Temecula Real Estate BlogRecently posted or modified blog postshttps://www.hankgreer.com/blog/Copyright HankGreer.com2024-03-14T13:54:49-07:00tag:hankgreer.com,2012-09-20:33485The Spring Market Is a Sweet Spot if You’re Looking To Sell [INFOGRAPHIC]
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240307/The-Spring-Market-Is-a-Swet-Spot-for-Homeowners-Looking-to-Sell-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240307/The-Spring-Market-Is-a-Swet-Spot-for-Homeowners-Looking-to-Sell-MEM.png" alt="a screenshot of a phone" /></a>
Some Highlights
Wondering if now’s a good time to <a href="https://www.mykcm.com/2024/03/06/why-access-is-so-important-when-selling-your-house/" rel="noopener noreferrer" target="_blank">sell your house</a>? Based on <a href="https://www.realtor.com/research/january-2024-data/" rel="noopener noreferrer" target="_blank">how many homes</a> are on the market, there are two big reasons why this spring is looking so <a href="https://www.mykcm.com/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">good for sellers</a>.
Thanks to an uptick in inventory over last year, you’ve got more options for your <a href="https://www.mykcm.com/2024/02/08/home-equity-can-be-a-game-changer-when-you-sell/" rel="noopener noreferrer" target="_blank">next home</a>. But there are still fewer homes for sale than there’d normally be, meaning your house should stand out and get a lot of attention from buyers.
If you want to <a href="https://www.mykcm.com/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/" rel="noopener noreferrer" target="_blank">sell your house</a>, this spring is the <a href="https://www.calculatedriskblog.com/2024/03/housing-march-4th-weekly-update.html" rel="noopener noreferrer" target="_blank">sweet spot</a>. When you’re ready, <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">let’s chat</a> to get the <a href="https://www.mykcm.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">ball rolling</a>.
2024-03-14T13:54:02-07:002024-03-14T13:54:49-07:00Hank Greertag:hankgreer.com,2012-09-20:33453What Mortgage Rate Do You Need To Move?<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-What-Mortgage-Rate-Do-You-Need-To-Move.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’ve been thinking about <a href="https://www.mykcm.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">buying a home</a>, mortgage rates are probably top of mind for you. They may even be why you’ve put your plans on hold for now. When <a href="https://www.mykcm.com/2024/02/12/whats-really-happening-with-mortgage-rates/" rel="noopener noreferrer" target="_blank">rates</a> climbed <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">near 8%</a> last year, some buyers found <a href="https://www.mykcm.com/2024/02/23/how-changing-mortgage-rates-impact-you-infographic/" rel="noopener noreferrer" target="_blank">the numbers</a> just didn’t make sense for their <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">budget</a> anymore. That may be the case for you too.
<a href="https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024" rel="noopener noreferrer" target="_blank">Data</a> from Bright MLS shows the top reason buyers delayed their plans to move is due to high mortgage rates (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" alt="a graph of blue rectangles with text" /></a>
David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent <a href="https://www.youtube.com/watch?v=wD0su_jp9lk" rel="noopener noreferrer" target="_blank">How’s The Market</a> podcast:
“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”
That’s because <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down off their peak last October. And while there’s still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates <a href="https://www.mykcm.com/2024/02/21/some-experts-say-mortgage-rates-may-fall-below-6-later-this-year/" rel="noopener noreferrer" target="_blank">below 6%</a> by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from Realtor.com <a href="https://mediaroom.realtor.com/2024-02-21-Americans-Hold-on-to-the-Dream-of-Homeownership" rel="noopener noreferrer" target="_blank">says</a>:
“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead. If your plans were delayed, there’s light at the end of the tunnel again. That means it may be time to start thinking about your move. The best question you can ask yourself right now, is this:
What number do I want to see rates hit before I’m ready to move?
The exact <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">percentage</a> where you feel comfortable kicking off your search again is personal. Maybe it’s 6.5%. Maybe it’s 6.25%. Or maybe it’s once they drop below 6%.
Once you have that number in mind, here’s what you do. Connect with a local <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">real estate professional</a>. They’ll help you stay informed on what’s happening. And when rates hit your target, they’ll be the first to let you know.
Bottom Line
If you’ve put your plans to move on hold because of where mortgage rates are, think about the number you want to see rates hit that would make you ready to re-enter the market.
Once you have that number in mind, let’s connect so you have someone on your side to let you know when we get there.
2024-03-13T14:09:01-07:002024-03-13T14:12:00-07:00Hank Greertag:hankgreer.com,2012-09-20:33298Why There Won’t Be a Recession That Tanks the Housing Market<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Why-There-Won-t-Be-a-Recession-That-Tanks-the-Housing-Market.png" alt="" class="img-thumbnail mx-auto d-block" />
There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.
<a href="https://www.builderonline.com/data-analysis/how-the-election-and-unemployment-could-impact-the-2024-housing-market_c" rel="noopener noreferrer" target="_blank">According</a> to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:
“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”
That might be why a <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">recent survey</a> from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" alt="a graph of the economic growth of the economy" /></a>
Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from <a href="https://www.macrotrends.net/countries/USA/united-states/unemployment-rate" rel="noopener noreferrer" target="_blank">Macrotrends</a>, the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">Bureau of Labor Statistics</a> (BLS), and <a href="https://tradingeconomics.com/united-states/unemployment-rate#:~:text=Unemployment%20Rate%20in%20the%20United,percent%20in%20May%20of%201953." rel="noopener noreferrer" target="_blank">Trading Economics</a>. When we do, it’s clear the unemployment rate today is still very low (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" alt="a graph of a graph showing the number of employment rate" /></a>
The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).
But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">survey</a> to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" alt="a graph of blue bars" /></a>
As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.
Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?
Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn't expect a wave of foreclosures that would impact the housing market in a big way.
Bottom Line
Most experts now think we won't have a recession in the next year. They also don't expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.
2024-03-06T11:26:32-07:002024-03-06T11:27:34-07:00Hank Greertag:hankgreer.com,2012-09-20:33188Expert Home Price Forecasts for 2024 Revised Up<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240220/Header-Image-20220524-Blog.png" alt="" class="img-thumbnail mx-auto d-block" />
Over the past few months, experts have revised their 2024 home price <a href="https://www.mykcm.com/2024/01/23/experts-project-home-prices-will-increase-in-2024/" rel="noopener noreferrer" target="_blank">forecasts</a> based on the latest data and market signals, and they’re even more confident prices will rise, not fall.
So, let’s see exactly how experts’ thinking has shifted – and what’s caused the change.
2024 Home Price Forecasts: Then and Now
The chart below <a href="https://www.goldmansachs.com/intelligence/pages/us-home-prices-forecast-to-climb-as-mortgage-rates-fall-in-2024.html" rel="noopener noreferrer" target="_blank">shows</a> what seven expert organizations <a href="https://www.mba.org/news-and-research/forecasts-and-commentary/mortgage-finance-forecast-archives" rel="noopener noreferrer" target="_blank">think</a> will happen to home <a href="https://www.zillow.com/research/2024-housing-predictions-33447" rel="noopener noreferrer" target="_blank">prices</a> in 2024. It compares their first 2024 home price <a href="https://www.fanniemae.com/media/50096/display" rel="noopener noreferrer" target="_blank">forecasts</a> (made at the end of 2023) with their newest <a href="https://www.freddiemac.com/research/forecast/20240122-us-economy-continues-expand" rel="noopener noreferrer" target="_blank">projections</a>:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240220/20240222-2024-Home-Price-Forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240220/20240222-2024-Home-Price-Forecasts.png" alt="a blue and white graph with text" /></a>
The middle column shows that, at first, these <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/home-price-expectations-survey-hpes" rel="noopener noreferrer" target="_blank">experts</a> thought home prices would only go up a little this year. But if you look at the column on the right, you'll see they've all updated their <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q1-2024-us-economic-outlook-01-26-2024.pdf" rel="noopener noreferrer" target="_blank">forecasts</a> and now think prices will go up more than they originally thought. And some of the differences are major.
There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. <a href="https://www.businessinsider.com/personal-finance/housing-market-predictions-2024" rel="noopener noreferrer" target="_blank">According</a> to Business Insider:
“Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”
A lack of housing inventory has been pushing <a href="https://www.mykcm.com/2024/02/15/dont-let-the-latest-home-price-headlines-confuse-you/" rel="noopener noreferrer" target="_blank">prices</a> up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is <a href="https://www.mykcm.com/2024/02/12/whats-really-happening-with-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
Late last year when most housing market experts were calling for home prices to rise only a little bit in 2024, <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> were up and buyer demand was more moderate.
Now that rates have come down from their peak last October, and with <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">further declines</a> expected over the course of the year, buyer demand has picked up. That increase in demand, along with an ongoing lack of inventory, is what’s caused the experts to feel the upward pressure on prices will be stronger than they expected a couple months ago.
A Look Forward To Get Ahead of the Next Forecast Revisions
Real estate experts regularly revise their home price forecasts as the housing market shifts. It’s a normal part of their job that ensures their projections are always up-to-date and factor in the latest changes in the housing market.
That means they’ll continue to revise their projections as the housing market changes, just as they’ve always done. How those forecasts change next is anyone’s guess, but pay attention to <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
If they trend down as the year goes on, as they’re expected to do, that could lead to more buyer demand and even higher home price forecasts.
Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.
Bottom Line
At first, experts believed <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> would only go up a little this year. But now, they've changed their minds and forecast prices will grow even more than they originally thought. Let’s connect so you know what to expect with prices in our area.
2024-02-28T16:01:48-07:002024-02-28T16:02:49-07:00Hank Greertag:hankgreer.com,2012-09-20:32906What’s Really Happening with Mortgage Rates?<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-Whats-really-happening-with-mortgage-rates.png" alt="" class="img-thumbnail mx-auto d-block" />
Are you feeling a bit unsure about what’s really happening with <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">mortgage rates</a>? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.
The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
<a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">Mortgage rates</a> don’t move in a straight line. There are too <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">many factors</a> at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.
Take a look at the graph below. It uses <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" rel="noopener noreferrer" target="_blank">data</a> from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" /></a>
If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.
For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have <a href="https://www.mykcm.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/" rel="noopener noreferrer" target="_blank">trended down</a>. So, what’s the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point (October) compared to where rates are now, you can see they’ve <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">come down</a> compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">continue this year</a>.
Bottom Line
Let’s connect if you have any questions about what you’re reading or hearing about the housing market.
2024-02-14T14:53:54-07:002024-02-14T14:55:18-07:00Hank Greertag:hankgreer.com,2012-09-20:32738Houses Are Still Selling Fast
Houses Are Still Selling Fast
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Houses-Are-Still-Selling-Fast.png" alt="" class="img-thumbnail mx-auto d-block" />
Have you been thinking about <a href="https://www.mykcm.com/2024/02/01/dont-wait-until-spring-to-sell-your-house/" rel="noopener noreferrer" target="_blank">selling your house</a>? If so, here’s some good news. While the housing market isn't as frenzied as it was during the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> when houses were selling quicker than ever, they’re still selling faster than normal.
The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes are selling compared to more normal years:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Homes-Spent-Less-Time-on-Market.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Homes-Spent-Less-Time-on-Market.png" /></a>
When you look at the most recent data (shown in green), it's clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). <a href="https://www.realtor.com/research/january-2024-data/" rel="noopener noreferrer" target="_blank">According</a> to Realtor.com:
“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”
What Does This Mean for You?
Homes are <a href="https://www.mykcm.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">selling faster</a> than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down, but there still aren’t <a href="https://www.mykcm.com/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/" rel="noopener noreferrer" target="_blank">enough homes</a> to go around. Mike Simonsen, Founder of Altos Research, <a href="https://www.housingwire.com/articles/the-strong-spring-real-estate-market-will-surprise-you-altos/" rel="noopener noreferrer" target="_blank">says</a>:
“. . . 2024 is starting stronger than last year. And demand is increasing each week.”
Bottom Line
If you’re wondering if it’s a good time to <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">sell your home</a>, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the <a href="https://www.mykcm.com/2024/01/29/will-a-silver-tsunami-change-the-2024-housing-market/" rel="noopener noreferrer" target="_blank">latest updates</a> on what’s happening in our local market, let’s connect.
2024-02-07T11:17:07-07:002024-02-07T11:58:47-07:00Hank Greertag:hankgreer.com,2012-09-20:32541Experts Project Home Prices Will Increase in 2024<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-Experts-Project-Home-Prices-Will-Increase-in-2024.png" alt="" class="img-thumbnail mx-auto d-block" />
Even though home prices are going up nationally, some people are still worried they might come down. In fact, a recent <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" rel="noopener noreferrer" target="_blank">survey</a> from Fannie Mae found that 24% of people think home prices will actually decline over the next 12 months. That means almost one out of every four people are dealing with that fear, and you might be, too.
To help ease that concern, here's what experts forecast will happen with prices this year.
Experts Project a Modest Increase
Check out the latest <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">home price</a> forecasts from eight different sources (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-2024-Home-Price-Forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-2024-Home-Price-Forecasts.png" /></a>
The blue bar on the left means, on average, <a href="https://img03.en25.com/Web/MortgageBankersAssociation/%7Ba8f4bf3d-95ec-42be-9c8d-3eb49e52f553%7D_Mortgage_Finance_Forecast_Jan_2024.pdf" rel="noopener noreferrer" target="_blank">experts</a> think <a href="https://www.zillow.com/research/2024-housing-predictions-33447/" rel="noopener noreferrer" target="_blank">home prices</a> will go up over 2% by the end of this year – not down.
<a href="https://www.freddiemac.com/research/forecast/20231220-us-economy-expanded-in-2023" rel="noopener noreferrer" target="_blank">Prices</a> aren’t likely to depreciate in 2024 because <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">inventory</a> is still tight and lower <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are leading to strong <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">buyer demand</a>. Those two factors will keep pushing <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q4-2023-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">prices</a> up as the year goes on. As Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.cnn.com/2023/12/26/business/us-home-prices-record-high-october/index.html" rel="noopener noreferrer" target="_blank">explains</a>:
“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”
What Does This Mean for You?
Experts are saying <a href="https://twitter.com/NewsLambert/status/1730642488346472787" rel="noopener noreferrer" target="_blank">home prices</a> will go up this year, and that's good news if you're <a href="https://www.mykcm.com/2024/01/03/thinking-about-buying-a-home-ask-yourself-these-questions/" rel="noopener noreferrer" target="_blank">thinking</a> about <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">buying a home</a>. When you become a <a href="https://www.mykcm.com/2024/01/15/homeownership-is-still-at-the-heart-of-the-american-dream/" rel="noopener noreferrer" target="_blank">homeowner</a>, you want the <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q4-2023-us-economic-outlook-10-26-2023.pdf" rel="noopener noreferrer" target="_blank">value</a> of your house to <a href="https://www.mykcm.com/2024/01/11/the-dramatic-impact-of-homeownership-on-net-worth/" rel="noopener noreferrer" target="_blank">go up</a>. That appreciation is what builds <a href="https://www.mykcm.com/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/" rel="noopener noreferrer" target="_blank">equity</a> and makes homeownership such a good investment over time.
Beyond that, expected home price appreciation also means if you’re ready, willing, and able to <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy</a>, waiting just means it will cost more later.
Bottom Line
If you're worried home prices will come down, don’t be. Many experts believe they’ll actually go up this year. If you have questions or worries about what’s happening with prices in our area, let’s connect.
2024-01-25T17:12:53-07:002024-01-25T17:14:09-07:00Hank Greertag:hankgreer.com,2012-09-20:31952Why Now Is Still a Great Time To Sell Your House<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Why-Now-Is-Still-a-Great-Time-To-Sell-Your-House.png" alt="" class="img-thumbnail mx-auto d-block" />
If you were worried <a href="https://www.mykcm.com/2023/11/13/life-changing-events-that-move-the-housing-market/" rel="noopener noreferrer" target="_blank">buyer demand</a> disappeared when mortgage rates went up, the data shows there are plenty of <a href="https://www.mykcm.com/2023/12/01/3-reasons-to-sell-your-house-before-the-new-year-infographic/" rel="noopener noreferrer" target="_blank">interested buyers</a> still out there. The <a href="https://www.mykcm.com/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">housing market</a> isn't as frenzied as it was during the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> when buyer demand was through the roof, mortgage rates were historically low, and home values rose like we’ve never seen before. But that doesn’t mean the market is at a standstill.
Nationally, demand is still high compared to the last normal years in the housing market and plenty of buyers are making moves right now. Here’s the data to prove it.
Showing Traffic Is Up
The <a href="https://www.showingtime.com/showingtime-showing-index/" rel="noopener noreferrer" target="_blank">ShowingTime Showing Index</a> is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity over the past eight Octobers:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Showing-Traffic-Above-Pre-Unicorn-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Showing-Traffic-Above-Pre-Unicorn-Years.png" /></a>
In the graph, the ‘unicorn’ years are shown in pink. You can see demand has dipped some since then. That’s in response to higher mortgage rates. But, when you compare 2023 to the blue bars on the left that represent the last normal years in the market (2018-2019), you can tell <a href="https://www.mykcm.com/2023/11/20/is-your-house-the-top-thing-on-a-buyers-wish-list-this-holiday-season/" rel="noopener noreferrer" target="_blank">buyers</a> are still more active than the norm.
But showing traffic isn’t the only way to see <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">buyer demand</a> is still high. The number of offers other sellers are getting and the average days homes are on the market tell the same story.
Sellers Are Still Seeing Multiple Offers
According to the latest <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">data</a> from the National Association of Realtors (NAR), sellers are receiving an average of <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-10-realtors-confidence-index-11-21-2023.pdf" rel="noopener noreferrer" target="_blank">2.5 offers</a> on their houses. Let’s look at how that compares to recent years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Average-Number-of-Offers-Still-Higher-Than-Pre-Unicorn-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Average-Number-of-Offers-Still-Higher-Than-Pre-Unicorn-Years.png" /></a>
It’s true that’s fewer than the number of offers sellers were receiving during the ‘unicorn’ years (shown in pink). But compared to last year, the number is up slightly. And it’s higher than it was in the more normal, pre-‘unicorn’ years in the housing market too.
Homes Priced Right Are Selling Fast
And it’s not just that sellers are still typically getting multiple offers more than the norm, they’re also seeing their homes sell fast. That’s a direct result of strong buyer demand. According to <a href="https://zillow.mediaroom.com/2023-11-13-Buyer-demand-hanging-tough,-despite-rates-and-seasonal-cooldown" rel="noopener noreferrer" target="_blank">Zillow</a>:
“. . . low inventory levels are spurring surprisingly strong competition . . . demand has remained resilient, and attractive, appropriately priced listings are moving quickly.”
To help showcase that homes for sale are still going quickly, let’s look at <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">data</a> from NAR on the median days on market for this same time of year from 2018 through now (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Median-Days-On-The-Market-Fewer-Than-Pre-Unicorn-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231212/20231218-Median-Days-On-The-Market-Fewer-Than-Pre-Unicorn-Years.png" /></a>
As the graph shows, this year homes are sitting on the market only slightly longer than they were during the frenzy of the ‘unicorn’ years. And compared to the last normal years in the market, homes are still selling much faster than they did back then. That’s good news for sellers because it means there are eager buyers out there right now.
Bottom Line
You haven't missed your chance to sell at a time when sellers are receiving multiple offers, and homes are selling fast. When you’re ready to sell your house, let’s connect to get the ball rolling.
2023-12-19T17:10:38-07:002023-12-19T17:11:39-07:00Hank Greertag:hankgreer.com,2012-09-20:31828How To Turn Homeownership into a Side Hustle<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-How-to-Turn-Homeownership-into-a-Side-Hustle.png" alt="" class="img-thumbnail mx-auto d-block" />
Does the rising cost of just about everything these days make your dream of owning your own home feel less within reach? <a href="https://www.bankrate.com/personal-finance/side-hustle-survey/#millennial-gen-z" rel="noopener noreferrer" target="_blank">According</a> to Bankrate, many people are seeking additional income through side hustles, possibly to cope with those increasing expenses and save for a home. This trend is particularly popular with younger individuals who may be dealing with student loan debt (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Nearly-two-in-five-US-adults-have-a-side-hustle.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Nearly-two-in-five-US-adults-have-a-side-hustle.png" /></a>
Here are two strategies that can not only make <a href="https://www.mykcm.com/2023/11/23/why-homeowners-are-thankful-they-own/" rel="noopener noreferrer" target="_blank">homeownership</a> more affordable in the short term, but turn it into a lucrative side hustle that can pay off down the road.
Transforming the Challenge of a Fixer-Upper into an Opportunity
One thing you could do to help you break into homeownership is consider purchasing a fixer-upper. That’s a <a href="https://www.mykcm.com/2023/11/21/are-there-actually-more-homes-for-sale-right-now/" rel="noopener noreferrer" target="_blank">home</a> that may be a bit less appealing and as a result has lingered on the market longer than normal. <a href="https://realestate.usnews.com/real-estate/articles/buying-a-fixer-upper-everything-you-need-to-know" rel="noopener noreferrer" target="_blank">According</a> to a recent article from U.S. News:
“The current state of the housing market may have you expanding your options to try to find a home that you can afford. A fixer-upper that needs some updating and a little love can feel like a welcome alternative to move-in ready houses that go off the market before you can even take a tour.”
By opting for a home that requires some work, you may see two big benefits. For starters, you may find it’s easier to find a home because you’re not looking for that perfect option. Plus, it may also help you enter the housing market at a lower <a href="https://www.mykcm.com/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/" rel="noopener noreferrer" target="_blank">price point</a>. This strategy provides a more affordable way to <a href="https://www.mykcm.com/2023/11/08/thinking-about-using-your-401k-to-buy-a-home/" rel="noopener noreferrer" target="_blank">become a homeowner</a> while also offering the potential for future profits.
Yes, the home may need a little elbow grease, but investing time and effort into gradually enhancing your house not only makes it a home but also increases its future market value. So, while you enjoy the satisfaction of turning a house into a home, you're also <a href="https://www.mykcm.com/2023/11/07/homeowner-net-worth-has-skyrocketed/" rel="noopener noreferrer" target="_blank">building equity</a> that can be unlocked when it's time to sell.
Renting Out a Portion of Your Home To Make It More Affordable
Another savvy strategy is to <a href="https://www.mykcm.com/2023/11/03/the-benefits-of-buying-a-multi-generational-home-infographic/" rel="noopener noreferrer" target="_blank">purchase a home</a> with the upfront intention of renting out a portion of it. <a href="https://zillow.mediaroom.com/2023-11-16-Interest-in-house-hacking-explodes-among-Millennial-and-Gen-Z-home-buyers-seeking-extra-income" rel="noopener noreferrer" target="_blank">According</a> to a recent press release from Zillow, renting out a part of their home is already very important for most young homebuyers (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Percent-of-buyers-who-find-it-very-or-extremely-important.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231204/20231206-Percent-of-buyers-who-find-it-very-or-extremely-important.png" /></a>
This approach serves a strong purpose. As Manny Garcia, Senior Population Scientist at Zillow, <a href="https://zillow.mediaroom.com/2023-11-16-Interest-in-house-hacking-explodes-among-Millennial-and-Gen-Z-home-buyers-seeking-extra-income" rel="noopener noreferrer" target="_blank">says</a>:
“For those first-time buyers navigating the ‘side hustle culture,’ where a regular 9-to-5 might not quite cut it for homeownership dreams, rental income can step in to help . . .”
Basically, it can help you afford your monthly mortgage payments. So if you’re open to it, renting out a portion of your home not only helps with <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">affordability</a>, but it also positions you as an investor and turns <a href="https://www.mykcm.com/2023/11/01/what-are-accessory-dwelling-units-and-how-can-they-benefit-you/" rel="noopener noreferrer" target="_blank">your home</a> into a source of income.
Bottom Line
In the face of today’s <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">affordability challenges</a>, both of these strategies offer more attainable paths to <a href="https://www.mykcm.com/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/" rel="noopener noreferrer" target="_blank">homeownership</a>, especially for younger buyers. If you want to discuss these options and see how they might play out for you in our local market, let’s connect.
2023-12-13T16:34:12-07:002023-12-13T16:35:19-07:00Hank Greertag:hankgreer.com,2012-09-20:31697Experts Project Home Prices Will Rise over the Next 5 Years
Experts Project Home Prices Will Rise over the Next 5 Years
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Experts-Project-Home-Prices-Will-Rise-over-the-next-5-years.png" alt="" class="img-thumbnail mx-auto d-block" />
Even with so much data showing <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a> are actually rising in <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">most of the country</a>, there are still a lot of people who worry there will be another price crash in the immediate future. In fact, a <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey" rel="noopener noreferrer" target="_blank">recent survey</a> from Fannie Mae shows that 23% of consumers think prices will fall over the next 12 months. That’s nearly one in four people who are dealing with that fear – maybe you’re one of them.
To help ease that concern, here’s what the <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">experts</a> say will happen with <a href="https://www.mykcm.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a> not just <a href="https://www.mykcm.com/2023/11/15/the-latest-2024-housing-market-forecast/" rel="noopener noreferrer" target="_blank">next year</a>, but over the next five years.
Experts Project Ongoing Appreciation
While seeing a small handful of <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">expert</a> opinions may not be enough to change your mind, hopefully, a larger group of experts will reassure you. Here’s that larger group.
The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES) from Pulsenomics is a great resource to show what experts forecast for home prices over a five-year period. It includes projections from over 100 economists, investment strategists, and housing market analysts. And the results from the latest quarterly release show home prices are expected to go up every year through 2027 (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-Estimated-Home-Price-Performance.png" /></a>
And while the projected increase in 2024 isn’t as large as 2023, remember <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">home price</a> appreciation is cumulative. In other words, if these experts are correct after your home’s value rises by 3.32% this year, it should go up by another 2.17% next year.
If you’re worried home prices are going to fall, here’s the big takeaway. Even though <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">prices</a> vary by local area, experts project they’ll continue to rise across the country for years to come at a pace that’s <a href="https://www.mykcm.com/2023/11/22/home-prices-still-growing-just-at-a-more-normal-pace/" rel="noopener noreferrer" target="_blank">more normal</a> for the market.
What Does This Mean for You?
If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using the expert projections from the HPES. Check out the graph below:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-71363-Home-Price-Expectation-Survey.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231128/20231205-71363-Home-Price-Expectation-Survey.png" /></a>
In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">household wealth</a> over the next five years.
Bottom Line
If you’re someone who’s worried home prices are going to fall, rest assured a lot of experts say it’s just the opposite – nationally, home prices will continue to climb not just next year, but for years to come. If you have any questions or concerns about what’s next for home prices in our local area, let’s connect.
2023-12-05T17:46:16-07:002023-12-05T17:48:00-07:00Hank Greertag:hankgreer.com,2012-09-20:31625Why the Economy Won’t Tank the Housing Market
Why the Economy Won’t Tank the Housing Market
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Why-the-Economy-Wont-crash-the-housing-market.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re worried about a coming recession, you’re not alone. Over the past couple of years, there’s been a lot of recession talk. And many people worry, if we do have one, it would cause the unemployment rate to skyrocket. Some even fear that a spike in unemployment would lead to a rash of <a href="https://www.mykcm.com/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/" rel="noopener noreferrer" target="_blank">foreclosures</a> similar to what happened 15 years ago.
However, the latest <a href="https://www.wsj.com/economy/a-recession-is-no-longer-the-consensus-3ad0c3a3" rel="noopener noreferrer" target="_blank">Economic Forecasting Survey</a> from the Wall Street Journal (WSJ) reveals that, for the first time in over a year, less than half (48%) of economists believe a recession will actually occur within the next year:
“Economists are turning optimistic on the U.S. economy . . . economists lowered the probability of a recession within the next year, from 54% on average in July to a more optimistic 48%. That is the first time they have put the probability below 50% since the middle of last year.”
If over half of the experts no longer expect a recession within the next year, you might naturally think those same experts also don’t expect the unemployment rate to jump way up – and you’d be right. The graph below uses <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">data</a> from that same WSJ survey to show exactly what the economists project for the unemployment rate over the next three years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Projections-for-the-next-3-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Projections-for-the-next-3-Years.png" /></a>
If those expert projections are correct, more people will lose their jobs in the upcoming year. And job losses of any kind are devastating for those people and their loved ones.
However, the question here is: will there be enough job losses to cause a wave of foreclosures that will crash the housing market? Based on historical context from <a href="https://www.macrotrends.net/countries/USA/united-states/unemployment-rate" rel="noopener noreferrer" target="_blank">Macrotrends</a> and the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">Bureau of Labor Statistics</a> (BLS), the answer is no. That’s because the unemployment rate is currently near all-time lows (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Rate-Near-All-Time-Lows.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231127/20231129-Unemployment-Rate-Near-All-Time-Lows.png" /></a>
As the orange bar in the graph shows, the average unemployment rate dating back to 1948 is 5.7%. The red bar shows, the last time the housing market crashed, in the immediate aftermath of the 2008 financial crisis, the average unemployment rate was up to 8.3%. Both of those bars are much higher than the unemployment rate today (shown in the blue bar).
Moving forward, projections show the unemployment rate is likely to stay beneath the 75-year average. And that means we won’t see a wave of foreclosures that would severely impact the housing market.
Bottom Line
Most economists no longer expect a recession to occur in the next 12 months. That’s why they also don’t expect a dramatic rise in the unemployment rate that would lead to a rash of foreclosures and another <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">housing market crash</a>. If you have questions about unemployment and its impact on the housing market, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let’s connect</a>.
2023-11-29T15:47:56-07:002023-11-29T15:48:59-07:00Hank Greertag:hankgreer.com,2012-09-20:31380These Top Cities Show Home Prices Are Still Climbing
These Top Cities Show Home Prices Are Still Climbing
<img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231114-Home-Prices-Keep-Climbing-in-Most-Markets.png" alt="" class="img-thumbnail mx-auto d-block" />
If you’re considering <a href="https://www.mykcm.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">buying a home</a> or selling your current one to find something that better suits <a href="https://www.mykcm.com/2023/11/13/life-changing-events-that-move-the-housing-market/" rel="noopener noreferrer" target="_blank">your needs</a>, you may have questions about what’s happening with <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a> today. Here’s what you need to know.
There’s still a lot of confusion and misinformation out there. So, no matter what you may have heard, the national <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#news-research" rel="noopener noreferrer" target="_blank">data</a> shows they've actually been climbing again (see graphs below):
<a href="https://www.mykcm.com/content/images/20231113/20231114-Percent-Change-in-Home-Values.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231114-Percent-Change-in-Home-Values.png" /></a>
As you can see, in the first half of 2022, <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx" rel="noopener noreferrer" target="_blank">home prices</a> went way up. Those increases were dramatic and unsustainable. So, in the second half of 2022, prices adjusted. Those dips were small and didn't last very long. Still, the news made a big deal about these slight declines, which may have made you worry.
But what's important to know is that, in 2023, prices are going up again, and this time it's at a more <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">normal pace</a>. The fact that all three <a href="https://www.corelogic.com/category/intelligence/reports/home-price-insights/" rel="noopener noreferrer" target="_blank">reports</a> now show more typical price increases this year is good news for the <a href="https://www.mykcm.com/2023/10/31/foreclosures-and-bankruptcies-wont-crash-the-housing-market/" rel="noopener noreferrer" target="_blank">housing market</a>.
Home Prices Are Rising Across the Top Cities in the U.S.
After seeing steady home price growth at the national level for the last several months, you may wonder if prices are going up in your local area, too. Know this: while this will vary from one area to the next, home prices are appreciating in these top cities <a href="https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-continues-to-trend-upward-in-august/" rel="noopener noreferrer" target="_blank">Case-Shiller</a> reports on in their monthly price index (see chart below):
<a href="https://www.mykcm.com/content/images/20231113/20231114-Case-Shiller-Home-Price-Movement.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231114-Case-Shiller-Home-Price-Movement.png" /></a>
That’s why so many experts are able to <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">forecast home prices</a> will end the year in the positive and continue going up in 2024.
Here’s How This Affects You
For Buyers: If you've been waiting to <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">buy a home</a> because you were concerned it might lose value, the fact that home prices are going up should ease your worries. <a href="https://www.mykcm.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/" rel="noopener noreferrer" target="_blank">Buying a home</a> before prices climb higher can be a smart move since home values typically appreciate over time.
For Sellers: If you've been postponing <a href="https://www.mykcm.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" rel="noopener noreferrer" target="_blank">selling your house</a> because you were worried about how changing home prices would affect its value, now might be a good time to work with a <a href="https://www.mykcm.com/2023/10/19/the-risks-of-selling-your-house-on-your-own/" rel="noopener noreferrer" target="_blank">real estate agent</a> to put your house on the market. You don't have to wait any longer because the data shows home prices are in your favor.
Bottom Line
If you delayed moving because you were concerned home prices would drop, don't worry – the numbers show they're going up nationally. To better understand how home prices are changing in your local area, <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">let’s connect</a>.
2023-11-15T12:43:54-07:002023-11-15T12:48:52-07:00Hank Greertag:hankgreer.com,2012-09-20:31278Zillow Finds 84% of First-Time Home Sellers Have Regrets—Here Are Their Top 4 Mistakes
<img src="https://assets.site-static.com/userfiles/2037/image/000first-time-home-seller-regrets-GettyImages-1395577836-ec73a31d70a94a62b21e0e365638022a.png" width="750" height="500" />
Selling your home can be a stressful process. Even if you <a href="https://www.realsimple.com/do-i-need-an-agent-to-sell-my-house-6753606" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">hire a qualified agent or broker</a>, there are lots of decisions to be made. Sometimes these decisions are major, like pricing your home, or minor, such as repainting the basement. Either way, according to a new survey from Zillow, 84 percent of first-time home sellers feel they made at least one mistake when it came to the marketing of their homes.
Whether you’re about to put your home on the market or have just been thinking about it, don’t do anything before you consider these first-time seller regrets.
Regret #1: Pricing Incorrectly
Thirty-nine percent of sellers who took Zillow’s survey regret pricing their home too low. Pricing can be incredibly tricky in any market. If you price too high, you may not get enough bids or it could take too long to sell. If you price too low, you might be left wondering if you should have listed for more.
“This spring’s sellers are more likely to regret pricing their home too high,” said Zillow senior economist Nicole Bachaud. “The price their neighbor commanded a year ago may no longer be realistic. They need to adjust their expectations if they want to avoid having their home linger on the market. It’s more important than ever for sellers to rely on the advice of a <a href="https://www.zillow.com/captchaPerimeterX/?url=%2fprofessionals%2freal-estate-agent-reviews%2f&uuid=022b803c-dbed-11ed-a9ca-754c756d564c&vid=" data-component="link" data-source="inlineLink" data-type="externalLink" data-ordinal="1" rel="nofollow noopener" target="_blank">great local agent</a> who understands their neighborhood and has a winning pricing strategy.”
Regret #2: Ignoring Online Curb Appeal
Your home could be absolutely gorgeous and designed by one of the top interior designers, but if the photos online don’t reflect that, it might be time to have your home <a href="https://www.realsimple.com/home-organizing/decorating/home-stagers-styling-tips" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">professionally staged</a> and re-photographed. Nearly 39 percent of those who took the survey thought better listing photos would have garnered them a higher price. A quarter of those who took the survey also thought springing for a virtual tour would have boosted their bottom line. These sellers are likely right. Zillow data shows that listings with 3D virtual tours or an interactive floorplan receive a whopping 69 percent more page views and 80 percent more saves on the platform.
Regret #3: Bad Timing
It’s been said that timing is everything but according to the survey, at least 25 percent of the first-time sellers felt they didn’t time wisely. Zillow research shows the second half of April is the best time put a home on the market nationwide, but every seller has a different circumstance. Whether you’re selling because you’re expanding your family, moving for a new job, or simply because you need to close on a new home—all these things ultimately end up influencing timing.
Regret #4: Skimping on Repairs
<a href="https://www.realsimple.com/curb-appeal-mistakes-to-avoid-7563807" data-component="link" data-source="inlineLink" data-type="internalLink" data-ordinal="1">Investing in the right projects</a> to increase your home's sale price is crucial. More than 25 percent of those who took the survey regret not investing in updating their homes. But sellers shouldn't update just anything. Choosing the right projects is crucial. “Sellers need to think strategically about their return on investment before diving into repairs and renovations. Landscaping, interior painting, and carpet cleaning are the most commonly completed seller projects for good reason. They boost online curb appeal and send a powerful signal to a buyer that a home is well-maintained,” says Amanda Pendleton, Zillow’s home trends expert.2023-11-08T13:56:58-07:002023-11-08T14:07:58-07:00Hank Greertag:hankgreer.com,2012-09-20:31120Spooky Socal: Unearthing the Most Haunted Estates in Southern California
<img src="https://assets.site-static.com/userFiles/2664/image/Sowden_House_Los_Angeles.jpg" width="3264" height="2448" data-uw-rm-alt-original="" data-uw-rm-alt="AI" />
Photograph: The Black Dahlia/Sowden House
As the witching hour approaches this Halloween, we’re veering off the traditional real estate path and entering a world where the market values are as mysterious as the eerie chill that fills these rooms. Fasten your seat belts as we take you on a tour of the most spine-tingling, scream-inducing haunted houses right here in Southern California! Who knows, you might just find your dream (or nightmare) home!
The Whaley House - San Diego: First on our ghostly itinerary is no other than the Whaley House in the heart of Old Town San Diego. Beyond its classic Greek Rivival architecture, stories of apparitions have been whispered since the 19th century. From the figure of Thomas Whaley himself to a playful little girl who floats around the garden, this house is a must-visit for thrill-seekers. But be warned, the sound of phantom footsteps might just follow you home!
The Queen Mary - Long Beach: Okay, so it’s not exactly a ‘house’ but the permanently docked Queen Mary ship offers enough paranormal activity to count as a haunted estate. With numerous reports of ghost sightings, including the famous “Lady in White” and unexplained sounds, it’s a supernatural hotbed. Each room has its tales, binding you in a historical labyrinth of mystery and terror. Did you know that after a period of closure, the Queen Mary is back open for tours, drinks, events, and overnights? You can also buy a membership and get special perks.<img src="https://assets.site-static.com/userFiles/2664/image/queen_mary.jpg" width="1000" height="563" data-uw-rm-alt-original="" data-uw-rm-alt="AI" />
The Black Dahlia House - Los Angeles: In the heart of glamorous Los Angeles lies a house that is anything but. Known officially as the Sowden House, this Lloyd Wright-designed residence is infamously linked to the unsolved ‘Black Dahlia’ murder of Elizabeth Short in 1947. Rumored to be the place where the horrific crime was committed, its Mayan Revival style architecture adds an element of the exotic to its eerie reputation. Visitors and past residents have reported a constant feeling of being watched, cold spots, and even ghostly apparitions. The house’s dark allure makes it a fascinating inclusion on any haunted house tour, drawing those curious about LA’s noir past.
The Oman House - Beverly Hills: A stone’s throw from the site of the infamous Manson Murders, The Oman House has garnered a reputation for intense paranormal activity. Its owner, David Oman, reports regular encounters with the spirits of the victims, particularly Sharon Tate. Those seeking an unnerving night can book a ghost tour, but remember the spirits are said to be most active in the wee hours!<img src="https://assets.site-static.com/userFiles/2664/image/oman2.jpg" width="718" height="478" data-uw-rm-alt-original="" data-uw-rm-alt="AI" />
The Greystone Mansion - Beverly Hills: midst the opulence of Beverly Hills, the Greystone Mansion holds secrets far richer than its grandeur. Completed in 1928 for the Doheny family, it’s a classic tale of fortune shadowed by tragedy. Only months after they settled in, Ned Doheny, the son of oil tycoon Edward L. Doheny, was found dead under mysterious circumstances, a story that has birthday numerous ghost tales. Vistors and staff have reports eerie occurrences, from unexplained noises and cold drafts to sightings of ethereal figures. Some claim to see Ned Doheny himself, roaming the halls, forever tied to the mystery that took his life. The majestic estate, with its lush garden and stately rooms, offers guided tours.
Whether you’re a believer in the supernatural or a staunch skeptic, these haunted locales are steeped in history and intrigue that can captivate anyone. They remind us that sometimes the most fascinating stories are found in the whispers of the past that pervade the present. So, this Halloween, why not take a break from candy and horror flicks and explore the ghostly side of Southern California? Who knows, amidst the spooky talkies and historical lore, you might just find a hauntingly attractive property deal that you simply can’t resist!
Happy Haunting!
2023-10-31T12:54:34-07:002023-10-31T12:56:10-07:00Hank Greertag:hankgreer.com,2012-09-20:30879Selling in SoCal? Here are the Top Home Features Buyers are Craving!
Selling in SoCal? Here are the Top Home Features Buyers are Craving!
<img src="https://assets.site-static.com/userFiles/2664/image/ezgif.com-gif-maker.jpg" width="800" height="533" data-uw-rm-alt-original="" data-uw-rm-alt="AI" />
Southern California, with its unique blend of urban appeal and coastal charm, is a hotspot for real estate. If you're thinking of selling your home in this sun-kissed part of the state, you might be wondering: What are buyers currently looking for? To help you prepare your home for a swift and profitable sale, here are the top features that are increasingly becoming deal-sealers for homebuyers in the region:
1. A Home Office: With the rise of remote work, a dedicated home office space—or at least an adaptable area that can double up as a workspace—is almost a must-have. If your home has this, flaunt it; if not, consider how you might stage an existing space to visualize this possibility.
2. Energy-Efficient Living: Sunshine is in abundance here! Buyers are on the lookout for homes equipped with solar panels, energy-efficient appliances, and green insulation. These features not only reduce the carbon footprint but promise significant savings.
<img src="https://assets.site-static.com/userFiles/2664/image/energy_efficient.png" width="976" height="1223" data-uw-rm-alt-original="" data-uw-rm-alt="AI" />
3. Smart Homes: In our tech-driven world, homes that boast smart features—from security systems to thermostat controls—have a distinct edge. These modern integrations resonate with the tech-savvy residents of Southern California.
4. Outdoor Living Spaces: Whether it's a cozy patio, a lush garden, or even a small balcony space fitted for relaxation, outdoor areas are a huge selling point. With our great weather, these spaces promise year-round enjoyment.
5. Openness is Key: The modern lifestyle leans toward open floor plans where spaces transition seamlessly, especially between the kitchen, dining, and living areas.
6. Health and Wellness Corners: Spaces dedicated to physical and mental well-being, whether it's a small home gym or a meditation nook, appeal to health-conscious buyers.
<img src="https://assets.site-static.com/userFiles/2664/image/Home_Office_1.jpg" width="2000" height="1545" data-uw-rm-alt-original="" data-uw-rm-alt="AI" />
7. Updated Kitchens and Spa-like Bathrooms: Luxurious bathrooms and spacious kitchens fitted with high-end appliances never go out of style, especially in Southern California's premium homes.
8. Sustainable Living: Incorporating sustainable materials in your home's design or renovation can significantly up its appeal, given growing eco-awareness.
9. In-Law Suites or ADUs: Accessory Dwelling Units, whether used for family or as potential rental spaces, are a growing trend. They offer both functionality and a potential income source.
10. Good Connectivity: Especially crucial for the younger, tech-driven crowd, properties that assure strong internet connectivity are in high demand.
When preparing to sell in Southern California, tuning into the current trends and buyer preferences can yield significant dividends. Consider investing in updates, or at the very least, staging that highlights these sought-after features. Remember, in the dynamic SoCal market, it's not just about selling a house; it's about presenting a lifestyle!2023-10-18T14:22:43-07:002023-10-18T14:23:51-07:00Hank Greertag:hankgreer.com,2012-09-20:30340The Value of an Agent When Buying Your New Construction Home
The Value of an Agent When Buying Your New Construction Home
<img src="https://files.keepingcurrentmatters.com/content/images/20230808/20230809-The-Value-of-an-Agent-When-Buying-Your-New-Construction-Home.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Buying a <a href="https://www.mykcm.com/2023/06/29/where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer/" rel="noopener noreferrer" target="_blank">new construction</a> home can be an exciting experience. From being the very first owner, to customizing your home’s features, there are a lot of benefits. But navigating the complexities of buying a home that’s under construction can also be a bit overwhelming. This is where a skilled real estate agent can make all the difference.
An article from The Mortgage Reports <a href="https://themortgagereports.com/91925/guide-to-buying-a-new-construction-home" rel="noopener noreferrer" target="_blank">sums</a> it up like this:
“Your Realtor or real estate agent will be key to helping you navigate this process. . . . they can guide you through construction and help anticipate and solve for any possible snags along the way.”
Here’s how your agent is an invaluable resource in your search to find and buy your new home.
Agents Know the Local Area and Market
Your agent is well-versed in the emerging communities and upcoming developments that could influence your decision. For example, you'll want to be aware if there were any plans to construct a highway through the woods behind your prospective backyard. It’s important to consider how the neighborhood and the surrounding area might evolve before making your home purchase. Your agent can help you find a community that perfectly aligns with your preferences, lifestyle, and future needs.
Knowledge of Construction Quality and Builder Reputation
An agent also has the expertise to evaluate the construction quality and <a href="https://www.nahb.org/other/consumer-resources/how-to-choose-a-home-builder" rel="noopener noreferrer" target="_blank">reputation</a> of different builders. Their knowledge and experiences with local builders allow them to offer insights into each one’s track record, customer satisfaction, and construction practices. This information can help you avoid any potential risks and help you confidently select a builder known for delivering quality homes.
Assistance with Customization and Upgrades
The most obvious benefit of opting for new home construction is the opportunity to customize your home to suit your preferences. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise ensures you focus your budget on areas that will give you the greatest return on your investment later on.
Understanding Builder Contracts and Negotiations
Builder <a href="https://www.realtor.com/advice/buy/steps-to-buy-a-new-construction-home/" rel="noopener noreferrer" target="_blank">contracts</a> can be complex and differ from traditional home purchase agreements. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. They’re also skilled negotiators who can advocate on your behalf, potentially securing better deals, upgrades, or incentives for you throughout the process.
Bottom Line
The guidance and expertise of a local real estate agent can make all the difference in turning your vision of the perfect home into a reality. Let’s connect so you can feel confident about purchasing your new construction home.
<a href="https://www.mykcm.com/blog" class="router-link-active"></a>2023-09-19T12:38:14-07:002023-09-19T12:39:00-07:00Hank Greertag:hankgreer.com,2012-09-20:29722Why You Need a True Expert in Today’s Housing Market
Why You Need a True Expert in Today’s Housing Market
<img src="https://files.keepingcurrentmatters.com/content/images/20230821/20230823-Why-You-Need-a-True-Expert-in-Today-s-Housing-Market.jpg" alt="" class="img-thumbnail mx-auto d-block" />
The housing market continues to <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">shift and change</a>, and in a fast-moving landscape like we’re in right now, it’s more important than ever to have a trusted real estate agent on your side. Whether you’re buying your first home or selling once again, it’s mission critical to work with an expert who can guide you through each unique step of the process.
The reality is, not all agents operate the same way. To truly make a powerful and confident decision as you buy or sell a home, you need a real estate expert who uses their knowledge of what’s really happening with home <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">prices</a>, housing <a href="https://www.mykcm.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">supply</a>, industry <a href="https://www.mykcm.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">projections</a>, and more to give you the best possible advice. Someone who can provide clarity and trust like that is essential to your success. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" rel="noopener noreferrer" target="_blank">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">media</a> isn’t clear, it can generate a lot of fear and uncertainty for consumers. 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 feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need.
The right agent can assist you in figuring out what’s going on at the national level and in your local area. They can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">trends</a> compare to the normal ebbs and flows in the housing market, historical data, and <a href="https://www.mykcm.com/2023/07/28/key-housing-market-trends-infographic/" rel="noopener noreferrer" target="_blank">more</a>.
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.mykcm.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">ready</a> for and excited about. And that’s where a trusted expert comes in.
Bottom Line
If you want sound <a href="https://www.mykcm.com/2023/07/26/tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">advice</a> and trusted information about our local housing market, let’s connect.
<a href="https://www.mykcm.com/blog" class="router-link-active"></a>2023-08-23T13:50:42-07:002023-08-23T13:51:50-07:00Hank Greertag:hankgreer.com,2012-09-20:29502About 11,000 Houses Will Sell Today
About 11,000 Houses Will Sell Today
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Some homeowners have been waiting for months to put their <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">house</a> on the market because they don’t think people are <a href="https://www.mykcm.com/2023/07/18/homebuyers-are-getting-used-to-the-new-normal/" rel="noopener noreferrer" target="_blank">buying</a> homes right now. If that’s you, know that even though the housing market has slowed compared to the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">frenzy</a> of a couple of years ago, it isn’t at a standstill. Contrary to what you may believe, buyers are still active and plenty of homes are selling right now.
<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 the National Association of Realtors (NAR), based on the pace of sales right now, just over 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
4.16 million homes divided by 365 days in a year = 11,397 houses sell each day
11,397 divided by 24 hours in a day = 475 houses sell per hour
475 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, about 11,000 homes sell each day in this country.
A real estate expert can give you more information about how many houses are being sold in your neighborhood, the amazing <a href="https://www.mykcm.com/2023/07/14/low-housing-inventory-is-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">advantages</a> that sellers are experiencing right now, and the most important things buyers are searching for in your area. Together you’ll use this knowledge to shape how you market your house based on local trends.
Bottom Line
If you’ve been waiting to sell because you don’t think there are buyers out there, know today’s market is <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">active</a>. Every day you wait, around 11,000 other homeowners are <a href="https://www.mykcm.com/2023/07/12/renting-or-selling-your-house-whats-the-best-move/" rel="noopener noreferrer" target="_blank">selling</a>. In the time it took you to read this, eight homes sold. When you’re ready to sell too, let’s connect.
<a href="https://www.mykcm.com/blog" class="router-link-active"></a>2023-08-15T15:25:05-07:002023-08-15T15:25:56-07:00Hank Greertag:hankgreer.com,2012-09-20:29292How Inflation Affects Mortgage Rates
How Inflation Affects Mortgage Rates
<img src="https://files.keepingcurrentmatters.com/content/images/20230731/20230803-How-Inflation-Affects-Mortgage-Rates.jpg" alt="" class="img-thumbnail mx-auto d-block" />
When you read about the housing market in the news, you might see something about a recent decision made by the Federal Reserve (the Fed). But how does this decision affect you and your plans to buy a home? Here's what you need to know.
The Fed is trying hard to reduce <a href="https://www.mykcm.com/2023/06/23/homeownership-helps-protect-you-from-inflation-infographic/" rel="noopener noreferrer" target="_blank">inflation</a>. And even though there’s been 12 straight months where inflation has cooled (see graph below), the most recent <a href="https://www.bls.gov/news.release/cpi.nr0.htm" rel="noopener noreferrer" target="_blank">data</a> shows it’s still higher than the Fed’s target of 2%:
<a href="https://www.mykcm.com/content/images/20230731/20230803-Inflation-Continues-Moderating.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230731/20230803-Inflation-Continues-Moderating.png" /></a>
While you may have been hoping the Fed would stop their hikes since they’re making progress on their goal of bringing down inflation, they don’t want to stop too soon, and risk inflation climbing back up as a result. Because of this, the Fed decided to increase the Federal Funds Rate again last week. As Jerome Powell, Chairman of the Fed, <a href="https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20230726.pdf" rel="noopener noreferrer" target="_blank">says</a>:
“We remain committed to bringing inflation back to our 2 percent goal and to keeping longer-term inflation expectations well anchored.”
Greg McBride, Senior VP, and Chief Financial Analyst at Bankrate, <a href="https://www.nbcnews.com/business/economy/interest-rate-hike-july-2023-how-much-higher-federal-reserve-rcna96210" rel="noopener noreferrer" target="_blank">explains</a> how high inflation and a strong economy play into the Fed’s recent decision:
“Inflation remains stubbornly high. The economy has been remarkably resilient, the labor market is still robust, but that may be contributing to the stubbornly high inflation. So, Fed has to pump the brakes a bit more.”
Even though a Federal Fund Rate hike by the Fed doesn’t directly dictate what happens with mortgage rates, it does have an impact. As a recent article from Fortune <a href="https://fortune.com/recommends/mortgages/what-fed-rate-hikes-mean-for-mortgage-rates/" rel="noopener noreferrer" target="_blank">says</a>:
“The federal funds rate is an interest rate that banks charge other banks when they lend one another money . . . When inflation is running high, the Fed will increase rates to increase the cost of borrowing and slow down the economy. When it’s too low, they’ll lower rates to stimulate the economy and get things moving again.”
How All of This Affects You
In the simplest sense, when inflation is high, <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are also high. But, if the Fed succeeds in bringing down inflation, it could ultimately lead to lower mortgage rates, making it more affordable for you to buy a home.
This graph helps illustrate that point by showing that when <a href="https://www.bls.gov/cpi/" rel="noopener noreferrer" target="_blank">inflation</a> decreases, <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">mortgage rates</a> typically go down, too (see graph below):
<a href="https://www.mykcm.com/content/images/20230731/20230803-Mortgage-Rates-Follow-Behind-Inflation.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230731/20230803-Mortgage-Rates-Follow-Behind-Inflation.png" /></a>
As the data above shows, inflation (shown in the blue trend line) is slowly coming down and, based on historical trends, mortgage rates (shown in the green trend line) are <a href="https://www.mykcm.com/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/" rel="noopener noreferrer" target="_blank">likely to follow</a>. McBride <a href="https://www.cnet.com/personal-finance/mortgages/mortgage-refinance-rates-for-july-26-2023-rates-advance/" rel="noopener noreferrer" target="_blank">says</a> this about the future of mortgage rates:
“With the backdrop of easing inflation pressures, we should see more consistent declines in mortgage rates as the year progresses, particularly if the economy and labor market slow noticeably.”
Bottom Line
What happens to mortgage rates depends on inflation. If inflation cools down, mortgage rates should go down too. Let's talk so you can get expert advice on housing market changes and what they mean for you.
2023-08-08T09:36:30-07:002023-08-08T09:37:17-07:00Hank Greertag:hankgreer.com,2012-09-20:29114Homebuyers Are Still More Active Than Usual
Homebuyers Are Still More Active Than Usual
<img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-homebuyers-are-still-more-active-than-usual.jpg" alt="" class="img-thumbnail mx-auto d-block" />
Even though the housing market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. In actuality, buyer traffic is still strong today.
The ShowingTime <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">Showing Index</a> is a measure of how much buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" /></a>
It shows there’s <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> in real estate. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.
When the pandemic hit in March of 2020, that trend was disrupted as the market responded to the resulting uncertainty (shown in blue in the middle). From there, we entered the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> of housing (shown in pink). This is when mortgage rates were record-low and buyer demand was sky high. Similar seasonal trends still existed even during that time, just at much higher levels.
Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the <a href="https://www.mykcm.com/2023/06/09/why-you-cant-compare-now-to-the-unicorn-years-of-the-housing-market-infographic/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”
And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" /></a>
What Does That Mean for You?
Buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. And it could actually be even stronger if it wasn’t constrained by the <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">limited supply</a> of homes for sale. 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.”
Bottom Line
Don’t lose sight of just how active the market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. Let’s connect to start the process.
<a href="https://www.mykcm.com/blog" class="router-link-active"></a>2023-08-01T14:35:16-07:002023-08-01T14:36:06-07:00Hank Greertag:hankgreer.com,2012-09-20:28515Today’s Housing Inventory Is a Sweet Spot for Sellers
Today’s Housing Inventory Is a Sweet Spot for Sellers
<img src="https://files.keepingcurrentmatters.com/content/images/20230705/20230706-todays-housing-inventory-is-a-sweet-spot-for-sellers.jpg" alt="" class="img-thumbnail mx-auto d-block" />
One of the biggest challenges in the housing market right now is how <a href="https://www.mykcm.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">few homes</a> there are for sale compared to the number of people who want to buy them. To help emphasize just how limited housing inventory still is, let’s take a look at the latest information on active listings, or homes for sale in a given month, as it compares to more normal levels.
According to a recent report from <a href="https://news.move.com/2023-06-29-Realtor-com-R-June-Housing-Report-Home-Prices-Post-Their-First-Annual-Decline-Since-Before-2017" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Realtor.com</a>:
“On average, active inventory in June was 50.6% below pre-pandemic 2017–2019 levels.”
The <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">graph</a> below helps illustrate this point. It uses historical data to provide a more concrete look at how much the numbers are still lagging behind the level of inventory typical of a more normal market (see graph below):
<a href="https://www.mykcm.com/content/images/20230705/20230706-the-supply-of-homes-for-sale-is-still-low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230705/20230706-the-supply-of-homes-for-sale-is-still-low.png" /></a>
It’s worth noting that 2020-2022 are not included in this graph. That’s because they were truly <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">abnormal years</a> for the housing market. To make the comparison fair, those have been omitted so they don’t distort the data.
When you compare the orange bars for 2023 with the last normal years for the housing market (2017-2019), you can see the count of active listings is still far below the norm.
What Does This Mean for You?
If you’re thinking about <a href="https://www.mykcm.com/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">selling your house</a>, that low inventory is why this is a <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">great time</a> to do so. Buyers have fewer choices now than they did in more normal years, and that’s continuing to impact some key statistics in the housing market. For example, sellers will be happy to see the following data from the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-05-realtors-confidence-index-06-22-2023.pdf" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Confidence Index</a> from the National Association of Realtors (NAR):
The percent of homes that sold in less than a month ticked up slightly to 74%.
The median days on market went down to 18 days, showing homes are still selling fast when priced right.
The average number of offers on recently sold homes went up to 3.3 offers.
Bottom Line
When supply is so low, your house is going to be in the spotlight. That’s why sellers are seeing their homes sell a little faster and get more offers right now. If you’ve thought about <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">selling</a>, now’s the time to <a href="https://www.mykcm.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">make a move</a>. Let’s connect to get the process started.
<a href="https://www.mykcm.com/blog" class="router-link-active"></a>2023-07-10T15:30:00-07:002023-07-10T16:17:32-07:00Hank Greertag:hankgreer.com,2012-09-20:28029The True Cost of Selling Your House on Your Own
The True Cost of Selling Your House on Your Own
<img src="https://assets.site-static.com/userfiles/2037/image/0000for-sale-by-owner-sign-and-house-640897602-5a9dd7a0c6733500377e2d05.jpg" width="5846" height="3945" />
June 26, 2023
<a href="https://www.mykcm.com/blog?categories=sellers" class="badge bg-light font-size-12 me-2"> For Sellers </a><a href="https://www.mykcm.com/blog?categories=fsbos" class="badge bg-light font-size-12 me-2"> FSBOs </a><a href="https://www.mykcm.com/blog?categories=selling-myths" class="badge bg-light font-size-12 me-2"> Selling Myths </a>
<a href="https://www.mykcm.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Selling your house</a> is no simple task. While some homeowners opt to sell their homes on their own, known as a FSBO (For Sale by Owner), they often encounter various challenges without the guidance of a real estate agent. If you’re currently considering selling your house on your own, here’s what you should know.
The most recent <a href="https://www.nar.realtor/sites/default/files/documents/2022-highlights-from-the-profile-of-home-buyers-and-sellers-report-11-03-2022_0.pdf" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">Profile of Home Buyers and Sellers</a> from the National Association of Realtors (NAR) surveyed homeowners who’d recently sold their own homes and asked what difficulties they faced. Those <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">sellers</a> say some of the greatest challenges were prepping their home for sale, pricing it right, and properly managing the required paperwork, just to name a few.
When it comes to selling your most <a href="https://www.mykcm.com/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">valuable asset</a>, consider the invaluable support that a real estate agent can provide. By partnering with an agent, you can navigate the complexities of the selling process with confidence. Here are just a few of the many ways an agent is essential to your home sale:
1. Marketing and Exposure
Effective marketing is a key piece of attracting qualified buyers to your property. Real estate agents have access to various marketing tools and platforms, including MLS listings, professional photography, virtual tours, and extensive professional networks. They can create a compelling listing that highlights your home's best features and reaches a wider audience.
If you sell on your own, you may struggle to match the reach of agents, resulting in limited exposure and, ultimately, fewer potential buyers.
2. Managing Liability and Legal Considerations
Today, more disclosures and regulations are mandatory when selling a house. And all that paperwork and all the legal aspects of selling a home can be a lot to manage. Selling a house without professional guidance exposes homeowners to potential liability risks and legal complications.
Real estate agents are well-versed in the contracts, disclosures, and regulations necessary during a sale. Their expertise helps minimize the risk of errors or omissions that could lead to legal disputes or delays.
3. Negotiations and Contracts
Negotiating the terms of a home sale can be challenging, especially when emotions are involved. You may find it overwhelming to navigate these negotiations alone. Without an agent, you assume this responsibility on your own. This means you’ll have full accountability for working and negotiating with:
The buyer, who wants the best deal possible.
The buyer’s agent, who will use their expertise to advocate for the buyer.
The home inspection company, who works for the buyer.
The home appraiser, who assesses the property’s value to protect the lender.
Rather than going toe-to-toe with all these parties alone, lean on an expert. Real estate agents act as intermediaries, skillfully negotiating on your behalf and ensuring that your best interests are protected. They have experience in handling tough negotiations, counteroffers, and contingencies. When you sell your house yourself, you’ll need to be prepared to manage these vendors on your own.
4. Pricing and Housing Market Knowledge
Determining the right asking <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">price</a> for your property is crucial. It requires in-depth knowledge of the local real estate market, including recent sales data, neighborhood trends, and the current demand for properties. Real estate agents have access to comprehensive <a href="https://www.mykcm.com/2023/05/16/the-worst-home-price-declines-are-behind-us/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">market data</a> and the expertise to analyze it accurately.
When you sell your house on your own without this comprehensive information, you risk overpricing or underpricing your home. This can result in an extended time on the market and also the risk of leaving money on the table - which decreases your future buying power. An agent is a key piece of the <a href="https://www.mykcm.com/2023/06/05/oops-home-prices-didnt-crash-after-all/" rel="noopener noreferrer" target="_blank" style="color: #0563c1;">pricing</a> puzzle.
Bottom Line
While selling a home on your own might seem appealing at first, the challenges that come with it can quickly become overwhelming. The expertise that a real estate agent brings to the table is vital for a successful sale. Instead of tackling it alone, let’s connect to make sure you have an expert on your side.
2023-06-28T14:15:00-07:002023-06-29T14:18:59-07:00Hank Greertag:hankgreer.com,2012-09-20:27854Why the Median Home Price Is Meaningless in Today’s Market
Why the Median Home Price Is Meaningless in Today’s Market
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-why-the-median-price-is-meaningless-in-todays-market.jpg" width="600" /><br /><br />
The National Association of Realtors (NAR) will release its latest Existing Home Sales (EHS) report later this week. This monthly report provides information on the sales volume and price trend for previously owned homes. In the upcoming release, it’ll likely say <a href="https://www.simplifyingthemarket.com/en/2023/06/12/are-home-prices-going-up-or-down-that-depends/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">home prices</a> are down. This may feel a bit confusing, especially if you’ve been following along and seeing the blogs saying that home prices have bottomed out and <a href="https://www.simplifyingthemarket.com/en/2023/05/16/the-worst-home-price-declines-are-behind-us/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">turned a corner</a>.
So, why will this likely say <a href="https://www.simplifyingthemarket.com/en/2023/06/05/oops-home-prices-didnt-crash-after-all/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">home prices</a> are falling when so many other price reports say they’re going back up? It all depends on the methodology of each report. NAR reports on the median sales price, while some other sources use repeat sales prices. Here’s how those approaches differ.
The Center for Real Estate Studies at Wichita State University <a href="https://realestate.wichita.edu/question/hpi-vs-median-price/#:~:text=The%20median%20sale%20price%20measures,and%20half%20sold%20for%20less" rel="noopener noreferrer" target="_blank" style="color: blue;">explains</a> median prices like this:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less . . . For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
Investopedia helps define what a repeat sales approach <a href="https://www.investopedia.com/terms/r/repeatsales-method.asp" rel="noopener noreferrer" target="_blank" style="color: blue;">means</a>:
“Repeat-sales methods calculate changes in home prices based on sales of the same property, thereby avoiding the problem of trying to account for price differences in homes with varying characteristics.”
The Challenge with the Median Sales Price Today
As the quotes above say, the approaches can tell different stories. That’s why median price data (like EHS) may say prices are down, even though the vast majority of the repeat sales reports show prices are <a href="https://www.simplifyingthemarket.com/en/2023/05/12/the-worst-home-price-declines-are-behind-us-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">appreciating again</a>.
Bill McBride, Author of the Calculated Risk blog, <a href="https://calculatedrisk.substack.com/p/case-shiller-national-house-price-747" rel="noopener noreferrer" target="_blank" style="color: blue;">sums</a> the difference up like this:
“Median prices are distorted by the mix and repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices.”
To drive this point home, here’s a simple explanation of median value (see visual below). Let’s say you have three coins in your pocket, and you decide to line them up according to their value from low to high. If you have one nickel and two dimes, the median value (the middle one) is 10 cents. If you have two nickels and one dime, the median value is now five cents.
<a href="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-how-median-price-works.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230616/20230620-how-median-price-works.png" /></a>
In both cases, a nickel is still worth five cents and a dime is still worth 10 cents. The value of each coin didn’t change.
That’s why using the median home price as a gauge of what’s happening with home values isn’t worthwhile right now. Most buyers look at home prices as a starting point to determine if they match their budgets. But, most people buy homes based on the monthly mortgage payment they can afford, not just the price of the house. When <a href="https://www.simplifyingthemarket.com/en/2023/06/07/the-main-reason-mortgage-rates-are-so-high/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">mortgage rates</a> are higher, you may have to buy a less expensive home to keep your monthly housing expense affordable. A greater number of ‘less-expensive’ houses are selling right now for this exact reason, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
When you see the stories in the media that prices are falling later this week, remember the coins. Just because the median price changes, it doesn’t mean home prices are falling. What it means is the mix of homes being sold is being impacted by <a href="https://www.simplifyingthemarket.com/en/2023/04/26/the-three-factors-affecting-home-affordability-today/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">affordability</a> and current <a href="https://www.simplifyingthemarket.com/en/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank" style="color: blue;">mortgage rates</a>.
Bottom Line
For a more in-depth understanding of home price trends and reports, let’s connect.
2023-06-20T15:15:00-07:002023-06-22T17:03:48-07:00Hank Greertag:hankgreer.com,2012-09-20:26420What Are the Experts Saying About the Spring Housing Market?What Are the Experts Saying About the Spring Housing Market?
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The housing market’s been going through a lot of change lately, and there’s been uncertainty surrounding what will happen this spring. You may be wondering if more homes will go on the market, what’s next with <a href="https://www.simplifyingthemarket.com/en/2023/04/05/why-arent-home-prices-crashing/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank">home prices</a> and <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" rel="noopener noreferrer" target="_blank">mortgage rates</a>, or what the best advice is for someone in your position right now.
Here’s what industry experts are saying right now about the spring housing market and what it means for you:
<a href="https://www.bankrate.com/real-estate/housing-market-predictions/#updates" rel="noopener noreferrer" target="_blank">Selma Hepp</a>, Chief Economist, CoreLogic:
“We see more competition among buyers . . . Housing supply also tends to grow during the spring months. And this is also the time of year when relatively more migration happens, as people graduate and move elsewhere looking for jobs.”
<a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" target="_blank">Greg McBride</a>, Chief Financial Analyst, Bankrate:
“I don’t expect big moves in prices in the span of a month, but like the flower buds of spring, the housing market is showing signs of improvement. A pick up in activity with inventory still low does bode well for home prices.”
<a href="https://www.bankrate.com/real-estate/housing-trends/#differ" rel="noopener noreferrer" target="_blank">Rick Sharga</a>, Founder and CEO, CJ Patrick Company:
“If you can find a home you love and can afford at today’s prices, don’t wait. Home prices in most of the country are unlikely to crash, and mortgage rates will only come down very gradually if they decline at all this year.”
<a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" target="_blank">Jeff Tucker</a>, Senior Economist, Zillow:
“The market is still much friendlier this spring for buyers who can overcome affordability hurdles, but buyers are going to see more competition than they might expect because there are not many homes on the market to go around. New listings are increasing, which they almost always do this time of year, but not nearly as quickly as usual.”
Bottom Line
If you’re thinking about <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">selling</a> your house, this spring’s a great time to do so while <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">inventory</a> is still so low. And if you’re in a good position to buy, lean on your team of expert advisors for the best advice. Whatever your plans, let’s connect to make sure you’re able to navigate the spring housing market with confidence.2023-04-26T13:39:36-07:002023-04-26T13:40:02-07:00Hank Greertag:hankgreer.com,2012-09-20:258404 Key Tips for Selling Your House This Spring4 Key Tips for Selling Your House This Spring
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Spring has arrived, and that means more and more people are getting their homes ready to sell. But with recent shifts in real estate, this year’s <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">spring housing market</a> will be different from the frenzy of the past several years. To sell your house quickly, without hassles, and for the most money, be sure to follow these four simple tips:
1. Make Sure You Give Buyers Access
One of the biggest mistakes you can make as a seller is limiting the days and times when buyers have access to view your home. In any market, if you want to <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">maximize</a> the sale of your house, you can’t limit potential buyers’ access to view it. If it’s not accessible, it could cost you by sitting on the market longer and ultimately selling for a lower price.
2. Make Your Home Look as Good as Possible on the Inside
For anything to sell, especially your home, it must look inviting. Your real estate agent can give you <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">expert advice</a> on ideal staging for your home. Even updating a room with fresh paint, steam cleaning carpets, or removing clutter from the garage can make a big impact.
3. First Impressions Matter
The old saying “you never get a second chance to make a first impression” matters when <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">selling your house</a>. Often, the first impression a buyer gets is what they see as they walk up to the front door. Putting in the work in on the exterior of your home is just as important as what you stage inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact with potential buyers.
4. Price It Right
This is probably the most important aspect of selling your home in today’s real estate market. If a house is <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">priced competitively</a>, it’s going to sell. Period. To do this, you have to know what’s happening with home prices in your area and understand the factors that are affecting the market right now. That’s why it’s best to work with a trusted real estate professional who can ensure you list your house at the right price.
Bottom Line
Everyone <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">selling their home</a> wants three things: to sell it for the most money they can, to do it in a certain amount of time, and to do all of that with the fewest hassles. To accomplish these goals, <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">let’s connect</a> so you can understand the steps you need to take to sell your home this spring. 2023-03-29T10:08:15-07:002023-03-29T10:11:29-07:00Hank Greertag:hankgreer.com,2012-09-20:25678Here’s Why the Housing Market Isn’t Going To Crash [INFOGRAPHIC]Here’s Why the Housing Market Isn’t Going To Crash [INFOGRAPHIC]
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<a href="https://files.keepingcurrentmatters.com/content/images/20230316/20230317_Heres-Why-The-Housing-Market-Isnt-Going-To-Crash-MEM.jpg" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230316/20230317_Heres-Why-The-Housing-Market-Isnt-Going-To-Crash-MEM.jpg" /></a>
Some Highlights
Today’s housing market is different than it was in 2008.
<a href="https://www.mba.org/news-research-and-resources/newsroom" rel="noopener noreferrer" target="_blank">Lending standards</a> have <a href="https://www.mba.org/news-and-research/newsroom/news/2023/02/09/mortgage-credit-availability-remained-flat-in-january" rel="noopener noreferrer" target="_blank">tightened</a>, foreclosures have <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-year-end-2022-u-s-foreclosure-market-report/" rel="noopener noreferrer" target="_blank">declined</a>, <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">home inventory</a> is much <a href="https://www.nar.realtor/sites/default/files/documents/ehs-12-2022-overview-2023-01-20.pdf" rel="noopener noreferrer" target="_blank">lower</a>, and <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">homeowners</a> have far more <a href="https://fred.stlouisfed.org/series/OEHRENWBSHNO#0" rel="noopener noreferrer" target="_blank">equity</a>.
If you’re concerned about a crash, let’s <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">connect</a> to <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">discuss</a> why this isn’t like last time.
2023-03-22T15:13:09-07:002023-03-22T15:14:08-07:00Hank Greertag:hankgreer.com,2012-09-20:25677What’s Ahead for Home Prices in 2023What’s Ahead for Home Prices in 2023
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Over the past year, home prices have been a widely debated topic. Some have said we’ll see a massive drop in prices and that this could be a repeat of 2008 – <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">which hasn’t happened</a>. Others have forecasted a real estate market that could see slight appreciation or depreciation depending on the area of the country. And as we get closer to the spring real estate market, experts are continuing to forecast what they believe will happen with home prices this year and beyond.
Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-march-2023/" rel="noopener noreferrer" target="_blank">says</a>:
“While 2023 kicked off on a more optimistic note for the U.S. housing market, recent mortgage rate volatility highlights how much uncertainty remains. Nevertheless, the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.”
Additionally, every quarter, Pulsenomics <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">surveys</a> a panel of over 100 economists, investment strategists, and housing market analysts regarding their five-year expectations for future home prices in the United States. Here’s what they said most recently:
<a href="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-estimated-home-price-performance-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230316/20230320-estimated-home-price-performance-MEM.png" /></a>
So, given this information and what experts are saying about home prices, the question you might be asking is: should I buy a home this spring? Here are three reasons you should consider <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">making a move</a>:
Buying a home helps you escape the cycle of rising rents. Over the past several decades, the median price of rent has <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">risen consistently</a>. The bottom line is, rent is <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">going up</a>.
Homeownership is a hedge against inflation. A key advantage of homeownership is that it’s one of the best hedges against inflation. When you buy a home with a fixed-rate mortgage, you secure your housing payment, so it won’t go up like it would if you rent.
Homeownership is a powerful wealth-building tool. The average net worth of a homeowner is $255,000 compared to $6,300 for a <a href="https://www.hankgreer.com/" rel="noopener noreferrer" target="_blank">renter</a>.
Experts are projecting slight price depreciation in the housing market this year, followed by steady appreciation. Given that, you may be wondering if you should move ahead with buying a home this spring. The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side.
Bottom Line
Let’s connect so you can make the most informed decision about your next move.2023-03-22T15:12:06-07:002023-03-22T15:13:03-07:00Hank Greertag:hankgreer.com,2012-09-20:25460An Expert Gives You Clarity in Today’s Housing MarketAn Expert Gives You Clarity in Today’s Housing Market
<img width="750" height="410" src="https://files.mykcm.com/2023/03/13122255/an-expert-gives-you-clarity-in-todays-housing-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="An Expert Gives You Clarity in Today’s Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/03/13122255/an-expert-gives-you-clarity-in-todays-housing-market-KCM.jpg 750w, https://files.mykcm.com/2023/03/13122255/an-expert-gives-you-clarity-in-todays-housing-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/03/13122255/an-expert-gives-you-clarity-in-todays-housing-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The <a href="https://www.simplifyingthemarket.com/2023/02/21/the-two-big-issues-the-housing-markets-facing-right-now/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> has been going through shifts lately. That’s why it’s so important to work with an industry professional who can be your <a href="https://www.simplifyingthemarket.com/2023/03/09/4-tips-for-making-your-best-offer-on-a-home/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="guide" target="_blank" rel="noopener noreferrer">guide</a> throughout the process.
A real estate expert uses their knowledge of what’s really happening with home prices, housing supply, expert projections, and more to give you the best advice. Someone who can provide clarity like that is critical right now. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" title="says" target="_blank" rel="noopener noreferrer">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. <a href="https://www.simplifyingthemarket.com/2023/02/23/how-to-make-your-dream-of-homeownership-a-reality/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="Buying a home" target="_blank" rel="noopener noreferrer">Buying a home</a> is a big decision, and it should be one you feel confident making. You can lean on an expert to help you separate fact from fiction and get the answers you need.
The right agent can help you understand what’s happening at the national and local levels, and they can debunk headlines using data you can trust. Experts have in-depth knowledge of the industry and can provide context, so you know how current trends compare to the normal ebbs and flows in the industry, historical data, and more.
Then, to make sure you have the full picture, an agent can tell you if your local area is following the <a href="https://www.simplifyingthemarket.com/2023/02/16/wondering-whats-going-on-with-home-prices/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="national trend" target="_blank" rel="noopener noreferrer">national trend</a> 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 ready for and excited about. And that’s where a trusted expert comes in.
Bottom Line
For expert advice and the latest housing market insights, let’s connect.
2023-03-14T09:30:00-07:002023-03-14T09:40:18-07:00Hank Greertag:hankgreer.com,2012-09-20:253762 Things Sellers Need To Know This Spring2 Things Sellers Need To Know This Spring
<img width="750" height="410" src="https://files.mykcm.com/2023/03/08085349/two-things-sellers-need-to-know-this-spring-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="2 Things Sellers Need To Know This Spring | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/03/08085349/two-things-sellers-need-to-know-this-spring-KCM.jpg 750w, https://files.mykcm.com/2023/03/08085349/two-things-sellers-need-to-know-this-spring-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/03/08085349/two-things-sellers-need-to-know-this-spring-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
A lot has changed over the past year, and you might be wondering what’s in store for the spring housing market. If you’re planning to sell your house this season, here’s what real estate experts are saying you should keep in mind.
1. Houses That Are Priced Right Are Still Selling
Houses that are <a href="https://www.simplifyingthemarket.com/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="updated and priced" target="_blank" rel="noopener noreferrer">updated and priced</a> at their current market value are still selling. Jeff Tucker, Senior Economist at Zillow, <a href="https://www.forbes.com/sites/brendarichardson/2023/02/16/expect-the-spring-housing-market-to-be-calm-but-competitive/?sh=6fc73d8357bd" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
The need to price your house right is so important today because the market has changed so much over the past year. Danielle Hale, Chief Economist at realtor.com, <a href="https://news.move.com/2023-03-02-Realtor-com-R-February-Housing-Report-More-Choices-for-Buyers-as-Inventory-Recovery-Continues-at-Breakneck-Speed" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring.”
While this spring housing market is different than last year’s, sellers with proper expectations who lean on a real estate expert for the best advice on <a href="https://www.simplifyingthemarket.com/2023/01/23/want-to-sell-your-house-price-it-right/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="pricing" target="_blank" rel="noopener noreferrer">pricing</a> their house well are still finding success. And that’s great news if you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="selling" target="_blank" rel="noopener noreferrer">selling</a>.
2. Buyers Are Still Out There
As mortgage rates have risen and remain volatile, some buyers have pressed pause on their plans. But there are still plenty of <a href="https://www.simplifyingthemarket.com/2023/02/14/why-its-easy-to-fall-in-love-with-homeownership-1/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="reasons" target="_blank" rel="noopener noreferrer">reasons</a> people are buying homes today. Lisa Sturtevant, Chief Economist at Bright MLS, <a href="https://www.usnews.com/news/economy/articles/2023-02-27/pending-home-sales-crush-estimates-rise-8-1-in-january" title="spells out" target="_blank" rel="noopener noreferrer">spells out</a> the mindset of today’s buyers:
“For some buyers, higher mortgage rates simply means buying a home is out of the question unless home prices fall. For others, higher mortgage rates will be a hurdle but ultimately will not keep them from getting back into the market after sitting on the sidelines for months.”
That’s why, if you’re interested in selling your house this spring, it’s helpful to work with a real estate agent who can help connect you with those buyers who are ready to purchase a home.
Bottom Line
There are still clear opportunities for sellers this spring. If you’re wondering if it’s the right time to make a move, let’s connect today.
2023-03-08T14:30:20-07:002023-03-08T14:30:34-07:00Hank Greertag:hankgreer.com,2012-09-20:25092The Two Big Issues the Housing Market’s Facing Right NowThe Two Big Issues the Housing Market’s Facing Right Now
<img width="750" height="410" src="https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="The Two Big Issues the Housing Market’s Facing Right Now | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM.jpg 750w, https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/16150441/the-two-big-issues-facing-the-housing-market-right-now-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The biggest challenge the housing market’s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-housing-market-potential-increased-for-the-second-straight-month" title="explains" target="_blank" rel="noopener noreferrer">explains</a> the root causes of today’s low supply:
“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.”
Let’s break down these two big issues in today’s housing market.
Rate-Locked Homeowners
According to the Federal Housing Finance Agency (FHFA), the <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" title="average interest rate" target="_blank" rel="noopener noreferrer">average interest rate</a> for current homeowners with mortgages is less than 4% (see graph below):
<a href="https://files.mykcm.com/2023/02/16150439/average-mortgage-rate-is-less-than-4-percent-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107542" src="https://files.mykcm.com/2023/02/16150439/average-mortgage-rate-is-less-than-4-percent-MEM.png" /></a>
But today, the typical mortgage rate offered to buyers is <a href="https://www.freddiemac.com/pmms" title="over 6%" target="_blank" rel="noopener noreferrer">over 6%</a>. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked.
When so many homeowners are rate locked and reluctant to sell, it’s a challenge for a housing market that needs more inventory. However, experts project <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> will gradually fall this year, and that could mean more people will be willing to move as that happens.
The Fear of Not Finding Something To Buy
The other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they’ll go has left many on the sidelines as they wait for more homes to come to the market. That’s why, if you’re on the fence about selling, it’s important to consider all your <a href="https://www.simplifyingthemarket.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="options" target="_blank" rel="noopener noreferrer">options</a>. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate <a href="https://www.simplifyingthemarket.com/2023/2/15/should-you-consider-buying-a-newly-built-home/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buydowns" target="_blank" rel="noopener noreferrer">buydowns</a>.
What Does This Mean for You?
These two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today’s market is a <a href="https://www.simplifyingthemarket.com/2023/2/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="sweet spot" target="_blank" rel="noopener noreferrer">sweet spot</a> that can work to your advantage.
Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q4-2022-u-s-home-equity-and-underwater-report/" title="ATTOM" target="_blank" rel="noopener noreferrer">ATTOM</a>:
“. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.”
This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.
Bottom Line
Rate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.
2023-02-22T16:15:00-07:002023-02-22T16:13:39-07:00Hank Greertag:hankgreer.com,2012-09-20:25093Wondering What’s Going on with Home Prices?Wondering What’s Going on with Home Prices?
<img width="750" height="410" src="https://files.mykcm.com/2023/02/15123718/wondering-whats-going-on-with-home-prices-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Wondering What’s Going on with Home Prices? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/15123718/wondering-whats-going-on-with-home-prices-KCM.jpg 750w, https://files.mykcm.com/2023/02/15123718/wondering-whats-going-on-with-home-prices-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/15123718/wondering-whats-going-on-with-home-prices-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The recent changes in home prices are top of mind for many as the <a href="https://www.simplifyingthemarket.com/2023/02/02/experts-forecast-a-turnaround-in-the-housing-market-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> begins gearing up for spring. It can be hard to navigate misleading headlines and confusing data, so here’s what you should know about today’s home prices.
Local price trends still vary by market. But looking at national data, Nataliya Polkovnichenko, Ph.D., Supervisory Economist at the Federal Housing Finance Agency (FHFA), <a href="https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-HPI-Monthly-1312023.pdf" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“U.S. house prices were largely unchanged in the last four months and remained near the peak levels reached over the summer of 2022. While higher mortgage rates have suppressed demand, low inventories of homes for sale have helped maintain relatively flat house prices.”
Month-over-month home price changes can be seen in the chart below. The data also shows that price depreciation peaked around August. Since then, any depreciation has been even milder. In other words, today’s home prices aren’t in a freefall.
<a href="https://files.mykcm.com/2023/02/15123720/us-house-prices-largely-unchanged-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107489" src="https://files.mykcm.com/2023/02/15123720/us-house-prices-largely-unchanged-MEM.png" /></a>
What Does This Mean for You?
If you currently own your house, you may be concerned about even the <a href="https://www.simplifyingthemarket.com/2023/02/09/why-todays-housing-market-isnt-headed-for-a-crash/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="smallest decline" target="_blank" rel="noopener noreferrer">smallest decline</a> in prices. But keep in mind how much home values grew over the last few years. Compared to that growth, any declines we’re seeing nationally are likely to be minimal. Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.cnbc.com/2023/02/10/home-prices-mortgage-rates-fall.html" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“. . . while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”
It’s also important to remember that every local market is different. That’s why it’s essential to lean on an expert for the latest information on the home prices in your area if you’re planning to make a move this spring.
Bottom Line
To understand what’s going on with home prices in our market and how they could impact your goals, let’s connect today.
2023-02-16T14:30:00-07:002023-02-22T16:17:22-07:00Hank Greertag:hankgreer.com,2012-09-20:24925What You Should Know About Closing CostsWhat You Should Know About Closing Costs
<img width="750" height="410" src="https://files.mykcm.com/2023/02/10115324/what-you-should-know-about-closing-costs-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What You Should Know About Closing Costs | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/10115324/what-you-should-know-about-closing-costs-KCM.jpg 750w, https://files.mykcm.com/2023/02/10115324/what-you-should-know-about-closing-costs-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/10115324/what-you-should-know-about-closing-costs-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Before you buy a home, it’s important to <a href="https://www.simplifyingthemarket.com/2023/02/10/how-to-win-as-a-buyer-in-todays-housing-market-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="plan ahead" target="_blank" rel="noopener noreferrer">plan ahead</a>. While most buyers consider how much they need to save for a <a href="https://www.simplifyingthemarket.com/2023/02/03/you-may-not-need-as-much-as-you-think-for-your-down-payment-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="down payment" target="_blank" rel="noopener noreferrer">down payment</a>, 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.
What Are Closing Costs?
People are sometimes surprised by closing costs because they don’t know what they are. According to <a href="https://www.bankrate.com/mortgages/understanding-the-closing-process/#wh" title="Bankrate" target="_blank" rel="noopener noreferrer">Bankrate</a>:
“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 . . .”
In other words, your closing costs are a collection of fees and payments involved with your transaction. According to <a href="https://myhome.freddiemac.com/buying/understanding-costs" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>, while they can vary by location and situation, closing costs typically include:
Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services
Tax service fees
Survey fees
Attorney fees
Underwriting Fees
How Much Will You Need To Budget for Closing Costs?
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.
Let’s say you find a home you want to purchase for the <a href="https://www.nar.realtor/research-and-statistics" title="median price" target="_blank" rel="noopener noreferrer">median price</a> of $366,900. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,500 and $18,500.
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.
What’s the Best Way To Make Sure You’re Prepared at Closing Time?
Freddie Mac provides great advice for homebuyers, <a href="https://myhome.freddiemac.com/buying/understanding-costs" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”
Work with a team of trusted real estate professionals to understand exactly how much you’ll need to <a href="https://www.simplifyingthemarket.com/2023/01/19/pre-approval-in-2023-what-you-need-to-know/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="budget" target="_blank" rel="noopener noreferrer">budget</a> for closing costs. An agent can help connect you with a lender, and together your expert team can answer any questions you might have.
Bottom Line
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.
2023-02-15T16:30:00-07:002023-02-15T16:46:57-07:00Hank Greertag:hankgreer.com,2012-09-20:24777Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic YearsNumber of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years
<img width="750" height="410" src="https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Number of Homes for Sale Up from Last Year, but Below Pre-Pandemic Years | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM.jpg 750w, https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/02/07124039/number-of-homes-for-sale-up-from-last-year-but-below-pre-pandemic-years-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The biggest challenge in the housing market right now, and likely for years to come, is how few homes there are for sale compared to the number of people who want to buy. That’s why, if you’re thinking about selling your house, this is a great time to do so. Your house would be welcome in a market that has fewer homes for sale than it did in the years leading up to the pandemic.
<a href="https://www.realtor.com/research/january-2023-data/" title="According" target="_blank" rel="noopener noreferrer">According</a> to the latest Monthly Housing Market Trends Report from realtor.com:
“There were 65.5% more homes for sale in January compared to the same time in 2022. This means that there were 248,000 more homes available to buy this past month compared to one year ago. While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.”
The graph below shows how today’s inventory of homes for sale compares to recent years:
<a href="https://files.mykcm.com/2023/02/07124041/active-monthly-listing-counts-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107314" src="https://files.mykcm.com/2023/02/07124041/active-monthly-listing-counts-MEM.png" /></a>
What Does This Mean for You?
Fewer homes for sale means buyers have fewer choices than they did prior to the pandemic—and that frustration is leading some to give up on the homebuying process altogether. But with mortgage rates sitting <a href="https://www.simplifyingthemarket.com/2023/01/31/lower-mortgage-rates-are-bringing-buyers-back-to-the-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="lower" target="_blank" rel="noopener noreferrer">lower</a> than they were at the peak last fall, more buyers are willing to come back into the process—they just need to find homes to buy. This is welcome activity for the spring market, especially if you’re thinking of selling your house.
With a renewed interest in buying a home for many, the New York Times (NYT) <a href="https://www.nytimes.com/2023/02/02/business/mortgage-rates-housing-market.html" title="reports" target="_blank" rel="noopener noreferrer">reports</a>:
“Home buyers are edging back into the market after being sidelined last year . . .”
So, if you want to take advantage of a sweet spot in the market, this spring could be your shot.
Bottom Line
The housing market needs more homes for sale to meet the demand of today’s buyers. If you’ve thought about selling, now’s the time for us to connect and get ready for you to make a move this spring.
2023-02-08T14:00:00-07:002023-02-08T14:03:22-07:00Hank Greertag:hankgreer.com,2012-09-20:24779The Top Reasons for Selling Your HouseThe Top Reasons for Selling Your House
<img width="750" height="410" src="https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm.jpg" class="attachment-entry size-entry wp-post-image" alt="The Top Reasons for Selling Your House | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm.jpg 750w, https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm-600x328.jpg 600w, https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.
Today, <a href="https://blog.firstam.com/economics/why-housing-market-potential-increased-for-the-second-straight-month" title="93%" target="_blank" rel="noopener noreferrer">93%</a> of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of <a href="https://www.simplifyingthemarket.com/2023/01/12/is-it-time-to-sell-your-second-home/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="reasons" target="_blank" rel="noopener noreferrer">reasons</a> you may still need or want to move. <a href="https://www.realtrends.com/articles/15-predictions-to-help-you-plan-your-real-estate-business/?utm_campaign=Newsletter%20-%20RealTrends%20Daily%20Update&utm_medium=email&_hsmi=242803681&_hsenc=p2ANqtz--cgeSndq-bGP9pHDdzMaLYQzDYmTRBNTPj4HTxWlZvvqwyFWbY3LjDS8Un0xv50kKZdWj23iAj0m5-1VvPh2A9IFNzTwEjkv82QTcDm5ZDdRvaWE0&utm_content=242803681&utm_source=hs_email" title="RealTrends" target="_blank" rel="noopener noreferrer">RealTrends</a> explains:
“Sellers who don’t have to move won’t be moving. The most common sellers will be: Homeowners downsizing . . . people moving to get more space, [households] looking for better schools…etc.”
So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="breaks down" target="_blank" rel="noopener noreferrer">breaks down</a> why homeowners have decided to sell over the past year:
<a href="https://files.mykcm.com/2023/02/02171323/homeowners-top-reasons-to-sell-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107234" src="https://files.mykcm.com/2023/02/02171323/homeowners-top-reasons-to-sell-MEM.png" alt="The Top Reasons for Selling Your House | MyKCM" width="600" height="450" /></a>
As the visual shows, the most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure.
If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell.
What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer <a href="https://www.simplifyingthemarket.com/2023/01/05/3-best-practices-for-selling-your-house-this-year/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="advice" target="_blank" rel="noopener noreferrer">advice</a> and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.
Bottom Line
When deciding whether or not to move, you have a lot to <a href="https://www.simplifyingthemarket.com/2023/01/10/the-truth-about-negative-home-equity-headlines/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="consider" target="_blank" rel="noopener noreferrer">consider</a>. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.
2023-02-06T14:45:00-07:002023-02-08T14:04:02-07:00Hank Greertag:hankgreer.com,2012-09-20:24780Experts Forecast a Turnaround in the Housing Market in 2023Experts Forecast a Turnaround in the Housing Market in 2023
<img width="750" height="410" src="https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Experts Forecast a Turnaround in the Housing Market in 2023 | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM.jpg 750w, https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/30141759/experts-forecast-a-turnaround-in-the-housing-market-in-2023-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The housing market has gone through a lot of change recently, and much of that was a result of how quickly <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> rose last year.
Now, as we move through 2023, there are signs things are finally going to turn around. Home <a href="https://www.simplifyingthemarket.com/2023/01/20/whats-really-happening-with-home-prices-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="price appreciation" target="_blank" rel="noopener noreferrer">price appreciation</a> is slowing from the recent frenzy, mortgage rates are <a href="https://www.simplifyingthemarket.com/2023/01/24/the-3-factors-that-affect-home-affordability/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="coming down" target="_blank" rel="noopener noreferrer">coming down</a>, inflation is easing, and overall market activity is starting to <a href="https://www.simplifyingthemarket.com/2023/01/26/why-it-makes-sense-to-move-before-spring/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="pick up" target="_blank" rel="noopener noreferrer">pick up</a>. All of that’s great news for the housing market this year. Here’s what experts are saying.
Cristian deRitis, Deputy Chief Economist, <a href="https://www.newsweek.com/housing-market-reckoning-wont-provide-salvation-homebuyers-1774415" title="Moody’s Analytics" target="_blank" rel="noopener noreferrer">Moody’s Analytics</a>:
“The current state of the housing market is that it is certainly in transition.”
Susan Wachter, Professor of Real Estate and Finance, <a href="https://www.bloomberg.com/news/articles/2023-01-12/housing-market-in-2023-will-be-shaped-by-fed-policy" title="University of Pennsylvania’s Wharton School" target="_blank" rel="noopener noreferrer">University of Pennsylvania’s Wharton School</a>:
“Housing is going to ease up. I think 2023 will be a turnaround year.”
Lawrence Yun, Chief Economist, <a href="https://apnews.com/article/inflation-national-association-of-realtors-business-0fee2b2e18dd8e4aa047f892476fcba8" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR):
“Mortgage rates have fallen in the recent past weeks, so I’m very hopeful that the worst in home sales is probably coming to an end.”
Robert Dietz, Chief Economist and Senior Vice President, <a href="https://www.businessinsider.com/2023-could-be-the-year-that-the-us-housing-market-gets-back-on-track-2023-1" title="National Association of Home Builders" target="_blank" rel="noopener noreferrer">National Association of Home Builders</a> (NAHB):
“. . . it appears a turning point for housing lies ahead. In the coming quarters, single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability.”
Bottom Line
If you’re thinking about making a move this year, a turnaround in the housing market could be exactly what you’ve been waiting for. Let’s connect to talk about the latest trends in our area.
2023-02-03T16:00:00-07:002023-02-08T14:05:36-07:00Hank Greertag:hankgreer.com,2012-09-20:24514Lower Mortgage Rates Are Bringing Buyers Back to the MarketLower Mortgage Rates Are Bringing Buyers Back to the Market
<img width="750" height="410" src="https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Lower Mortgage Rates Are Bringing Buyers Back to the Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM.jpg 750w, https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/30122156/lower-mortgage-rates-are-bringing-buyers-back-to-the-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As mortgage rates rose last year, activity in the housing market slowed down. And as a result, homes started seeing fewer offers and stayed on the market longer. That meant some homeowners decided to press pause on selling.
Now, however, rates are beginning to come down—and <a href="https://www.simplifyingthemarket.com/2023/01/26/why-it-makes-sense-to-move-before-spring/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> are starting to reenter the market. In fact, the latest data from the Mortgage Bankers Association (MBA) shows <a href="https://www.mba.org/news-and-research/newsroom/news/2023/01/25/mortgage-applications-increase-in-latest-mba-weekly-survey" title="mortgage applications" target="_blank" rel="noopener noreferrer">mortgage applications</a> increased last week by 7% compared to the week before.
So, if you’ve been planning to <a href="https://www.simplifyingthemarket.com/2023/01/30/where-will-you-go-if-you-sell-you-have-options/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a> but you’re unsure if there will be anyone to buy it, this shift in the market could be your chance. Here’s what experts are saying about buyers returning to the market as we approach spring.
Mike Fratantoni, SVP and Chief Economist, <a href="https://www.mba.org/news-and-research/newsroom/news/2023/01/18/mortgage-applications-increase-in-latest-mba-weekly-survey" title="MBA" target="_blank" rel="noopener noreferrer">MBA</a>:
“Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers.”
Lawrence Yun, Chief Economist, <a href="https://twitter.com/NAR_Research/status/1597970968298782720?s=20&t=RM8XMxPm_1ZkD0xfSe4N6Q" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR):
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
Thomas LaSalvia, Senior Economist, <a href="https://www.newsweek.com/housing-market-reckoning-wont-provide-salvation-homebuyers-1774415" title="Moody’s Analytics" target="_blank" rel="noopener noreferrer">Moody’s Analytics</a>:
"We expect the labor market to remain robust, wages to continue to rise—maybe not at the pace that they did during the pandemic, but that will open up some opportunity for folks to enter homeownership as interest rates stabilize a bit."
Sam Khater, Chief Economist, <a href="https://freddiemac.gcs-web.com/node/26516/pdf" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>:
“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market.”
Bottom Line
If you’ve been thinking about making a move, now’s the time to get your house <a href="https://www.simplifyingthemarket.com/2023/01/23/want-to-sell-your-house-price-it-right/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="ready to sell" target="_blank" rel="noopener noreferrer">ready to sell</a>. Let’s connect so you can learn about buyer demand in our area the best time to put your house on the market.
2023-02-02T17:30:00-07:002023-02-02T18:13:22-07:00Hank Greertag:hankgreer.com,2012-09-20:24776The 3 Factors That Affect Home AffordabilityThe 3 Factors That Affect Home Affordability
<img width="750" height="410" src="https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="The 3 Factors That Affect Home Affordability | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM.jpg 750w, https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/23111137/the-3-factors-that-affect-home-affordability-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="experts" target="_blank" rel="noopener noreferrer">experts</a>, the key factors that determine housing affordability are projected to improve this year. Selma Hepp, Executive, Deputy Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights-january-2023/" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“. . . with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”
The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.
1. Mortgage Rates
<a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="Mortgage rates" target="_blank" rel="noopener noreferrer">Mortgage rates</a> shot up to over 7% last year, causing many <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> to put their plans on hold. But things are looking different today as rates are starting to come down. George Ratiu, Senior Economist at realtor.com, <a href="https://www.realtor.com/news/trends/mortgage-rates-are-sliding-could-they-fall-below-6-soon/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Let’s celebrate some good news. . . . mortgage rates are down. With inflation showing a tangible slowdown, I do expect mortgage rates to follow suit in the months ahead.”
Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-january-12-2023" title="context" target="_blank" rel="noopener noreferrer">context</a>:
“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”
If 7% rates paused your homebuying plans last year, this could be the <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="opportunity" target="_blank" rel="noopener noreferrer">opportunity</a> you need to get back in the game. Be sure to work with a team of experts who know the latest on mortgage rates and can give you the best advice for the current market.
2. Home Prices
The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. When discussing home prices in 2023, Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy" 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.”
So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to a trusted real estate professional.
3. Wages
The final component in the affordability equation is wages. The graph below uses <a href="https://www.bls.gov/charts/usual-weekly-earnings/usual-weekly-earnings-over-time-total-men-women.htm#%E2%80%8B" title="data" target="_blank" rel="noopener noreferrer">data</a> from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:
<a href="https://files.mykcm.com/2023/01/23134805/american-wage-growth-since-2000-MEM-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107030" src="https://files.mykcm.com/2023/01/23134805/american-wage-growth-since-2000-MEM-1.png" alt="The 3 Factors That Affect Home Affordability | MyKCM" width="600" height="450" /></a>
When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> have renewed opportunity in the market.
While affordability hurdles are not completely going away this year, based on current trends and projections, 2023 should bring some sense of relief to homebuyers who have faced growing challenges. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), <a href="https://finance.yahoo.com/news/real-estate-ceos-economists-other-113600300.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Rates are expected to move lower for the year, and home price growth is expected to cool, both of which will help affordability challenges.”
Bottom Line
If you have questions, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your financing options. You may be closer to <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="owning a home" target="_blank" rel="noopener noreferrer">owning a home</a> than you think.
2023-01-24T14:00:00-07:002023-02-08T14:02:43-07:00Hank Greertag:hankgreer.com,2012-09-20:24781What Past Recessions Tell Us About the Housing MarketWhat Past Recessions Tell Us About the Housing Market
<img width="750" height="410" src="https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Past Recessions Tell Us About the Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM.jpg 750w, https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/12122450/what-past-recessions-tell-us-about-the-housing-market-in-2023-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
It doesn’t matter if you’re someone who closely follows the economy or not, chances are you’ve heard whispers of an upcoming recession. Economic conditions are determined by a broad range of factors, so rather than explaining them each in depth, let’s lean on the experts and what history tells us to see what could lie ahead. As Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/investing/stock-market-outlook-2023/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Two-in-three economists are forecasting a recession in 2023 . . .”
As talk about a potential recession grows, you may be wondering what a recession could mean for the housing market. Here’s a look at the historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession could mean for the <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> today.
A Recession Doesn’t Mean Falling Home Prices
To show that home prices don’t fall every time there’s a <a href="https://www.corelogic.com/blog/2019/03/housing-recessions-and-recoveries.aspx" title="recession" target="_blank" rel="noopener noreferrer">recession</a>, it helps to turn to <a href="https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011" title="historical data" target="_blank" rel="noopener noreferrer">historical data</a>. As the graph below illustrates, looking at recessions going all the way back to 1980, <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.
<a href="https://files.mykcm.com/2023/01/12122452/a-recession-does-not-mean-falling-prices-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106878" src="https://files.mykcm.com/2023/01/12122452/a-recession-does-not-mean-falling-prices-MEM.png" alt="" width="600" height="450" /></a>
Most people remember the <a href="https://www.simplifyingthemarket.com/2023/01/11/todays-housing-market-is-nothing-like-15-years-ago/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing crisis" target="_blank" rel="noopener noreferrer">housing crisis</a> in 2008 (the larger of the two red bars in the graph above) and think another recession would be a repeat of what happened to housing then. But today’s housing market <a href="https://www.simplifyingthemarket.com/2022/11/30/why-there-wont-be-a-flood-of-foreclosures-coming-to-the-housing-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="isn’t about to crash" target="_blank" rel="noopener noreferrer">isn’t about to crash</a> because the fundamentals of the market are different than they were in 2008. According to <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="experts" target="_blank" rel="noopener noreferrer">experts</a>, home prices will vary by market and may go up or down depending on the local area. But the average of their <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="2023 forecasts" target="_blank" rel="noopener noreferrer">2023 forecasts</a> shows prices will net neutral nationwide, not fall drastically like they did in 2008.
A Recession Means Falling Mortgage Rates
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" title="Research" target="_blank" rel="noopener noreferrer">Research</a> also helps paint the picture of how a recession could impact the cost of financing a home. As the graph below shows, historically, each time the economy slowed down, <a href="https://www.freddiemac.com/pmms/archive" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> decreased.
<a href="https://files.mykcm.com/2023/01/12122448/a-recession-means-falling-mortgage-rates-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106876" src="https://files.mykcm.com/2023/01/12122448/a-recession-means-falling-mortgage-rates-MEM.png" alt="What Past Recessions Tell Us About the Housing Market in 2023 | MyKCM" width="600" height="450" /></a>
Fortune <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> mortgage rates typically fall during an economic slowdown:
“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.”
In <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="2023" target="_blank" rel="noopener noreferrer">2023</a>, market experts say mortgage rates will likely stabilize below the peak we saw last year. That’s because <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> tend to respond to inflation. And early signs show inflation is starting to cool. If inflation continues to ease, rates may fall a bit more, but the days of 3% are likely behind us.
The big takeaway is you don’t need to fear the word recession when it comes to housing. In fact, experts say a recession would be mild and housing would play a key role in a quick economic rebound. As the 2022 CEO Outlook from KPMG, <a href="https://home.kpmg/xx/en/home/media/press-releases/2022/09/global-ceo-short-recession-optimistic-global-economy-over-3-years.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .
More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”
Bottom Line
While history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined.
If you’re thinking about buying or selling a home this year, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.
2023-01-16T13:15:00-07:002023-02-08T14:06:17-07:00Hank Greertag:hankgreer.com,2012-09-20:24782Today’s Housing Market Is Nothing Like 15 Years AgoToday’s Housing Market Is Nothing Like 15 Years Ago
<img width="750" height="410" src="https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM.jpg 750w, https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There’s no doubt today’s <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences.
In the latest <a href="https://www.nar.realtor/sites/default/files/documents/2022-12-13-nar-real-estate-forecast-summit-the-year-ahead-lawrence-yun-presentation-slides-12-13-2022.pdf" title="Real Estate Forecast Summit" target="_blank" rel="noopener noreferrer">Real Estate Forecast Summit</a>, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), drew the comparisons below between today’s housing market and the previous cycle:
<a href="https://files.mykcm.com/2023/01/10124010/today-is-nothing-like-15-years-ago-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106779" src="https://files.mykcm.com/2023/01/10124010/today-is-nothing-like-15-years-ago-MEM.png" alt="Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM" width="600" height="450" /></a>
Looking at the facts, it’s clear: today is very different than the <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> of 15 years ago.
There’s Opportunity in Real Estate Today
And in today’s market, with inventory rising and <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="less competition" target="_blank" rel="noopener noreferrer">less competition</a> from other buyers, there’s opportunity right now. According to <a href="https://www.linkedin.com/pulse/reminder-home-prices-always-rise-over-time-david-h-stevens-cmb/?trackingId=v4Fg7EqLTTCx94toGrR%2Ffw%3D%3D" title="David Stevens" target="_blank" rel="noopener noreferrer">David Stevens</a>, former Assistant Secretary of Housing:
“So be advised…this may be the one and only window for the next few years to get into a buyer’s market. And remember…as the Federal Reserve data shows…home prices only go up and always recover from recessions no matter how mild or severe. Long term homeowners should view this market…right now…as a unique buying opportunity.”
Bottom Line
Today’s housing market is nothing like the real estate market 15 years ago. If you’re a buyer right now, this may be the chance you’ve been waiting for.
2023-01-11T16:30:00-07:002023-02-08T14:07:12-07:00Hank Greertag:hankgreer.com,2012-09-20:24097What Experts Are Saying About the 2023 Housing MarketWhat Experts Are Saying About the 2023 Housing Market
<img width="600" height="315" src="https://files.mykcm.com/2023/01/05132532/what-experts-are-saying-about-the-2023-housing-market-BB.jpg" class="attachment-entry size-entry wp-post-image" alt="What Experts Are Saying About the 2023 Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/05132532/what-experts-are-saying-about-the-2023-housing-market-BB.jpg 600w, https://files.mykcm.com/2023/01/05132532/what-experts-are-saying-about-the-2023-housing-market-BB-100x53.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buying or selling" target="_blank" rel="noopener noreferrer">buying or selling</a> a home soon, you probably want to know what you can expect from the <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> this year. In 2022, the market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices. But what about <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="2023" target="_blank" rel="noopener noreferrer">2023</a>?
An article from HousingWire <a href="https://www.housingwire.com/articles/the-red-hot-housing-market/" title="offers" target="_blank" rel="noopener noreferrer">offers</a> this perspective:
“The red-hot housing market of the past 2 ½ years was characterized by sub-three percent mortgage rates, fast-paced bidding wars and record-low inventory. But more recently, market conditions have done an about-face. . . . now is the opportunity for everyone to become re-educated about what a ‘typical’ housing market looks like.”
This year, experts agree we may see the return of greater stability and predictability in the housing market if inflation continues to ease and <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> stabilize. Here’s what they have to say.
The 2023 forecast from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While 2022 may be remembered as a year of housing volatility, 2023 likely will become a year of long-lost normalcy returning to the market, . . . mortgage rates are expected to stabilize while home sales and prices moderate after recent highs, . . .”
Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/2023-national-housing-forecast/" title="adds" target="_blank" rel="noopener noreferrer">adds</a>:
“. . . buyers will not face the extreme competition that was commonplace over the past few years.”
Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy" title="explains" target="_blank" rel="noopener noreferrer">explains</a> home prices will vary by local area, but will net neutral nationwide as the market continues to adjust:
“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.”
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-the-housing-market-may-begin-to-stabilize-in-2023" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.”
Bottom Line
If you’re looking to buy or sell a home this year, the best way to ensure you’re up to date on the latest market insights is to partner with a trusted real estate advisor. Let’s connect.
2023-01-09T17:15:00-07:002023-01-10T11:53:07-07:00Hank Greertag:hankgreer.com,2012-09-20:24098Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC]Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC]
<img width="1046" height="2405" src="https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-1046x2405.png" class="attachment-entry size-entry wp-post-image" alt="Tips To Reach Your Homebuying Goals in 2023 [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-1046x2405.png 1046w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-261x600.png 261w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-445x1024.png 445w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-768x1766.png 768w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-668x1536.png 668w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-891x2048.png 891w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM-100x230.png 100w, https://files.mykcm.com/2023/01/05124509/Tips-To-Reach-Your-Homebuying-Goals-in-2023-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re planning to <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> in 2023, here are a few things to focus on.
Work on <a href="https://www.nerdwallet.com/article/mortgages/home-buying-checklist-steps-to-buying-house" title="your credit" target="_blank" rel="noopener noreferrer">your credit</a> and save for a <a href="https://www.simplifyingthemarket.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="down payment" target="_blank" rel="noopener noreferrer">down payment</a>. If saving feels like a challenge, there’s <a href="https://downpaymentresource.com/" title="help available" target="_blank" rel="noopener noreferrer">help available</a>. Then, get <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a>, create a list of desired features, and <a href="https://www.simplifyingthemarket.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="prioritize" target="_blank" rel="noopener noreferrer">prioritize</a> them.
Let’s connect so you have expert advice on how to reach your <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="homebuying goals" target="_blank" rel="noopener noreferrer">homebuying goals</a> this year.
2023-01-06T14:30:00-07:002023-01-10T11:55:06-07:00Hank Greertag:hankgreer.com,2012-09-20:23879What Are Your Goals in the Housing Market This Year?What Are Your Goals in the Housing Market This Year?
<img width="750" height="410" src="https://files.mykcm.com/2022/12/22121014/what-are-your-goals-in-the-housing-market-this-year-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Are Your Goals in the Housing Market This Year? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/22121014/what-are-your-goals-in-the-housing-market-this-year-KCM.jpg 750w, https://files.mykcm.com/2022/12/22121014/what-are-your-goals-in-the-housing-market-this-year-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/22121014/what-are-your-goals-in-the-housing-market-this-year-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If buying or selling a home is part of your dreams for 2023, it’s essential for you to understand today’s housing market, define your goals, and work with industry experts to bring your homeownership vision for the new year into focus.
In the last year, <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="high inflation" target="_blank" rel="noopener noreferrer">high inflation</a> had a big impact on the economy, the housing market, and likely on your wallet too. That’s why it’s critical to have a clear understanding of not just the market today, but also what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at realtor.com, <a href="https://twitter.com/RDC_Economics/status/1590722818639269889" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”
Here are a few questions you can start thinking through as you fine tune your goals for 2023.
1. What’s Motivating You?
You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many <a href="https://www.simplifyingthemarket.com/2022/11/25/home-sweet-home-the-emotional-benefits-of-homeownership-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="compelling reasons" target="_blank" rel="noopener noreferrer">compelling reasons</a> to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time and have a space that’s truly your own. Use what’s motivating you as a guidepost in partnership with an expert advisor to help make sure your move will give you a lasting sense of accomplishment.
2. What Does Your Next Home Look Like?
You know you want to move, but how would you describe your dream home? The available supply of <a href="https://www.simplifyingthemarket.com/2022/12/07/key-advantages-of-buying-a-home-today/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="homes for sale" target="_blank" rel="noopener noreferrer">homes for sale</a> has grown, and that could mean more options to choose from when you buy. Just be sure to keep your budget in mind and work with a trusted real estate professional to balance your <a href="https://www.simplifyingthemarket.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="wants and needs" target="_blank" rel="noopener noreferrer">wants and needs</a>. The better you understand what’s essential and where you can be flexible, the easier it can be to find the home that’s right for you.
3. How Ready Are You To Buy?
Getting clear on your budget and <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="savings" target="_blank" rel="noopener noreferrer">savings</a> is essential before you get too far into the process. Working with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting <a href="https://www.simplifyingthemarket.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a> for a home loan, and assessing your current <a href="https://www.simplifyingthemarket.com/2022/11/29/3-ways-you-can-use-your-home-equity/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="home equity" target="_blank" rel="noopener noreferrer">home equity</a> if your move involves selling your existing house.
A Professional Will Guide You Through Every Step of the Process
Buying or selling a home is a big process that takes expertise to navigate. If that feels a bit overwhelming, you aren’t alone. According to a recent Harris Poll <a href="https://theharrispoll.com/wp-content/uploads/2022/12/State-of-Real-Estate-December-2022.pdf" title="survey" target="_blank" rel="noopener noreferrer">survey</a>, one in five respondents see a lack of information or knowledge about the homebuying process as a barrier from owning a home. Don’t let uncertainty hold you back from your goals this year. A trusted expert can bridge that gap and give you the best advice and information about today’s market.
Bottom Line
Let’s connect to plan how your dreams for 2023 can become a reality.
2023-01-04T12:30:00-07:002023-01-04T12:43:11-07:00Hank Greertag:hankgreer.com,2012-09-20:23793What To Expect From the Housing Market in 2023What To Expect From the Housing Market in 2023
<img width="750" height="410" src="https://files.mykcm.com/2022/12/19163204/what-to-expect-from-the-housing-market-in-2023-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What To Expect from the Housing Market in 2023 | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/19163204/what-to-expect-from-the-housing-market-in-2023-KCM.jpg 750w, https://files.mykcm.com/2022/12/19163204/what-to-expect-from-the-housing-market-in-2023-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/19163204/what-to-expect-from-the-housing-market-in-2023-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The 2022 housing market has been defined by two key things: inflation and rapidly rising <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="supply and demand" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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" target="_blank" rel="noopener noreferrer"><img 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" /></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. Let’s connect.
2022-12-30T12:45:00-07:002022-12-30T12:54:22-07:00Hank Greertag:hankgreer.com,2012-09-20:23794Confused About What’s Going on in the Housing Market? Lean on a Professional.Confused About What’s Going on in the Housing Market? Lean on a Professional.
<img width="750" height="410" src="https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Confused About What’s Going on in the Housing Market? Lean on a Professional. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM.jpg 750w, https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buying" target="_blank" rel="noopener noreferrer">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="selling" target="_blank" rel="noopener noreferrer">selling</a> a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" title="says" target="_blank" rel="noopener noreferrer">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 or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a>.
A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.
Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.
Bottom Line
If you have questions about the headlines or what’s happening in the housing market today, let’s connect so you have expert insights and advice on your side.
2022-12-27T14:30:00-07:002022-12-30T12:58:55-07:00Hank Greertag:hankgreer.com,2012-09-20:23795 Mortgage Rates Are Dropping. What Does That Mean for You?Mortgage Rates Are Dropping. What Does That Mean for You?
<img width="750" height="410" src="https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Mortgage Rates Are Dropping. What Does That Mean for You? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM.jpg 750w, https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/16162719/mortgage-rates-are-dropping-what-does-that-mean-for-you-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Mortgage rates have been a hot topic in the housing market over the past 12 months. Compared to the beginning of 2022, rates have <a href="https://www.freddiemac.com/pmms/archive" title="risen dramatically" target="_blank" rel="noopener noreferrer">risen dramatically</a>. Now they’re dropping, and that has to do with everything happening in the economy.
Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), explains it well by <a href="https://twitter.com/NAR_Research/status/1603455050390577152" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Mortgage rates dropped even further this week as two main factors affecting today's mortgage market became more favorable. Inflation continued to ease while the Federal Reserve switched to a smaller interest rate hike. As a result, according to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.”
So, what does that mean for your homeownership plans? As mortgage rates fluctuate, they impact your purchasing power by influencing the cost of buying a home. Even a small dip can help boost your purchasing power. Here’s how it works.
The median-priced home according to the National Association of Realtors (NAR) is <a href="https://www.nar.realtor/newsroom/existing-home-sales-slumped-5-9-in-october" title="$379,100" target="_blank" rel="noopener noreferrer">$379,100</a>. So, let’s assume you want to buy a $400,000 home. If you’re trying to shop at that price point and keep your monthly payment about $2,500-2,600 or below, here’s how your purchasing power can change as mortgage rates move up or down (see chart below). The red shows payments above that threshold and the green indicates a payment within your target range.
<a href="https://files.mykcm.com/2022/12/16162717/buyers-purchasing-power-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106402" src="https://files.mykcm.com/2022/12/16162717/buyers-purchasing-power-MEM.png" alt="Mortgage Rates Are Dropping. What Does That Mean for You? | MyKCM" width="600" height="450" /></a>
This goes to show, even a small quarter-point change in mortgage rates can impact your monthly mortgage payment. That’s why it’s important to work with a trusted real estate professional who follows what the experts are projecting for mortgage rates for the days, months, and year ahead.
Bottom Line
Mortgage rates are likely to fluctuate depending on what happens with inflation moving forward, but they have dropped slightly in recent weeks. If a 7% rate was too high for you, it may be time to contact a lender to see if the current rate is more in line with your goal for a monthly housing expense.
2022-12-19T15:15:00-07:002022-12-30T12:59:59-07:00Hank Greertag:hankgreer.com,2012-09-20:23545What Every Seller Should Know About Home PricesWhat Every Seller Should Know About Home Prices
<img width="750" height="410" src="https://files.mykcm.com/2022/12/09102646/what-every-seller-should-know-about-home-prices-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Every Seller Should Know About Home Prices | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/09102646/what-every-seller-should-know-about-home-prices-KCM.jpg 750w, https://files.mykcm.com/2022/12/09102646/what-every-seller-should-know-about-home-prices-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/09102646/what-every-seller-should-know-about-home-prices-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re trying to decide whether or not to <a href="https://www.simplifyingthemarket.com/2022/11/28/your-house-could-be-the-1-item-on-a-homebuyers-wish-list-during-the-holidays/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a>, recent headlines about home prices may be top of mind. And if those stories have you wondering what that means for your home’s value, here’s what you really need to know.
What’s Really Happening with Home Prices?
It’s possible you’ve seen news stories mentioning a drop in home values or home price depreciation, but it’s important to remember those headlines are designed to make a big impression in just a few words. But what headlines aren’t always great at is painting the full picture.
While home prices are down slightly month-over-month in some markets, it’s also true that home values are up nationally on a year-over-year basis. The graph below uses the latest <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-20-city-composite-home-price-nsa-index/#news-research" title="data" target="_blank" rel="noopener noreferrer">data</a> from S&P Case-Shiller to help tell the story of what’s actually happening in the <a href="https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-continued-to-decline-in-september/" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> today:
<a href="https://files.mykcm.com/2022/12/09102647/home-price-growth-since-january-2019-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106293" src="https://files.mykcm.com/2022/12/09102647/home-price-growth-since-january-2019-MEM.png" alt="What Every Seller Should Know About Home Prices | MyKCM" width="600" height="450" /></a>
As the graph shows, it’s true <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="home price" target="_blank" rel="noopener noreferrer">home price</a> growth has moderated in recent months (shown in green) as buyer demand has pulled back in response to higher <a href="https://www.simplifyingthemarket.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>. This is what the headlines are drawing attention to today.
But what’s important to notice is the bigger, longer-term picture. While home price growth is moderating month-over-month, the percent of appreciation year-over-year is still well above the home price change we saw during more normal years in the market.
The bars for January 2019 through mid-2020 show home price appreciation around 3-4% a year was more typical (see bars for January 2019 through mid-2020). But even the latest data for this year shows prices have still climbed by roughly 10% over last year.
What Does This Mean for Your Home’s Equity?
While you may not be able to capitalize on the 20% appreciation we saw in early 2022, in most markets your home’s value, on average, is up 10% over last year – and a 10% gain is still dramatic compared to a more normal level of appreciation (3-4%).
The big takeaway? Don’t let the headlines get in the way of your <a href="https://www.simplifyingthemarket.com/2022/11/16/top-questions-about-selling-your-home-this-winter/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="plans to sell" target="_blank" rel="noopener noreferrer">plans to sell</a>. Over the past two years alone, you’ve likely gained a substantial amount of <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="equity" target="_blank" rel="noopener noreferrer">equity</a> in your home as home prices climbed. Even though <a href="https://www.simplifyingthemarket.com/2022/12/06/whats-going-on-with-home-prices-ask-a-professional/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="home price moderation" target="_blank" rel="noopener noreferrer">home price moderation</a> will vary by market moving forward, you can still use the boost your <a href="https://www.simplifyingthemarket.com/2022/11/14/home-equity-a-source-of-strength-for-homeowners-today/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="equity" target="_blank" rel="noopener noreferrer">equity</a> got to help power your move.
As Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/house-prices-decline-but-equity-buffers-remain-robust" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained.”
Bottom Line
If you have questions about home prices or how much equity you have in your current home, let’s connect so you have an expert’s advice.
2022-12-14T14:29:31-07:002022-12-14T14:30:13-07:00Hank Greertag:hankgreer.com,2012-09-20:23490MARKET UPDATE: 12/2 - 12/9<img src="https://assets.site-static.com/userfiles/2037/image/000Screen_Shot_2022-12-09_at_3.38.43_PM.jpg" width="852" height="1104" />2022-12-09T17:00:00-07:002022-12-12T10:59:44-07:00Hank Greertag:hankgreer.com,2012-09-20:23418Winter Home Selling Checklist [INFOGRAPHIC]Winter Home Selling Checklist [INFOGRAPHIC]
<img width="1046" height="1715" src="https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-1046x1715.png" class="attachment-entry size-entry wp-post-image" alt="Winter Home Selling Checklist [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-1046x1715.png 1046w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-366x600.png 366w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-625x1024.png 625w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-768x1259.png 768w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-937x1536.png 937w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-1249x2048.png 1249w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-100x164.png 100w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
As you get ready to <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a>, focus on tasks that make it inviting, show it’s cared for, and boost your curb appeal.
This list will help you get started, but don’t forget, a real estate professional will provide other helpful tips based on your specific situation.
Let’s connect so you have advice on what you may want to do to get your house ready to <a href="https://www.simplifyingthemarket.com/2022/10/13/perspective-matters-when-selling-your-house-today/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="sell this season" target="_blank" rel="noopener noreferrer">sell this season</a>.
2022-12-07T12:15:00-07:002022-12-08T11:44:38-07:00Hank Greertag:hankgreer.com,2012-09-20:23417What’s Going on with Home Prices? Ask a Professional.What’s Going on with Home Prices? Ask a Professional.
<img width="750" height="410" src="https://files.mykcm.com/2022/12/05161804/whats-going-on-with-home-prices-ask-a-professional-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What’s Going on with Home Prices? Ask a Professional. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/05161804/whats-going-on-with-home-prices-ask-a-professional-KCM.jpg 750w, https://files.mykcm.com/2022/12/05161804/whats-going-on-with-home-prices-ask-a-professional-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/05161804/whats-going-on-with-home-prices-ask-a-professional-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="buying" target="_blank" rel="noopener noreferrer">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="selling" target="_blank" rel="noopener noreferrer">selling</a> a home this year, you may have questions about what’s happening with home prices today as the market cools. In the simplest sense, nationally, experts don’t expect prices to come crashing down, but the level of <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="home price moderation" target="_blank" rel="noopener noreferrer">home price moderation</a> will depend on factors like supply and demand in each local market.
That means, moving forward, home price appreciation will continue to vary by location, with more significant changes happening in overheated areas. Here’s a quick snapshot of what the experts are saying:
Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/2023-national-housing-forecast/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The major question on the minds of homeowners and aspiring buyers alike is what will happen to home prices. . . Soaring prices were propelled by all-time low mortgage rates which are a thing of the past. As a result, home price growth is expected to continue slowing, dipping below its pre-pandemic average to 5.4% for 2023, as a whole.”
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/pandemic-boom-markets-cooling-the-fastest" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Taylor Marr, Deputy Chief Economist at Redfin, <a href="https://twitter.com/tayloramarr/status/1578082283281596418" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“For those bearish folks eagerly awaiting the home price crash, you'll have to keep waiting. As much as demand is pulling back supply is as well reducing downward pressure on prices in the short run.”
John Paulson, Founder of Paulson & Co., <a href="https://twitter.com/NickTimiraos/status/1574458786214948865" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“It’s true – housing may be a little frothy. So housing prices may come down or they may plateau . . .”
What Does This Mean for You?
The best way to get the answers you need is to lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=465590-9f4c9f06bf6f5924c822a994faf173dc" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a>. They’ll be able to explain the latest trends in your specific market so you can make a confident and informed decision on your next step toward buying or selling a home.
Bottom Line
If you have questions about what’s happening with home prices today, let’s connect so you have the latest on our local market.
2022-12-06T10:45:00-07:002022-12-08T11:43:17-07:00Hank Greertag:hankgreer.com,2012-09-20:23420MARKET UPDATE: 11/25-12/02<img src="https://assets.site-static.com/userfiles/2037/image/000317964112_5679108558804069_221400894988812913_n.jpg" width="850" height="1106" />2022-12-02T16:15:00-07:002022-12-08T11:49:42-07:00Hank Greer