for a new home in a location that suits you better, one that offers the perfect space for you and your loved ones, or maybe your needs have evolved over time. A local real estate agent can help you determine how much home equity you have and how you can use it to achieve your goal of making a move.
Don’t miss out on the advantages of listing your home before the new year. With reduced competition, motivated buyers, and potential equity gains, this is the perfect time to act. Contact me today and achieve your goals before winter arrives.
Article Source: www.keepingcurrentmatters.com
Are you haunted by fears and misconceptions about today’s real estate market? Don’t be spooked – let’s shed some light on the myths and provide you with the facts you need to navigate the housing market confidently.
It’s a common belief that student loan debt can be a barrier to homeownership. However, the truth is, buying a home with student loans is not only possible but quite common. In fact, experts confirm that you can still achieve your homeownership dreams even if you carry student loan debt. According to Apartment Therapy, a significant 40 percent of first-time homebuyers have student loan debt, proving that it’s not an insurmountable obstacle.
While student loans can impact your debt-to-income ratio, lenders take various factors into account when evaluating your eligibility for a mortgage. So, having student loans shouldn’t discourage you from exploring the housing market.
Worrying about a potential crash in home prices is a common concern among homebuyers. However, it’s essential to separate fact from fiction. The data indicates that nationally, there isn’t a housing market crash on the horizon. In reality, home prices are steadily rising again after experiencing only a slight dip.
While local markets may vary, the overall trend is positive. This means that you can still find great opportunities in today’s housing market without the fear of plummeting prices.
The 20% down payment myth has discouraged many potential homebuyers. However, this myth couldn’t be further from the truth. In most cases, you do not need to save a full 20% down payment. Mortgage options are diverse, and down payment requirements vary depending on your loan type and lender.
According to the National Association of Realtors (NAR), the median down payment is typically lower than the 20% often cited. There are programs and loan options available that require as little as 3% to 5% down, making homeownership more accessible than you might think.
If these myths aren’t your only fears or reservations about buying a home today, there’s no need to fret. A real estate professional can help address your concerns and provide guidance tailored to your unique situation. Don’t let myths and uncertainties cast a shadow on your homeownership dreams.
The housing market can seem scary with all the myths and misconceptions floating around. However, by arming yourself with the right knowledge and a reliable real estate expert, you can confidently navigate the market and make your homeownership dreams a reality. Don’t let unfounded fears hold you back – take the plunge into the exciting world of real estate, where opportunities abound for informed and motivated buyers.
Article Source: www.keepingcurrentmatters.com
I can help you find a strong buyer strategy that fits your goals. If you consider buying a property in the next 1-2 years, you need to download our free buyer guide!
Get informed with our buyer guide to understanding the best buyer strategies to get started.
When it comes to selling your house, you’re probably trying to juggle the current market conditions and your own needs 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 inventory situation and what it means for you.
When you’re selling something, it helps if what you’re selling is in demand, but is also in low supply. 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 inventory is, here’s the latest information on active listings, or homes available for sale. The graph below uses data 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.
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 inventory is still far lower than the norm.
Buyers 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 seller is getting multiple offers from eager buyers. Based on the latest data from the Confidence Index from the National Association of Realtors (NAR):
An article 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 . . .”
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 me 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.
Article Source: www.keepingcurrentmatters.com
Are you ready to downsize your living space, but excess furniture is making it feel like an impossible task? Many of us accumulate furniture over the years, often more than we need, and it can become a significant obstacle when it’s time to move into a smaller home or simply declutter your current one. The good news is that downsizing doesn’t have to be a daunting process. In this blog post, we’ll discuss the challenges of excess furniture and provide you with informative tips to help you overcome them, making the downsizing journey smooth and stress-free.
The Downsizing Dilemma
Downsizing is a popular trend, and for good reasons. It can lead to a more simplified and cost-effective lifestyle. However, the process itself can be overwhelming, especially if you have an abundance of furniture to deal with. Bulky sofas, oversized dining tables, and multiple bookshelves can make your new, smaller space feel cramped and cluttered.
Before you start downsizing your furniture, take some time to assess your actual needs. Consider your new space’s size and layout. What pieces are essential for your comfort and lifestyle? Keep only what you truly need or love.
Invest in multi-functional furniture to maximize your space efficiently. Items like sofa beds, foldable dining tables, and ottomans with hidden storage can be a game-changer in a smaller home.
Selling or donating your excess furniture is an excellent way to downsize while helping others in need. Host a garage sale, list items on online marketplaces, or contact local charities to make a difference in your community.
If you’re emotionally attached to some furniture but don’t have space for it in your new home, consider renting a storage unit. Store your sentimental items there and revisit them when needed.
Engaging the expertise of professional organizers or interior designers can offer insightful guidance on maximizing space and effective downsizing. Their knowledge can assist you in making well-informed choices, ensuring an aesthetically pleasing and organized space.
In smaller spaces, utilizing vertical space is essential. Opt for tall bookshelves and wall-mounted storage solutions to keep your belongings organized without overcrowding the room.
Adopting a minimalist mindset can be liberating when downsizing. Keep only the furniture and belongings that bring joy and meaning to your life, and let go of the rest.
When purchasing new furniture for your downsized home, always measure your available space carefully. This ensures you won’t end up with furniture that’s too big for your new layout.
Excess furniture doesn’t have to be a roadblock to downsizing your living space. With careful planning and a strategic approach, you can create a cozy, clutter-free environment that suits your new lifestyle. Remember to assess your needs, prioritize multi-functional pieces, sell or donate, and consider professional assistance when necessary. Embracing minimalism and optimizing vertical space can make a world of difference in your downsizing journey. So, don’t let excess furniture hold you back; take the first step towards a simpler, more manageable lifestyle. Happy downsizing!
When it comes to selling your home, one of the fundamental decisions you’ll need to make is whether to sell it “as is” or invest in repairs and upgrades. Both options have their advantages and drawbacks, and the choice you make will significantly impact the selling process. In this blog post, we’ll explore the pros and cons of both approaches to help you make an informed decision.
Saves Time and Effort: Selling your home as is means you won’t have to invest time, energy, or money into repairs and renovations. This can be particularly appealing if you’re in a hurry to sell or if the property is in need of significant work.
Transparent Pricing: With an as-is sale, the price reflects the current condition of the property. This can attract buyers who are looking for a fixer-upper and are prepared for the work involved.
Reduced Stress: Preparing a home for sale can be stressful and time-consuming. Selling as is can alleviate some of that stress, allowing you to focus on the next steps in your life.
Lower Sale Price: Generally, homes sold as is tend to fetch lower prices than properties that have been updated or well-maintained. Buyers often expect a discount to compensate for the work they’ll need to put in.
Limited Buyer Pool: An as-is sale may deter some potential buyers who are looking for a move-in-ready home. This could reduce the overall interest in your property.
Negotiation Challenges: Buyers may use the property’s condition as leverage in negotiations, leading to further price reductions.
Higher Sale Price: Investing in repairs and upgrades can significantly increase your home’s value. You can attract buyers looking for a property in excellent condition and willing to pay a premium for it.
Wider Buyer Appeal: A well-maintained home appeals to a broader range of buyers, including those who are not looking for a fixer-upper.
Faster Sale: In some cases, making necessary repairs and upgrades can help your home sell faster. Buyers appreciate properties that are move-in ready.
Upfront Costs: The most significant drawback to making repairs and upgrades is the upfront cost. It may take time and money to complete these projects, which can delay the listing process.
Uncertain Return on Investment: While improvements can increase your home’s value, the return on investment is not always guaranteed. Some renovations may not add as much value as you expect.
Inconvenience: Preparing a home for sale, including repairs and upgrades, can be inconvenient, especially if you’re still living in the property.
The decision between selling your home as is or investing in repairs and upgrades depends on your specific circumstances and goals. Here are some factors to consider:
Your Timeline: If you need to sell quickly, selling as is may be the best option. However, if you have time to invest in improvements, it can be worthwhile.
Property Condition: The extent of necessary repairs and the overall condition of your home will influence your decision. Minor repairs may be more manageable than major renovations.
Market Conditions: Evaluate the current real estate market in your area. In a seller’s market, you may have more flexibility to sell as is, whereas a buyer’s market may require more effort.
Budget: Consider your financial situation and determine how much you can afford to invest in repairs and upgrades.
Buyer Expectations: Understand what buyers in your area are looking for. Are they seeking turnkey homes, or are they open to fixer-uppers?
Ultimately, the decision should align with your goals and priorities. If you’re unsure, don’t hesitate to reach out to me, your trusted real estate agent. I’m here to provide you with expert guidance based on my extensive market knowledge.
There are advantages and disadvantages to both selling your home as is and making repairs and upgrades. It’s essential to assess your unique situation and make an informed decision that aligns with your goals and financial considerations. Remember, there is no one-size-fits-all answer, and what’s right for one seller may not be the best choice for another. Your unique circumstances and aspirations are at the heart of the decision-making process.
During the fourth quarter of last year, some housing experts projected home prices were going to crash in 2023. The media ran with those forecasts and put out headlines calling for doom and gloom in the housing market. All of this negative news coverage made a lot of people have doubts about the strength of the residential real estate market.
If it made you question if you should delay your own plans to move, here’s what you really need to know.
Disregard what you saw in the headlines. The actual data shows home prices were remarkably resilient and performed far better than the media would have you believe (see graph below):
This graph uses reports from three trusted sources to clearly illustrate prices have already rebounded after experiencing only slight declines nationally. That’s a far cry from the crash so many articles called for.
The declines that did happen (shown in red), weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), says:
“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”
Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you home prices aren’t falling anymore – they’re actually going back up.
The consensus from experts is that home price growth will continue in the years ahead and is returning to normal levels for the market. That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.
Some news sources will see home price growth slowing and put out stories that make you think prices are falling again. The return of misleading headlines like those is already having an impact on how homebuyers are feeling again. You can see how this affects general opinion in the Consumer Confidence Survey from Fannie Mae (see graph below):
While the percentage of Americans who think prices will fall has been slowly declining this year, the latest Consumer Confidence data indicates that’s ticked back up recently (shown in red). This change is surprising especially since the home price data shows prices are going up, not down. It tells you the impact the media still has on public opinion.
Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.
Even though the media may make things sound doom and gloom, the data shows home prices aren’t falling anymore. So, don’t let the headlines scare you or delay your plans. Connect with me today so you have a trusted resource to cut through the noise and tell you what’s really happening in your area.
Article Source: www.keepingcurrentmatters.com
Buying a home is more than just a financial transaction; it’s an emotional journey that can be both exhilarating and nerve-wracking. From the excitement of finding your dream home to the anxiety of making such a significant investment, emotions play a pivotal role in the home-buying process. In this blog post, we’ll dive into the psychology of home buying, exploring how emotions influence your choices and offering insights to help you navigate this emotional rollercoaster.
The home buying process often begins with a sense of excitement and anticipation. It’s the thrill of the hunt, imagining yourself in a new space, and the potential for a fresh start. This emotion can drive you to explore various properties, attend open houses, and envision the possibilities of each space.
On the flip side, buying a home can also bring about feelings of anxiety and apprehension. The fear of making the wrong decision, concerns about affordability, and worries about the complexities of the process can all contribute to this emotional state. It’s essential to acknowledge these feelings and seek support from a real estate professional to ease your concerns.
As you begin to narrow down your options, you might start to form an emotional attachment to certain properties. This is where personalization comes into play. You imagine your furniture in the living room, your family in the kitchen, and your life unfolding in this new space. These emotional connections can significantly impact your decision-making.
In today’s competitive real estate market, the fear of missing out, or FOMO, is a prevalent emotion among homebuyers. When you find a property you love, the fear that someone else might snatch it away can lead to hasty decisions. It’s crucial to maintain a level head and trust your real estate agent’s guidance during these moments.
After the excitement of the purchase settles, it’s not uncommon for homebuyers to experience buyer’s remorse. This is when doubts and second-guessing creep in. Did you make the right choice? Could you have found a better deal? Remember that some level of doubt is normal, but trust that you made an informed decision.
Once you’re settled into your new home, a wave of satisfaction and accomplishment washes over you. The emotional reward of homeownership can be incredibly fulfilling. You’ve achieved a significant milestone and created a space that reflects your personality and aspirations.
Over time, your home becomes a repository of memories and emotions. You’ll associate it with birthdays, holidays, family gatherings, and everyday moments. This emotional connection can make it challenging to consider selling in the future, as the house has become a part of your personal history.
Understanding how emotions influence your home-buying decisions is vital, but it’s equally important to strike a balance between emotions and rationality. Here are some tips to help you navigate the psychological aspects of home buying:
Set Clear Priorities: Identify your non-negotiables and must-haves before you start the search to help you make objective decisions.
Lean on Your Realtor: Your real estate agent is your guide and advocate. Trust their expertise and rely on their advice to alleviate anxiety.
Take Your Time: Don’t rush the decision-making process. Give yourself space to reflect and consider your options.
Stay Within Your Budget: Emotions can tempt you to stretch your budget. Stick to what you can comfortably afford to avoid financial stress.
The psychology of home buying is a complex interplay of emotions, dreams, and practicality. Recognize that it’s natural to experience a range of feelings throughout the process. By understanding and managing these emotions, you can make informed decisions that lead you to the home of your dreams—a place where both your heart and your head can find satisfaction.
If you’re thinking about selling your home this fall, you might have heard some spooky stories about the real estate market that could send a chill down your spine. But fear not, dear homeowners, for I’m here to help you debunk these haunted home selling myths and navigate the real estate terrain with confidence.
Ah, the myth of the perfect season! While spring is traditionally considered prime time for real estate, fall has its unique advantages. The market doesn’t disappear into thin air once the leaves start to fall. In fact, selling during the fall season can be advantageous, as serious buyers are still actively searching, and there’s less competition. Plus, the cozy atmosphere of your home during the autumn months can make it even more appealing to potential buyers.
This myth is a classic case of spooky misinformation. Overpricing your home can actually scare away potential buyers. Today’s buyers are well-informed and work with experienced real estate agents who can spot an overpriced listing from a mile away. Instead, price your home competitively from the start. A well-priced home is more likely to attract multiple offers, which can lead to a higher selling price in the end.
No, you can’t just sweep those creaky floors and drafty windows under the rug. Buyers today are thorough and will have a home inspection as part of the process. Instead of trying to hide issues, address them upfront. Fix what needs fixing and disclose any known issues. Honesty goes a long way in building trust with potential buyers.
Cash buyers can be appealing because they often come with fewer contingencies. However, waiting for a cash buyer can prolong the selling process. Most buyers rely on financing, and with low-interest rates, they can be just as reliable and financially secure as cash buyers. Don’t scare away potential offers by holding out for cash.
Some homeowners believe they can skip staging during the fall because their homes already have a cozy, warm feel. While fall does bring natural charm, staging is still essential. It helps potential buyers visualize how they can make your home their own. Consider adding seasonal touches, like tasteful fall decor, to enhance the ambiance.
In the age of online listings, it might seem like you can handle the sale of your home on your own. However, a real estate agent brings valuable expertise to the table. They know the local market inside and out, can help you price your home correctly, and negotiate on your behalf. Plus, they can save you time and stress in what can be a complex process.
Don’t be spooked by the idea of open houses. They can still be effective for attracting potential buyers and showcasing your home. In today’s digital age, open houses can also be promoted online, allowing a wider audience to discover your property.
Don’t let these haunted home selling myths haunt your real estate journey. Fall is a fantastic time to sell your home, and by avoiding these misconceptions, you can enjoy a smooth and successful selling experience. Remember, the real estate market may have its quirks, but it’s not as scary as it seems when you’re armed with the right knowledge and a trusted real estate agent by your side. Happy selling!
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