Unmasking Market MovesRecently posted or modified blog posts in the category - Real Estate Curioushttps://www.newhomeinformation.com/blog/Copyright NewHomeInformation.com2023-06-13T10:11:36-07:00tag:newhomeinformation.com,2012-09-20:5504The True Value of HomeownershipThe True Value of Homeownership
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Buying and owning your home can make a big difference in your life by bringing you joy and a sense of belonging. And with June being National Homeownership Month, it’s the perfect time to think about all the benefits homeownership provides.
Of course, there are <a href="https://www.simplifyingthemarket.com/en/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">financial reasons</a> to buy a house, but it’s important to consider the non-financial benefits that make a home more than just where you live.
Here are three ways owning your home can give you a sense of accomplishment, happiness, and pride.
You May Feel Happier and More Fulfilled
Owning a home is associated with better mental health and well-being. Gary Acosta, CEO and Co-Founder at the National Association of Hispanic Real Estate Professionals (NAHREP), <a href="https://www.housingwire.com/articles/opinion-why-we-all-have-a-stake-in-closing-the-homeownership-gap/" rel="noopener noreferrer" target="_blank">explains</a>:
“Studies have shown the emotional and psychological benefits that homeownership has on a person’s health and self-esteem . . .”
Similarly, Habitat for Humanity <a href="https://www.habitat.org/our-work/impact/research-series-how-does-homeownership-contribute-to-social-and-civic-engagement" rel="noopener noreferrer" target="_blank">says</a>:
“Residential stability among homeowners is related to improved life satisfaction, . . . along with better physical and mental health.”
So, according to the experts, owning a home can improve your psychological wellness by making you feel happier and more accomplished.
You Can Engage in Your Neighborhood and Grow Your Sense of Community
Your home connects you to your community. Homeowners tend to stay in their homes longer than <a href="https://www.simplifyingthemarket.com/en/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">renters</a>, and that can help you feel more connected to your community because you have more time to build meaningful relationships. And, as Acosta <a href="https://www.housingwire.com/articles/opinion-why-we-all-have-a-stake-in-closing-the-homeownership-gap/" rel="noopener noreferrer" target="_blank">says</a>, when people stay in the same area for a longer period of time, it can lead to them being more involved:
“Homeowners also tend to be more active in their local communities . . .”
After all, it makes sense that someone would want to help improve the area they’re going to be living in for a while.
You Can Customize and Improve Your Living Space
Your home is a place that’s all yours. When you own it, unless there are specific homeowner’s association requirements, you’re free to customize it however you see fit. Whether that’s small home improvements or full-on renovations, your house can be exactly what you want and need it to be. As your tastes and lifestyle change, so can your home. As Investopedia <a href="https://www.investopedia.com/articles/mortgages-real-estate/08/home-ownership.asp" rel="noopener noreferrer" target="_blank">tells</a> us:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.”
Renting can limit your ability to personalize your living space, and even if you do make changes, you may have to undo them before your lease ends. The ability homeownership gives you to customize and improve where you live creates a greater sense of ownership, pride, and connection with your home.
Bottom Line
Owning your home can change your life in a way that gives you greater satisfaction and happiness. Let’s connect today if you’re ready to <a rel="noopener noreferrer" target="_blank">explore</a> homeownership and all it has to offer.2023-06-13T10:10:44-07:002023-06-13T10:11:36-07:00Jackson Cintrontag:newhomeinformation.com,2012-09-20:5503Real Estate Is Still Considered the Best Long-Term InvestmentReal Estate Is Still Considered the Best Long-Term Investment
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With all the headlines circulating about <a href="https://www.simplifyingthemarket.com/en/2023/05/16/the-worst-home-price-declines-are-behind-us/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">home prices</a> and rising <a href="https://www.simplifyingthemarket.com/en/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">mortgage rates</a>, you may wonder if it still makes sense to invest in homeownership right now. A <a href="https://news.gallup.com/poll/505592/real-estate-lead-best-investment-shrinks-gold-rises.aspx" rel="noopener noreferrer" target="_blank">recent poll</a> from Gallup shows the answer is yes. In fact, real estate was voted the best long-term investment for the 11th consecutive year, consistently beating other investment types like gold, stocks, and bonds (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-americas-opinion-of-best-long-term-investment-in-2023.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-americas-opinion-of-best-long-term-investment-in-2023.png" /></a>
If you’re thinking about <a href="https://www.simplifyingthemarket.com/en/2023/05/24/owning-a-home-helps-protect-against-inflation/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">purchasing a home</a>, let this poll reassure you. Even with everything happening today, Americans recognize owning a home is a powerful financial decision.
Why Do Americans Still Feel So Positive About the Value of Investing in a Home?
Purchasing real estate has typically been a solid long-term strategy for building wealth in America. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" rel="noopener noreferrer" target="_blank">notes</a>:
“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”
That’s because owning a home grows your <a href="https://www.simplifyingthemarket.com/en/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">net worth</a> over time as your home appreciates in value and as you pay down your mortgage. And, since building that wealth takes time, it may make sense to start as soon as you can. If you wait to buy and keep <a href="https://www.simplifyingthemarket.com/en/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">renting</a>, you’ll miss out on those monthly housing payments going toward your home equity.
Bottom Line
Buying a home is a powerful decision. So, it’s no wonder so many people view real estate as the best long-term investment. If you’re ready to start on your own journey toward homeownership, let’s connect today.2023-06-13T10:09:52-07:002023-06-13T10:10:33-07:00Jackson Cintrontag:newhomeinformation.com,2012-09-20:5502The Main Reason Mortgage Rates Are So HighThe Main Reason Mortgage Rates Are So High
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Today’s mortgage rates are top-of-mind for many <a href="https://www.simplifyingthemarket.com/en/2023/06/01/the-true-value-of-homeownership/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">homebuyers</a> right now. As a result, if you’re thinking about buying for the first time or selling your current house to move into a home that better fits your needs, you may be asking yourself these two questions:
Why Are Mortgage Rates So High?
When Will Rates Go Back Down?
Here’s context you need to help answer those questions.
1. Why Are Mortgage Rates So High?
The 30-year fixed-rate mortgage is largely influenced by the supply and demand for mortgage-backed securities (MBS). According to <a href="https://www.investopedia.com/terms/m/mbs.asp" rel="noopener noreferrer" target="_blank">Investopedia</a>:
“Mortgage-backed securities (MBS) are investment products similar to bonds. Each MBS consists of a bundle of home loans and other real estate debt bought from the banks that issued them . . . The investor who buys a mortgage-backed security is essentially lending money to home buyers.”
Demand for MBS helps determine the spread between the <a href="https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart" rel="noopener noreferrer" target="_blank">10-Year Treasury Yield</a> and the 30-year fixed <a href="https://www.freddiemac.com/pmms/pmms_archives" rel="noopener noreferrer" target="_blank">mortgage rate</a>. Historically, the average spread between the two is 1.72 (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230606/20230607-for-50-years-the-30-year-mortgage-rate-has-moved-in-unison-with-the-10-year-treasury-yield.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230606/20230607-for-50-years-the-30-year-mortgage-rate-has-moved-in-unison-with-the-10-year-treasury-yield.png" /></a>
Last Friday morning, the <a href="https://www.mortgagenewsdaily.com/" rel="noopener noreferrer" target="_blank">mortgage rate</a> was 6.85%. That means the spread was 3.2%, which is almost 1.5% over the norm. If the spread was at its historical average, mortgage rates would be 5.37% (3.65% 10-Year <a href="https://www.cnbc.com/quotes/US10Y" rel="noopener noreferrer" target="_blank">Treasury Yield</a> + 1.72 spread).
<a href="https://files.keepingcurrentmatters.com/content/images/20230606/20230607-why-are-mortgage-rates-so-high.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230606/20230607-why-are-mortgage-rates-so-high.png" /></a>
This large spread is very unusual. As George Ratiu, Chief Economist at Keeping Current Matters (KCM), <a href="https://twitter.com/GeorgeRatiu/status/1661766282465669124" rel="noopener noreferrer" target="_blank">explains</a>:
“The only times the spread approached or exceeded 300 basis points were during periods of high inflation or economic volatility, like those seen in the early 1980s or the Great Financial Crisis of 2008-09."
The graph below uses <a href="https://fred.stlouisfed.org/" rel="noopener noreferrer" target="_blank">historical data</a> to help illustrate this point by showing the few times the spread has increased to 300 basis points or more:
<a href="https://files.keepingcurrentmatters.com/content/images/20230606/20230607-spread-between-the-10-year-treasury-and-the-30-year-fixed-mortgage-rate.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230606/20230607-spread-between-the-10-year-treasury-and-the-30-year-fixed-mortgage-rate.png" /></a>
The graph shows how the spread has come down after each peak. The good news is, that means there’s room for mortgage rates to improve today.
So, what’s causing the larger spread and making mortgage rates so high today?
The demand for MBS is heavily influenced by the risks associated with investing in them. Today, that risk is impacted by broader market conditions like <a href="https://www.simplifyingthemarket.com/en/2023/05/24/owning-a-home-helps-protect-against-inflation/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">inflation</a> and fear of a potential <a href="https://www.simplifyingthemarket.com/en/2023/05/02/a-recession-doesnt-equal-a-housing-crisis-2/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">recession</a>, the Fed’s interest rate hikes to try to bring down <a href="https://www.simplifyingthemarket.com/en/2023/05/10/the-impact-of-inflation-on-mortgage-rates/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">inflation</a>, headlines that create unnecessarily negative narratives about <a href="https://www.simplifyingthemarket.com/en/2023/06/05/oops-home-prices-didnt-crash-after-all/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">home prices</a>, and more.
Simply put: when there’s less risk, demand for MBS is high, so mortgage rates will be lower. On the other hand, if there’s more risk with MBS, demand for MBS will be low, and we’ll see higher mortgage rates as a result. Currently, demand for MBS is low, so mortgage rates are high.
2. When Will Rates Go Back Down?
Odeta Kushi, Deputy Chief Economist at First American, answers that question in a <a href="https://blog.firstam.com/economics/mind-the-gap-between-mortgage-rates-and-the-10-year-treasury-yield" rel="noopener noreferrer" target="_blank">recent blog</a>:
“It’s reasonable to assume that the spread and, therefore, mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal and provides investors with more certainty. However, it’s unlikely that the spread will return to its historical average of 170 basis points, as some risks are here to stay.”
Bottom Line
The spread will shrink when the fear investors feel is eased. That’ll mean we should see mortgage rates moderate as the year goes on. However, when it comes to forecasting mortgage rates, no one can know for sure exactly what will happen.2023-06-13T10:08:21-07:002023-06-13T10:09:33-07:00Jackson Cintrontag:newhomeinformation.com,2012-09-20:5501This Real Estate Market Is the Strongest of Our LifetimeThis Real Estate Market Is the Strongest of Our Lifetime
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When you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime – if not the strongest housing market of our lifetime. Here are two fundamentals that prove this point.
1. The Current Mortgage Rate on Existing Mortgages
First, let’s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency (<a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" rel="noopener noreferrer" target="_blank">FHFA</a>), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That’s significant. And, to take that one step further, over 50% of mortgages have a rate below 4% (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-current-rate-on-existing-mortgages.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-current-rate-on-existing-mortgages.png" /></a>
Now, there’s a lot of talk in the media about a potential <a href="https://www.simplifyingthemarket.com/en/2023/04/27/why-todays-foreclosure-numbers-are-nothing-like-2008/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">foreclosure</a> crisis or a rise of homeowners defaulting on their loans, but consider this. Homeowners with such good mortgage rates are going to work as hard as they can to keep that mortgage and stay in their homes. That’s because they can't go out and buy another house, or even rent an apartment, and pay what they do today. Their current mortgage payment is more affordable. Even if they <a href="https://www.simplifyingthemarket.com/en/2023/05/04/how-homeowners-win-when-they-downsize/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">downsize</a>, with today’s higher mortgage rates, it could cost more.
Here's why this gives the housing market such a solid foundation today. Having so many homeowners with such low mortgage rates helps us avoid a crisis with a flood of foreclosures coming to market like there was back in 2008.
2. The Amount of Homeowner Equity
Second, Americans are sitting on tremendous equity right now. According to the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a> and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, roughly two-thirds (around 68%) of homeowners have either paid off their mortgage or have at least 50% equity (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" /></a>
In the industry, the term for this is <a href="https://www.simplifyingthemarket.com/en/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">equity</a> rich. This is significant because if you think back to 2008, some people had to make the difficult decision to walk away from their homes because they owed more on the home than it was worth.
But this time, things are different because homeowners have built up so much equity over the past few years alone. And, when homeowners have that much equity, it helps us avoid another wave of distressed properties coming onto the market like we saw during the crash. It also creates an extremely strong foundation for today’s housing market.
Bottom Line
We are in one of the most foundationally strong housing markets of our lifetime because homeowners are going to fight to keep their current mortgage rate and they have a tremendous amount of equity. This is yet another reason things are fundamentally different than in 2008.2023-06-13T10:06:29-07:002023-06-13T10:08:15-07:00Jackson Cintrontag:newhomeinformation.com,2012-09-20:5315The Power of Pre-ApprovalThe Power of Pre-Approval
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If you’re buying a home this spring, today’s housing market can feel like a <a href="https://www.simplifyingthemarket.com/en/2023/04/06/trying-to-buy-a-home-hang-in-there/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">challenge</a>. With so few homes on the market right now, plus higher <a href="https://www.simplifyingthemarket.com/en/2023/04/03/how-changing-mortgage-rates-can-affect-you/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">mortgage rates</a>, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when you go to put in an offer. One thing you can do to help you prepare is to get pre-approved.
To understand why it’s such an important step, you need to know what pre-approval is. As part of the process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow.
Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow so you have a stronger grasp of your options. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
That’s not the only thing pre-approval can do. Another added benefit is it can help a seller feel more confident in your offer because it shows you’re serious about buying their house. And, with sellers seeing a slight increase in the <a href="https://www.simplifyingthemarket.com/en/2023/04/11/the-big-advantage-if-you-sell-this-spring/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" rel="noopener noreferrer" target="_blank">number of offers</a> again this spring, making a strong offer when you find the perfect house is key.
As a recent article from the Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Bottom Line
Getting pre-approved is an important first step when you’re buying a home. It lets you know what you can borrow for your loan and shows sellers you’re serious. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.2023-04-24T07:09:10-07:002023-04-24T08:32:47-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:5011Think Twice Before Waiting for 3% Mortgage RatesThink Twice Before Waiting for 3% Mortgage Rates
<img width="750" height="410" src="https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Think Twice Before Waiting for 3% Mortgage Rates | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM.jpg 750w, https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/12145408/think-twice-about-waiting-for-3-percent-mortgage-rates-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% <a href="https://www.freddiemac.com/pmms/archive" title="last October" target="_blank" rel="noopener noreferrer">last October</a>. Hopeful <a href="https://www.simplifyingthemarket.com/2023/01/04/avoid-the-rental-trap-in-2023/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.
Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Mac, <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-inch-3" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
That’s potentially great news if you’re a <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="buyer" target="_blank" rel="noopener noreferrer">buyer</a> aiming to jump back into the housing market. Any drop in mortgage rates helps boost your <a href="https://www.simplifyingthemarket.com/2022/12/19/mortgage-rates-are-dropping-what-does-that-mean-for-you/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="purchasing power" target="_blank" rel="noopener noreferrer">purchasing power</a> by bringing down your expected monthly mortgage payment. This means the lower mortgage rates <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="experts" target="_blank" rel="noopener noreferrer">experts</a> forecast <a href="https://www.simplifyingthemarket.com/2022/12/16/2023-housing-market-forecast-infographic/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="this year" target="_blank" rel="noopener noreferrer">this year</a> could be just what you need to reignite your homebuying goals.
While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/mortgages/mortgage-rate-forecast/#forecast" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.”
It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="real estate " target="_blank" rel="noopener noreferrer">real estate </a>advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to <a href="https://www.simplifyingthemarket.com/2023/01/03/wondering-how-much-you-need-to-save-for-a-down-payment/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="less competition" target="_blank" rel="noopener noreferrer">less competition</a> from other buyers.
Bottom Line
The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.
2023-01-17T15:01:25-07:002023-01-17T15:05:17-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:5002Key Terms To Know When Buying a HomeKey Terms To Know When Buying a Home [INFOGRAPHIC]
<img width="1046" height="2684" src="https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-1046x2684.png" class="attachment-entry size-entry wp-post-image" alt="Key Terms To Know When Buying a Home [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-1046x2684.png 1046w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-234x600.png 234w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-399x1024.png 399w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-768x1971.png 768w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-599x1536.png 599w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-798x2048.png 798w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM-100x257.png 100w, https://files.mykcm.com/2023/01/11164544/Key-Terms-To-Know-When-Buying-A-Home-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
<a href="https://www.simplifyingthemarket.com/2023/01/06/tips-to-reach-your-homebuying-goals-in-2023-infographic/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="Buying a home" target="_blank" rel="noopener noreferrer">Buying a home</a> is a major transaction that can seem even more complex when you don’t understand the <a href="https://blog.firstam.com/15-real-estate-terms-you-should-know" title="terms" target="_blank" rel="noopener noreferrer">terms</a> used throughout the process.
If you’re looking to become a homeowner this year, it’s important to know these housing <a href="https://www.ftc.gov/sites/default/files/documents/one-stops/real-estate-competition/realestateglossary.pdf" title="terms" target="_blank" rel="noopener noreferrer">terms</a> and how they relate to the current market so you feel confident throughout the homebuying process.
Let’s connect so you have <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="expert answers" target="_blank" rel="noopener noreferrer">expert answers</a> for any questions as they come up.
2023-01-13T11:54:26-07:002023-01-13T11:56:30-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:4984 The Truth About Negative Home Equity HeadlinesThe Truth About Negative Home Equity Headlines
<img width="750" height="410" src="https://files.mykcm.com/2023/01/09125630/the-truth-about-negative-home-equity-headlines-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="The Truth About Negative Home Equity Headlines | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/09125630/the-truth-about-negative-home-equity-headlines-KCM.jpg 750w, https://files.mykcm.com/2023/01/09125630/the-truth-about-negative-home-equity-headlines-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/09125630/the-truth-about-negative-home-equity-headlines-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Home equity has been a hot topic in <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="real estate news" target="_blank" rel="noopener noreferrer">real estate news</a> lately. And if you’ve been following along, you may have heard there’s a growing number of homeowners with negative <a href="https://www.simplifyingthemarket.com/2022/09/26/the-true-strength-of-homeowners-today/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="equity" target="_blank" rel="noopener noreferrer">equity</a>. But don’t let those headlines scare you.
In truth, the headlines don’t give you all the information you really need to understand what’s happening and at what scale. Let’s break down one of the big equity stories you may be seeing in the news, and what’s actually taking place. That way, you’ll have the context you need to understand the big picture.
Headlines Focus on Short-Term Equity Numbers and Fail To Convey the Long-Term View
One piece of news circulating focuses on the percentage of homes purchased in 2022 that are currently underwater. The term underwater refers to a scenario where the homeowner owes more on the loan than the house is worth. This was a huge issue when the housing market crashed in 2008, but it much less significant today.
Media coverage right now is based loosely on a report from Black Knight, Inc. The actual report from that source <a href="https://www.blackknightinc.com/black-knights-october-2022-mortgage-monitor/" title="says" target="_blank" rel="noopener noreferrer">says</a> this:
“Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home, . . .”
Let’s unpack that for a moment and provide the bigger picture. The data-bound report from Black Knight is talking specifically about homes purchased in 2022, but media headlines don’t always mention that timeframe or provide the surrounding context about how unusual of a year 2022 was for the housing market. In 2022, <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="home price appreciation" target="_blank" rel="noopener noreferrer">home price appreciation</a> soared, and it reached its max around March-April. Since then, the rate of appreciation has been slowing down.
Homeowners who bought their house last year right at the peak or those who paid more than market value in the months that followed are more likely to fall into the category of being marginally underwater. The qualifier marginally is another key piece of the puzzle the media isn’t necessarily including in their coverage.
So, what does that mean for those who purchased a home in 2022? It’s important to remember, owning a home is a long-term investment, not a short-term play. When headlines focus on the short-term view, they’re not necessarily providing the full context.
Typically speaking, the longer you stay in your home, the more <a href="https://www.simplifyingthemarket.com/2022/12/20/homeowners-still-have-positive-equity-gains-over-the-past-12-months/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="equity" target="_blank" rel="noopener noreferrer">equity</a> you gain as you pay down your loan and as home prices appreciate. With recent market conditions, you may not have gained significant equity right away if you owned the home for just a few months. But it’s also true that many homeowners who recently bought their house are unlikely to be looking to sell quite yet.
Bottom Line
As with everything, knowing the context is important. If you have questions about real estate headlines or about how much equity you have in your home, let’s connect.
2023-01-11T06:42:17-07:002023-01-11T06:43:12-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:4980What 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=585904-2506cdc52deb8cb45b2abd5dba6cb619" 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=585904-2506cdc52deb8cb45b2abd5dba6cb619" 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=585904-2506cdc52deb8cb45b2abd5dba6cb619" 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=585904-2506cdc52deb8cb45b2abd5dba6cb619" 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.
2023-01-09T11:44:45-07:002023-01-09T11:46:02-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:4935Thank You for All of Your SupportThank You for All of Your Support
<img width="1046" height="1046" src="https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-1046x1046.jpg" class="attachment-entry size-entry wp-post-image" alt="Thank You for All of Your Support | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-1046x1046.jpg 1046w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-600x600.jpg 600w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-1024x1024.jpg 1024w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-150x150.jpg 150w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-768x768.jpg 768w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-100x100.jpg 100w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM-45x45.jpg 45w, https://files.mykcm.com/2022/11/22141528/Winter-Thankful-Holiday-MEM.jpg 1080w" sizes="(max-width: 1046px) 100vw, 1046px" />2022-12-24T10:55:35-07:002022-12-24T10:56:53-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:4852Prioritizing Your Wants and Needs as a Homebuyer in Today’s MarketPrioritizing Your Wants and Needs as a Homebuyer in Today’s Market
<img width="750" height="410" src="https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Prioritizing Your Wants and Needs as a Homebuyer in Today’s Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM.jpg 750w, https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/01164657/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There’s no denying <a href="https://www.simplifyingthemarket.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are higher now than they were last year. And if you’re thinking about buying a home, this may be top of mind for you. That’s because those higher rates impact how much it costs to borrow money for your home loan. As you set out to make a purchase this winter, you’ll need to be strategic so you can find a home that meets your needs and <a href="https://www.simplifyingthemarket.com/2022/11/07/key-factors-affecting-home-affordability-today/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="budget" target="_blank" rel="noopener noreferrer">budget</a>.
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, . . . Another key point is to avoid stretching your budget, as tempting as it may be given the diminished purchasing power.”
In other words, it’s important to be mindful of what’s a necessity and what’s a nice-to-have when searching for a home. And the best way to understand this is to put together a list of desired features for your home search.
The first step? Get <a href="https://www.simplifyingthemarket.com/2022/09/16/a-crucial-first-step-mortgage-pre-approval-infographic/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a> for a mortgage. <a href="https://www.simplifyingthemarket.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="Pre-approval" target="_blank" rel="noopener noreferrer">Pre-approval</a> helps you better understand what you can borrow for your home loan, and that plays an important role in how you’ll craft your list. After all, you don’t want to fall in love with a home that’s out of reach. Once you have a good grasp of your budget, you can begin to list (and prioritize) all the features of a home you would like.
Here’s a great way to think about them before you begin:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features that you’d love to have but can live without. Nice-To-Haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of the these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: farmhouse sink, multiple walk-in closets, etc.).
Finally, once you’ve created your list and categorized it in a way that works for you, discuss it with your real estate advisor. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your needs.
Bottom Line
Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial first step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.
2022-12-05T14:02:55-07:002022-12-05T14:09:09-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2386 Why the Housing Market Is a Powerful Economic DriverWhy the Housing Market Is a Powerful Economic Driver
<img width="750" height="410" src="https://files.mykcm.com/2020/04/29101750/20200430-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why the Housing Market Is a Powerful Economic Driver | MyKCM" srcset="https://files.mykcm.com/2020/04/29101750/20200430-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/29101750/20200430-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/29101750/20200430-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With businesses starting to slowly open back up again in some parts of the country, it’s important to understand how housing can have a major impact on the recovery of the U.S. economy. As we’ve mentioned before, <a href="https://www.simplifyingthemarket.com/2020/03/31/the-economic-impact-of-buying-a-home/?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a> is a driving financial force in this process. Today, many analysts believe one of the first things we’ll be able to safely bring back is the home building sector, creating more jobs and impacting local neighborhoods in a big way. According to Robert Dietz in <a href="http://eyeonhousing.org/2020/04/new-home-sales-decline-in-march-amidst-virus-concerns/" title="The Eye on Housing" target="_blank" rel="noopener noreferrer">The Eye on Housing</a>:
“The pace of new home sales will post significant declines during the second quarter due to the impacts of higher unemployment and shutdown effects of much of the U.S. economy, including elements of the real estate sector in certain markets. However, given the momentum housing construction held at the start of 2020, the housing industry will help lead the economy in the eventual recovery.”
The National Association of Home Builders (<a href="https://www.nahb.org/News-and-Economics/Industry-News/Press-Releases/2020/04/What-Building-1000-Homes-Means-to-the-US-Economy" title="NAHB" target="_blank" rel="noopener noreferrer">NAHB</a>) notes the impact new construction can have on the job market:
“Building 1,000 average single-family homes creates 2,900 full-time jobs and generates $110.96 million in taxes and fees for all levels of government to support police, firefighters and schools, according to NAHB’s National Impact of Home Building and Remodeling report.”
These employment opportunities, along with the home purchase, drive the economy in a major way. The National Association of Realtors (NAR) recently <a href="https://www.nar.realtor/sites/default/files/documents/2019-state-economic-impact-of-real-estate-activity-us-04-14-2020.pdf" title="shared" target="_blank" rel="noopener noreferrer">shared</a> a report that notes the full economic impact of home sales. This report summarizes:
“The total economic impact of real estate related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance.”
Here’s the breakdown of how the average home sale boosts the economy:<a href="https://files.simplifyingthemarket.com/2020/04/29101753/20200430-MEM-Eng-1-scaled.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-93129" src="https://files.mykcm.com/2020/04/29101753/20200430-MEM-Eng-1-scaled.jpg" alt="Why the Housing Market Is a Powerful Economic Driver | MyKCM" width="600" height="338" /></a>As noted above in the circle on the right, the impact is almost double when you purchase new construction, given the sheer number of workers it requires to design, build, equip, and finalize the sale of the home. The NAHB paints a clear picture of these roles:
“The NAHB model shows that job creation through housing is broad-based. Building new homes and apartments generates jobs in industries that produce lumber, concrete, lighting fixtures, heating equipment and other products that go into a home remodeling project. Other jobs are generated in the process of transporting, storing and selling these products.<br />Additional jobs are generated for professionals such as architects, engineers, real estate agents, lawyers and accountants who provide services to home builders, home buyers and remodelers.”
The same NAR report also breaks down the average economic impact by state:<a href="https://files.simplifyingthemarket.com/2020/04/29101748/20200430-MEM-Eng-2.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-93127" src="https://files.mykcm.com/2020/04/29101748/20200430-MEM-Eng-2.jpg" alt="Why the Housing Market Is a Powerful Economic Driver | MyKCM" width="600" height="450" /></a>On an emotional level, what’s most important for today’s consumers to feel confident about is the safety component that goes into the process. Mitigating the risk of essential personnel at this moment in time is more crucial than ever as we all aim to reduce the spread of the coronavirus. Fortunately, the NAHB has put immense effort into a plan that prioritizes the health and safety of home builders and contractors:
“This is why NAHB and construction industry partners have developed a Coronavirus Preparedness and Response Plan specifically tailored to construction job sites. The plan is customizable and covers areas that include manager and worker responsibilities, job site protective measures, cleaning and disinfecting, responding to exposure incidents, and OSHA record-keeping requirements.”
Bottom Line
Buying a home is a substantial economic driver today, and when new construction picks back up again, it will be an even stronger recovery force throughout the country. If you’re in a position to buy a home this year, you can have a significant impact on your local neighborhoods and safely make the move you’ve been waiting for. It’s a win-win.
2020-10-05T04:21:00-07:002020-10-20T17:11:00-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2710Housing Market on Track to Beat Last Year’s SuccessHousing Market on Track to Beat Last Year’s Success
<img width="750" height="410" src="https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Housing Market on Track to Beat Last Year’s Success | MyKCM" srcset="https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/25091755/20200928-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Back in March, as the nation’s economy was shut down because of the coronavirus, many were predicting the real estate market would face a major collapse. Some forecasts called for a 15-20% decline in transactions. However, six months later, it seems as though the housing market has fully recovered.
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/housing-market-potential-reaches-highest-level-since-2007" title="announced" target="_blank" rel="noopener noreferrer">announced</a> last week:
“Since hitting a low point during the initial stages of the pandemic, the only major industry to display immunity to the economic impacts of the coronavirus is the housing market. Housing has experienced a strong V-shaped recovery and is now exceeding pre-pandemic levels.”
The Economic & Strategic Research Group at Fannie Mae upgraded its <a href="https://www.fanniemae.com/research-and-insights/forecast/rebound-continues-housing-helps-lead-recovery" title="forecast" target="_blank" rel="noopener noreferrer">forecast</a> for home sales last week:
“Housing data over the past month continued to show a strong V-shape rebound, helping drive the broader economy. Existing home sales jumped to a pace not seen since 2006…We have substantially upgraded our forecasts for both new and existing home sales. For 2020, total home sales are now expected to be 1.3% higher than in 2019.”
The National Association of Realtors (NAR) agrees. In their last <a href="https://www.nar.realtor/newsroom/pending-home-sales-rise-5-9-in-July" title="Pending Sales Report" target="_blank" rel="noopener noreferrer">Pending Sales Report</a>, NAR shared projections from Chief Economist Lawrence Yun:
“Yun forecasts existing-home sales to ramp up to 5.8 million in the second half. That expected rebound would bring the full-year level of existing-home sales to 5.4 million, a 1.1% gain compared to 2019.”
Yun’s <a href="https://magazine.realtor/daily-news/2020/08/19/will-home-sales-keep-defying-expectations" title="forecast" target="_blank" rel="noopener noreferrer">forecast</a> for 2021 was even more optimistic, stating, “Home sales will ramp up again next year, increasing between 8% - 12%.”
Bottom Line
The housing market has come roaring back and looks as though it may even surpass last year’s success.
Frank Martell, President and CEO of CoreLogic, hit the nail on the head when he <a href="https://www.corelogic.com/insights-download/home-price-index.aspx" title="said" target="_blank" rel="noopener noreferrer">said</a>, “On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic.”
2020-09-28T15:38:00-07:002020-09-28T15:40:32-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2706Home Equity Gives Sellers Options in Today’s MarketHome Equity Gives Sellers Options in Today’s Market
<img width="750" height="410" src="https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Home Equity Give Sellers Options in Today’s Market | MyKCM" srcset="https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/23083135/20200924-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Homeownership is one of the best ways to invest in your financial future, especially as your home equity grows. Home equity is a form of forced savings that can work to your advantage as the value of your home appreciates. Across the country, home equity was increasing before the health crisis swept our nation, and it continues to grow throughout the year, giving sellers powerful options in this market.
According to the just-released Q2 <a href="https://www.corelogic.com/insights-download/homeowner-equity-report.aspx" title="Homeowner Equity Insights Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights Report</a> by CoreLogic:
“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $620 billion since the second quarter of 2019, an increase of 6.6%, year over year.”
Dr. Frank Nothaft, Chief Economist for CoreLogic, attributes much of the equity growth to rising home prices:
"The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”
As the map below shows, CoreLogic also indicates that home equity is increasing in every state:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”
<a href="https://files.simplifyingthemarket.com/2020/09/23083138/20200924-MEM-Eng-1.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-95890" src="https://files.mykcm.com/2020/09/23083138/20200924-MEM-Eng-1.jpg" alt="Home Equity Give Sellers Options in Today’s Market | MyKCM" width="600" height="450" /></a>
What Does This Mean for Sellers?
When equity is rising, as it is today, you may have more invested in your home than you realize. Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/housing-market-potential-reaches-highest-level-since-2007" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
If you’ve been considering making a move – whether that’s to get into a bigger home or to downsize to a smaller one – it’s a great time to reach out to a real estate professional to learn how to put your equity to work for you. You may be in a position to pay that equity forward toward your next home purchase and afford it sooner rather than later.
Bottom Line
If you’re thinking of selling, let’s connect so you can take advantage of what the current market has to offer today.
2020-09-24T13:08:00-07:002020-09-24T13:12:11-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2387What Impact Might COVID-19 Have on Home Values?What Impact Might COVID-19 Have on Home Values?
<img width="750" height="410" src="https://files.mykcm.com/2020/04/23142924/20200427-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What Impact Might COVID-19 Have on Home Values? | MyKCM" srcset="https://files.mykcm.com/2020/04/23142924/20200427-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/23142924/20200427-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/23142924/20200427-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
A big challenge facing the housing industry is determining what impact the current pandemic may have on home values. Some buyers are hoping for major price reductions because the health crisis is straining the economy.
The price of any item, however, is determined by supply and demand, which is how many items are available in relation to how many consumers want to buy that item.
In residential real estate, the measurement used to decipher that ratio is called months supply of inventory. A normal market would have 6-7 months of inventory. Anything over seven months would be considered a buyers’ market, with downward pressure on prices. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices.
Going into March of this year, the supply stood at three months – a strong seller’s market. While buyer demand has decreased rather dramatically during the pandemic, the number of homes on the market has also decreased. The recently released <a href="https://www.nar.realtor/newsroom/home-sales-increase-year-over-year-despite-expected-monthly-march-sales-decline-due-to-impact-of" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from the National Association of Realtors (NAR) revealed we currently have 3.4 months of inventory. This means homes should maintain their value during the pandemic.
This information is consistent with the research completed by John Burns Real Estate Consulting, which recently reported:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”
What are the experts saying?
Here’s a look at what some experts recently reported on the matter:
<a href="http://www.zelmanandassociates.com/" title="Ivy Zelman, President, Zelman & Associates" target="_blank" rel="noopener noreferrer">Ivy Zelman, President, Zelman & Associates</a>
“Supported by our analysis of home price dynamics through cycles and other periods of economic and housing disruption, we expect home price appreciation to decelerate from current levels in 2020, though easily remain in positive territory year over year given the beneficial factors of record-low inventories & a historically-low interest rate environment.”
<a href="http://www.freddiemac.com/research/forecast/20200413_quarterly_forecast_housing_challenges.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>
“The fiscal stimulus provided by the CARES Act will mute the impact that the economic shock has on house prices. Additionally, forbearance and foreclosure mitigation programs will limit the fire sale contagion effect on house prices. We forecast house prices to fall 0.5 percentage points over the next four quarters. Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand. Price growth accelerates back towards a long-run trend of between 2 and 3% per year.”
<a href="https://blog.firstam.com/economics/the-impact-of-the-credit-crunch-on-housing-market-potential" title="Mark Fleming, Chief Economist, First American" target="_blank" rel="noopener noreferrer">Mark Fleming, Chief Economist, First American</a>
“The housing supply remains at historically low levels, so house price growth is likely to slow, but it’s unlikely to go negative.”
Bottom Line
Even though the economy has been placed on pause, it appears home prices will remain steady throughout the pandemic.
2020-05-06T04:24:00-07:002020-05-05T06:30:54-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2300Why Home Office Space Is More Desirable Than EverWhy Home Office Space Is More Desirable Than Ever
<img width="750" height="410" src="https://files.mykcm.com/2020/04/08110104/20200409-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why Home Office Space Is More Desirable Than Ever | MyKCM" srcset="https://files.mykcm.com/2020/04/08110104/20200409-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/08110104/20200409-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/08110104/20200409-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
For years, we’ve all heard about the most desirable home features buyers are looking for, from upgraded kitchens to remodeled bathrooms, master suites, and more. The latest on the hotlist, however, might surprise you: home offices.
In a recent article by <a href="https://www.realtor.com/research/remote-working-coronavirus-pandemic/" title="George Ratiu" target="_blank" rel="noopener noreferrer">George Ratiu</a>, Senior Economist with realtor.com, he notes how listings with an office are selling quickly:
“As more companies have been embracing remote work, buyers are driving demand for houses with home offices higher. Homes featuring the term ‘office’ are selling 9 days faster than the overall housing inventory.”
Today, more and more people are working remotely, and that’s not just because the current pandemic is prompting businesses to operate virtually. According to the same piece and the most recent data available, the number of employees working at home was fairly steady from 1997 – 2004 but has been climbing ever since (see graph below):<a href="https://files.simplifyingthemarket.com/2020/04/08110107/20200409-MEM-Eng-1.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92413" src="https://files.mykcm.com/2020/04/08110107/20200409-MEM-Eng-1.jpg" alt="Why Home Office Space Is More Desirable Than Ever | MyKCM" width="600" height="450" /></a>Clearly, the work-from-home population is growing, and technology is making it possible. Just last month, according to an article on <a href="https://www.thinkwithgoogle.com/consumer-insights/corona-virus-video-trends/?utm_medium=email&utm_source=d-content-alert&utm_team=twg-us&utm_campaign=TwG-US-CA-2020-03-23-Cope-while-social-distancing&utm_content=cta-btn&mkt_tok=eyJpIjoiWW1VMU1qRTBNelUzTm1KaSIsInQiOiJLMmRMUklpMUF1ZVlDNVJGaWQ4R0h5Y1MyMGVuWnl2S1MrdlNcL2lSTHArWWJsVlwveldYdEVDM1JqcEdYak4xa2hLeG1ZektRb0c3Mk80ZnZrQzJSRFpSRDNzNUE0VXY0OXo1NFhFYUVQY2ZaNWZsTVA0WGpjOE5JeG5qZVVwVERGIn0%3D" title="Think Google" target="_blank" rel="noopener noreferrer">Think Google</a>, searches for telecommuting hit an all-time high, and that’s certainly no surprise given our current situation.
People all over the U.S. are looking for answers on how to be most effective at home, and it’s making the ideal workspace more and more desirable. In fact, best practices from seasoned work-from-home professionals, like Chris Anderson, Senior Account Executive at HousingWire, tout that having a <a href="https://www.housingwire.com/articles/working-from-home-heres-how-to-make-the-most-of-it/?utm_campaign=Newsletter%20-%20HousingWire%20Daily&utm_medium=email&_hsmi=84996170&_hsenc=p2ANqtz--XG7WYyDdShcWSef5iH-NGepatkj0yBdRDMbdNeXVuG5uJjrvngpSdK-x9oYHVFHnUQ5XU&utm_content=84996170&utm_source=hs_email" title="dedicated space" target="_blank" rel="noopener noreferrer">dedicated space</a> is a must for productivity.
With today’s increasing demand for home offices, it’s a great feature to highlight within your listing if you’re selling a house that may meet this growing need. From bright natural light with large windows to built-in bookshelves or a quiet and secluded atmosphere, whatever makes your office space shine is worth mentioning to buyers when you’re ready to list your house.
Ratiu concludes:
“For housing, the continued increase in the share of remote workers implies that demand for homes with offices or dedicated work spaces will continue to increase. The current coronavirus pandemic offers a dramatic indication of the fact that companies and employees will have to develop plans and clearer policies for remote work beyond the current crisis.”<br />
Bottom Line
Remote work may become more widely accepted as this current crisis teaches businesses throughout the country what it takes to function virtually. So, what seems like a business challenge today may be more of the norm tomorrow. With that in mind, if you have a home office, your house may be more desirable to buyers than you think.
2020-04-18T06:13:00-07:002020-05-05T04:04:45-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2299Think This Is a Housing Crisis? Think Again.Think This Is a Housing Crisis? Think Again.
<img width="750" height="410" src="https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" srcset="https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/14143840/20200415-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With all of the unanswered questions caused by COVID-19 and the economic slowdown we’re experiencing across the country today, many are asking if the housing market is in trouble. For those who remember 2008, it's logical to ask that question.
Many of us experienced financial hardships, lost homes, and were out of work during the Great Recession – the recession that started with a housing and mortgage crisis. Today, we face a very different challenge: an external health crisis that has caused a pause in much of the economy and a major shutdown of many parts of the country.
Let’s look at five things we know about today’s housing market that were different in 2008.
1. Appreciation
When we look at appreciation in the visual below, there’s a big difference between the 6 years prior to the housing crash and the most recent 6-year period of time. Leading up to the crash, we had much higher appreciation in this country than we see today. In fact, the highest level of appreciation most recently is below the lowest level we saw leading up to the crash. Prices have been rising lately, but not at the rate they were climbing back when we had runaway appreciation.<a href="https://files.simplifyingthemarket.com/2020/04/14143838/20200415-MEM-Eng-1.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92565" src="https://files.mykcm.com/2020/04/14143838/20200415-MEM-Eng-1.jpg" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" width="600" height="450" /></a>
2. Mortgage Credit
The Mortgage Credit Availability Index is a monthly measure by the Mortgage Bankers Association that gauges the level of difficulty to secure a loan. The higher the index, the easier it is to get a loan; the lower the index, the harder. Today we’re nowhere near the levels seen before the housing crash when it was very easy to get approved for a mortgage. After the crash, however, lending standards tightened and have remained that way leading up to today.<a href="https://files.simplifyingthemarket.com/2020/04/14143835/20200415-MEM-Eng-2.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92564" src="https://files.mykcm.com/2020/04/14143835/20200415-MEM-Eng-2.jpg" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" width="600" height="450" /></a>
3. Number of Homes for Sale
One of the causes of the housing crash in 2008 was an oversupply of homes for sale. Today, as shown in the next image, we see a much different picture. We don’t have enough homes on the market for the number of people who want to buy them. Across the country, we have less than 6 months of inventory, an undersupply of homes available for interested buyers.<a href="https://files.simplifyingthemarket.com/2020/04/14143833/20200415-MEM-Eng-3.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92563" src="https://files.mykcm.com/2020/04/14143833/20200415-MEM-Eng-3.jpg" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" width="600" height="450" /></a>
4. Use of Home Equity
The chart below shows the difference in how people are accessing the equity in their homes today as compared to 2008. In 2008, consumers were harvesting equity from their homes (through cash-out refinances) and using it to finance their lifestyles. Today, consumers are treating the equity in their homes much more cautiously.<a href="https://files.simplifyingthemarket.com/2020/04/14143830/20200415-MEM-Eng-4.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92562" src="https://files.mykcm.com/2020/04/14143830/20200415-MEM-Eng-4.jpg" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" width="600" height="450" /></a>
5. Home Equity Today
Today, 53.8% of homes across the country have at least 50% equity. In 2008, homeowners walked away when they owed more than what their homes were worth. With the equity homeowners have now, they’re much less likely to walk away from their homes.<a href="https://files.simplifyingthemarket.com/2020/04/14143828/20200415-MEM-Eng-5.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92561" src="https://files.mykcm.com/2020/04/14143828/20200415-MEM-Eng-5.jpg" alt="Think This Is a Housing Crisis? Think Again. | MyKCM" width="600" height="450" /></a>
Bottom Line
The COVID-19 crisis is causing different challenges across the country than the ones we faced in 2008. Back then, we had a housing crisis; today, we face a health crisis. What we know now is that housing is in a much stronger position today than it was in 2008. It is no longer the center of the economic slowdown. Rather, it could be just what helps pull us out of the downturn.
2020-04-17T06:06:00-07:002020-04-15T09:28:07-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2297Recession? Yes. Housing Crash? No.Recession? Yes. Housing Crash? No.
<img width="750" height="410" src="https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Recession? Yes. Housing Crash? No. | MyKCM" srcset="https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/10102711/20200413-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not in one already. What does that mean to the residential real estate market?
What is a recession?
According to the <a href="http://www.nber.org/cycles/jan08bcdc_memo.html" title="National Bureau of Economic Research" target="_blank" rel="noopener noreferrer">National Bureau of Economic Research</a>:
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
COVID-19 hit the pause button on the American economy in the middle of March. Goldman Sachs, JP Morgan, and Morgan Stanley are all calling for a deep dive in the economy in the second quarter of this year. Though we may not yet be in a recession by the technical definition of the word today, most believe history will show we were in one from April to June.
Does that mean we’re headed for another housing crash?
Many fear a recession will mean a repeat of the housing crash that occurred during the Great Recession of 2006-2008. The past, however, shows us that most recessions do not adversely impact home values. Doug Brien, CEO of Mynd Property Management, <a href="https://www.nreionline.com/investment/investors-turn-safe-haven-us-real-estate-wake-coronavirus" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“With the exception of two recessions, the Great Recession from 2007-2009, & the Gulf War recession from 1990-1991, no other recessions have impacted the U.S. housing market, according to Freddie Mac Home Price Index data collected from 1975 to 2018.”
CoreLogic, in a second study of the <a href="https://www.corelogic.com/blog/2019/03/housing-recessions-and-recoveries.aspx" title="last five recessions" target="_blank" rel="noopener noreferrer">last five recessions</a>, found the same. Here’s a graph of their findings:<a href="https://files.simplifyingthemarket.com/2020/04/10102713/20200413-MEM-Eng-1.jpg?a=585904-2506cdc52deb8cb45b2abd5dba6cb619" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-92494" src="https://files.mykcm.com/2020/04/10102713/20200413-MEM-Eng-1.jpg" alt="Recession? Yes. Housing Crash? No. | MyKCM" width="600" height="338" /></a>
What are the experts saying this time?
This is what three economic leaders are saying about the housing connection to this recession:
<a href="https://www.dallasnews.com/business/real-estate/2020/03/24/dont-blame-housing-this-time-the-home-market-hopes-to-escape-the-worst-of-the-economic-downturn/" title="Robert Dietz, Chief Economist with NAHB" target="_blank" rel="noopener noreferrer">Robert Dietz, Chief Economist with NAHB</a>
“The housing sector enters this recession underbuilt rather than overbuilt…That means as the economy rebounds - which it will at some stage - housing is set to help lead the way out.”
<a href="https://www.dallasnews.com/business/real-estate/2020/03/24/dont-blame-housing-this-time-the-home-market-hopes-to-escape-the-worst-of-the-economic-downturn/" title="Ali Wolf, Chief Economist with Meyers Research" target="_blank" rel="noopener noreferrer">Ali Wolf, Chief Economist with Meyers Research</a>
“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”
John Burns, founder of John Burns Consulting, also revealed that his firm’s <a href="https://www.realestateconsulting.com/march-19-2020-housing-survival-to-date/" title="research" target="_blank" rel="noopener noreferrer">research</a> concluded that recessions caused by a pandemic usually do not significantly impact home values:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”
Bottom Line
If we’re not in a recession yet, we’re about to be in one. This time, however, housing will be the sector that leads the economic recovery.
2020-04-15T05:40:00-07:002020-05-05T04:10:47-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2301How to Find the Perfect Real Estate AgentHow to Find the Perfect Real Estate Agent
<img width="750" height="410" src="https://files.mykcm.com/2020/04/03115114/20200407-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How to Find the Perfect Real Estate Agent | MyKCM" srcset="https://files.mykcm.com/2020/04/03115114/20200407-KCM-Share.jpg 750w, https://files.mykcm.com/2020/04/03115114/20200407-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/04/03115114/20200407-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There’s a ton of real estate information available in the news today and on the Internet. It can be extremely confusing, especially in times of uncertainty like we’re facing right now.
If you’re thinking of buying or selling this year, you need an agent who can help you:
Make sense of this rapidly evolving housing market
Navigate everything from virtual showings to new online marketing strategies
Price your home correctly at the beginning of the selling process
Determine what to offer on your dream home without paying too much or offending the seller
Dave Ramsey, a financial guru, advises:
“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”<br />
Hiring an agent who has a finger on the pulse of the current market will make your buying or selling experience so much easier.<br />
So, how do you identify who truly understands what’s happening right now? How do you know who will take the time to simply and effectively explain what today’s market conditions mean to you and your family?
Check out the agent on social media. What are they posting on Instagram, Facebook, Twitter, and more? Are they using their social media platforms to share relevant, helpful information, or are they just posting memes and recipes? The best agents are committed to educating the consumer so they can feel confident when buying or selling a home.
Bottom Line<br />
What agents are posting online will help you determine who meets the criteria Dave Ramsey suggested you look for: someone with the heart of a teacher. Let’s connect today, so you can work with a true trusted real estate professional. With over 20 Years in the Atlanta Real Estate Market I would love to share my experences with you.
2020-04-12T06:30:00-07:002020-05-05T04:10:59-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:22665 Simple Graphs Proving This Is NOT Like the Last Time
<article id="post-91763" class="post-91763 post type-post status-publish format-standard has-post-thumbnail hentry category-buyers category-sellers category-pricing tag-coronavirus-all">
With all of the volatility in the stock market and uncertainty about the Coronavirus (COVID-19), some are concerned we may be headed for another housing crash like the one we experienced from 2006-2008. The feeling is understandable. Ali Wolf, Director of Economic Research at the real estate consulting firm Meyers Research, addressed this point in a <a href="https://www.realtor.com/news/trends/how-the-coming-recession-will-affect-the-housing-market/" title="recent interview" target="_blank" rel="noopener noreferrer">recent interview</a>:
“With people having PTSD from the last time, they’re still afraid of buying at the wrong time.”
There are many reasons, however, indicating this real estate market is nothing like 2008. Here are five visuals to show the dramatic differences.
1. Mortgage standards are nothing like they were back then.
During the housing bubble, it was difficult NOT to get a mortgage. Today, it is tough to qualify. The Mortgage Bankers’ Association releases a <a href="https://www.mba.org/news-research-and-resources/research-and-economics/single-family-research/mortgage-credit-availability-index" title="Mortgage Credit Availability Index" target="_blank" rel="noopener noreferrer">Mortgage Credit Availability Index</a> which is “a summary measure which indicates the availability of mortgage credit at a point in time.” The higher the index, the easier it is to get a mortgage. As shown below, during the housing bubble, the index skyrocketed. Currently, the index shows how getting a mortgage is even more difficult than it was before the bubble.<a href="https://files.mykcm.com/2020/03/14123313/20200316-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-91769" src="https://files.mykcm.com/2020/03/14123313/20200316-MEM-Eng-1.jpg" alt="5 Simple Graphs Proving This Is NOT Like the Last Time | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/03/14123313/20200316-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/03/14123313/20200316-MEM-Eng-1-600x338.jpg 600w, https://files.mykcm.com/2020/03/14123313/20200316-MEM-Eng-1-768x432.jpg 768w, https://files.mykcm.com/2020/03/14123313/20200316-MEM-Eng-1-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
2. Prices are not soaring out of control.
Below is a graph showing annual house appreciation over the past six years, compared to the six years leading up to the height of the housing bubble. Though price appreciation has been quite strong recently, it is nowhere near the rise in prices that preceded the crash.<a href="https://files.mykcm.com/2020/03/14123311/20200316-MEM-Eng-2.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-91768" src="https://files.mykcm.com/2020/03/14123311/20200316-MEM-Eng-2.jpg" alt="5 Simple Graphs Proving This Is NOT Like the Last Time | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/03/14123311/20200316-MEM-Eng-2.jpg 1000w, https://files.mykcm.com/2020/03/14123311/20200316-MEM-Eng-2-600x338.jpg 600w, https://files.mykcm.com/2020/03/14123311/20200316-MEM-Eng-2-768x432.jpg 768w, https://files.mykcm.com/2020/03/14123311/20200316-MEM-Eng-2-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>There’s a stark difference between these two periods of time. Normal appreciation is 3.6%, so while current appreciation is higher than the historic norm, it’s certainly not accelerating beyond control as it did in the early 2000s.
3. We don’t have a surplus of homes on the market. We have a shortage.
The months’ supply of inventory needed to sustain a normal real estate market is approximately six months. Anything more than that is an overabundance and will causes prices to depreciate. Anything less than that is a shortage and will lead to continued appreciation. As the next graph shows, there were too many homes for sale in 2007, and that caused prices to tumble. Today, there’s a shortage of inventory which is causing an acceleration in home values.<a href="https://files.mykcm.com/2020/03/14123310/20200316-MEM-Eng-3.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-91767" src="https://files.mykcm.com/2020/03/14123310/20200316-MEM-Eng-3.jpg" alt="5 Simple Graphs Proving This Is NOT Like the Last Time | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/03/14123310/20200316-MEM-Eng-3.jpg 1000w, https://files.mykcm.com/2020/03/14123310/20200316-MEM-Eng-3-600x338.jpg 600w, https://files.mykcm.com/2020/03/14123310/20200316-MEM-Eng-3-768x432.jpg 768w, https://files.mykcm.com/2020/03/14123310/20200316-MEM-Eng-3-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
4. Houses became too expensive to buy.
The affordability formula has three components: the price of the home, the wages earned by the purchaser, and the mortgage rate available at the time. Fourteen years ago, prices were high, wages were low, and mortgage rates were over 6%. Today, prices are still high. Wages, however, have increased and the mortgage rate is about 3.5%. That means the average family pays less of their monthly income toward their mortgage payment than they did back then. Here’s a graph showing that difference:<a href="https://files.mykcm.com/2020/03/14123308/20200316-MEM-Eng-4.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-91766" src="https://files.mykcm.com/2020/03/14123308/20200316-MEM-Eng-4.jpg" alt="5 Simple Graphs Proving This Is NOT Like the Last Time | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/03/14123308/20200316-MEM-Eng-4.jpg 1000w, https://files.mykcm.com/2020/03/14123308/20200316-MEM-Eng-4-600x338.jpg 600w, https://files.mykcm.com/2020/03/14123308/20200316-MEM-Eng-4-768x432.jpg 768w, https://files.mykcm.com/2020/03/14123308/20200316-MEM-Eng-4-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
5. People are equity rich, not tapped out.
In the run-up to the housing bubble, homeowners were using their homes as a personal ATM machine. Many immediately withdrew their equity once it built up, and they learned their lesson in the process. Prices have risen nicely over the last few years, leading to over fifty percent of homes in the country having greater than 50% equity. But owners have not been tapping into it like the last time. Here is a table comparing the equity withdrawal over the last three years compared to 2005, 2006, and 2007. Homeowners have cashed out over $500 billion dollars less than before:<a href="https://files.mykcm.com/2020/03/14123306/20200316-MEM-Eng-5.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-91765" src="https://files.mykcm.com/2020/03/14123306/20200316-MEM-Eng-5.jpg" alt="5 Simple Graphs Proving This Is NOT Like the Last Time | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/03/14123306/20200316-MEM-Eng-5.jpg 1000w, https://files.mykcm.com/2020/03/14123306/20200316-MEM-Eng-5-600x338.jpg 600w, https://files.mykcm.com/2020/03/14123306/20200316-MEM-Eng-5-768x432.jpg 768w, https://files.mykcm.com/2020/03/14123306/20200316-MEM-Eng-5-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>During the crash, home values began to fall, and sellers found themselves in a negative equity situation (where the amount of the mortgage they owned was greater than the value of their home). Some decided to walk away from their homes, and that led to a rash of distressed property listings (foreclosures and short sales), which sold at huge discounts, thus lowering the value of other homes in the area. That can’t happen today.
Bottom Line
If you’re concerned we’re making the same mistakes that led to the housing crash, take a look at the charts and graphs above to help alleviate your fears.
</article>
<a href="https://www.mykcm.com/2020/03/13/buying-a-home-do-you-know-the-lingo-infographic-3/" rel="prev" title="« Buying a Home: Do You Know the Lingo? [INFOGRAPHIC]">« Buying a Home: Do You Know the Lingo? [INFOGRAPHIC]</a><a href="https://www.mykcm.com/2020/03/17/two-big-myths-in-the-homebuying-process/" rel="next" title="Two Big Myths in the Homebuying Process »">Two Big Myths in the Homebuying Process »</a>
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.2020-03-26T18:26:00-07:002020-03-26T18:49:52-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:2264Why the Stock Market Correction Probably Won’t Impact Home Values
<article id="post-92117" class="post-92117 post type-post status-publish format-standard has-post-thumbnail hentry category-buyers category-sellers category-housing-market-updates category-pricing tag-coronavirus-all">
<img width="750" height="410" src="https://files.mykcm.com/2020/03/23091248/20200324-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why the Stock Market Correction Probably Won’t Impact Home Values | MyKCM" srcset="https://files.mykcm.com/2020/03/23091248/20200324-KCM-Share.jpg 750w, https://files.mykcm.com/2020/03/23091248/20200324-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/03/23091248/20200324-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
With the housing crash of 2006-2008 still visible in the rear-view mirror, many are concerned the current correction in the stock market is a sign that home values are also about to tumble. What’s taking place today, however, is nothing like what happened the last time. The S&P 500 did fall by over fifty percent from October 2007 to March 2009, and home values did depreciate in 2007, 2008, and 2009 – but that was because that economic slowdown was mainly caused by a collapsing real estate market and a meltdown in the mortgage market.
This time, the stock market correction is being caused by an outside event (the coronavirus) with no connection to the housing industry. Many experts are saying the current situation is much more reminiscent of the challenges we had when the dot.com crash was immediately followed by 9/11. As an example, David Rosenberg, Chief Economist with Gluskin Sheff + Associates Inc., <a href="https://business.financialpost.com/investing/david-rosenberg-stop-looking-to-2008-this-crisis-is-more-like-9-11" title="recently explained" target="_blank" rel="noopener noreferrer">recently explained</a>:
“What 9/11 has in common with what is happening today is that this shock has also generated fear, angst and anxiety among the general public. People avoided crowds then as they believed another terrorist attack was coming and are acting the same today to avoid getting sick. The same parts of the economy are under pressure ─ airlines, leisure, hospitality, restaurants, entertainment ─ consumer discretionary services in general.”
Since the current situation resembles the stock market correction in the early 2000s, let’s review what happened to home values during that time.<a href="https://files.mykcm.com/2020/03/23091246/20200324-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img class="aligncenter wp-image-92118" src="https://files.mykcm.com/2020/03/23091246/20200324-MEM-Eng-1.jpg" alt="Why the Stock Market Correction Probably Won’t Impact Home Values | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2020/03/23091246/20200324-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/03/23091246/20200324-MEM-Eng-1-600x338.jpg 600w, https://files.mykcm.com/2020/03/23091246/20200324-MEM-Eng-1-768x432.jpg 768w, https://files.mykcm.com/2020/03/23091246/20200324-MEM-Eng-1-100x56.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>The S&P <a href="https://www.macrotrends.net/2324/sp-500-historical-chart-data" title="dropped 45% between" target="_blank" rel="noopener noreferrer">dropped 45% between</a> September 2000 and October 2002. Home prices, on the other hand, <a href="https://www.blackknightinc.com/black-knights-december-2019-mortgage-monitor-2/" title="appreciated nicely at the same time" target="_blank" rel="noopener noreferrer">appreciated nicely at the same time</a>. That stock market correction proved not to have any negative impact on home values.
Bottom Line
If the current situation is more like the markets in the early 2000s versus the markets during the Great Recession, home values should be minimally affected, if at all.
</article>
<a href="https://www.mykcm.com/2020/03/23/economic-slowdown-what-the-experts-are-saying/" rel="prev" title="« Economic Slowdown: What the Experts Are Saying">« Economic Slowdown: What the Experts Are Saying</a><a href="https://www.mykcm.com/2020/03/25/is-now-a-good-time-to-refinance-my-home/" rel="next" title="Is Now a Good Time to Refinance My Home? »">Is Now a Good Time to Refinance My Home? »</a>
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2020-03-26T17:00:00-07:002020-03-26T17:13:16-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:18887 Reasons it matters for you to work with a Realtor - Why You Should Use a Realtor:
A Short, Useful Guide
Realtors make a huge difference in the lives of home buyers. They are useful in more ways than one and get you the most out of your time and money. So, here are a few reasons why you should hire (and thank!) a realtor for all that they contribute to your life and community:
A True Specialist: Selling a home requires an expansive knowledge of forms, disclosures, various other technical documents, and reports. That’s a lot of work! That expert can help you make the best decisions for your property, and help you avoid making costly mistakes. Also, they speak a completely different language: jargon! There are a multitude of definitions and “strange” words that aren’t in your vocabulary. Realtors help you navigate a strange world and make it easy to understand.
Negotiation Comprehension: There’s more than a few factors that lead up to brokering a deal. A good realtor will look at every angle from your perspective (and from a buyer’s) to make sure your time is not wasted. Good agents aren’t messengers, they’re professionals.
Buffering Help: Agents weed out useful information about buying and listings. Once others hear the word that you want to buy or sell, there are bound to be crazies that want to coerce you into bad offers. You don’t need to sign anything immediately. Let your realtor handle the mess to make your life easier.
Market Condition Knowledge: Agents can disclose current market conditions, to give you up-to-date knowledge that you need to know. Factors such as average square footage, average and median sales prices, average days on the market, and others influence buying and selling decisions. It can have a large bearing on what you decide to ultimately do.
Networking: Real estate agents network with other professionals, to exchange know-how. They may be able to provide services (and excellent prices) that make your life easier. Your realtor knows what vendors to trust, their confidentiality, price range, and competency. They know who to recommend, and who to leave out of the conversation, no internet required!
After-Closing Questions: Event smooth transactions can leave behind mistakes that can haunt someone later in life. Mixed-up invoices, tax assessments, proper documentation, or transfer taxes can fall months behind schedule and make you unhappy. Lots of questions can pop up in the excitement of closing. However, one call to your agent can help straighten out any kind of confusion. Good agents are on standby and always ready to assist, while great agents won’t leave you behind in the dust.
Future Relationships: An realtor’s career thrives on referrals and great reviews. After all, how were they found in the first place? Not many would survive on drumming up new business on their own. This gives the incentive to make sure every client is fulfilled and satisfied. An agent who stays in business means that they have an opportunity to work with you again. If you allow it, they’ll be sure to stay in touch!
2019-06-19T14:07:00-07:002020-05-05T04:11:36-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:18423 Out-of-the-Box Strategies for Your Equity over Remodeling <img src="https://assets.site-static.com/userfiles/1290/image/gettyimages-494358331-612x612.jpg" width="612" height="408" />
Hot Market Handcuffs - Three Strategies to Harness your Equity
These days, property values have hit a high that will hopefully never disappear. Maybe yours has done the same. Does that mean you should cash out and go bonkers? Definitely not. Every market has strategic advantages and disadvantages depending on your current situation. Here are a few (that are not everyday ideas) but could work for you.
Sell, Rent and Hold:
It’s 2019. Are you extremely busy? Ever dreamed of living a different and simpler type of lifestyle? Well, why not just do it? In a hot market like this, with your potential property values, equity feels good, right? Do you know what feels better? Cash in the bank. Today's rental market has a huge diversity in lifestyle offerings and locations that you may have never thought of. Living, working, and playing are huge right now and they have lots to offer. Live closer, live smaller and simplify your life. Then, just wait for the next market correction. Once prices go down, jump back in and repeat! Done right, In just three economic cycles you can have no mortgage at all and some amazing life experiences to look back, besides just being lost in the ‘burbs.
Buy Rental Property with Your Equity:
The biggest mistake I see people make is that they see all potential equity...and then they draw the cash out. They use that equity to finish a basement, buy a boat, or make changes to the kitchen. Guess what happens when the next downturn comes? Huge negative equity. Negative equity that you may never recover from. This is what keeps you from ever getting ahead. In a down market, equity in your home can vanish faster than half the planet (with a snap of Thanos’ fingers, of course!). Atlanta is one of the hottest rental markets in the US; why not take the money and invest in a very small rental property that will not only pay off your equity line but eventually pay itself off and then be a revenue stream for you in the future?
Do it once, then use that equity to do it again. This is not for everyone, but done right you can amass a portfolio of properties that can bring provide substantial income into the future. I assure you, if you’re going to throw away all your equity, there is a lot less risk here than in putting that mancave bar in your basement.
Down Size:
This one is for my McMansion crowd! You have lived in your property for 15 years, the same place where you raised your kids and cut the grass 2000 times. Your house is perfect all the time because there are no kids to mess it up anymore. In short, you are my dream client! The timing could not be better. Get a Realtor to help you choose a few small updates that will maximize your final sales price and dive right in. I know that smaller homes are pricier these days than they were 20 years ago, but the cost of ownership on that small home has to be taken into account as well. Given the length of time, you have been in your home and when you bought it, you could have a mortgage that is so low you can almost pay it off in 5 to 10 years. Yes, it can be hard to let go of all the great memories you’ve had there, but just think of all the extra time you will have to make new ones. Your story is not ending; as a matter-of-fact, it’s just beginning.
If you want to find out if any of these strategies could work for you, I would love the opportunity to discuss with them in more detail. I'm so grateful that you took the time to read this article. If you have any questions about what you have read above, please fill free to contact me. Call my cell 678-229-8689 or via email at <a href="mailto:newhomeinformation@gmail.com">newhomeinformation@gmail.com</a>. If you liked this blog, do me a favor and like, follow, share or comment below! Thanks!
Luis
Author: L.Rodriguez / Written: A.Gillstrap2019-05-31T09:35:00-07:002019-06-13T06:13:48-07:00Luis Rodrigueztag:newhomeinformation.com,2012-09-20:1839Buying a Basement Home: Is It Worth the money?<img src="https://assets.site-static.com/userfiles/1290/image/gettyimages-974794300-612x612.jpg" width="612" height="408" />
Is have a house on a basement really worth it?
HGTV and Pinterest have something funny in common: they have entire pieces dedicated to finishing basements. I run across this one all the time in my career; many clients are positive about buying a basement. I'm not sure what it is about Georgia, but apparently, everybody who comes here to live must have a basement. I mean why not? its cheap square footage right? Most people are very sure that one day they're going to do something with it, whether it's going to be a theater, kitchen, rec room, whatever. It’s something they're going to finish someday. In my experence, I have found that this is rarely the case.
Not to toot my own horn, but I've done a ton of basement sales in my career. I can tell you that about 89% of them never get finished before the house goes back on the market 10 years later. On average, an unfinished basement can run about $40,000 to $60,000 of the sale price, depending on the size of the main floor of the house. Typically, most people will end up using it as a giant storage unit. That's right, a $40,000 storage unit.
The advantages of having a basement have the potential to be great; storage or storm shelter, man cave or studio. Now if you live in an area that yard space is limited and housing is going vertical, then a basement can make much more sense. You could buy a three-bedroom home and turn it into the five-bedroom that better suits your family's needs! The demand for basements is big (because everybody's crazy!) so it can be much easier to resale on the open market.
Now let's look at the disadvantages by the numbers: after the initial $40,000 construction cost, a basement can cost you an additional $40,000 to build what you’d like to fill that space, whether it be two bedrooms, a bathroom, or a kitchenette. In my opinion, it's not such a great investment. Many times, I've seen people price themselves out of the neighborhood's valuations by overshooting on cost. Having a basement also means you have a deck, and decks can be costly to maintain. Hopefully, your deck has stairs because if not, access to the backyard becomes a bit trickier.
Consider a house built on a mono slab (or concrete foundation) home. Slab homes offer easy access to the back yard, with very few or no stairs at all. That can also make it easier for those with kids, or who want them in the future. Home maintenance is also easier because there is more access to the rear of the house. Who wants to be on a 20-ft ladder anyway?
Still, You need the space, right? Here are some possible alternatives to a basement:
Find a Bigger Lot and Build Space
If you can find a neighborhood house that has awesome yard space (anything over 1/2 acre) you can build an outdoor living space/finished garage for about half the cost. Think State Farm: remember the “She Shed” commercial? You can have one, too! Regardless, be sure to check with your HOA on this one before you start building. Here is an example of a plan, Lots of potential here.
<img src="https://assets.site-static.com/userfiles/1290/image/151324821756c3523d57d80.jpg" width="736" height="552" />
<img src="https://assets.site-static.com/userfiles/1290/image/192344335756c3523d40b3d.jpg" width="736" height="552" />
Find a Custom Builder.
Custom building a home may sound less cost-effective than traditional production-built homes, but these days but its pricing has become more and more comparable and keep you from settling or buying more than you need. It can be as simple as taking a fairly standard plan that you love and attach the extra space that you need. Think of; adding a fourth car garage or building a huge sunroom. There are many plans that actually feature an upstairs loft or provide media spaces that are built inside the envelope of the entire build. I've even seen some three-story plans that have an extra 1000 square feet on a third floor! Like this
THIRD FLOOR
<a href="https://quaxel2.net/v1/t/c/420ede20-9605-7117-81f4-c58a4439a471/gm%3A59c0a75e-6376-4f79-b60e-ce2f8ec7794f/agilstr4%40students.kennesaw.edu/?https%3A%2F%2Fwww.architectsnw.com%2Fplans%2FdetailedPlanInfo.cfm%3FPlanId%3D1164="><img src="https://assets.site-static.com/userfiles/1290/image/ThirdFloorPlan_1.gif" width="650" height="878" /></a>
A really cool place to hide! Obviouly there are costs associated for plans like this but building up is cheaper than building down. With the added bonus that no one will be stomping over your head while you're trying to watch a movie. I'm currently working on a piece about custom builds and what it takes to build a home in the custom market, so be on the lookout for that.
I would love the opportunity to answer any questions about your needs in more detail. Whether you want a basement, a pool, or space for your “She Shed”, I’m the man to talk to. I'm so grateful that you took the time to read this article. If you have any questions about what you have read above, please feel free to contact me> I am everywhere (see links below) and excited to speak to you about your home buying experience today.
2019-05-21T20:05:00-07:002020-05-05T04:11:48-07:00Luis Rodriguez