With Rents on the Rise – Is Now the Time To Buy?

With Rents on the Rise – Is Now the Time To Buy?

According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country. The report found rents rose by 8.1% from the same time last year. As it notes:

Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”

If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home.

Monthly Rents Are Higher Than Monthly Mortgage Payments

When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204.

Read More

Key Questions To Ask Yourself Before Buying a Home

Key Questions To Ask Yourself Before Buying a Home

Key Questions To Ask Yourself Before Buying a Home
Sometimes it can feel like everyone has advice when it comes to buying a home. While your friends and loved ones may have your best interests in mind, they may also be missing crucial information about today’s housing market that you need to make your best decision.

Before you decide whether you’re ready to buy a home, you should know how to answer these three questions.

1. What’s Going on with Home Prices?

Home prices are one factor that directly impacts how much it will cost to buy a home and how much you stand to gain as a homeowner when prices appreciate.

Read More

A Look at Housing Supply and What It Means for Sellers

A Look at Housing Supply and What It Means for Sellers

One of the hottest topics of conversation in today’s real estate market is the shortage of available homes. Simply put, there are many more potential buyers than there are homes for sale. As a seller, you’ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that’s something that will change.

While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can’t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let’s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.

Where Did the Shortage Come From?

Read More

3 Charts That Show This Isn’t a Housing Bubble

3 Charts That Show This Isn’t a Housing Bubble

With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons.

1. The housing market isn’t driven by risky mortgage loans.

Back in 2006, nearly everyone could qualify for a loan. The Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers’ Association is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had less than a 620 credit score.

Read More

Selling Your House? Make Sure You Price It Right.

Selling Your House? Make Sure You Price It Right.

There’s no denying we’re in a sellers’ market. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR):

  • Homes typically sell within 17 days (compared to 26 days one year ago).

  • The average home sold has five offers to pick from.

  • 54% of offers are over the asking price.

Because so many buyers are competing for so few homes, bidding wars are driving up home prices. According to an average of leading expert projections, existing home prices are expected to increase by 8.9% this year.

Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your house’s potential.

Why Pricing Your House Right Matters

Here’s the thing – a high price tag doesn’t mean you’re going to cash in big on the sale. While you may be trying to maximize your return, the tradeoff may be steep. A high list price is more likely to deter buyers, sit on the market longer, or require a price drop that can raise questions among prospective buyers.

Instead, focus on setting a price that’s fair. Real estate professionals know the value of your home. By pricing your house based on its current condition and similar homes that have recently sold in your area, your agent can help you set a price that’s realistic and obtainable – and that’s good news for you and for buyers.

When you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.

Bottom Line

When it comes to pricing your house, working with a local real estate professional is essential. Let’s connect so we can optimize your exposure, your timeline, and the return on your investment, too.

Read More

The Truths Young Homebuyers Need To Hear

The Truths Young Homebuyers Need To Hear

For many young or first-time homebuyers, purchasing a home can feel intimidating. A recent survey shows some homebuyers ages 25 to 40 may be unsure about the homebuying process and what they can afford. It found:

  • “1 in 4 underestimated their buying potential by $150k or more”

  • “1 in 4 underestimated the increase in value by $100k or more”

  • “47% don’t know what a good interest rate is”

Because they feel uncertain, many young homebuyers have given up on their search, or worse, they’ve decided homebuying isn’t for them and never started on their journey to begin with.

If you’re interested in buying but aren’t sure where to begin, here are three key concepts about homeownership you should understand before you get started.

Read More

A Look at Home Price Appreciation Through 2025

A Look at Home Price Appreciation Through 2025

Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.

In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists – forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year.

Read More

Save Time and Effort by Selling with an Agent

Save Time and Effort by Selling with an Agent

Selling a house is a time-consuming process – especially if you decide to do it on your own, known as a For Sale By Owner (FSBO). From conducting market research to reviewing legal documents, handling negotiations, and more, it’s an involved and highly detailed process that requires a lot of expertise to navigate effectively.

To help you understand just how much time and effort it takes to sell on your own, here’s a look at a few of the things you need to think about before putting that “For Sale” sign up in your yard.

Read More

Pre-Approval Makes All the Difference When Buying a Home

Pre-Approval Makes All the Difference When Buying a Home

You may have been told that it’s important to get pre-approved at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a clear understanding of your budget so you stand out to sellers as a serious homebuyer.

Being intentional and competitive are musts when buying a home right now. 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 are receiving an average of 5.1 offers for sellers to consider. As a result, bidding wars are more and more common. Pre-approval gives you an advantage 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.

Read More

5 Things Homebuyers Need To Know When Making an Offer

5 Things Homebuyers Need To Know When Making an Offer

When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.

Read More

Housing Wealth: The Missing Piece of the Affordability Equation

Housing Wealth: The Missing Piece of the Affordability Equation

The real estate market is soaring today. Residential home values are rising, and that’s a big win for homeowners. In 2020, there was a double-digit increase in home values – a trend that’s expected to head toward similar levels this year.

However, skyrocketing prices are causing some to start questioning affordability in the current housing market. Many are quick to emphasize the fact that homes today are less affordable than they were last year. Black Knight, a leading provider of data and analytics across the homeownership life cycle, just reported on the issue.

The findings show the historical averages of the national payment to income ratio, which they define as “the share of the median income needed to make the monthly payments on the median-priced home.” Their study reveals:

The average over the last 25 years was 23.6%

The average over the last 5 years was 20.1%

The average today stands at 20.5%

Right now, housing payments are slightly less affordable than the five-year average – but only by less than ½ a percentage point. However, they’re significantly more affordable than the 25-year average. Put another way, a buyer will likely make a slightly greater financial sacrifice to afford a home right now than if they purchased a home within the last five years. On the other hand, it also means the potential financial sacrifice is not nearly as great as it was over the last 25 years.

Read More

The Right Expert Will Guide You Through This Unprecedented Market

The Right Expert Will Guide You Through This Unprecedented Market

In a normal market, it’s good to have an experienced guide coaching you through the process of buying or selling a home. That person can advise you on important things like pricing your home correctly or the first steps to take when you’re ready to buy. However, the market we’re in today is far from normal. As a result, an expert isn’t just good to have by your side – an expert is essential.

Today’s housing market is full of extremes. Mortgage rates hovering near record-lows are driving high buyer demand. On the other hand, an absence of sellers is creating record-low housing inventory. This imbalance in supply and demand is leading to a skyrocketing rate of bidding wars and more houses selling over their asking price. This is driving home price appreciation and gains in home equity. These market conditions aren’t just extreme – they can be overwhelming. Having a trusted expert to coach you through the process of buying and selling a home gives you clarity, confidence, and success through each step.

Read More

Ready to Refinish Your Cabinets? You Have Options!

Ready to Refinish Your Cabinets? You Have Options!

It’s been a long year, and it’s ok if you’re tired of staring at those kitchen cabinets you’ve frankly hated for years. 2021 is a year about promise and change, and you can start the process in your very own home. There are lots of ways to give your cabinets a new look, whether you prefer something more classic or super contemporary. There’s an option for every budget, and most of the time you won’t even need to replace your cabinets or counters unless you just really want to.

Read More

10 Ways To Make Your Home Energy-efficient

featuredimage-23.png

Not too long ago in our country's history, talking about making your house "greener" might get you labeled a hippie tree-hugger. But times change, and as gas, electricity, and water prices creep up, more and more homeowners are seeing the (strong) advantages that come with considering the environment when you make decisions about your household.

Are you interested in making your home more energy-efficient -- and saving money in the bargain? You have a lot of options, from cheap to expensive, so read on to discover whether there are some big (or small) energy-saving opportunities that you're missing.

1. Get an energy audit

Most utility companies offer an energy audit, oftentimes for free: 

They'll send an expert out to your house to take a look at all your appliances, your lights, your windows, your doors, and more -- then make recommendations for changes you can make that will save energy (and money) every month. 

If you want a personalized rundown of everything you could do to and for your house to make it more energy-efficient and environmentally friendly, an energy audit is a must.

image1-28.png

2. Swap out your lightbulbs

Compact fluorescent or even LED bulbs are more expensive than incandescent bulbs, but they also last at least 10 times longer than incandescents and use only about 25% of the energy of an incandescent bulb.

As your incandescent light bulbs flicker out, consider replacing them with a greener alternative. And if you decide to swap them all out at once, you'll start seeing a difference pretty quickly in your utility bills!

3. Pay attention to the sun

There's a lot you can do to heat and cool your home without spending any money at all -- but you'll need to keep tabs on where the sun is in the sky. 

  • In the northern hemisphere, windows with southern exposure are going to get the most direct sunlight, so start with those.

  • Make note of whether and when the sun shines into your home across every season, then adjust your habits (and your blinds) accordingly.

  • For example, if the sun is shining directly into your house during the winter season, then you might be able to save some money on your heating bill by opening up all your curtains and blinds in the morning to allow the sun in. But if you're getting that direct sunlight in the dead heat of summer, then the opposite applies: Close your blinds and curtains in the morning to keep your house cool.

4. Weather-stripping your windows

Especially in some older houses, sometimes windows might not be entirely airtight -- meaning that you've got drafts from the outside sneaking hot or cold air into your home against your wishes.

A relatively cheap and easy fix is weatherstripping your windows to eliminate those drafts and ensure that what's outside doesn't creep inside and vice versa. It's as simple as a trip to a hardware store and a few minutes to weatherstrip each window back at the house.

image2-24.png

5. Turn down your water heater

Hot water feels amazing in the shower ... but here's the thing: Your water heater is constantly working to keep its water consistently hot, and if you've got the gauge set at a high temperature, then "consistently hot" takes a lot of energy to maintain.

  • Take a look at your water heater's settings and ask yourself if the hot water really needs to be as hot as you have it.

  • Turning down the temperature ten or even five degrees can result in some surprising savings -- and you might not even notice when you're mixing that hot water with cold for your ablutions!

6. Collect rainwater

Depending on where you live, the weather might be an asset that you haven't tapped yet. You can't use rainwater for everything, or even very many things -- you can't drink it, and you won't want to use it to cook, wash dishes, or bathe with -- but if you keep a cistern of rainwater in your yard, then you'll always have a green way to water your grass and flowers in the spring and summer.

image3-25.png

7. Swap out your showerheads

If you like to take long showers, this fix can be especially helpful: Change your current shower head for a low-flow version that uses less water. These often have several settings for pressure and spray so that you can customize your shower experience -- and you probably won't even notice that you're using significantly less water once you make the change.

8. Buy a smarter thermostat

You don't necessarily need a "smart" thermostat for your home (although it's always nice to change the temperature using a phone app from the couch -- just saying!), but if you don't have a thermostat that you can adjust to change the temperature at different times of the day, then you should definitely invest in one.

For example, you could set your thermostat to lower the temperature of the house by 10 to 15 degrees when you're at work during the day, and instruct it to start bringing the temperature back up to "normal" an hour to 30 minutes before you arrive home. Many thermostats even let you designate temperature by days of the week, so if you know that you're almost never home on Saturday night or Sunday morning, you can adjust your temperature accordingly.

image4-26.png

9. Air-seal (and maybe insulate) your attic and basement

You may know that heat rises, and that applies as much inside your house as it does in the world outside. 

That means a drafty attic could result in a lot of energy spent keeping the house warm in the wintertime, and it won't do you any favors in the summer, either. An uninsulated basement can also let in cold air in the wintertime and out in the summertime. Check to see if your basement and attic are air-sealed and insulated. If not, consider investing in an upgrade.

10. Use a manual push mower

If you live in a region where grass grows like weeds and you don't need to water, then maybe it makes perfect sense to keep your lawn ... but you'll still need to mow it regularly. One greener alternative to a riding mower or a motorized push version is an old-fashioned manual push mower. They do work, but you'll be using your own elbow grease instead of gasoline to power the blades, so you'll get a workout while you mow.

Deciding to make your home more energy-efficient can involve a simple move like turning off water to rarely used sinks and toilets, or as complicated and involved as replacing appliances and installing solar panels. Figure out your ideal level of investment and take things one step at a time -- before you know it, you'll have a green home that saves money without sacrificing comfort.

Home Sales Hit a Record-Setting Rebound

20200723-KCM-Share.jpg

With a worldwide health crisis that drove a pause in the economy this year, the housing market was greatly impacted. Many have been eagerly awaiting some bright signs of a recovery. Based on the latest Existing Home Sales Report from the National Association of Realtors (NAR), June hit a much-anticipated record-setting rebound to ignite that spark.

According to NARhome sales jumped 20.7% from May to a seasonally-adjusted annual rate of 4.72 million in June: 

“Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic…Each of the four major regions achieved month-over-month growth.”

20200723-MEM-Eng-1.jpg

This significant rebound is a major boost for the housing market and the U.S. economy. According to Lawrence Yun, Chief Economist for NAR, the momentum has the potential to continue on, too:

“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown…This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

With mortgage rates hitting an all-time low, dropping below 3% for the first time last week, potential homebuyers are poised to continue taking advantage of this historic opportunity to buy. This fierce competition among buyers is contributing to home price increases as well, as more buyers are finding themselves in bidding wars in this environment. The report also notes:

“The median existing-home price for all housing types in June was $295,300, up 3.5% from June 2019 ($285,400), as prices rose in every region. June’s national price increase marks 100 straight months of year-over-year gains.”

The graph below shows home price increases by region, powered by low interest rates, pent-up demand, and a decline in inventory on the market:

20200723-MEM-Eng-2.jpg

Yun also indicates:

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

Bottom Line

Buyers returning to the market is a great sign for the economy, as housing is still leading the way toward a recovery. If you’re ready to buy a home this year, let’s connect to make sure you have the best possible guide with you each step of the way.

What Are Experts Saying about Home Prices?

What Are Experts Saying about Home Prices?

Last week, a very well-respected real estate analytics firm surprised many with their home price projection for the next twelve months. CoreLogic, in their latest Home Price Index said: “The economic downturn that started in March 2020 is predicted to cause a 6.6% drop in the HPI by May 2021, which would be the first decrease in annual home prices in over 9 years.”

Read More