Denver Metro Area Real Estate BlogRecently posted or modified blog posts by tag - Housing markethttps://www.dtpropertiesco.com/blog/Copyright DTPropertiesCo.com2024-03-05T10:21:13-07:00tag:dtpropertiesco.com,2012-09-20:36263What To Know About Credit Scores Before Buying a HomeWhat To Know About Credit Scores Before Buying a Home
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240229/20240304-What-To-Know-About-Credit-Scores-Before-Buying-a-Home.png" width="600" /><br /><br />
If you want to <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buy a home</a>, you should know your credit score is a critical piece of the puzzle when it comes to <a href="https://www.simplifyingthemarket.com/en/2024/02/07/why-pre-approval-is-even-more-important-this-year/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">qualifying for a mortgage</a>. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.”
That means your credit score may feel even more important to your <a href="https://www.simplifyingthemarket.com/en/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">homebuying plans</a> right now since <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rates</a> are a key factor in <a href="https://www.simplifyingthemarket.com/en/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">affordability</a>. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q4" rel="noopener noreferrer" target="_blank">770</a>. But that doesn’t mean your credit score has to be perfect. The same article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“Your credit score (commonly called a FICO Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">says</a>:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian <a href="https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/" rel="noopener noreferrer" target="_blank">highlights</a> some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
Bottom Line
Finding ways to make your credit score better could help you get a lower <a href="https://www.simplifyingthemarket.com/en/2024/02/12/whats-really-happening-with-mortgage-rates/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rate</a>. If you want to learn more, talk to a <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">trusted lender</a>.2024-03-05T10:14:52-07:002024-03-05T10:21:13-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:361242024 Expert's Home Price ForecastsLast year, most experts thought home prices would only go up a little bit in twenty-twenty-four. Now, those same experts are more optimistic than they were just a couple of months ago.
Check out this chart.
<img src="https://assets.site-static.com/userfiles/1828/image/Screenshot_2024-02-27_154403.png" width="558" height="998" />
It shows what the experts originally thought home prices would do in twenty-twenty-four. And it stacks those projections up against their current forecasts. Look at how they’ve changed. See that? The numbers have all gone up. And even though it’s normal for experts to change their forecasts as time goes on, these are a big deal.
Why are they revising their forecasts up? It’s probably because they know with rates trending down over the last few months, buyer demand is gonna go back up. And since the supply of homes for sale is still low, that’s a recipe for price growth. Experts are paying close attention to everything that’s happening in the market, and they think home prices are going to keep going up. That’s what you wanna hear if you're nervous about prices dropping
2024-02-27T15:41:28-07:002024-02-27T15:49:17-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:35677Navigating the Current Real Estate Landscape: Insights on Interest Rates and Market Trends
The Federal Reserve's recent decision to maintain existing interest rates has stirred speculation about the future of the housing market. While the rates remain steady for now, the proximity of "core" PCE inflation to the 2% target suggests that a shift may be on the horizon. In this blog post, we explore the potential impact of impending rate changes on the housing market and offer insights for those considering real estate moves this year.
The Federal Reserve's Stance
The Federal Reserve's recent decision to hold interest rates steady has been met with anticipation and curiosity. As "core" PCE inflation approaches the targeted 2%, many are wondering not if, but when rate adjustments will occur. This delicate balancing act has significant implications for the real estate market, making it a focal point for potential homebuyers and sellers.
Timing Matters
For those contemplating real estate decisions in the near future, timing is crucial. While the rates are currently stable, experts predict that a substantial drop in mortgage rates could be on the horizon. This potential drop has the power to unleash a surge of buyers who were previously on the sidelines, transforming the dynamics of the housing market.
Implications for Homebuyers and Sellers
If you're in the market to buy or sell a home, staying informed about interest rate trends is essential. A decline in mortgage rates could create a favorable environment for buyers, potentially leading to increased competition for available properties. On the flip side, sellers may find themselves in a seller's market, with heightened demand for homes.
Hashtags to Follow
Stay updated on the latest developments in the real estate landscape by following these hashtags:
#HousingMarket
#RealEstateNews
#HousingMarketUpdates
#RealEstateMarket
#Mortgage
#RealEstate
#MarketInsights
Conclusion
As the Federal Reserve closely monitors inflation and contemplates potential rate adjustments, the real estate market stands at a pivotal juncture. Whether you're a prospective buyer or seller, keeping a watchful eye on interest rate trends and market dynamics is crucial for making informed decisions. Stay tuned for further updates and insights into the evolving landscape of the housing market.
2024-02-05T14:25:42-07:002024-02-19T12:51:16-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:35672Don’t Wait Until Spring To Sell Your HouseDon’t Wait Until Spring To Sell Your House
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240131/20240201-Don-t-Wait-Until-Spring-To-Sell-Your-House.png" width="600" /><br /><br />
As you think about the year ahead, one of your big goals may be moving. But, how do you know when to make your move? While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell. Here's why.
1. Take Advantage of Lower Mortgage Rates
Last October, the 30-year fixed <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rates</a> peaked at 7.79%. In January, they hit their <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">lowest level</a> since May. That means you may not feel as locked-in to your current mortgage rate right now. That downward trend in rates has made moving <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">more affordable</a> now than it was just a few months ago.
Another reason today’s rates make now a good time to sell? More buyers are jumping back into the market. Many had been waiting on the sidelines for rates to fall, but now that that’s happening, they’re eager and ready to buy. That means more demand for your house. <a href="https://freddiemac.gcs-web.com/node/28286/pdf" rel="noopener noreferrer" target="_blank">According</a> to Sam Khater, Chief Economist at Freddie Mac:
“Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market.”
2. Get Ahead of Your Competition
Right now, there are still more people looking to buy a home than there are houses for sale, which puts you in a great position. But keep in mind, with the recent uptick in <a href="https://www.simplifyingthemarket.com/en/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">new listings</a>, we’re seeing more sellers may already be re-entering the market.
<a href="https://www.simplifyingthemarket.com/en/2024/01/22/3-must-dos-when-selling-your-house-in-2024/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">Listing your house</a> now helps you beat your competition and makes sure your house will stand out. And if you work with an agent to price it right, it could sell fast and get multiple offers. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/understanding-housing-inventory-and-what-it-means-for-you" rel="noopener noreferrer" target="_blank">explains</a>:
“When there is low housing inventory, sellers could get top dollar for their homes.”
3. Make the Most of Rising Home Prices
<a href="https://www.simplifyingthemarket.com/en/2024/01/23/experts-project-home-prices-will-increase-in-2024/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">Experts forecast</a> home prices will keep <a href="https://www.simplifyingthemarket.com/en/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">going up</a> this year. What does that mean for you? If you're ready to sell your current house and plan to buy another one, it may be a good idea to think about moving now before prices go up more. That would give you the chance to buy your next home before it gets more expensive.
4. Leverage Your Equity
Homeowners today have tremendous amounts of <a href="https://www.simplifyingthemarket.com/en/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">equity</a>. In fact, a recent <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2023/" rel="noopener noreferrer" target="_blank">report</a> from CoreLogic says the average homeowner with a mortgage has more than $300,000 in equity.
If you've been waiting to sell because you were worried about home affordability, know your equity can really help with your next move. It might even cover a big part, or maybe all, of the down payment for your next home.
Bottom Line
If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">selling your house</a> and moving to another one, let’s connect to get the process started now so you can get a leg up on your competition.2024-02-05T12:25:27-07:002024-02-19T12:51:49-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:355153 Must-Do’s When Selling Your House in 20243 Must-Do’s When Selling Your House in 2024
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-3-Must-Do-s-When-Selling-Your-House-in-2024.png" width="600" /><br /><br />
If one of the goals on your list is <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">selling your house</a> and <a href="https://www.simplifyingthemarket.com/en/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">making a move</a> this year, you’re likely juggling a mix of excitement about what’s ahead and feeling a little sentimental about your current home.
A great way to balance those emotions and make sure you’re confident in your decision is to keep these three best practices in mind when you’re <a href="https://www.simplifyingthemarket.com/en/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">ready to sell</a>.
1. Price Your Home Right
The <a href="https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing market</a> shifted in 2023 as <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rates</a> rose and <a href="https://www.simplifyingthemarket.com/en/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home price appreciation</a> started to <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">normalize</a> once again. As a seller, you still need to recognize how important it is to price your house appropriately based on where the market is today. Hannah Jones, Economic Research Analyst for Realtor.com, <a href="https://www.realtor.com/news/trends/home-seller-alert-weve-found-the-very-best-week-to-list-your-home-in-2023/" rel="noopener noreferrer" target="_blank">explains</a>:
“Sellers need to become familiar with their local market and work closely with a local agent to make sure their listing is attractive to buyers. Buyers feeling the pressure of affordability are likely to be pickier, so a well-priced, well-maintained home is the ticket to drumming up big demand.”
If you price your house too high, you run the risk of deterring <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buyers</a>. And if you go too low, you’re leaving money on the table. An experienced <a href="https://www.simplifyingthemarket.com/en/2023/12/21/sell-smarter-why-working-with-a-real-estate-agent-may-beat-going-solo/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">real estate agent</a> can help determine what your ideal asking price should be, so your house moves quickly and for top dollar.
2. Keep Your Emotions in Check
Today, homeowners are staying in their houses <a href="https://www.simplifyingthemarket.com/en/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">longer</a> than they used to. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR), since 1985, the average time a homeowner has owned their home has increased from 6 to 10 years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years.png" /></a>
This is much more than what used to be the norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even tougher to separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations and the best pricing strategy along the way. Trust the professionals who have your best interests in mind.
3. Stage Your Home Properly
While you may love your decor and how you’ve customized your house over the years, not all buyers will feel the same way about your vibe. That’s why it’s so important to make sure you focus on your home’s first impression, so it appeals to as many buyers as possible.
Buyers want to be able to picture themselves in the home. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. As Jessica Lautz, Deputy Chief Economist and Vice President of Research at NAR, <a href="https://www.nar.realtor/newsroom/nearly-half-of-sellers-agents-said-staging-a-home-reduced-its-time-on-market-nar-report-finds" rel="noopener noreferrer" target="_blank">says</a>:
“Buyers want to easily envision themselves within a new home and home staging is a way to showcase the property in its best light.”
A real estate professional can help you with expertise on getting your house <a href="https://www.simplifyingthemarket.com/en/2023/12/22/get-your-house-ready-to-sell-this-winter-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">ready to sell</a>.
Bottom Line
If you’re considering selling your house, let’s connect so you have help navigating the process while prioritizing these must-do’s.2024-01-29T11:08:23-07:002024-02-19T12:52:56-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:34630Expert Quotes on the 2024 Housing Market ForecastExpert Quotes on the 2024 Housing Market Forecast
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231219-Expert-Quotes-on-the-2024-Housing-Market-Forecast.png" width="600" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">selling</a> a home soon, you probably want to know what you can expect from the <a href="https://www.simplifyingthemarket.com/en/2023/11/17/2024-housing-market-forecast-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing market</a> in 2024. In 2023, higher mortgage rates, confusion over <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home price</a> headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the <a href="https://www.simplifyingthemarket.com/en/2023/11/15/the-latest-2024-housing-market-forecast/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">new year</a>?
The good news is, many experts are optimistic we’ve turned a corner and are headed in a positive direction.
Mortgage Rates Expected To Ease
Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024" rel="noopener noreferrer" target="_blank">explains</a> how they may continue to drop:
“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-december-7-2023" rel="noopener noreferrer" target="_blank">says</a>:
“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”
The Supply of Homes for Sale May Grow
As rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">homes for sale</a> will grow – <a href="https://www.simplifyingthemarket.com/en/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">a trend</a> we’ve already started to see this year. Lisa Sturtevant, Chief Economist at Bright MLS, <a href="https://brightmls.com/article/2024-national-housing-market-outlook" rel="noopener noreferrer" target="_blank">says</a>:
“Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”
Home Price Growth Should Moderate
And mortgage rates pulling back isn’t the only positive sign for <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">affordability</a>. <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">Home price</a> growth is expected to moderate too, as inventory improves but is still low overall. As the Home Price Expectation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing market analysts, <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q4-2023-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">says</a>:
“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”
To wrap it up, experts project 2024 will be a better year for the <a href="https://www.simplifyingthemarket.com/en/2023/11/29/why-the-economy-wont-tank-the-housing-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing market</a>. So, if you’re thinking about making a move next year, know that early signs show we’re turning a corner. As Mike Simonsen, President and Founder of Altos Research, <a href="https://www.housingwire.com/articles/promising-signs-abound-for-housing-market-in-2024/" rel="noopener noreferrer" target="_blank">puts it</a>:
“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”
Bottom Line
Experts are optimistic about what 2024 holds for the housing market. If you’re looking to buy or sell a home in the new year, the best way to ensure you’re up to date on the latest forecasts is to partner with a trusted real estate agent. Let’s connect.2023-12-19T14:36:46-07:002024-02-19T12:58:18-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:34393The Perfect Home Could Be the One You Perfect After BuyingThe Perfect Home Could Be the One You Perfect After Buying
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231211-The-Perfect-Home-Could-Be-the-One-You-Perfect-After-Buying.png" width="600" /><br /><br />
There’s no denying <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rates </a>and <a href="https://www.simplifyingthemarket.com/en/2023/11/14/home-prices-keep-climbing-in-most-markets/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home prices</a> are higher now than they were last year and that’s impacting what you can <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">afford</a>. At the same time, there are still fewer homes <a href="https://www.simplifyingthemarket.com/en/2023/11/21/are-there-actually-more-homes-for-sale-right-now/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">available for sale</a> than the norm. These are two of the biggest hurdles buyers are facing today. But there are ways to overcome these things and still make your dream of <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">homeownership</a> a reality.
As you set out to <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">make a purchase</a> this season, you’ll want to be strategic. This includes taking a close look at your wish list and considering what features you really need in your next home versus which ones are nice-to-have. This will help you avoid overextending <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">your budget</a> or limiting your pool of options too much because you’re searching for that perfect home.
Danielle Hale, Chief Economist at Realtor.com, <a href="https://twitter.com/RDC_Economics/status/1590722818639269889" rel="noopener noreferrer" target="_blank">explains</a>:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be . . .”
To help identify what you truly need, make a list of all the features you’ll want to see. From there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
If you’re only willing to tour homes that have all of your dream features, you may be cutting down your options too much and making it harder on yourself (and your budget) than necessary.
While you’d love to have granite countertops or a pool in the backyard, those are both things you could potentially add after you move. Instead, it may be best to focus on finding the things that you can’t change (like location or a certain number of rooms). Then, you can upgrade or add some of the other features or finishes you want later on.
Sometimes the perfect home is the one you perfect after buying it.
Once you’ve categorized your list in a way that works for you, discuss your top priorities with your <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">real estate agent</a>. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.
Bottom Line
With the current affordability challenges and limited housing supply, you’ll want to be strategic so you can find a home that meets your needs while staying within your budget. Let’s connect to make that possible.2023-12-11T12:33:23-07:002024-02-19T13:01:15-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:34189Are the Top 3 Housing Market Questions on Your Mind?Are the Top 3 Housing Market Questions on Your Mind?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Are-The-Top-3-Housing-Market-Questions-on-your-mind.png" width="600" /><br /><br />
When it comes to what’s happening in the <a href="https://www.simplifyingthemarket.com/en/2023/11/15/the-latest-2024-housing-market-forecast/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing market</a>, there’s a lot of confusion going around right now. You may hear one thing in conversation with your friends, see something totally different on the news, and read something on social media that contradicts both of those thoughts. And, if you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">making a move</a>, that can leave you with a lot of lingering questions. That’s where a trusted local <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">real estate agent</a> comes in.
Here are the top 3 questions people are asking about today’s housing market, and the data to help answer them.
1. What’s Next for Mortgage Rates?
<a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">Mortgage rates</a> are higher than they’ve been in recent years. And, if you’re looking to buy a home, that impacts how much you can <a href="https://www.simplifyingthemarket.com/en/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">afford</a>. That’s why so many <a href="https://www.simplifyingthemarket.com/en/2023/10/12/growing-your-net-worth-with-homeownership/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buyers</a> want to know what’s ahead for mortgage rates. The answer to that question is: no one can say for certain, but here’s what we know based on historical trends.
There’s a long-standing relationship between mortgage rates and <a href="https://www.simplifyingthemarket.com/en/2023/08/03/how-inflation-affects-mortgage-rates/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">inflation</a>. Basically, when inflation is high, <a href="https://www.simplifyingthemarket.com/en/2023/09/06/mortgage-rates-past-present-and-possible-future/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rates</a> tend to follow suit. Over the past year, inflation was up, so mortgage rates were as well. But inflation is easing now. And this is why the Federal Reserve has recently paused their federal funds rate hikes, which means many experts believe mortgage rates will begin to come down.
And in some ways, we’ve started to see hints of slightly lower <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">mortgage rates</a> in recent weeks. But it’s certainly been volatile and will likely continue to be that way going into next year. Some ongoing variation is to be expected, but the anticipation is, that in 2024, we’ll see a downward trend. As Aziz Sunderji, Strategist at Home Economics, <a href="https://www.home-economics.us/p/mortgage-rates-are-set-to-fall" rel="noopener noreferrer" target="_blank">says</a>:
“The bottom line is that interest rates are likely to be lower-perhaps even lower than many optimists think - in the weeks and months to come.”
2. Where Are Home Prices Headed?
While there’s been a <a href="https://www.simplifyingthemarket.com/en/2023/11/02/dont-believe-everything-you-read-about-home-prices/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">lot of concern</a> prices would come crashing down this year, data shows that didn’t happen. In fact, home prices are rising in <a href="https://www.simplifyingthemarket.com/en/2023/11/14/home-prices-keep-climbing-in-most-markets/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">most of the nation</a>. Experts say that <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">trend will continue</a>, just at a slower pace that’s much more <a href="https://www.simplifyingthemarket.com/en/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">normal</a> for the housing market – and that’s a good thing.
To help show just how <a href="https://www.simplifyingthemarket.com/en/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">confident experts</a> are in this continued appreciation, take a look at the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> from Pulsenomics. It’s a survey of a national panel of over 100 economists, real estate experts, and investment and market strategists. As the graph below shows, the consensus is, that prices will keep climbing next year, and in the years to come.
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Estimated-Home-Price-Performance.png" /></a>
3. Is a Recession Around the Corner?
While recession talk has been a common thing over the past few years, there’s good news on that front.
The <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">Wall Street Journal</a> (WSJ) polls experts on this topic regularly. And last year at this time, most of them thought a recession would have happened by now. But as experts look at all the leading indicators today, they’re changing their minds and saying a recession is getting less and less likely. The latest results show that more experts now think we’re not headed for another recession (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Do-Experts-Think-a-Recession-is-Coming.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231128-Do-Experts-Think-a-Recession-is-Coming.png" /></a>
This is big news for the <a href="https://www.simplifyingthemarket.com/en/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing market</a>. And while the 48% to 52% split may seem close to half and half, the key thing to focus on is that the majority of these experts think we’ve avoided a recession already.
Bottom Line
The big takeaway? The data shows there isn’t cause for concern – there are actually more signs of hope. Let’s connect to talk more about the housing market questions on your mind as we head into the new year. 2023-12-04T13:09:46-07:002024-02-19T12:59:55-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:32335People Are Still Moving, Even with Today’s Affordability ChallengesPeople Are Still Moving, Even with Today’s Affordability Challenges
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-People-Are-Still-Moving-Even-With-Todays-Affordability-Challenges.png" width="600" /><br /><br />
If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/11/06/reasons-to-sell-your-house-before-the-new-year/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.simplifyingthemarket.com/en/2023/10/23/why-home-prices-keep-going-up/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home prices</a> are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
<a href="https://www.simplifyingthemarket.com/en/content/images/20231113/20231116-Affordability-Historically-Low.png?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-Affordability-Historically-Low.png" /></a>
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index/methodology" rel="noopener noreferrer" target="_blank">explains</a> how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You may be wondering how other <a href="https://www.simplifyingthemarket.com/en/2023/10/25/invest-in-yourself-by-owning-a-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">sellers</a> are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local <a href="https://www.simplifyingthemarket.com/en/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">today’s market</a> and the current affordability situation, and their insight is invaluable right now.
True professionals will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean <a href="https://www.simplifyingthemarket.com/en/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">broadening your search</a>, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the <a href="https://www.simplifyingthemarket.com/en/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">affordability challenges</a> today.
Bottom Line
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect. 2023-11-27T12:30:00-07:002024-02-19T13:01:27-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:32089Don’t Believe Everything You Read About Home PricesDon’t Believe Everything You Read About Home Prices
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-Dont-Believe-Everything-You-Read-About-Home-Prices.png" width="600" /><br /><br />
According to the latest data from <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" rel="noopener noreferrer" target="_blank">Fannie Mae</a>, 23% of Americans still think <a href="https://www.simplifyingthemarket.com/en/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home prices</a> will go down over the next twelve months. But why do roughly 1 in 4 people feel that way?
It has a lot to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a <a href="https://www.simplifyingthemarket.com/en/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">price crash</a> and those concerns are still lingering. You may be hearing people in your own life saying they’re worried about home prices or see on social media that some influencers are saying prices are going to come tumbling down.
If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market?
The answer is simple. Listen to the professionals who specialize in residential real estate.
Here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/fannie-mae-home-price-index" rel="noopener noreferrer" target="_blank">Data</a> shows prices have <a href="https://www.simplifyingthemarket.com/en/2023/10/03/home-prices-are-not-falling/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">already rebounded</a> this year after that slight decline in 2022 (see graph below):
<a href="https://www.simplifyingthemarket.com/en/content/images/20231030/20231102-Percent-Change-in-Home-Prices.png?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-Percent-Change-in-Home-Prices.png" /></a>
But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project <a href="https://www.simplifyingthemarket.com/en/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home prices</a> will net <a href="https://www.simplifyingthemarket.com/en/2023/09/08/home-price-forecasts-revised-for-2023-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">positive</a> this year – not negative. The graph below helps prove this point with the latest forecasts from each organization:
<a href="https://www.simplifyingthemarket.com/en/content/images/20231030/20231102-2023-Year-End-Home-Price-Forecasts.png?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231030/20231102-2023-Year-End-Home-Price-Forecasts.png" /></a>
What’s worth noting is that, just a few short weeks ago, the Fannie Mae <a href="https://www.fanniemae.com/research-and-insights/forecast" rel="noopener noreferrer" target="_blank">forecast</a> was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase goes to show just how confident experts are that home prices will net positive this year.
So, if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing.
Bottom Line
There’s been a lot of misleading information about home prices over the past year. And that’s still having an impact on how people are feeling about the housing market today. But it’s best not to believe everything you hear or read.
If you want information you can trust, turn to the real estate experts. Their data shows home prices are on the way back up and will net positive for the year. If you have questions about what’s happening in our local area, let’s connect. 2023-11-20T13:14:10-07:002024-02-19T13:01:51-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:31734The Benefits of Buying a Multi-Generational Home [INFOGRAPHIC]The Benefits of Buying a Multi-Generational Home [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231102/The-Benefits-of-Buying-a-Multi-Generational-Home-KCM-Share.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/content/images/20231102/The-Benefits-of-Buying-a-Multi-Generational-Home-MEM.png?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231102/The-Benefits-of-Buying-a-Multi-Generational-Home-MEM.png" /></a>
Some Highlights
If you’re ready to <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">buy a home</a> but are having a hard time <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">affording</a> it on your own, or, if you have aging loved ones you need to care for, you might want to consider a <a href="https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying" rel="noopener noreferrer" target="_blank">multi-generational home</a>.
Living with siblings, parents, and even <a href="https://www.mykcm.com/2023/10/10/are-grandparents-moving-to-be-closer-to-their-grandkids/" rel="noopener noreferrer" target="_blank">grandparents</a> can help you <a href="https://www.mykcm.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">save money</a>, give or receive childcare, and spend quality time together.
Let’s connect to find a home in our area that’s perfect for you and your loved one’s <a href="https://www.bizjournals.com/triangle/news/2023/04/01/why-choose-multigenerational-living-in-the-triangl.html" rel="noopener noreferrer" target="_blank">needs</a>.
2023-11-07T14:04:07-07:002024-02-19T13:02:48-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:31562A Real Estate Agent Helps Take the Fear Out of the MarketA Real Estate Agent Helps Take the Fear Out of the Market
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231025/20231030-A-Real-Estate-Agent-Helps-Take-the-Fear-Out-of-the-Market.png" width="600" /><br /><br />
Do negative headlines and talk on social media have you feeling worried about the <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing market</a>? Maybe you’ve even seen or heard something lately that scares you and makes you wonder if you should still <a href="https://www.simplifyingthemarket.com/en/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buy</a> or <a href="https://www.simplifyingthemarket.com/en/2023/10/09/key-skills-you-need-your-listing-agent-to-have/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">sell</a> a home right now.
Regrettably, when news in the media isn't easy to understand, it can make people feel scared and unsure. Similarly, negative talk on social media spreads fast and creates fear. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" rel="noopener noreferrer" target="_blank">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying a home is a big decision, and it should be one you <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">feel confident</a> making. You should lean on a trusted real estate agent to help you separate <a href="https://www.simplifyingthemarket.com/en/2023/10/27/unmasking-scary-myths-about-todays-housing-market-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">fact from fiction</a> and get the <a href="https://www.simplifyingthemarket.com/en/2023/10/03/home-prices-are-not-falling/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">answers</a> you need.
That agent will use their knowledge of what’s really happening with <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">home prices</a>, <a href="https://www.simplifyingthemarket.com/en/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">housing supply</a>, <a href="https://www.simplifyingthemarket.com/en/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">expert forecasts</a>, <a href="https://www.simplifyingthemarket.com/en/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">and more</a> to give you the best possible advice. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/sales-marketing/bring-on-the-positive-vibes" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . agents combat uncertainty and fear with a combination of historical perspective, training and facts.”
The right agent will help you figure out what’s going on at the national level and in your local area.
They’ll debunk headlines <a href="https://www.simplifyingthemarket.com/en/2023/09/29/explaining-todays-low-housing-supply-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">using data</a> you can trust. Plus, they have in-depth knowledge of the industry and can <a href="https://www.simplifyingthemarket.com/en/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">provide context</a>, so you know how current trends compare to the normal ebbs and flows in the housing market, <a href="https://www.simplifyingthemarket.com/en/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">historical data</a>, and more.
Then, to make sure you have the full picture, an agent can tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you can use all that information to make the best possible decision.
After all, making a move is a potentially life-changing milestone. It should be something you feel <a href="https://www.simplifyingthemarket.com/en/2023/09/25/beginning-with-pre-approval/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">ready for</a> and excited about. And that’s where a trusted expert comes in.
Bottom Line
If you need reliable information about the housing market and expert advice about your own move, let’s connect.2023-10-30T11:51:39-07:002024-02-19T13:03:20-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:31127The Difference Between Renting and Buying a Home [INFOGRAPHIC]The Difference Between Renting and Buying a Home [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231012/The-Difference-Between-Renting-And-Buying-A-Home-KCM-Share.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/content/images/20231012/The-Difference-Between-Renting-And-Buying-A-Home-MEM.png?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231012/The-Difference-Between-Renting-And-Buying-A-Home-MEM.png" /></a>
Some Highlights
When deciding between <a href="https://www.mykcm.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buying a home</a> or renting, think about these three important factors.
Buying a home means <a href="http://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">avoiding</a> rising rents, <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">owning</a> a tangible and valuable asset, and <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">growing</a> your <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" rel="noopener noreferrer" target="_blank">wealth</a> over time.
If you’re ready to enjoy the <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">advantages</a> of <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">owning a home</a>, let’s connect to discuss your <a href="https://www.mykcm.com/2023/09/18/are-more-homes-coming-onto-the-market/" rel="noopener noreferrer" target="_blank">options</a>.
2023-10-13T10:35:38-07:002024-02-19T13:04:58-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:29307Real Estate Continues To Be the Best Investment Real Estate Continues To Be the Best Investment [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230720/Real-Estate-Continues-To-Be-the-Best-Investment-KCM-Share.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/content/images/20230720/Real-Estate-Continues-To-Be-the-Best-Investment-MEM.png?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230720/Real-Estate-Continues-To-Be-the-Best-Investment-MEM.png" /></a>
Some Highlights
According to a recent Gallup <a href="https://news.gallup.com/poll/505592/real-estate-lead-best-investment-shrinks-gold-rises.aspx" rel="noopener noreferrer" target="_blank">poll</a>, real estate has been voted the best <a href="https://www.simplifyingthemarket.com/en/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">long-term investment</a> for 11 years in a row, beating gold, stocks, bonds, and more.
Owning real estate means more than just having a home—it’s an <a href="https://www.simplifyingthemarket.com/en/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">investment</a> in your <a href="https://www.simplifyingthemarket.com/en/2023/07/04/americans-still-view-homeownership-as-the-american-dream/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">future</a>. That’s because it’s typically a stable and secure <a href="https://myhome.freddiemac.com/blog/homeownership/4-benefits-owning-home" rel="noopener noreferrer" target="_blank">asset</a> that tends to increase in <a href="https://www.simplifyingthemarket.com/en/2023/06/27/why-homeownership-wins-in-the-long-run/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">value</a> as time goes on.
Let’s connect if you’re <a href="https://www.simplifyingthemarket.com/en/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">ready</a> to buy a home and invest in your future.
2023-07-24T11:13:16-07:002024-02-19T13:54:15-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:28967Evaluating Your Wants and Needs as a Homebuyer Matters More TodayEvaluating Your Wants and Needs as a Homebuyer Matters More Today
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230627/20230703-evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today.jpg" width="600" /><br /><br />
When it comes to <a href="https://www.simplifyingthemarket.com/en/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buying a home</a>, especially with today’s <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">affordability</a> challenges, you’ll want to be strategic. <a href="https://www.simplifyingthemarket.com/en/2023/06/07/the-main-reason-mortgage-rates-are-so-high/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">Mortgage rates</a> impact how much it <a href="https://www.simplifyingthemarket.com/en/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">costs</a> to borrow money for your home loan. And, to help offset the higher borrowing costs today, some homebuyers are taking a close look at their wish list and re-evaluating what features they really need in their next home to avoid overextending. As a recent NerdWallet article <a href="https://www.nerdwallet.com/ca/mortgages/ways-to-prepare-for-a-tight-summer-housing-market" rel="noopener noreferrer" target="_blank">says</a>:
“A pool, for example, may be nice to have, but it may not provide as much day-to-day value as a garage or a space for a home office . . .”
While that pool may be appealing, think twice on whether or not it’s really something you must have to be happy in your next home. Is getting that pool the main reason you’re moving? Probably not. It’s more likely a need for more space, a home office, or proximity to loved ones, friends, or work that’s motivating you to make a change.
So, if you’re looking to <a href="https://www.simplifyingthemarket.com/en/2023/06/22/what-homebuyers-need-to-know-about-credit-scores/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">buy a home</a>, take some time to consider what’s truly essential for you in your next house. Make a list of all the features you’ll want to see, and from there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
Once you’ve categorized it in a way that works for you, discuss your top priorities with your <a href="https://www.simplifyingthemarket.com/en/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">real estate agent</a>. Remember to think carefully about what’s a non-negotiable for your lifestyle and what’s a nice-to-have that’s more of an added bonus. Be sure to discuss where each feature falls with your agent. They’ll be able to help you refine the list further, <a href="https://www.simplifyingthemarket.com/en/2023/05/31/keys-to-success-for-first-time-homebuyers/?a=462144-643082309ba2b9320099e30ac317439f" rel="noopener noreferrer" target="_blank">coach</a> you through the best way to stick to it, and find a home in your area that meets your top needs.
Bottom Line
Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial planning step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.2023-07-03T10:31:11-07:002024-02-19T12:52:28-07:00Sherry Dyckmantag:dtpropertiesco.com,2012-09-20:266795 Reasons Millennials Are Buying Homes
In the United States, there are over <a href="https://www.statista.com/statistics/797321/us-population-by-generation/" rel="noopener noreferrer" target="_blank">72 million</a> millennials. If you’re part of that generation and have thought about buying a home, you aren’t alone. <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">According</a> to Zonda, 98% of millennials want to become a homeowner at some point if they aren’t already. But why? There are plenty of reasons you may choose to become a homeowner. Here’s why other millennials have made that decision (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230417/20230418-why-did-millennials-decide-to-buy.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230417/20230418-why-did-millennials-decide-to-buy.png" /></a>
This graph shows why millennials are buying homes <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">according</a> to Zonda’s 6th annual millennial survey. The top reasons include building equity, a change in life stage, wanting stability, rising home values, and wanting to make somewhere truly their own. Here’s a look at each in more detail.
Building equity – Homeownership is a long-term investment that allows you to build wealth, increase your net worth, and become more financially stable. Beyond that, the alternative to owning a home is typically renting. With the way rents have risen so dramatically over time, it may make sense to build your own equity instead of the equity of the person you’re renting from.
A change in life stage – As a millennial, you’re reaching your prime homebuying years. That means you may be at the point where you need more space or a different location.
Stability or settling down – This could mean establishing your career or just generally deciding more concretely what you want your life to look and feel like. As that idea becomes clearer, you may want to establish that lifestyle in a particular place and put down roots.
Rising home values – By purchasing a home, you own an asset that traditionally increases in value over time. That can mean your home will have a higher resale value if you decide to move again.
Wanting to make somewhere “mine” – Owning a home gives a sense of freedom because you can customize it however you want, make updates as you see fit, and be yourself in a place that’s solely your own.
Bottom Line
There are plenty of great reasons why millennials are buying homes today. If you’ve thought about becoming a homeowner and any of these reasons resonate with you too, let’s connect to explore your options.
2023-04-24T08:00:00-07:002023-04-19T09:25:40-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:26135How Changing Mortgage Rates Can Affect You
The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power.
The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment:
<a target="_blank" href="https://files.keepingcurrentmatters.com/content/images/20230331/20230403-example-buyers-purchasing-power-MEM.png" rel="noopener noreferrer"><img src="https://files.keepingcurrentmatters.com/content/images/20230331/20230403-example-buyers-purchasing-power-MEM.png" /></a>
Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down.
What This Means for You
You may be tempted to put your homebuying plans on hold in hopes that rates will fall. But that can be risky. No one knows for sure where rates will go from here, and trying to time them for your benefit is tough. Lisa Sturtevant, Housing Economist at Bright MLS, <a target="_blank" href="https://www.linkedin.com/posts/lisa-sturtevant-48413051_mortgage-rates-activity-7042166632474898432-hpTf" rel="noopener noreferrer">explains</a>:
“It is typically a fool’s errand for a homebuyer to try to time rates in this market . . . But volatility in mortgage rates right now can have a real impact on buyers’ monthly payments.”
That’s why it’s critical to lean on your expert real estate advisors to explore your mortgage options, understand what impacts mortgage rates, and plan your homebuying budget around today’s volatility. They’ll also be able to offer advice tailored to your specific situation and goals, so you have what you need to make an informed decision.
Bottom Line
Your ability to buy a home could be impacted by changing mortgage rates. If you’re thinking about making a move, let’s connect so you have a strong plan in place.
2023-04-17T09:00:00-07:002023-04-03T13:24:15-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:26007We’re in a Sellers’ Market. What Does That Mean?
Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today’s low supply of homes for sale is still a sellers’ market. But what does that really mean? And why are conditions <a href="https://www.mykcm.com/2023/03/08/2-things-sellers-need-to-know-this-spring/" rel="noopener noreferrer" target="_blank">today</a> so good if you want to list your house?
It starts with the <a href="https://www.mykcm.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">number of homes</a> available for sale. The 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> from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230329/20230329-months-inventory-of-homes-for-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230329/20230329-months-inventory-of-homes-for-sale-MEM.png" /></a>
What Does This Mean for You?
When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, <a href="https://www.mykcm.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">sellers </a>are positioned to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/newsroom/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines" rel="noopener noreferrer" target="_blank">says</a>:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
Right now, there are still <a href="https://www.mykcm.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/" rel="noopener noreferrer" target="_blank">buyers</a> who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the <a href="https://www.mykcm.com/2023/03/29/4-key-tips-for-selling-your-house-this-spring/" rel="noopener noreferrer" target="_blank">right price</a>, it could get a lot of attention from competitive buyers.
Bottom Line
Today’s sellers’ market holds great opportunities for homeowners ready to <a href="https://www.mykcm.com/2023/03/27/get-ready-the-best-time-to-list-your-house-is-almost-here/" rel="noopener noreferrer" target="_blank">make a move</a>. Listing your house now will maximize your exposure to serious, competitive buyers. Let’s connect to discuss how to jumpstart the selling process.
2023-04-03T07:00:00-07:002023-03-30T16:12:13-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:25431What Buyer Activity Tells Us About the Housing Market
Though the housing market is no longer experiencing the frenzy of a year ago, buyers are showing their interest in purchasing a home. According to <a href="https://realestate.usnews.com/real-estate/articles/when-will-the-housing-market-crash" rel="noopener noreferrer" target="_blank">U.S. News</a>:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
That activity can be seen in the latest ShowingTime Showing Index, which is a measure of buyers actively touring available homes (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230315/20230313-largest-jump-in-showings-for-any-january-on-record-MEM-1.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230315/20230313-largest-jump-in-showings-for-any-january-on-record-MEM-1.png" /></a>
The 62% <a href="https://www.showingtime.com/blog/january-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">jump</a> in showings from December to January is one of the largest on record. There were also more showings in January than in any other month since last May. As you can see in the graph, it’s normal for showings to increase early in the year, but the jump this January was larger than usual, and a lot of that has to do with mortgage rates. Michael Lane, VP of Sales and Industry at ShowingTime+, <a href="https://www.showingtime.com/blog/january-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“It’s typical to see a seasonal increase in home showings in January as buyers get ready for the spring market, but a larger increase than any January before after last year’s rapid cooldown is significant. Mortgage rate activity this spring will play a big role in sales activity, but January’s home showings are a positive sign that buyers are getting back out there . . .”
It's important to note that mortgage rates hovered in the low 6% range in January, which played a role in the high number of showings. What does this mean? When mortgage rates eased, buyer interest climbed. The jump in home showings early this year makes one thing clear – while rates may be volatile right now, there are interested buyers out there, and when <a href="https://www.mykcm.com/2023/02/28/what-you-should-know-about-rising-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are favorable, they’re ready to make their move.
Bottom Line
An increase in showing activity in January is a good sign that there are buyers who are eager to purchase a home. If you’re thinking of <a href="https://www.mykcm.com/2023/03/03/where-will-you-go-after-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">selling</a> your house, <a href="https://www.mykcm.com/2023/03/01/an-expert-makes-all-the-difference-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">talk</a> with your real estate agent.
2023-03-20T08:00:00-07:002023-03-17T14:58:12-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:24641What You Should Know About Closing CostsWhat You Should Know About Closing Costs<br /><br />Before you buy a home, it’s important to plan ahead. While most buyers consider how much they need to save for a down payment, many are surprised by the closing costs they have to pay. To ensure you aren’t caught off guard when it’s time to close on your home, you need to understand what closing costs are and how much you should budget for.<br /><br />What Are Closing Costs?<br />People are sometimes surprised by closing costs because they don’t know what they are. According to Bankrate:<br /><br />“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”<br /><br />How Much Will You Need To Budget for Closing Costs?<br />Understanding what closing costs include is important, but knowing what you’ll need to budget to cover them is critical, too. According to the Freddie Mac article mentioned above, the costs to close are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.<br /><br />Let’s say you find a home you want to purchase for the median price of $366,900. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,500 and $18,500.<br /><br />Keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.<br /><br />What’s the Best Way To Make Sure You’re Prepared at Closing Time?<br />Freddie Mac provides great advice for homebuyers, saying:<br /><br />“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”<br /><br />Work with a team of trusted real estate professionals to understand exactly how much you’ll need to budget for closing costs. An agent can help connect you with a lender, and together your expert team can answer any questions you might have.<br /><br />Bottom Line<br />It’s important to plan for the fees and payments you’ll be responsible for at closing. Let’s connect so I can help you feel confident throughout the process.2023-02-20T08:00:00-07:002023-02-16T14:12:36-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:24099Have Home Values Hit Bottom?Whether you’re already a homeowner or you’re looking to become one, the recent headlines about <a href="https://www.mykcm.com/2022/12/12/what-every-seller-should-know-about-home-prices/" title="home prices">home prices</a> may leave you with more questions than answers. <a href="https://www.mykcm.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/" title="News stories">News stories</a> are talking about home prices falling, and that’s raising concerns about a repeat of what happened to prices in the <a href="https://www.mykcm.com/2023/01/11/todays-housing-market-is-nothing-like-15-years-ago/" title="crash in 2008">crash in 2008</a>.
One of the questions that’s on many minds, based on those headlines, is: how much will home prices decline? But what you may not realize is expert <a href="https://www.mykcm.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/" title="forecasters">forecasters</a> aren’t calling for a free fall in prices. In fact, if you look at the latest data, there’s a case to be made that the biggest portion of month-over-month price depreciation nationally may already be behind us – and even those numbers weren’t significant declines on the national level. Instead of how far will they drop, the question becomes: have home values hit bottom?
Let’s take a look at the latest data from several reputable industry sources (see chart below):
<a href="https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106922" src="https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM.png" alt="Have Home Values Hit Bottom? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM.png 960w, https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM-600x450.png 600w, https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM-768x576.png 768w, https://files.mykcm.com/2023/01/17142555/have-home-values-hit-bottom-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The chart above provides a look at the most recent reports from <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#news-research" title="Case-Shiller" target="_blank" rel="noopener noreferrer">Case-Shiller</a>, the <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx" title="Federal Housing Finance Agency" target="_blank" rel="noopener noreferrer">Federal Housing Finance Agency</a> (FHFA), <a href="https://www.blackknightinc.com/data-reports/" title="Black Knight" target="_blank" rel="noopener noreferrer">Black Knight</a>, and <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-december-2022/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>. It shows how, on a national scale, home values have changed month-over-month since January 2022. November and December numbers have yet to come out.
Let’s focus in on what the red numbers tell us. The red numbers are the change in home values over the last four months that have been published. And if we isolate the last four months, what the data shows is, in each case, home price depreciation peaked in August.
While that doesn’t guarantee home price depreciation has hit bottom, it confirms prices aren’t in a free fall, and it may be an early signal that the worst is already behind us. As the numbers for November and December are released, data will be able to further validate this national trend.
Bottom Line
Home prices month-over-month have depreciated for the past four months on record, but there’s a strong case to be made that the worst may be behind us. If you have questions about what’s happening with home prices in our local market, let’s connect.2023-01-23T09:00:00-07:002023-01-19T12:06:27-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:23555What To Expect From the Housing Market in 2023The 2022 housing market has been defined by two key things: inflation and rapidly rising <a href="https://www.mykcm.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/" title="mortgage rates">mortgage rates</a>. And in many ways, it’s put the market into a reset position.
As the Federal Reserve (the Fed) made moves this year to try to lower inflation, mortgage rates more than <a href="https://www.freddiemac.com/research/forecast/20221021-quarterly-forecast-rapidly-rising-rates-declining-demand-driving-housing-market" title="doubled" target="_blank" rel="noopener noreferrer">doubled</a> – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between <a href="https://www.mykcm.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/" title="supply and demand">supply and demand</a>, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.
But what does that mean for next year? What everyone really wants is more stability in the market in 2023. For that to happen we’ll need to see the Fed bring inflation down even more and keep it there. Here’s what housing market experts say we can expect next year.
What’s Ahead for Mortgage Rates in 2023?
Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, <a href="https://www.mykcm.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/" title="mortgage rates">mortgage rates</a> will likely respond. While there may be early signs inflation is easing as we round out this year, we’re not out of the woods just yet. Inflation is still something to watch in 2023.
Right now, experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more in 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):
<a href="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106529" src="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png" alt="What To Expect from the Housing Market in 2023 | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png 960w, https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng-600x450.png 600w, https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng-768x576.png 768w, https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
That means, we’ll start the year out about where we are right now. But we could see rates tick down if inflation continues to drop. As Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-market-predictions-2023/#home-values" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . mortgage rates could pull back meaningfully next year if inflation pressures ease.”
In the meantime, expect some volatility as rates will likely fluctuate in the weeks ahead. If we see inflation come back under control, that would be good news for the housing market.
What Will Happen to Home Prices Next Year?
Homes prices will always be defined by supply and demand. The more buyers and fewer homes there are on the market, the more home prices will rise. And that’s exactly what we saw during the pandemic.
But this year, things changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates. The level of moderation has varied by local area – with the biggest changes happening in overheated markets. But do experts think that will continue?
The graph below shows the latest home price forecasts for 2023. As the different colored bars indicate, some experts are saying home prices will appreciate next year, and others are saying home prices will come down. But again, if we take the average of all the forecasts (shown in green), we can get a feel for what 2023 may hold.
<a href="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106442" src="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png" alt="What To Expect from the Housing Market in 2023 | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png 960w, https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation in 2023. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy#:~:text=Housing%20inventory%20is%20expected%20to,appreciation%20will%20slow%2C%20he%20added." title="says" target="_blank" rel="noopener noreferrer">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.”
Bottom Line
The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor.2022-12-26T09:00:00-07:002022-12-21T13:03:32-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:23366Homeownership Is an Investment in Your FutureThere are many people thinking about buying a home, but with everything affecting the <a href="https://www.mykcm.com/2022/10/19/should-you-still-buy-a-home-with-the-latest-news-about-inflation/" title="economy">economy</a>, some are wondering if it’s a smart decision to buy now or if it makes more sense to wait it out. As Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), <a href="https://edition.cnn.com/2022/11/10/homes/mortgage-rates-november-10/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.”
If you’re in that position, remember that it’s important to consider not just what’s happening today but also what <a href="https://www.mykcm.com/2022/11/04/homeownership-wins-over-time-infographic/" title="benefits">benefits</a> you may gain in the long run.
There’s a lot of information out there about how homeownership helps build a homeowner’s net worth over time. But even today, many people think first about things like 401(k)s before they think of owning a home as a wealth-building tool. It’s especially important if you’re a young prospective homebuyer to understand how homeownership is another key way to invest in your future. An article from Bloomberg <a href="https://www.bloomberg.com/opinion/articles/2022-11-11/it-s-ok-to-save-for-a-house-down-payment-at-the-expense-of-retirement?=true&sref=BRvilyBN" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Millennials have higher average 401(k) balances than Generation X did when they were the same age, but they’re not any better off financially. . . . A lot of that has to do with being less likely to own a home.”
To help you understand just how much owning a home can have a positive impact on your life over the years, take a look at what the data shows. The same Bloomberg <a href="https://www.bloomberg.com/opinion/articles/2022-11-11/it-s-ok-to-save-for-a-house-down-payment-at-the-expense-of-retirement?=true&sref=BRvilyBN" title="article" target="_blank" rel="noopener noreferrer">article</a> helps show the gap in wealth between renters and homeowners who are 65 years and older (see graph below). The difference is substantial, even when incomes are similar.
<a href="https://files.mykcm.com/2022/12/07165316/the-wealth-disparity-for-older-americans-MEM.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106203" src="https://files.mykcm.com/2022/12/07165316/the-wealth-disparity-for-older-americans-MEM.jpg" alt="Homeownership Is an Investment in Your Future | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/07165316/the-wealth-disparity-for-older-americans-MEM.jpg 960w, https://files.mykcm.com/2022/12/07165316/the-wealth-disparity-for-older-americans-MEM-600x450.jpg 600w, https://files.mykcm.com/2022/12/07165316/the-wealth-disparity-for-older-americans-MEM-768x576.jpg 768w, https://files.mykcm.com/2022/12/07165316/the-wealth-disparity-for-older-americans-MEM-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
So, if you want to create wealth to help set you up for success later on, it may be time to prioritize homeownership. That’s because, whether you decide to rent or buy a home, you’ll have a monthly housing expense either way. The question is: are you going to invest in yourself and your future, or will you help someone else (your landlord) increase their wealth?
Bottom Line
Before putting your homeownership plans on hold, let’s connect to go over your options. That way, you’ll have expert advice on how to make the best decision right now and the best investment in your future.2022-12-12T09:00:00-07:002022-12-09T10:47:02-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:232363 Ways You Can Use Your Home EquityIf you’re a homeowner, odds are your <a href="https://www.mykcm.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/'" title="equity">equity</a> has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. <a href="https://www.mykcm.com/2022/11/04/homeownership-wins-over-time-infographic/" title="Home&nbsp;equity">Home equity</a> builds over time and can help you achieve certain goals. According to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Equity Insights Report" target="_blank" rel="noopener noreferrer">Equity Insights Report</a> from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.
As you weigh your options, especially in the face of inflation and talk of a <a href="https://www.mykcm.com/2022/10/25/what-happens-to-housing-when-theres-a-recession/" title="recession">recession</a>, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much home equity you have and advise you on some of the ways you can use it. Here are a few examples.
1. Buy a Home That Fits Your Needs
If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle.
If you want to upgrade your house, you can put your equity toward a <a href="https://www.mykcm.com/2022/10/10/saving-for-a-down-payment-heres-what-you-should-know/" title="down payment">down payment</a> on the home of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next home.
2. Reinvest in Your Current House
According to a recent survey from <a href="https://hello.point.com/hubfs/PR/fall2022-homeowner-survey.pdf" title="Point" target="_blank" rel="noopener noreferrer">Point</a>, 39% of homeowners would invest in home improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet.
Home improvement projects allow you to customize your home to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal to future buyers than others. For example, a <a href="https://www.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf" title="report" target="_blank" rel="noopener noreferrer">report</a> from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell.
3. Pursue Your Personal Goals
In addition to making a move or updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.
Bottom Line
Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.2022-12-05T09:00:00-07:002022-12-01T11:30:46-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:23237What Buyers Need To Know About the Inventory of Homes Available for SaleIf you’re thinking about <a href="https://www.mykcm.com/2022/11/01/3-trends-that-are-good-news-for-todays-homebuyers/" title="buying a home">buying a home</a>, you’re likely trying to juggle your needs, current mortgage rates, home prices, your schedule, and more to try to decide if you want to jump into the market.
If this sounds like you, here’s one key factor that could help you with your decision: there are more homes for sale today than there were at this time last year. According to <a href="https://www.calculatedriskblog.com/2022/11/housing-november-21st-weekly-update.html" title="Calculated Risk" target="_blank" rel="noopener noreferrer">Calculated Risk</a>, for the week ending in November 18th, there were 47.7% more homes available for sale than there were at the same time in 2021. And having more options for your home search may be exactly what you need to feel confident about making a move.
Here’s a look at where the increased housing supply is coming from so you can get a better sense of what’s happening in the market today and what it means for you.
What Caused the Growth in Housing Inventory This Year?
The increase we’ve seen in housing supply this year isn’t from the source you think it is. Rather than an influx of recent homeowners listing their houses for sale (known as new listings), the primary reason the supply has grown is because homes are staying on the market a bit longer (known as active listings).
That’s happening because higher <a href="https://www.mykcm.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/" title="mortgage rates">mortgage rates</a> and home prices have helped moderate the peak frenzy of buyer demand, which has slowed down the pace of sales. And, as the pace of sales has eased, inventory has grown as a result.
The graph below uses <a href="https://www.realtor.com/research/data/" title="data" target="_blank" rel="noopener noreferrer">data</a> from realtor.com to show that it’s active listings, not new listings, that have driven the growth we’ve seen over the past few months:
<a href="https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105927" src="https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM.png" alt="What Buyers Need To Know About the Inventory of Homes Available for Sale | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM.png 960w, https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM-600x450.png 600w, https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM-768x576.png 768w, https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
And while overall inventory gains may slow down this winter due to typical housing market seasonality, you still have a chance to capitalize on the current supply.
What This Means for Your Home Search
Regardless of the source, the increase in available housing supply is good for buyers. More homes available for sale means you have more options to choose from as you search for your next home, and you may even have more time to consider them.
So, if you tried to buy a home last year and lost out in a bidding war or just couldn’t find something you liked, this may be the news you’ve been waiting for. If you start your search today, those additional options should make it less difficult to find a home you love, especially as some other buyers pause their search this holiday season.
Just remember, housing supply is still low overall, so it won’t suddenly be easy – it’ll just be less challenging than it was at this time last year. As a recent article from realtor.com <a href="https://www.realtor.com/research/october-2022-data/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Despite this improvement in the number of homes actively for sale, active listings still lag their pre-pandemic levels.”
The increase in housing supply helps put you in a great position to kick off the new year in your dream home. And who better to help you find it than a trusted, local real estate professional?
Bottom Line
If you’re ready to jump into the housing market and see what’s available in our local area, let’s connect.2022-11-21T11:26:00-07:002022-12-01T11:31:00-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:23238Mortgage 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" title="nine months" target="_blank" rel="noopener noreferrer">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" title="average rate" target="_blank" rel="noopener noreferrer">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" title="over 7%" target="_blank" rel="noopener noreferrer">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" title="says" target="_blank" rel="noopener noreferrer">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" title="says" target="_blank" rel="noopener noreferrer">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.2022-11-07T11:30:00-07:002022-12-01T11:33:03-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:23239VA Loans Can Help Veterans Achieve Their Dream of HomeownershipFor over 78 years, Veterans Affairs (VA) home loans have provided millions of veterans with the opportunity to <a href="https://www.mykcm.com/2022/11/01/3-trends-that-are-good-news-for-todays-homebuyers/" title="purchase">purchase</a> homes of their own. If you or a loved one have served, it’s important to understand this program and its benefits.
Here are some things you should know about VA loans before you start the homebuying process.
What Are VA Loans?
VA home loans provide a pathway to homeownership for those who have served our nation. The <a href="https://www.benefits.va.gov/homeloans/index.asp" title="U.S. Department of Veterans Affairs" target="_blank" rel="noopener noreferrer">U.S. Department of Veterans Affairs</a> describes the program like this:
“VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.”
Top Benefits of the VA Home Loan Program
In addition to helping eligible buyers achieve their homeownership dreams, VA loans have several other great benefits for buyers who qualify. According to the <a href="https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/" title="Department of Veteran Affairs" target="_blank" rel="noopener noreferrer">Department of Veteran Affairs</a>:
Qualified borrowers can often purchase a home with no down payment.
Many other loans with down payments under 20% require Private Mortgage Insurance (PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.
VA-Backed Loans often offer competitive terms and mortgage interest rates.
A recent article from <a href="https://www.veteransunited.com/valoans/10-things-many-borrowers-dont-know-about-va-loans/" title="Veterans United" target="_blank" rel="noopener noreferrer">Veterans United</a> sums up just how impactful this loan option can be:
“For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.”
John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guaranty Service, also <a href="https://www.nar.realtor/videos/va-home-loans-part-2-reducing-barriers-for-va-borrowers" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why this program is so powerful:
“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long term financial security by being able to own a house and let that equity grow.”
Bottom Line
Homeownership is the <a href="https://www.mykcm.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/" title="American Dream">American Dream</a>. Our veterans sacrifice so much in service of our nation, and one way we can honor and thank them is to ensure they have the best information about the benefits of VA home loans. Thank you for your service.2022-10-24T10:00:00-07:002022-12-01T11:35:17-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:21914Should I Sell My House This Year?
<img src="https://assets.site-static.com/userfiles/1828/image/20220912.png" width="750" height="410" />
There’s no denying the housing market is undergoing a shift 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. Housing inventory 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 more options 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 somewhere to go, 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 latest report 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, inventory is still low, and that means your home will still be in demand if you price it right. That’s why the most recent data 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 home price appreciation the market saw over the past few years has likely given your equity (and your net worth) a considerable boost. Danielle Hale, Chief Economist at realtor.com, explains:
“Homeowners 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 rising prices will impact your next home search, rest assured your equity 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, let’s connect so you have the expert insights you need to make the best possible move today.
2022-09-12T08:15:00-07:002022-09-12T07:59:44-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:21812Buyers: You May Face Less Competition as Bidding Wars Ease<img src="https://assets.site-static.com/userfiles/1828/image/9522photo.png" width="750" height="410" />
One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars. With so many buyers looking to purchase a home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic – and it drove home prices up. If you tried to buy a house over the past two years, you probably experienced this firsthand and may have been outbid on several homes along the way.
But here’s the news you’ve been waiting for: data shows clear signs bidding wars are easing this year.
According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined considerably over the past few months (see graph below):
<img src="https://assets.site-static.com/userfiles/1828/image/9522graph.png" width="960" height="720" />
The graph shows homes were seeing a high of around five offers earlier this year. But the latest data shows that the average was down to just shy of three offers per recently sold home. This shift is happening largely because rising mortgage rates moderated buyer demand and slowed home sales, resulting in a growing supply of homes on the market. Essentially, more choices for buyers.
What This Means for You
If you put your home search on pause because you were outbid last year or because you didn’t want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a sellers’ market, an uptick in inventory gives you a window of opportunity to jump back in. You may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.
Bottom Line
If you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your home search. Today, bidding wars are easing and that may mean less competition for you as a buyer. If you’re serious about buying a home or making a move, let’s connect to get started today.2022-09-05T08:15:00-07:002022-09-05T10:13:37-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:21496What Does the Rest of the Year Hold for Home Prices?What Does the Rest of the Year Hold for Home Prices?
<img src="https://assets.site-static.com/userfiles/1828/image/20220811-KCM-Share.png" width="750" height="410" />
Whether you’re a potential homebuyer, seller, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your homeownership goals.
Last Year’s Rapid Home Price Growth Wasn’t the Norm
In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was:
“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”
In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.
Home Price Appreciation Moderates Today
This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022 (see graph below):
<img src="https://assets.site-static.com/userfiles/1828/image/20220811-MEM-Eng.png" width="960" height="720" />
Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.
As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.
What Does That Mean for You?
Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.
So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.
If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.
Bottom Line
If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, let’s connect so you have a local market expert on your side each step of the way.
2022-08-15T08:15:00-07:002022-08-15T06:28:19-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:21301Want To Buy a Home? Now May Be the Time.Want To Buy a Home? Now May Be the Time.
<img src="https://assets.site-static.com/userfiles/1828/image/wanttobuyahome.png" width="750" height="410" />
There are more homes for sale today than at any time last year. So, if you tried to buy a home last year and were outbid or out-priced, now may be your opportunity. The number of homes for sale in the U.S. has been growing over the past four months as rising mortgage rates help slow the frenzy the housing market saw during the pandemic.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains why the shifting market creates a window of opportunity for you:
“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession. . . They’ll have fewer buyers to compete with.”
Two Reasons There Are More Homes for Sale
The first reason the market is seeing more homes available for sale is the number of sales happening each month has decreased. This slowdown has been caused by rising mortgage rates and rising home prices, leading many to postpone or put off buying. The graph below uses data from realtor.com to show how active real estate listings have risen over the past four months as a result.
<img src="https://assets.site-static.com/userfiles/1828/image/fig1.png" width="960" height="720" />
The second reason the market is seeing more homes available for sale is because the number of people selling their homes is also rising. The graph below outlines new monthly listings coming onto the market compared to last year. As the graph shows, for the past three months, more people have put their homes on the market than the previous year.
<img src="https://assets.site-static.com/userfiles/1828/image/fig2.png" width="960" height="720" />
Bottom Line
The number of homes for sale across the country is growing, and that means more options for those thinking about buying a home. This is the opportunity many have been waiting for who were outbid or outpriced last year.
2022-08-01T08:15:00-07:002022-08-01T05:48:30-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:21208Why Pre-Approval Is a Game Changer for HomebuyersIf you’re planning to buy a home this year, you might have heard that pre-approval is a necessary step to take before starting out on your journey. But why is that? And is it still important in today’s shifting market?
The truth is, getting a pre-approval letter from your lender is critical, and when it comes to your home search, it can be a game changer in so many ways.
To better understand why, it’s important to know what pre-approval is. Freddie Mac defines the process like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. The lender you work with will provide you with a pre-approval letter, which is an official document that states the maximum amount they are willing to lend you, . . .”
Put simply, pre-approval from a lender helps you understand your true price range and how much money you can borrow for your loan. That can make it easier when you set out to search for homes. And since you’ll know what you’re approved for, it’ll also help once it’s time to submit an offer on the home of your dreams.
Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. Paul Centopani, Editor for the Mortgage Reports, explains:
“. . . most sellers won’t even consider an offer unless the buyer is pre-approved at the right price point. Sellers and their agents want to know you’re ready and able to finance your offer amount. So you’ll want to have your preapproval teed up as soon as you’re serious about bidding on a home you like.”
Every advantage you can gain as a buyer is crucial in a market that’s constantly changing. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals, such as a real estate advisor and trusted lender, on your side. They’ll help make sure you’re ready to put your best foot forward.
Bottom Line
Getting pre-approved for a mortgage helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Let’s connect so you have the tools you need to succeed as a homebuyer in today’s shifting market.2022-07-25T08:15:00-07:002022-07-25T04:29:46-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:20999What Does an Economic Slowdown Mean for the Housing Market?According to a recent survey, more and more Americans are concerned about a possible recession. Those concerns were validated when the Federal Reserve met and confirmed they were strongly committed to bringing down inflation. And, in order to do so, they’d use their tools and influence to slow down the economy.
All of this brings up many fears and questions around how it might affect our lives, our jobs, and business overall. And one concern many Americans have is: how will this affect the housing market? We know how economic slowdowns have impacted home prices in the past, but how could this next slowdown affect real estate and the cost of financing a home?
According to Mortgage Specialists:
“Throughout history, during a recessionary period, interest rates go up at the beginning of the recession. But in order to come out of a recession, interest rates are lowered to stimulate the economy moving forward.”
Here’s the data to back that up. If you look back at each recession going all the way to the early 1980s, here’s what happened to mortgage rates during those times (see chart below):
<img src="https://assets.site-static.com/userfiles/1828/image/mortgage_rates__recessions.png" width="1000" height="750" />
As the chart shows, historically, each time the economy slowed down, mortgage rates decreased. Fortune.com helps explain the trend like this:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from it. While an economic slowdown needs to happen to help taper inflation, it hasn’t always been a bad thing for the housing market. Typically, it has meant that the cost to finance a home has gone down, and that’s a good thing.
Bottom Line
Concerns of a recession are rising. As the economy slows down, history tells us this would likely mean lower mortgage rates for those looking to refinance or buy a home. While no one knows exactly what the future holds, you can make the right decision for you by working with a trusted real estate professional to get expert advice on what’s happening in the housing market and what that means for your homeownership goals.2022-07-11T08:15:00-07:002022-07-11T04:29:44-07:00Dan Turretag:dtpropertiesco.com,2012-09-20:20898If You’re Selling Your House This Summer, Hiring a Pro Is Critical<img src="https://assets.site-static.com/userfiles/1828/image/If_Youre_Selling_Your_House_This_Summer_Hiring_a_Pro_Is_Critical.png" width="750" height="410" />
It can be tempting, especially with how hot the housing market has been over the past two years, to consider selling your home on your own. But today’s market is at a turning point, making it more essential than ever to work with a real estate professional.
Not only will a trusted real estate advisor keep you updated and help you make the best decisions based on current market trends, but they’re also experts in managing the many aspects of selling your house.
Here are five key reasons why working with a real estate professional makes sense today.
1. A Professional Follows the Latest Market Trends
With higher mortgage rates, rising home prices, and a growing number of homes for sale, today’s housing market is showing signs of a shift back toward more pre-pandemic levels. When conditions change, following the trends and staying on top of new information is crucial when you sell.
That makes working with an expert real estate advisor critical today. They know your local area and follow national trends too. More importantly, they’ll know what this data means for you, and as the market shifts, they’ll be able to help you navigate it and make your best decision.
2. A Professional Helps Maximize Your Pool of Buyers
Your agent’s role in bringing in buyers is important. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house is viewed by the most buyers. Investopedia explains why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.”
3. A Professional Understands 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. The National Association of Realtors (NAR) explains it best, <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-sellers/8-reasons-to-work-with-a-realtor">saying</a>:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what 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. A Professional Is a Trained Negotiator
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. A Professional Knows 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. Pricing a house requires expertise. NAR explains it like this:
“A great real estate agent will look at your home with an unbiased eye, providing you with the information you need to enhance marketability and maximize price.”
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 home. These steps are key to making sure it’s set to move quickly while still getting you the highest possible final sale price.
Bottom Line
Whether it’s following local and national trends and guiding you through a shifting market or pricing your house right, a real estate agent has essential insights you’ll want to rely on throughout the transaction. Don’t go at it alone. If you plan to sell, let’s connect so you have an expert on your side.
2022-07-04T08:15:00-07:002022-07-04T03:47:19-07:00Dan Turretag:dtpropertiesco.com,2012-09-20:20697 Is the Housing Market Correcting?<img src="https://assets.site-static.com/userfiles/1828/image/is_the_housing_market_correcting.png" width="750" height="410" />
If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.
The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low mortgage rates and millennials reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.
This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com says:
“The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”
Home Showings Then and Now
The ShowingTime Showing Index tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):
<img src="https://assets.site-static.com/userfiles/1828/image/showingsskyrocketed.png" width="1000" height="750" />
The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.
And since 2019 was such a strong year for the housing market, this helps show that the market isn’t crashing – it’s just at a turning point that’s moving back toward more pre-pandemic levels.
Existing Home Sales Then and Now
Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at existing home sales going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):
<img src="https://assets.site-static.com/userfiles/1828/image/existinghomesales.png" width="1000" height="750" />
Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.
It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American sums it up like this:
“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”
Bottom Line
If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.2022-06-20T08:15:00-07:002022-06-20T04:35:00-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:20573Luxury Homes Are in High DemandAs people realize their needs are changing, some are turning to luxury housing to find their dream home. Investopedia helps define what pushes a home into this category. In a recent article, they point out that a luxury home isn’t only defined by its price. Location is also an important factor. It could be a condo at a desirable city address, a spacious home on the water, or one with access to luxury activities like arts and entertainment, high-end shopping and dining, and more. The home itself will also boast some of the finest features available.
According to the Luxury Market Report from the Institute for Luxury Home Marketing, there’s been a substantial increase in how many buyers are purchasing luxury homes over the past two years. It says:
“. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.”
If you own a luxury home, it could be a great time to <a href="https://www.mykcm.com/2022/05/04/your-house-could-be-closer-to-list-ready-than-you-think/" title="list your house">list your house</a> today while demand is so high. But first, let’s understand where the demand is coming from.
What’s Driving the Heightened Buyer Demand for High-End Homes?
The same report says more people have reached a certain net-worth threshold, and that’s contributing to the increased interest in luxury housing:
“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%.
This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”
So, if you’re looking to make changes to your real estate portfolio or are looking to sell your current house, it may be a great time to list and benefit from the high demand for luxury homes today.
Bottom Line
If you own a luxury home and want to know how strong demand is in your area, let’s connect so you can capitalize on current market conditions while buyer demand for upscale homes is so high.2022-06-13T08:15:00-07:002022-06-13T05:08:09-07:00Dan Turretag:dtpropertiesco.com,2012-09-20:20238 The One Thing Every Homeowner Needs To Know About a RecessionA recession does not equal a housing crisis. That’s the one thing that every homeowner today needs to know. Everywhere you look, experts are warning we could be heading toward a recession, and if true, an economic slowdown doesn’t mean homes will lose value.
The National Bureau of Economic Research (NBER) defines a recession this way:
“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”
To help show that home prices don’t fall every time there’s a recession, take a look at the historical data. There have been six recessions in this country over the past four decades. As the graph below shows, looking at the recessions going all the way back to the 1980s, home prices appreciated four times and depreciated only two times. So, historically, there’s proof that when the economy slows down, it doesn’t mean home values will fall or depreciate.
<a href="https://files.mykcm.com/2022/05/18115422/20220519-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102503" src="https://files.mykcm.com/2022/05/18115422/20220519-MEM-Eng-1.png" alt="The One Thing Every Homeowner Needs To Know About a Recession | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/05/18115422/20220519-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/05/18115422/20220519-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/05/18115422/20220519-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/05/18115422/20220519-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The first occasion on the graph when home values depreciated was in the early 1990s when home prices dropped by less than 2%. It happened again during the housing crisis in 2008 when home values declined by almost 20%. Most people vividly remember the housing crisis in 2008 and think if we were to fall into a recession that we’d repeat what happened then. But this housing market isn’t a bubble that’s about to burst. The fundamentals are very different today than they were in 2008. So, we shouldn’t assume we’re heading down the same path.
Bottom Line
We’re not in a recession in this country, but if one is coming, it doesn’t mean homes will lose value. History proves a recession doesn’t equal a housing crisis.2022-05-23T08:15:00-07:002022-05-23T04:39:49-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:19939The Dream of Homeownership Is Worth the Effort
The Dream of Homeownership Is Worth the Effort
<img width="750" height="410" src="https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Dream of Homeownership Is Worth the Effort | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share.jpg 750w, https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’re in the market to buy a home this season, stick with it. Homebuyers face challenges in any market, and today’s is no exception. But if you persevere, your decision to purchase a home will be worth the effort in the end. In fact, a <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/#homeownership" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from Bankrate shows homeownership is so powerful that:
“Nearly three in four homeowners say they would still buy their current home if they had it to do [sic] all over again.”
That means the results – owning a home and the benefits that come with it – outweigh the effort needed to achieve their goal. If you’re a homebuyer, let that provide you with the confidence to know the work you’re putting in today will pay off for years to come. Here are a few reasons to stick with your search and focus on the outcome.
Homeownership Contributes Significantly to Your Financial Well-Being
The National Association of Realtors (NAR) lists several motivations to consider if you’re thinking about buying a home. One of the top financial reasons is the equity you build. As NAR says:
“Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity . . . Building equity in your home is a ready-made savings plan.”
Your equity is a powerful tool you can leverage in a number of ways. And with recent home price appreciation, homeowners are seeing record levels of equity today. That may be one reason why so many people view owning a home as a great investment and a top indicator of financial well-being. As the survey from Bankrate mentioned above shows:
“. . . Americans place a higher value on homeownership than on any other indicator of economic stability, . . .”
Owning a home ranks above other major accomplishments like retirement, having a successful career, and getting a college degree. That indicates just how impactful the financial benefits of homeownership truly are.
The Emotional Benefits of Owning a Home Are Powerful
Of course, homeownership is more than an investment. In their list of top reasons to buy a home, NAR also highlights some of the powerful, non-financial aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs. As they say:
“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”
Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place longer than a few years, you can grow closer to your community. And that can enhance your sense of pride and lead to better relationships.
What Does That Mean for You?
The benefits of homeownership are powerful, as Leslie Rouda Smith, President of NAR, says:
“From building personal wealth and fostering communities, to strengthening social stability and driving the national economy, the value of homeownership is indisputable.”
Even if you face challenges in today’s market, the payoff when you succeed and purchase a home will be worth it.
Bottom Line
If you’re planning to buy a home this year, there are incredible benefits waiting for you at the end of your journey. Let’s connect to discuss everything homeownership has to offer.
2022-05-02T08:15:00-07:002022-05-02T03:54:21-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:198392022 Denver Real Estate Market Update | Jason Carlisle with DT Properties Co
<iframe width="560" height="315" src="https://www.youtube.com/embed/MfLuFFuHtGE" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Hey, how's it going? It's Jason Carlisle with eXp Realty right here in my hometown Golden, Colorado.
We did see over the last year that single-family homes just increased on average by over a hundred thousand. So if you would've purchased a home a year ago today it would be give or take worth about a hundred thousand more. A lot of the experts are saying it's just gonna happen again.
So it's not that there are necessarily few homes on the market. In fact, there are a lot of homes going on the market, the thing is that there are just a lot of buyers and that’s making the homes go faster.
Now, more than ever, you have to get into the cycle and be ready to move quickly. The listing agents, when we list homes, we're going to hit the market on maybe Wednesday, Thursday, maybe Friday, and hope to, you know, have that particular home off of the market by Sunday night. So you really need to be looking Wednesday, Friday, showings and coming right back Friday or Saturday with an offer.
Most homes are not going through the weekend, and if they are, we’re seeing price decreases.
I just checked this morning in the last seven days, there were over 200 homes that had price decreases where obviously they came in too high and didn't get maybe any offers, or enough offers that were, were acceptable to the sellers. So they've had some price decreases.
If you’re looking over about a million, 1.5 million, it is taking a little bit longer, but not much longer.
So the inventory, at least historically typically really starts to ramp up in Marcy, April, and May. And we're not just talking by a couple hundred, we're talking by more than doubling and tripling. So the good news is if you are a buyer, this is time to get everything lined up. If your financing is ready if you’re fully underwritten it’s time to move.
There's been over a thousand homes hitting the market here in the Metro Denver area, and it’s time to get yourself one.
If you like this content you know, if you have any questions for me, definitely let me know. I'm born and raised in the Denver Metro Area and I know all of the great places, the up and coming, you know, areas that we think might be of great value to live in.
This is Jason Carlisle here, a native Denver realtor, and I'm here to help. 2022-04-25T08:15:00-07:002024-02-19T14:00:46-07:00Jason Carlisletag:dtpropertiesco.com,2012-09-20:19729 On the Fence of Whether or Not To Move This Spring? Consider This.If you’re thinking of selling your house, it may be because you’ve heard prices are rising, listings are going fast, and sellers are getting multiple offers on their homes. But why are conditions so good for sellers today? And what can you expect when you move? To help answer both of those questions, let’s turn to the data.
Today, there are far more buyers looking for homes than sellers listing their houses. Here are the maps of the latest buyer and seller traffic from the National Association of Realtors (NAR) to help paint the picture of what this looks like;
<img src="https://assets.site-static.com/userfiles/1828/image/buyerandsellertraffic.png" width="1000" height="563" />
Notice how much darker the blues are on the left. This shows buyer traffic is strong today. In contrast, the much lighter blues on the right indicate weak or very weak seller traffic. In a nutshell, the demand for homes is significantly greater than what’s available to purchase.
What That Means for You
You have an incredible advantage when you sell your house under these conditions. Since buyer demand is so high at a time when seller traffic is so low, there’s a good chance buyers will be competing for your house.
According to NAR, in February, the average home sold got 4.8 offers. When buyers have to compete with one another like this, they’ll do everything they can to make their offer stand out. This could play to your favor and mean you’ll see things like waived contingencies, offers over asking price, earnest money deposits, and more. Selling when demand is high and supply is low sets you up for a big win.
If you’re also looking to buy a house, you may be tempted to focus more on just the seller traffic map and wonder if it means you’ll have trouble finding your next home. But remember this: perspective is key. As Danielle Hale, Chief Economist at realtor.com, says:
“The limited number of homes for sale is a lesson in perspective. This same stat that frustrates would-be homebuyers also means that today’s home sellers enjoy more limited competition than last year’s home sellers.”
If you look at the big picture, the opportunity you have as a seller today is unprecedented. Last year was a hot sellers’ market. This year, inventory is even lower, and that means an even bigger opportunity for you. Even though finding your next home in a market with low inventory can be challenging, is that concern worth passing on some of the best conditions sellers have ever seen?
As added peace of mind, remember real estate professionals have been juggling this imbalance of supply and demand for nearly two years, and they know how to help both buyers and sellers find success when they move. A skilled agent can help you capitalize on the great opportunity you have as a seller today and guide you through the buying process until you find the perfect place to call your next home.
Bottom Line
If you’re ready to move, you have an incredible opportunity in front of you today. Trust the experts. Let’s connect so you have expertise on your side that can help you win when you sell and when you buy.2022-04-18T08:15:00-07:002022-04-18T03:42:05-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:19527Sterling Ranch Model Home Tour
This week, we're taking a tour of a Sterling Ranch Model Home with DT Properties Realtor Rebecca Seedorf. Sterling Ranch is a community in and governed by Douglas County Colorado. Twenty miles south of Denver, Sterling Ranch is an idyllic valley at the gateway to the Front Range.
One of the really smart designs that I love that Lennar does is the entrance into the main area of the house. Coming in from the garage, you land right in the mudroom, and then you continue on into your utility room. Your utility room connects to your master closet. The master bathroom offers a full huge shower, double sinks, and takes you directly into your master suite.
This is such a beautiful model home with Richmond American homes here in Sterling Ranch in Littleton Colorado. This is a great opportunity to really talk about some extra additions you can make. Even in your older home, you could remodel and enhance the value of your home.
First and foremost, kitchens and bathrooms are where your money is safely put into renovating your home. After that, if you have an unfinished basement, you can potentially turn it into an additional family room or an entertainment area. That is another great investment of resources that definitely adds value to your home.
- Rebecca Seedorf2022-04-04T09:00:00-07:002022-04-01T12:59:57-07:00Rebecca Seedorftag:dtpropertiesco.com,2012-09-20:19350370 Letters with Catlin Hill
Hello everyone in Colorado.
Making an Impact
In 2022, we have limited options when it comes to reaching out to potential sellers.
Community Outreach
That's why our team is sending out 370 letters to a neighborhood to find that needle in a haystack client.
If you want to work with a real estate team that will go above and beyond for you, give me a call at (303) 653-8164.
- Catlin Hill2022-03-28T08:00:00-07:002022-03-24T09:52:35-07:00Catlin Hilltag:dtpropertiesco.com,2012-09-20:18686What is the Home Inspection Process Like? | DT Properties in Littleton, CO<br />Today, we're talking about the importance of getting a home inspection. It's kind of a controversial topic. There are a lot of buyers, given our market, that are waving those, doing a pass-fail. What does that actually mean?
That's what we're gonna discuss today.
One of the most important parts of the home buying process is inspection. The inspection's going to bring in a third party, unbiased expert to tell you if you're making a good decision or a bad decision.
They're not one to tell you what you should do, but they're gonna point out all the flaws in the house that you're gonna see.
-There are multiple types of home inspections and multiple steps to the process, but here are a few things we're going to focus on in today's podcast.
Visual Home Inspection
Infrared Gun Inspection
Sewer Scope
So you're seeing a lot of things these days because it is a competitive market, where buyers are saying they will buy the house as-is. That's an okay idea. It's basically a pass/fail type of scenario, but I would never, ever recommend waving the inspection altogether. You do need a third party, unbiased opinion, expert, somebody that knows what they're talking about, helping you through the process.
One common thing to do is you can do a pass, fail type of inspection in the offer. We'll craft it and negotiate it, that you will be able to get an inspection and you'll be able to terminate the deal if you're uncomfortable with it. But you're not gonna ask for any repairs.
This is sometimes a competitive advantage for you as the buyer, giving the seller the peace of mind that you're not gonna ask for anything, but it also supports you - you go into the transaction knowing that you can get out of the deal and get your earnest money back.
It's somewhat of a win-win and in a competitive situation, oftentimes that's, what's gonna make the difference. There are so many different components to buying a home, but getting what you think you're getting is so important.
Honestly, inspections are probably the most important part of the actual physical home buying process. You need an expert to show you exactly what you're buying.<br /><br />
Check out this week's video to understand the types of home inspection, the reason you need a home inspection, and for more information on crafting an offer that gets you that inspection, but still stands out to buyers.
2022-03-14T08:15:00-07:002022-03-14T04:52:29-07:00Brigitte Bentulantag:dtpropertiesco.com,2012-09-20:14577What Do Experts See on the Horizon for the Second Half of the Year?As we move into the latter half of the year, questions about what’s to come are top of mind for buyers and sellers. Near record-low mortgage rates coupled with rising home price appreciation kicked off a robust housing market in the first half of 2021, but what does the forecast tell us about what’s on the horizon?
Mortgage Rates Will Likely Increase, but Remain Low
Many experts are projecting a rise in interest rates. The latest Quarterly Forecast from Freddie Mac <a href="http://www.freddiemac.com/research/forecast/20210414_quarterly_economic_forecast.page" title="states" target="_blank" rel="noopener noreferrer">states</a>:
“We forecast that mortgage rates will continue to rise through the end of next year. We estimate the 30-year fixed mortgage rate will average 3.4% in the fourth quarter of 2021, rising to 3.8% in the fourth quarter of 2022.”
However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below <a href="https://www.mykcm.com/2021/03/09/how-upset-should-you-be-about-3-mortgage-rates/" title="historical averages">historical averages</a>. Rates remaining low is good news for homebuyers who are looking to maximize their <a href="https://www.mykcm.com/2021/03/30/how-a-change-in-mortgage-rate-impacts-your-homebuying-budget" title="purchasing power">purchasing power</a>. The same report from Freddie Mac goes on to say:
“While higher mortgage rates will help slow the pace of home sales and moderate house price growth, we expect overall housing market activity will remain robust. Our forecast has total home sales, the sum of new and existing home sales, at 7.1 million in 2021….”
Home Price Appreciation Will Continue, but Price Growth Will Likely Slow
Joe Seydl, Senior Markets Economist at J.P. Morgan, <a href="https://privatebank.jpmorgan.com/gl/en/insights/living/do-you-want-to-jump-into-the-us-housing-market" title="projects" target="_blank" rel="noopener noreferrer">projects</a> home prices to continue rising as well, indicating buyers interested in purchasing a home should do so sooner rather than later. Waiting for rates or home prices to fall may not be wise:
“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”
Other experts remain optimistic about home prices, too. The graph below highlights 2021 home price forecasts from multiple industry leaders:<br /><a href="https://files.mykcm.com/2021/06/29150315/20210630-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-98423" src="https://files.mykcm.com/2021/06/29150315/20210630-MEM-Eng-1.png" alt="What Do Experts See on the Horizon for the Second Half of the Year? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/06/29150315/20210630-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/06/29150315/20210630-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/06/29150315/20210630-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/06/29150315/20210630-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Inventory Remains a Challenge, but There’s Reason To Be Optimistic
Home prices are rising, but they should moderate as more housing inventory comes to market. George Ratiu, Senior Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-june-19-2021/" title="notes" target="_blank" rel="noopener noreferrer">notes</a> there are signs that we may see the current inventory challenges lessen, slowing the fast-paced home price appreciation and creating more choices for buyers:
“We have seen more new listings this year compared with 2020 in 11 of the last 13 weeks. The influx of new sellers over the last couple of months has been especially helpful in slowing price gains.”
New home starts are also showing signs of improvement, which further bolsters hopes of more options coming to market. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="https://eyeonhousing.org/2021/06/single-family-starts-steady-in-may/" title="writes" target="_blank" rel="noopener noreferrer">writes</a>:
“As an indicator of the economic impact of housing, there are now 652,000 single-family homes under construction. This is 28% higher than a year ago.”
Finally, while it may not fundamentally change the market conditions we’re currently experiencing, another reason to be optimistic more homes might come to market: our improving economy. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-housing-market-potential-strengthened-in-april" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“A growing economy in the summer months has multiple implications for the housing market. Growing consumer confidence, a stronger labor market, and higher wages bode well for housing demand. While a growing economy and improving public health conditions may also spur hesitant existing owners to list their homes for sale, it’s unlikely to significantly ease the super sellers’ market conditions.”
Bottom Line
As we look at the forecast for prices, interest rates, inventory, and home sales, experts remain optimistic about what’s on the horizon for the second half of 2021. Let’s connect today to discuss how we can navigate the market together in the coming months.2021-06-30T10:56:00-07:002021-06-30T10:58:20-07:00Dan Turretag:dtpropertiesco.com,2012-09-20:11340 Will the Housing Market Maintain Its Momentum?
<article id="post-97912" class="post-97912 post type-post status-publish format-standard has-post-thumbnail hentry category-buyers category-housing-market-updates category-new-construction">
Last week’s <a href="https://www.nar.realtor/newsroom/housing-market-reaches-record-high-home-price-and-gains-in-march" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from the National Association of Realtors (NAR) shows sales have dropped by 3.7% compared to the month before. This is the second consecutive month that sales have slumped. Some see this as evidence that the red-hot real estate market may be cooling. However, there could also be a simple explanation as to why existing home sales have slowed – there aren’t enough homes to buy. There are currently <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-03-2021-single-family-only-2021-04-22.pdf" title="410,000" target="_blank" rel="noopener noreferrer">410,000</a> fewer single-family homes available for sale than there were at this time last year.
Lawrence Yun, Chief Economist at NAR, explains in the report:
“The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”
Yun’s insight was supported the next day when the Census Bureau released its <a href="https://www.census.gov/construction/nrs/pdf/newressales.pdf" title="Monthly New Residential Sales Report" target="_blank" rel="noopener noreferrer">Monthly New Residential Sales Report</a>. It shows that newly constructed home sales are up 20.7% over the previous month.
Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing-home inventory is expected to grow in the coming months.
What will this mean for home sales going forward?
<a href="https://www.fanniemae.com/media/38961/display" title="Fannie Mae" target="_blank" rel="noopener noreferrer">Fannie Mae</a>, <a href="http://www.freddiemac.com/research/forecast/20210414_quarterly_economic_forecast.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>, and the <a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary" title="Mortgage Bankers Association" target="_blank" rel="noopener noreferrer">Mortgage Bankers Association</a> (MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next. Here’s a graph showing those projections:<a href="https://files.mykcm.com/2021/04/26121934/20210427-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-97918" src="https://files.mykcm.com/2021/04/26121934/20210427-MEM-Eng-1.png" alt="Will the Housing Market Maintain Its Momentum? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/04/26121934/20210427-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/04/26121934/20210427-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/04/26121934/20210427-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/04/26121934/20210427-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Bottom Line
Living through a pandemic has caused many to re-evaluate the importance of a home and the value of homeownership. The residential real estate market will benefit from both as we move forward.
</article>
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2021-04-28T08:12:00-07:002021-04-28T08:17:39-07:00Dan Turre