Portland Real Estate BlogRecently posted or modified blog posts in the category - Buying and Selling A Homehttps://www.hillshirerealtygroup.com/blog/Copyright HillshireRealtyGroup.com2024-03-07T11:32:10-07:00tag:hillshirerealtygroup.com,2012-09-20:11068The Benefits of Downsizing When You Retire
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by <a href="https://www.mykcm.com/2024/02/27/why-todays-housing-supply-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">downsizing</a> to a smaller home.
When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com <a href="https://www.realtor.com/advice/move/how-to-downsize-your-home-with-zero-regrets/" rel="noopener noreferrer" target="_blank">shares</a>:
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”
That windfall is thanks to your <a href="https://www.mykcm.com/2024/02/08/home-equity-can-be-a-game-changer-when-you-sell/" rel="noopener noreferrer" target="_blank">home equity</a>. If you’ve been in your house for a while, odds are you’ve built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley, <a href="https://www.morganstanley.com/articles/using-home-equity-in-retirement" rel="noopener noreferrer" target="_blank">explains</a>:
“Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth. . . . Retirement planning can be complex, but your home equity shouldn't be overlooked.”
And when you’re ready to use that equity to fuel your <a href="https://www.mykcm.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">next move</a>, your real estate agent will be your guide through every step of <a href="https://www.mykcm.com/2024/02/19/its-time-to-prepare-your-house-for-a-spring-listing/" rel="noopener noreferrer" target="_blank">the process</a>. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.
What This Means for You
If you’re thinking about downsizing, ask yourself these questions:
Do the original reasons I bought my current house still stand, or have my needs changed since then?
Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
What are my housing expenses right now, and how much do I want to try to save by downsizing?
Then, meet with a <a href="https://www.mykcm.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">real estate agent</a> to get an answer to this one: What are my options in the market right now? A local real estate agent can walk you through how much equity you have in your house and how it positions you to win when you downsize.
Bottom Line
Want to save money in retirement? Consider downsizing – it could really help you out. When you’re ready, <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">let’s connect</a> about your goals in the housing market this year.
2024-03-07T11:27:25-07:002024-03-07T11:32:10-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:10308People Are Still Moving, Even with Today’s Affordability Challenges
If you're thinking about <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a> are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
<a href="https://www.mykcm.com/content/images/20231113/20231116-Affordability-Historically-Low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-Affordability-Historically-Low.png" /></a>
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index/methodology" rel="noopener noreferrer" target="_blank">explains</a> how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You may be wondering how other <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.mykcm.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" rel="noopener noreferrer" target="_blank">sellers</a> are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">today’s market</a> and the current affordability situation, and their insight is invaluable right now.
True professionals will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean <a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">broadening your search</a>, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the <a href="https://www.mykcm.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">affordability challenges</a> today.
Bottom Line
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect.
2023-11-16T11:18:48-07:002023-11-16T11:20:55-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:9886More Jobs and Better Pay Leads to More Buyer Demand<img src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-More-Jobs-and-Better-Pay-Leads-to-More-Buyer-Demand.jpg" />
More Jobs and Better Pay Leads to More Buyer Demand
There’s been talk about a recession for quite a while now. But the economy has been remarkably resilient. Why? One reason is employment and wages have stayed strong. Let’s look at the latest information on each one and why both are good news if you’re thinking about selling your house.
More Jobs Are Being Created
Instead of facing the job losses typical of any recession, the economy has been growing and adding jobs. <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank">According</a> to the Bureau of Labor Statistics (BLS), 187,000 jobs were created in July, which is up from the 185,000 created in June. That means more people are finding work. In fact, so many jobs are being added that the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">unemployment rate</a> is far lower than the long-term average of 5.7% (see graph below):
<a href="https://www.mykcm.com/content/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-Unemployment-Rate-Declined-In-July.png" /></a>
A low unemployment rate means that most people who want to work are finding jobs. When people have jobs, they have steady incomes – and that can help set them up to consider homeownership.
People Are Making More Money
And data also shows hourly <a href="https://www.bls.gov/news.release/empsit.nr0.htm" rel="noopener noreferrer" target="_blank">earnings</a> have been going up pretty steadily over the past few years (see graph below):
<a href="https://www.mykcm.com/content/images/20230822/20230824-Hourly-Earnings-Rise-4.4--from-last-year.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230822/20230824-Hourly-Earnings-Rise-4.4--from-last-year.png" /></a>
When wages rise, people have more money that they could save or use toward buying a home. This increase in income helps offset some of the affordability challenges in the housing market today. Affordability depends on three main factors: wages, <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a>, and <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>. With higher home prices and mortgage rates right now, Builder Online <a href="https://www.builderonline.com/data-analysis/employment-growth-cant-save-some-housing-markets-in-the-near-term_o" rel="noopener noreferrer" target="_blank">summarizes</a> how growing wages can help:
“The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”
If you’re thinking about <a href="https://www.mykcm.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/" rel="noopener noreferrer" target="_blank">selling</a> your house, a strong job market, growing wages, and the resulting buyer demand is fantastic news. It means there’s a larger pool of potential buyers out there who are in a position to pursue their dreams of homeownership.
Bottom Line
With more jobs and rising wages creating eager <a href="https://www.mykcm.com/2023/07/27/homebuyers-are-still-more-active-than-usual/" rel="noopener noreferrer" target="_blank">buyers</a>, there’s a lot going in your favor. Let’s connect so you have someone who can guide you through the process of selling your house, from setting the right price to getting your home ready to show.
2023-08-24T12:52:28-07:002023-08-24T12:56:42-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9787Sellers: Don’t Let These Two Things Hold You Back
<img src="https://files.keepingcurrentmatters.com/content/images/20230727/20230801-Sellers-Don-t-let-these-two-things-hold-you-back.jpg" width="641" height="351" />
Many homeowners thinking about <a href="https://www.mykcm.com/2023/07/07/the-benefits-of-downsizing-for-homeowners-infographic/" rel="noopener noreferrer" target="_blank">selling</a> have two key things holding them back. That’s feeling locked in by today’s higher mortgage rates and worrying they won’t be able to find something to buy while supply is so low. Let’s dive into each challenge and give you some helpful advice on how to overcome these obstacles.
Challenge #1: The Reluctance to Take on a Higher Mortgage Rate
According to the Federal Housing Finance Agency (FHFA), the <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" rel="noopener noreferrer" target="_blank">average interest rate</a> for current homeowners with mortgages is less than 4% (see graph below):
<a href="https://www.mykcm.com/content/images/20230731/20230801-Average-Mortgage-Rate-Is-Less-Than-4-.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230731/20230801-Average-Mortgage-Rate-Is-Less-Than-4-.png" /></a>But today, the typical 30-year fixed <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rate</a> offered to buyers is closer to <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">7%</a>. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as the mortgage rate lock-in effect.
The Advice: Waiting May Not Pay Off
While experts project <a href="https://www.mykcm.com/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/" rel="noopener noreferrer" target="_blank">mortgage rates</a> will gradually fall this year as <a href="https://www.mykcm.com/2023/06/23/homeownership-helps-protect-you-from-inflation-infographic/" rel="noopener noreferrer" target="_blank">inflation</a> cools, that doesn’t necessarily mean you should wait to sell. Mortgage rates are notoriously hard to predict. And, right now <a href="https://www.mykcm.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">home prices</a> are back on the rise. If you move now, you’ll at least beat rising home prices when you buy your next home. And, if experts are right and rates fall, you can always refinance later if that happens.
Challenge #2: The Fear of Not Finding Something to Buy
When so many homeowners are reluctant to take on a higher rate, fewer homes are going to come onto the market. That’s going to keep <a href="https://www.mykcm.com/2023/07/14/low-housing-inventory-is-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> low. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://themortgagereports.com/104622/homeowners-become-landlords" rel="noopener noreferrer" target="_blank">explains</a>:
“Inventory will remain tight in the coming months and even for the next couple of years. Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years.”
Even though you know this <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">limited housing supply</a> helps your house stand out to eager buyers, it may also make you feel hesitant <a href="https://www.mykcm.com/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/" rel="noopener noreferrer" target="_blank">to sell</a> because you don’t want to struggle to find something to purchase.
The Advice: Broaden Your Search
If fear you won’t be able to find your next home is the primary thing holding you back, remember to consider all your options. Looking at all housing types including condos, townhouses, and even <a href="https://www.mykcm.com/2023/06/29/where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer/" rel="noopener noreferrer" target="_blank">newly built homes</a> can help give you more to choose from. Plus, if you’re able to work fully <a href="https://www.mykcm.com/2023/07/13/how-remote-work-expands-your-homebuying-horizons/" rel="noopener noreferrer" target="_blank">remote</a> or hybrid, you may be able to consider areas you hadn’t previously searched. If you can look further from your place of work, you may have more affordable options.
Bottom Line
Instead of focusing on the challenges, focus on what you can control. Let’s connect so you’re working with a professional who has the experience to navigate these waters and find the perfect home for you.
2023-08-01T12:33:30-07:002023-08-01T12:35:55-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9765Homebuyers Are Still More Active Than Usual
<img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-homebuyers-are-still-more-active-than-usual.jpg" width="620" height="339" />
Even though the housing market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. In actuality, buyer traffic is still strong today.
The ShowingTime <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">Showing Index</a> is a measure of how much buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" /></a>
It shows there’s <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> in real estate. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.
When the pandemic hit in March of 2020, that trend was disrupted as the market responded to the resulting uncertainty (shown in blue in the middle). From there, we entered the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> of housing (shown in pink). This is when mortgage rates were record-low and buyer demand was sky high. Similar seasonal trends still existed even during that time, just at much higher levels.
Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the <a href="https://www.mykcm.com/2023/06/09/why-you-cant-compare-now-to-the-unicorn-years-of-the-housing-market-infographic/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”
And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" /></a>
What Does That Mean for You?
Buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. And it could actually be even stronger if it wasn’t constrained by the <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">limited supply</a> of homes for sale. According to <a href="https://realestate.usnews.com/real-estate/articles/when-will-the-housing-market-crash" rel="noopener noreferrer" target="_blank">U.S. News</a>:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
Bottom Line
Don’t lose sight of just how active the market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. Let’s connect to start the process.
2023-07-28T12:33:18-07:002023-07-28T12:36:22-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9529Why Buying or Selling a Home Helps the Economy and Your Community<img src="https://files.keepingcurrentmatters.com/content/images/20230614/20230615-why-buying-or-selling-a-home-helps-the-economy-and-your-community.jpg" />
Why Buying or Selling a Home Helps the Economy and Your Community
If you're thinking about <a href="https://www.mykcm.com/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank">selling</a> a house, it's important to know that it doesn't just affect your life, but also your community.
The National Association of Realtors (NAR) releases a <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-state-by-state-economic-impact-of-real-estate-activity-report-us-05-01-2023.pdf?_gl=1*13hskvj*_gcl_au*NTQ4NDc1ODEzLjE2Nzg5MTgyNzk" rel="noopener noreferrer" target="_blank">report</a> every year to show how much economic activity is generated by <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank">home sales</a>. The chart below illustrates that impact:
<a href="https://www.mykcm.com/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png" /></a>
As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="https://chicagoagentmagazine.com/2023/01/02/nahb-robert-dietz-new-construction/" rel="noopener noreferrer" target="_blank">explains</a> how the housing industry <a href="https://www.mykcm.com/2023/05/18/powerful-job-market-fuels-homebuyer-demand/" rel="noopener noreferrer" target="_blank">adds jobs</a> to a community:
“The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.”
Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from Fortune <a href="https://fortune.com/2022/08/09/real-estate-housing-market-falling-prices-economic-risk/" rel="noopener noreferrer" target="_blank">notes</a> housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy:
“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . . consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint.”
When you <a href="https://www.mykcm.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank">buy</a> or sell a home, you work with a <a href="https://www.mykcm.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank">team of professionals</a>, including contractors, specialists, lawyers, and city officials. Each person plays a role in making the transaction happen.
So, when you <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">make a move</a> in the housing market, you're not just <a href="https://www.mykcm.com/2023/05/23/why-buying-a-vacation-home-beats-renting-one-this-summer/" rel="noopener noreferrer" target="_blank">meeting</a> your own needs, you're also making a positive impact on the community. Knowing this can give you a sense of empowerment as you make your decision this year.
Bottom Line
Each and every home sale is important for the local economy. If you’re ready to <a href="https://www.mykcm.com/2023/06/01/the-true-value-of-homeownership/" rel="noopener noreferrer" target="_blank">move</a>, let’s connect. It won’t just change your life – it’ll also have a strong positive effect on the whole community.
2023-06-15T12:58:56-07:002023-06-15T13:02:52-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9335A Recession Doesn’t Equal a Housing Crisis<img src="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-doesnt-equal-a-housing-crisis.jpg" />
A Recession Doesn’t Equal a Housing Crisis
Everywhere you look, people are talking about a potential recession. And if you’re planning to buy or sell a house, this may leave you wondering if your plans are still a wise move. To help ease your mind, experts are saying that if we do officially enter a recession, it’ll be mild and short. As the Federal Reserve <a href="https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20230322.pdf" rel="noopener noreferrer" target="_blank">explained</a> in their March meeting:
“. . . the staff’s projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years.”
While a recession may be on the horizon, it won’t be one for the housing market record books like the crash in 2008. What we have to remember is that a recession doesn’t always lead to a housing crisis.
To prove it, let’s look at the historical data of what happened in real estate during previous recessions. That way you know why you shouldn’t be afraid of what a recession could mean for the housing market today.
A Recession Doesn’t Mean Falling Home Prices
To show that home prices don’t fall every time there’s a recession, it helps to turn to <a href="https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011" rel="noopener noreferrer" target="_blank">historical data</a>. As the graph below illustrates, looking at recessions going all the way back to 1980, home prices appreciated in four of the last six of them. So historically, when the economy slows down, it doesn’t mean home values will always fall.
<a href="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-does-not-mean-falling-prices.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-does-not-mean-falling-prices.png" /></a>
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession will be a repeat of what happened to housing then. But today’s housing market isn’t about to crash because the fundamentals of the market are different than they were in 2008. Back then, one of the big reasons why prices fell was because there was a surplus of homes for sale at the same time distressed properties flooded the market. Today, the number of homes for sale is low, so while home prices may see slight declines in some areas and slight gains in others, a crash simply isn’t in the cards.
A Recession Means Falling Mortgage Rates
What a recession really means for the housing market is falling mortgage rates. As the graph below shows, <a href="https://mtg-specialists.com/recession-interest-rates-and-real-estate/" rel="noopener noreferrer" target="_blank">historically</a>, each time the economy slowed down, mortgage rates decreased.
<a href="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-means-falling-mortgage-rates.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content-images-20230428-20230502-a-recession-means-falling-mortgage-rates.png" /></a>
Bankrate <a href="https://www.bankrate.com/real-estate/buying-home-during-recession/" rel="noopener noreferrer" target="_blank">explains</a> mortgage rates typically fall during an economic slowdown:
“During a traditional recession, the Fed will usually lower interest rates. This creates an incentive for people to spend money and stimulate the economy. It also typically leads to more affordable mortgage rates, which leads to more opportunity for homebuyers.”
This year, <a href="https://www.mykcm.com/2023/04/03/how-changing-mortgage-rates-can-affect-you/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have been quite volatile as they’ve responded to high inflation. The 30-year <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">fixed mortgage rate</a> has hovered between roughly 6-7%, and that’s impacted <a href="https://www.mykcm.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" target="_blank">affordability</a> for many potential homebuyers.
But, if there is a recession, history tells us mortgage rates may fall below that threshold, even though the days of 3% are behind us.
Bottom Line
You don’t need to fear what a recession means for the housing market. If we do have a recession, experts say it will be mild and short, and history shows it also means mortgage rates go down.
2023-05-02T12:20:52-07:002023-05-02T12:27:09-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9208The Big Advantage If You Sell This Spring<img src="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-the-big-advantage-if-you-sell-this-spring-KCM.jpg" />
The Big Advantage If You Sell This Spring
Thinking about selling your house? If you’ve been waiting for the <a href="https://www.mykcm.com/2023/04/10/homebuyer-activity-shows-signs-of-warming-up-for-spring/" rel="noopener noreferrer" target="_blank">right time</a>, it could be now while the supply of homes for sale is so low. HousingWire <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">shares</a>:
“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/newsroom/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines" rel="noopener noreferrer" target="_blank">confirms</a> today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:
“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”
Why Does Low Inventory Make It a Good Time To Sell?
The less inventory there is on the market when you <a href="https://www.mykcm.com/2023/04/04/two-reasons-you-should-sell-your-house/" rel="noopener noreferrer" target="_blank">sell</a>, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-02-realtors-confidence-index-03-21-2023.pdf" rel="noopener noreferrer" target="_blank">Multiple offers</a> are on the rise again (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-average-number-of-offers-received-on-the-most-recent-closed-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-average-number-of-offers-received-on-the-most-recent-closed-sale-MEM.png" /></a>
If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still in a strong <a href="https://www.mykcm.com/2023/03/30/were-in-a-sellers-market-what-does-that-mean/" rel="noopener noreferrer" target="_blank">sellers’ market</a>, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal. Clare Trapasso, Executive News Editor at Realtor.com, <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">explains</a>:
"Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So, this spring, it's especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible.”
Bottom Line
If you’ve been waiting for the right time to sell your house, low inventory this spring sets you up with a big advantage. Let’s connect today to make sure your house is ready to sell.
2023-04-11T12:06:52-07:002023-04-11T12:11:25-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:9074The Role of Access in Selling Your House<img src="https://files.keepingcurrentmatters.com/content/images/20230320/20230321-the-role-of-access-in-selling-your-house-KCM.jpg" />
The Role of Access in Selling Your House
Once you’ve made the decision to <a href="https://www.mykcm.com/2023/03/13/leverage-your-equity-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">sell</a> your house and have <a href="https://www.mykcm.com/2023/03/01/an-expert-makes-all-the-difference-when-you-sell-your-house/" rel="noopener noreferrer" target="_blank">hired</a> a real estate agent to help, they’ll ask how much access to your home you want to give potential buyers. Your answer matters more now than it did in recent years. Here’s why.
At the height of the buying <a href="https://www.mykcm.com/2023/03/16/what-buyer-activity-tells-us-about-the-housing-market/" rel="noopener noreferrer" target="_blank">frenzy</a> seen during the pandemic, there was a rise in the number of homebuyers who put offers on houses sight unseen. That happened for three reasons:
Extremely low housing inventory
A lot of competition from other buyers wanting to take advantage of historically low mortgage rates
And general wariness of in-person home tours during a pandemic
Today, the market’s changing, and buyers can usually be more selective and take more time to explore their <a href="https://www.mykcm.com/2023/02/20/spring-into-action-boost-your-homes-curb-appeal-with-expert-guidance/" rel="noopener noreferrer" target="_blank">options</a>.
So, in order to show your house and <a href="https://www.mykcm.com/2023/02/24/checklist-for-selling-your-house-this-spring-infographic/" rel="noopener noreferrer" target="_blank">sell</a> it efficiently, you’ll want to provide buyers with as much access as you can. Before letting your agent know what works for you, consider these five levels of access you can provide. They’re ordered from most convenient for a buyer to least convenient. Remember, your agent will be better able to sell your house if you provide as much access to buyers as possible.
Lockbox on the Door – This allows buyers the ability to see the home as soon as they are aware of the listing or at their convenience.
Providing a Key to the Home – This would require an agent to stop by an office to pick up the key, which is still pretty convenient for a buyer.
Open Access with a Phone Call – This means you allow a showing with just a phone call’s notice.
By Appointment Only – For example, you might want your agent to set up a showing at a particular time and give you advance notice. That way you can prepare the house and be sure you have somewhere else you can go in the meantime.
Limited Access – This might mean you’re only willing to have your house available on certain days or at certain times of day. In general, this is the most difficult and least flexible way to show your house to potential buyers.
As today’s housing market <a href="https://www.mykcm.com/2023/02/28/what-you-should-know-about-rising-mortgage-rates/" rel="noopener noreferrer" target="_blank">changes</a>, be sure to work with your local agent to give buyers as much access as you can to your house when you sell.
Bottom Line
Access can have a big impact on the sale of your house. <a href="https://www.mykcm.com/2023/03/14/an-expert-gives-you-clarity-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">Connect</a> with a real estate agent today if you’re ready to <a href="https://www.mykcm.com/2023/03/03/where-will-you-go-after-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">make</a> a <a href="https://www.mykcm.com/2023/03/08/2-things-sellers-need-to-know-this-spring/" rel="noopener noreferrer" target="_blank">move</a> this spring.
<a href="https://www.mykcm.com/blog" class="router-link-active"><br /></a>
2023-03-21T12:16:31-07:002023-03-21T14:02:34-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:86193 Best Practices for Selling Your House This Year<img src="https://files.mykcm.com/2022/12/23115344/3-best-practices-for-selling-your-house-this-year-KCM.jpg" alt="3 Best Practices for Selling Your House This Year | MyKCM" />
3 Best Practices for Selling Your House This Year
A new year brings with it the opportunity for <a href="https://www.mykcm.com/2022/12/15/planning-to-retire-it-could-be-time-to-make-a-move/" title="new experiences">new experiences</a>. If that resonates with you because you’re considering making a move, you’re likely juggling a mix of excitement over your next home and a sense of attachment to your current one.
A great way to ease some of those emotions and ensure you’re feeling confident in your decision is to keep these three best practices in mind.
1. Price Your Home Right
The housing market shifted in 2022 as <a href="https://www.mykcm.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/" title="mortgage rates">mortgage rates</a> rose, buyer demand eased, and the number of <a href="https://www.mykcm.com/2022/12/13/ready-to-sell-todays-housing-supply-gives-you-two-opportunities/" title="homes for sale">homes for sale</a> grew. As a seller, you’ll want to recognize things are different now and <a href="https://www.mykcm.com/2022/12/12/what-every-seller-should-know-about-home-prices/" title="price your house">price your house</a> appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-trends/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
If you price your house too high, you run the risk of deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine what your ideal asking price should be.
2. Keep Your Emotions in Check
Today, homeowners are living in their houses longer. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):
<a href="https://files.mykcm.com/2022/12/23115341/todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106615" src="https://files.mykcm.com/2022/12/23115341/todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years-MEM.png" alt="3 Best Practices for Selling Your House This Year | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/23115341/todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years-MEM.png 960w, https://files.mykcm.com/2022/12/23115341/todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/23115341/todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/23115341/todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the <a href="https://www.mykcm.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/" title="negotiations">negotiations</a> along the way.
3. Stage Your Home Properly
While you may love your decor and how you’ve customized your home over the years, not all buyers will feel the same way about your design. That’s why it’s so important to make sure you focus on your home’s first impression so it appeals to as many buyers as possible. As NAR <a href="https://www.nar.realtor/blogs/styled-staged-sold/why-home-staging-inspires-the-best-prices-in-any-housing-market" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”
Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. A real estate professional can help you with tips to get your house <a href="https://www.mykcm.com/2022/12/02/winter-home-selling-checklist-infographic/" title="ready to sell">ready to sell</a>.
Bottom Line
If you’re considering selling your house, let’s connect so you have the help you need to navigate through the process while prioritizing these best practices.2023-01-05T14:10:01-07:002023-01-05T14:13:22-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8353More People Are Finding the Benefits of Multigenerational Households Today<img src="https://files.mykcm.com/2022/11/16121439/more-people-are-finding-the-benefits-of-multigenerational-living-KCM.jpg" alt="More People Are Finding the Benefits of Multigenerational Households Today | MyKCM" />
More People Are Finding the Benefits of Multigenerational Households Today
If you’re thinking of buying a home and living with siblings, parents, or grandparents, then multigenerational living may be for you. The <a href="https://www.pewresearch.org/fact-tank/2022/07/20/young-adults-in-u-s-are-much-more-likely-than-50-years-ago-to-be-living-in-a-multigenerational-household/" title="Pew Research Center" target="_blank" rel="noopener noreferrer">Pew Research Center</a> defines a multigenerational household as a home with two or more adult generations. And the number of individuals choosing multigenerational living has increased over the past 50 years.
As you consider this option for your own home search, know it could help you on your <a href="https://www.mykcm.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/" title="homeownership journey">homeownership journey</a> and provide you with other incredible benefits along the way.
Living with Loved Ones Could Help You Achieve Your Homeownership Goals
There are several reasons people choose to live in a multigenerational household, and for many, the arrangement is a personal one. But according to the <a href="https://www.pewresearch.org/social-trends/2022/03/24/financial-issues-top-the-list-of-reasons-u-s-adults-live-in-multigenerational-homes/" title="Pew Research Center" target="_blank" rel="noopener noreferrer">Pew Research Center</a>, the top reason people choose to live together today is financial.
A <a href="https://www.freddiemac.com/research/insight/20220908-co-borrowing-rise-first-time-homebuyers" title="recent study" target="_blank" rel="noopener noreferrer">recent study</a> from Freddie Mac also finds more people are choosing to buy a home together so they can save money in the homebuying process. As the study says:
“. . . an increasing percentage of young adult first-time homebuyers are relying on support from older generations, including their parents, to buy a home together.”
For these individuals, combining their resources can help them achieve their dream of buying and owning a home. By pooling their incomes together to make that purchase, they may be able to afford a home they couldn’t on their own.
Other Key Benefits of Multigenerational Living
Not to mention, living in a home with loved ones can have other benefits too, like giving you more quality time to spend together. Darla Mercado, Certified Financial Planner and Markets Editor for CNBC.com, <a href="https://www.cnbc.com/2022/10/19/multigenerational-hispanic-households-feel-rising-economic-pressure.html" title="explains" target="_blank" rel="noopener noreferrer">explains</a> how this living arrangement can help on a <a href="https://www.mykcm.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/" title="personal">personal</a> and financial level:
“Residing with relatives can offer advantages . . . you can pool multiple streams of income, for instance. And in households with young children, grandparents can pitch in with child care.”
If this sounds like a great option for you, it’s important to work with a trusted real estate professional to discuss your needs. They can help you navigate the process to find the right home for you and your loved ones.
Bottom Line
More people are discovering the benefits of multigenerational living. For the best information and help deciding what’s right for your personal situation, let’s connect and start the conversation today.2022-11-17T13:53:06-07:002022-11-17T14:05:21-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8243What’s Ahead for Home Prices?<img src="https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share.jpg" alt="What’s Ahead for Home Prices? | MyKCM" />
What’s Ahead for Home Prices?
As the <a href="https://www.mykcm.com/2022/10/11/what-are-experts-saying-about-the-fall-housing-market/" title="housing market">housing market</a> cools in response to the dramatic rise in <a href="https://www.mykcm.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/" title="mortgage rates">mortgage rates</a>, home price appreciation is cooling as well. And if you’re following along with headlines in the media, you’re probably seeing a wide range of opinions calling for everything from falling home prices to ongoing appreciation. But what’s true? What’s most likely to happen moving forward?
While opinions differ, the most likely outcome is we’ll fall somewhere in the middle of slight appreciation and slight depreciation. Here’s a look at the latest expert projections so you have the best information possible today.
What the Experts Are Saying About Home Prices Next Year
The graph below shows the most up-to-date forecasts from five experts in the housing industry. These are the experts that have most recently updated their projections based on current market trends:
<a href="https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="wp-image-105159 aligncenter" src="https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1.png" alt="What’s Ahead for Home Prices? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1.png 960w, https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1-600x450.png 600w, https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1-768x576.png 768w, https://files.mykcm.com/2022/10/19093402/20221020-MEM-Eng-1-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
As the graph shows, the three blue bars represent experts calling for ongoing home price appreciation, just at a more moderate rate than recent years. The red bars on the graph are experts calling for home price depreciation.
While there isn’t a clear consensus, if you take the average (shown in green) of all five of these forecasts, the most likely outcome is, nationally, home price appreciation will be fairly flat next year.
What Does This Mean?
Basically, experts are divided on what’s ahead for 2023. Home prices will likely depreciate slightly in some markets and will continue to gain ground in others. It all depends on the conditions in your local market, like how overheated that market was in recent years, current inventory levels, buyer demand, and more.
The good news is home prices are expected to return to more normal levels of appreciation rather quickly. The latest <a href="https://wellsfargo.bluematrix.com/links2/html/429eb828-b17e-4e47-8856-4ff59f9d3d1a" title="forecast" target="_blank" rel="noopener noreferrer">forecast</a> from Wells Fargo shows that, while they feel prices will fall in 2023, they think prices will recover and net positive in 2024. That forecast calls for 3.1% appreciation in 2024, which is a number much more in line with the long-term average of <a href="https://www.forbes.com/sites/qai/2022/08/30/housing-prices-are-dropping---yes-a-house-is-still-a-good-investment/?sh=54fdefd17372" title="4%" target="_blank" rel="noopener noreferrer">4%</a> annual appreciation.
And the <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Home Price Expectation Survey" target="_blank" rel="noopener noreferrer">Home Price Expectation Survey</a> (HPES) from Pulsenomics, a poll of over one hundred industry experts, also calls for ongoing appreciation of roughly 2.6 to 4% from 2024-2026. This goes to show, even if prices decline slightly next year, it’s not expected to be a lasting trend.
As Jason Lewris, Co-Founder and Chief Data Officer for Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
Don’t let fear or uncertainty change your plans. If you’re unsure about where prices are headed or how to make sense of what’s going on in today’s housing market, reach out to a local real estate professional for the guidance you need each step of the way.
Bottom Line
The housing market is shifting, and it’s a confusing place right now. Let’s connect so you have a trusted real estate professional to help you make confident and informed decisions about what’s happening in our market.2022-10-20T12:50:32-07:002022-10-20T13:09:45-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8212 Perspective Matters When Selling Your House Today<img src="https://files.mykcm.com/2022/10/12112112/20221013-KCM-Share.jpg" alt="Perspective Matters When Selling Your House Today | MyKCM" />
Does the latest news about the housing market have you questioning your plans to <a href="https://www.mykcm.com/2022/09/29/if-youre-thinking-of-selling-your-house-this-fall-hire-a-pro/" title="sell your house">sell your house</a>? If so, perspective is key. Here are some of the ways a trusted real estate professional can explain <a href="https://www.mykcm.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/" title="the shift">the shift</a> that’s happening today and why it’s still a sellers’ market even during the cooldown.
Fewer Homes for Sale than Pre-Pandemic
While the supply of homes available for sale has increased this year compared to last, we’re still nowhere near what’s considered a balanced market. A <a href="https://www.calculatedriskblog.com/2022/10/housing-october-10th-weekly-update.html" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> from Calculated Risk helps put this year’s increased inventory into context (see graph below):
<a href="https://files.mykcm.com/2022/10/12112113/20221013-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105077" src="https://files.mykcm.com/2022/10/12112113/20221013-MEM-Eng-1.png" alt="Perspective Matters When Selling Your House Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/12112113/20221013-MEM-Eng-1.png 960w, https://files.mykcm.com/2022/10/12112113/20221013-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/10/12112113/20221013-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/10/12112113/20221013-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
It shows supply this year has surpassed 2021 levels by over 30%. But the further back you look, the more you’ll understand the big picture. Compared to 2020, we’re just barely above the level of inventory we saw then. And if you go all the way back to 2019, the last normal year in real estate, we’re roughly 40% below the housing supply we had at that time.
Why does this matter to you? When inventory is low, there is still demand for your house because there just aren’t enough homes available for sale.
Homes Are Still Selling Faster Than More Normal Years
And while homes aren’t selling as quickly as they did a few months ago, the average number of days on the market is still well below pre-pandemic norms – in large part because inventory is so low. The graph below uses data from the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-08-realtors-confidence-index-09-21-2022.pdf" title="Realtors’ Confidence Index" target="_blank" rel="noopener noreferrer">Realtors’ Confidence Index</a> by the National Association of Realtors (NAR) to illustrate this trend:
<a href="https://files.mykcm.com/2022/10/12112115/20221013-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105078" src="https://files.mykcm.com/2022/10/12112115/20221013-MEM-Eng-2.png" alt="Perspective Matters When Selling Your House Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/12112115/20221013-MEM-Eng-2.png 960w, https://files.mykcm.com/2022/10/12112115/20221013-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/10/12112115/20221013-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/10/12112115/20221013-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
As the graph shows, the pre-pandemic numbers (shown in blue) are higher than the numbers we saw during the pandemic (shown in green). That’s because the average days on the market started to decrease as homes sold at record pace during the pandemic. Most recently, due to the cooldown in the housing market, the average days on the market have started to tick back up slightly (shown in orange) but are still far below the pre-pandemic norm.
What does this mean for you? While it may not be as fast as it was a couple of months ago, homes are still selling much faster than they did in more normal, pre-pandemic years. And if you price it right, your home could still go under contract quickly.
Buyer Demand Has Moderated and Is Now in Line with More Typical Years
Buyer demand has softened this year in response to rising <a href="https://www.mykcm.com/2022/09/27/how-an-expert-can-help-you-understand-inflation-mortgage-rates/" title="mortgage rates">mortgage rates</a>. But again, perspective is key. Getting 3-5 offers like <a href="https://www.mykcm.com/2022/09/21/top-reasons-homeowners-are-selling-their-houses-right-now/" title="sellers">sellers</a> did during the pandemic isn’t the norm. The graph below uses <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-08-realtors-confidence-index-09-21-2022.pdf" title="data" target="_blank" rel="noopener noreferrer">data</a> from NAR going back to 2018 to help tell the story of this shift over time (see graph below):
<a href="https://files.mykcm.com/2022/10/12112108/20221013-MEM-Eng-3.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105075" src="https://files.mykcm.com/2022/10/12112108/20221013-MEM-Eng-3.png" alt="Perspective Matters When Selling Your House Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/12112108/20221013-MEM-Eng-3.png 960w, https://files.mykcm.com/2022/10/12112108/20221013-MEM-Eng-3-600x450.png 600w, https://files.mykcm.com/2022/10/12112108/20221013-MEM-Eng-3-768x576.png 768w, https://files.mykcm.com/2022/10/12112108/20221013-MEM-Eng-3-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Prior to the pandemic, it was typical for homes sold to see roughly 2-2.5 offers (shown in blue). As the market heated up during the pandemic, the average number of offers skyrocketed as record-low mortgage rates drove up demand (shown in green). But most recently, the number of offers on homes sold today (shown in orange) has started to return to pre-pandemic levels as the market cools from the frenzy.
What’s the takeaway for you? Buyer demand has moderated from the pandemic peak, but it hasn’t disappeared. The buyers are still out there, and if you <a href="https://www.mykcm.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/" title="price your house">price your house</a> at current market value, you’ll still be able <a href="https://www.mykcm.com/2022/09/19/will-my-house-still-sell-in-todays-market/" title="sell your house">sell your house</a> today.
Bottom Line
If you have questions about selling your house in today’s housing market, let’s connect. That way you have context around what’s happening now, so you’re up to date on what you can expect when you’re ready to move.
2022-10-13T12:32:00-07:002022-10-13T12:41:24-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:8186The Long-Term Benefit of Homeownership<img src="https://files.mykcm.com/2022/10/04143006/20221005-KCM-Share.jpg" alt="The Long-Term Benefit of Homeownership | MyKCM" />Today’s cooling <a href="https://www.mykcm.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/" title="housing market">housing market</a>, the rise in mortgage rates, and mounting economic concerns have some people questioning: should I still buy a home this year? While it’s true this year has unique challenges for homebuyers, it’s important to factor the long-term benefits of homeownership into your decision.
Consider this: if you know people who bought a home 5, 10, or even 30 years ago, you’re probably going to have a hard time finding someone who regrets their decision. Why is that? The reason is tied to how you gain <a href="https://www.mykcm.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/" title="equity">equity</a> and <a href="https://www.mykcm.com/2022/09/26/the-true-strength-of-homeowners-today/" title="wealth">wealth</a> as home values grow with time.
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/research-reports/metro-area-housing-wealth-gains" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments.”
Here’s a look at how just the home price appreciation piece can really add up over the years.
Home Price Growth Over Time
Even though <a href="https://www.mykcm.com/2022/08/30/whats-actually-happening-with-home-prices-today/" title="home price appreciation">home price appreciation</a> has moderated this year, home values have still increased significantly in recent years. The map below uses <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" title="data" target="_blank" rel="noopener noreferrer">data</a> from the Federal Housing Finance Agency (FHFA) to show just how noteworthy those gains have been over the last five years.
<a href="https://files.mykcm.com/2022/10/04143008/20221003-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105026" src="https://files.mykcm.com/2022/10/04143008/20221003-MEM-Eng-1.png" alt="The Long-Term Benefit of Homeownership | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/04143008/20221003-MEM-Eng-1.png 960w, https://files.mykcm.com/2022/10/04143008/20221003-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/10/04143008/20221003-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/10/04143008/20221003-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
If you look at the percent change in home prices, you can see home prices grew on average by almost 64% nationwide over that period.
That means a home’s value can increase substantially in a short time. And if you expand that time frame even more, the benefit of homeownership and the <a href="https://www.mykcm.com/2022/09/06/how-owning-a-home-builds-your-net-worth/" title="drastic gains">drastic gains</a> you stand to make become even clearer (see map below):
<a href="https://files.mykcm.com/2022/10/04143010/20221003-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-105027" src="https://files.mykcm.com/2022/10/04143010/20221003-MEM-Eng-2.png" alt="The Long-Term Benefit of Homeownership | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/10/04143010/20221003-MEM-Eng-2.png 960w, https://files.mykcm.com/2022/10/04143010/20221003-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/10/04143010/20221003-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/10/04143010/20221003-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The second map shows, nationwide, home prices appreciated by an average of over 290% over roughly a thirty-year span.
While home price growth varies by state and local area, the nationwide average tells you the typical homeowner who bought a house thirty years ago saw their home almost triple in value over that time. This is why homeowners who bought their homes years ago are still happy with their decision.
Even if home price appreciation eases as the market cools this year, <a href="https://www.mykcm.com/2022/09/22/what-experts-say-will-happen-with-home-prices-next-year/" title="experts say">experts say</a> home prices are still expected to appreciate nationally in 2023. That means, in most markets, your home should grow in value over the next year even if the pace is slower than it was during the peak market frenzy when prices skyrocketed.
The alternative to buying a home is <a href="https://www.mykcm.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/" title="renting">renting</a>, and rental prices have been climbing for decades. So why rent and fight annual lease hikes for no long-term financial benefit? Instead, consider <a href="https://www.mykcm.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/" title="buying a home">buying a home</a>. It’s an investment in your future that could set you up for long-term gains.
Bottom Line
Don’t let the shifting market delay your dreams. Data shows home values typically appreciate over time, and that gives your net worth a nice boost. If you’re ready to start your journey to homeownership, let’s connect today.2022-10-06T12:14:00-07:002022-10-06T12:36:06-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8159 If You’re Thinking of Selling Your House This Fall, Hire a Pro<img src="https://files.mykcm.com/2022/09/28114648/20220929-KCM-Share.jpg" alt="If You’re Thinking of Selling Your House This Fall, Hire a Pro | MyKCM" />
Today’s market is at a <a href="https://www.mykcm.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/" title="turning point">turning point</a>, making it more essential than ever to work with a real estate professional. Not only will a trusted real estate advisor keep you updated and help you make the best decisions based on current market trends, but they’re also experts in managing the many aspects of <a href="https://www.mykcm.com/2022/09/21/top-reasons-homeowners-are-selling-their-houses-right-now/" title="selling your house">selling your house</a>.
Here are five key reasons why working with a real estate professional makes sense today.
1. A Professional Follows the Latest Market Trends
With higher mortgage rates and moderating buyer demand, conditions are changing and staying on top of the latest market information is crucial when you sell.
Working with an expert <a href="https://www.mykcm.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/" title="real estate advisor">real estate advisor</a> helps ensure you can stay updated on what’s happening. They know your local area and follow national trends too. More importantly, they’ll know what this data means for you, and as the market shifts, they’ll be able to help you navigate it and make your best decision.
2. A Professional Helps Maximize Your Pool of Buyers
Your agent’s role in <a href="https://www.mykcm.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/" title="bringing in buyers">bringing in buyers</a> is important. Real estate professionals have a large variety of tools at their disposal, such as social media followers, agency resources, and the Multiple Listing Service (MLS) to ensure your house is viewed by the most buyers. Investopedia <a href="https://www.investopedia.com/articles/personal-finance/071514/8-reasons-not-sell-your-home-without-agent.asp#toc-4-agents-access-large-networks" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why it’s risky to sell on your own without the network an agent provides:
“You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth.”
3. A Professional Understands the Fine Print
Today, more disclosures and regulations are mandatory when selling a house. That means the number of legal documents you’ll need to juggle is growing. The National Association of Realtors (NAR) explains it best, <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-sellers/8-reasons-to-work-with-a-realtor" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Selling a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. . . . Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.”
A real estate professional knows exactly what needs to happen, what all the fine print means, and how to work through it efficiently. They’ll help you review the documents and avoid any costly missteps that could occur if you try to handle them on your own.
4. A Professional Is a Trained Negotiator
If you sell without a professional, you’ll also be solely responsible for all the negotiations. That means you’ll have to coordinate with:
The buyer, who wants the best deal possible
The buyer’s agent, who will use their expertise to advocate for the buyer
The inspection company, which works for the buyer and will almost always find concerns with the house
The appraiser, who assesses the property’s value to protect the lender
In today’s changing market, buyers are regaining some <a href="https://www.mykcm.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/" title="negotiation power">negotiation power</a> as bidding wars ease. Instead of going toe-to-toe with all the above parties alone, lean on an expert. They’ll know what levers to pull, how to address everyone’s concerns, and when you may want to get a second opinion.
5. A Professional Knows How To Set the Right Price for Your House
If you sell your house on your own, you may be more likely to overshoot your <a href="https://www.mykcm.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/" title="asking price">asking price</a>. That could mean your house will sit on the market because you priced it too high for where the market is now. Today, pricing a house requires even more expertise to ensure you get it right. NAR <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-sellers/8-reasons-to-work-with-a-realtor" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“A great real estate agent will look at your home with an unbiased eye, providing you with the information you need to enhance marketability and maximize price.”
Real estate professionals know the ins and outs of how to price your house accurately and competitively. To do so, they compare your house to recently sold homes in your area and factor in the current condition of your home. These steps are key to making sure it’s set to move quickly while still getting you the highest possible final sale price.
Bottom Line
Whether it’s following local and national trends and guiding you through a shifting market or pricing your house right, a real estate agent has essential insights you’ll want to rely on throughout the transaction. Don’t go at it alone. If you plan to sell your house, let’s connect.2022-09-29T12:13:00-07:002022-09-29T12:24:19-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8145How an Expert Can Help You Understand Inflation & Mortgage Rates
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<img src="https://files.mykcm.com/2022/09/26123312/202209207-KCM-Share.jpg" alt="How an Expert Can Help You Understand Inflation & Mortgage Rates | MyKCM" />
If you’re following today’s housing market, you know two of the top issues consumers face are inflation and mortgage rates. Let’s take a look at each one.
Inflation and the Housing Market
This year, <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a> reached a high not seen in <a href="https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html" title="forty years" target="_blank" rel="noopener noreferrer">forty years</a>. For the average consumer, you probably felt the pinch at the gas pump and in the grocery store. It may have even impacted your ability to save money to buy a home.
While the Federal Reserve is working hard to lower inflation, the <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-consumer-price-index-september-13-2022" title="August data" target="_blank" rel="noopener noreferrer">August data</a> shows the inflation rate was still higher than expected. This news impacted the stock market and fueled conversations about a recession. It also played a role in the Federal Reserve’s decision to raise the Federal Funds Rate last week. As Bankrate <a href="https://www.bankrate.com/real-estate/how-fed-rate-hike-affects-housing/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . the Fed has raised rates again, announcing yet another three-quarter-point hike on September 21 . . . The hikes are designed to cool an economy that has been on fire. . .”
While their actions don’t directly dictate what happens with mortgage rates, their decisions have contributed to the intentional cooldown in the housing market. A recent article from Fortune <a href="https://fortune.com/2022/08/15/falling-home-prices-to-hit-these-housing-markets-in-2023-and-2024/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“As the Federal Reserve moved into inflation-fighting mode, financial markets quickly put upward pressure on mortgage rates. Those elevated mortgage rates . . . coupled with sky-high home prices, threw cold water onto the housing boom.”
The Impact on Rising Mortgage Rates
Over the past few months, mortgage rates have fluctuated in light of growing economic pressures. Most recently, the average 30-year fixed <a href="http://www.freddiemac.com/pmms/pmms_archives.html" title="mortgage rate" target="_blank" rel="noopener noreferrer">mortgage rate</a> according to Freddie Mac ticked above 6% for the first time in well over a decade (see graph below):
<a href="https://files.mykcm.com/2022/09/26123309/20220927-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104905" src="https://files.mykcm.com/2022/09/26123309/20220927-MEM-Eng-1.png" alt="How an Expert Can Help You Understand Inflation & Mortgage Rates | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/09/26123309/20220927-MEM-Eng-1.png 960w, https://files.mykcm.com/2022/09/26123309/20220927-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/09/26123309/20220927-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/09/26123309/20220927-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The mortgage rate increases this year are the big reason <a href="https://www.mykcm.com/2022/09/19/will-my-house-still-sell-in-todays-market/" title="buyer demand">buyer demand</a> has pulled back in recent months. Basically, as rates (and home prices) rose, so did the cost of buying a home. That pushed on <a href="https://www.mykcm.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/" title="affordability">affordability</a> and priced some buyers out of the market, so home sales slowed and the <a href="https://www.mykcm.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/" title="inventory">inventory</a> of homes for sale grew as a result.
Where Experts Say Rates and Inflation Will Go from Here
Moving forward, both of these factors will continue to impact the housing market. A <a href="https://www.cnet.com/personal-finance/mortgages/mortgage-rates-on-sep-26-2022-rates-tick-up/" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> from CNET puts the relationship between inflation and mortgage rates in simple terms:
“As a general rule, when inflation is low, mortgage rates tend to be lower. When inflation is high, rates tend to be higher.”
Sam Khater, Chief Economist at Freddie Mac, has this to <a href="https://freddiemac.gcs-web.com/node/25711/pdf" title="say" target="_blank" rel="noopener noreferrer">say</a> about where rates may go from here:
“Mortgage rates remained volatile due to the tug of war between inflationary pressures and a clear slowdown in economic growth. The high uncertainty surrounding inflation and other factors will likely cause rates to remain variable, . . .”
While there’s no way to say with certainty where mortgage rates will go from here, there is something you can do to stay informed, and that’s connect with a trusted real estate advisor. They keep their pulse on what’s happening today and help you understand what the experts are projecting. They can provide you with the <a href="https://www.mykcm.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/" title="best advice">best advice</a> possible.
Bottom Line
Rising inflation and higher mortgage rates have had a clear impact on housing. For expert insights on the latest trends in the housing market and what they mean for you, let’s connect.
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2022-09-26T15:16:00-07:002022-09-27T15:26:29-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8092Getting Your House Ready To Sell? Work with an Agent for Expert Advice<img src="https://files.mykcm.com/2022/09/09102806/20220912-KCM-Share.jpg" alt="Getting Your House Ready To Sell? Work with an Agent for Expert Advice | MyKCM" />
In a market that’s <a href="https://www.mykcm.com/2022/08/23/what-sellers-need-to-know-in-todays-housing-market/" title="shifting">shifting</a> as fast as it is today, many homeowners wonder what, if anything, needs to be renovated before they <a href="https://www.mykcm.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/" title="sell their house">sell their house</a>. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – do before selling your house.
Here are some considerations a professional will guide you through.
What You Need To Know About Your Local Market
Since the supply of <a href="https://www.mykcm.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/" title="homes for sale">homes for sale</a> has increased so much this year, today’s buyers have more options than they had last year. That may mean you’re not able to ignore some of those repairs or cosmetic updates you could have skipped in previous months. As a recent article from realtor.com <a href="https://www.realtor.com/advice/sell/how-home-sellers-can-prepare-for-a-recession-and-still-sell-their-home/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“To stand out in the market, sellers should make their home attractive to buyers, which usually means some selective updates.”
The key word here is selective. Since it’s still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" title="sellers’ market">sellers’ market</a>, focusing on a few key areas may be enough to make your house stand out from other options. And since inventory is still low overall, it’s also possible buyers may be willing to handle the renovations themselves once they move in. It all depends on buyer demand and the available inventory in your local area. For advice on what’s happening in your market and what to do to make your house show well, lean on a professional.
Not All Renovation Projects Are Equal
In addition to making sure your house makes a good first impression, you’ll also want to consider the return on your investment (ROI) for any renovations. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf" title="2022 Remodeling Impact Report" target="_blank" rel="noopener noreferrer">2022 Remodeling Impact Report</a> from the National Association of Realtors (NAR), here are the projects that could net you the best return when you sell your house (see visual below):
<a href="https://files.mykcm.com/2022/09/09102804/20220912-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104599" src="https://files.mykcm.com/2022/09/09102804/20220912-MEM-Eng-1.png" alt="Getting Your House Ready To Sell? Work with an Agent for Expert Advice | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/09/09102804/20220912-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/09/09102804/20220912-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/09/09102804/20220912-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/09/09102804/20220912-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Again, your real estate advisor is your best resource. When your agent comes to your house for a walk-thru and consultation, they’ll use their expertise to offer any insight into what you may need to repair, replace, or refinish. They also know what other sellers are doing before listing their homes and how buyers are reacting to those upgrades to help steer you in the right direction. As Dr. Jessica Lautz, Vice President of Demographics and Behavioral Insights for NAR, <a href="https://www.nar.realtor/blogs/economists-outlook/research-spotlight-2022-remodeling-impact-report" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“This year, the winner was hardwood flooring. Hardwood floor refinishing and putting in new wood flooring had the most significant value, . . .”
How To Draw Buyer Attention to the Upgrades You’ve Made
For any projects you’ve already completed or for those you plan to do before listing, make sure your <a href="https://www.mykcm.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/" title="real estate professional">real estate professional</a> knows. They’re not just an advisor to help you decide where to focus your efforts, they’re also skilled at highlighting any upgrades in your listing. That way, potential buyers know about the features that may help sell them on the house.
No matter what, contact a local real estate professional for expert advice on what work needs to be done and how to make it as appealing as possible to future buyers. Every home is different, so a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.
Bottom Line
In today’s shifting market, it’s important to spend your time and money wisely when you’re getting ready to move. Let’s connect to find out where to focus your efforts before you sell.2022-09-13T12:07:00-07:002022-09-13T12:10:05-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:8080 Should I Sell My House This Year?<img src="https://files.mykcm.com/2022/09/07170123/20220908-KCM-Share.jpg" alt="Should I Sell My House This Year? | MyKCM" />
There’s no denying the housing market is <a href="https://www.mykcm.com/2022/08/23/what-sellers-need-to-know-in-todays-housing-market/" title="undergoing a shift">undergoing a shift</a> this season as buyer demand slows and the number of homes for sale grows. But that shift actually gives you some unique benefits when you sell. Here’s a look at the key opportunities you have if you list your house this fall.
Opportunity #1: You Have More Options for Your Move
One of the biggest stories today is the growing supply of homes for sale. <a href="https://www.mykcm.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/" title="Housing inventory">Housing inventory</a> has been increasing since the start of the year, primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, that actually could benefit you.
If you’re selling your house to make a move, it means you’ll have <a href="https://www.mykcm.com/2022/09/01/new-homes-may-have-the-incentives-youre-looking-for-today/" title="more options">more options</a> for your own home search. That gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="somewhere to go">somewhere to go</a>, know your options have improved.
Opportunity #2: The Number of Homes on the Market Is Still Low
Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there would need to be a six months’ supply of homes. According to the <a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-5-9-in-july" title="latest report" target="_blank" rel="noopener noreferrer">latest report</a> from the National Association of Realtors (NAR), in July, there was only a 3.3 months’ supply.
While you’ll have more options for your own home search, <a href="https://www.mykcm.com/2022/08/24/why-todays-housing-inventory-proves-the-market-isnt-headed-for-a-crash/" title="inventory">inventory</a> is still low, and that means your home will still be in demand if you <a href="https://www.mykcm.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/" title="price it right">price it right</a>. That’s why the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf" title="most recent data" target="_blank" rel="noopener noreferrer">most recent data</a> from NAR also shows the average home sold in July still saw multiple offers and sold in as little as 14 days.
Opportunity #3: Your Equity Has Grown by Record Amounts
The <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home price appreciation">home price appreciation</a> the market saw over the past few years has likely given your <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="equity">equity</a> (and your net worth) a considerable boost. Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-july-2-2022/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Home owners trying to decide if now is the time to list their home for sale are still in a good position in many markets across the country as a decade of rising home prices gives them a substantial equity cushion . . .”
If you’ve been holding off on selling because you’re worried about how <a href="https://www.mykcm.com/2022/08/30/whats-actually-happening-with-home-prices-today/" title="rising prices">rising prices</a> will impact your next home search, rest assured your <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a> can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.
Bottom Line
If you’re thinking about selling your house this season, let’s connect so you have the expert insights you need to make the best possible move today.2022-09-08T00:40:00-07:002022-09-08T12:40:09-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7979 Planning To Retire? Your Equity Can Help You Reach Your Goal.Whether you’ve just retired or you’re thinking about retirement, you may be considering your options and trying to picture a whole new stage of your life. And you’re not alone. <a href="https://ritaus.org/2022-retirement-stats-you-should-know/" title="Research" target="_blank" rel="noopener noreferrer">Research</a> from the Retirement Industry Trust Association (RITA) shows 10,000 Baby Boomers reach the typical retirement age (65) every day, and only 47% of the people in that generation have already retired.
If this sounds like you, one thing worth considering is whether or not your current home will suit your new lifestyle. If your home doesn’t have the features or benefits you’re looking for, the good news is, you may be in a better position to move than you realize.
That’s because, if you already own a home, you’ve likely built-up significant <a href="https://www.mykcm.com/2022/07/06/how-your-equity-can-grow-over-time/" title="equity">equity</a>, and that can help you fuel your next move. <a href="https://www.nar.realtor/blogs/economists-outlook/metro-wealth-reports-as-of-2022-q1" title="According" target="_blank" rel="noopener noreferrer">According</a> to the National Association of Realtors (NAR):
“A homeowner who purchased a typical home five years ago would have gained $125,300 from just price appreciation alone.”
In fact, over the last twelve months, CoreLogic <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="reports" target="_blank" rel="noopener noreferrer">reports</a> the average homeowner in the United States gained roughly $64,000 in equity due to <a href="https://www.mykcm.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/" title="home price appreciation">home price appreciation</a>.
You can use your equity to help you achieve your <a href="https://www.mykcm.com/2022/08/01/why-are-people-moving-today/" title="homeownership goals">homeownership goals</a>. Whether you want to downsize, move closer to loved ones, or buy a home in a dream destination, your <a href="https://www.mykcm.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/" title="equity">equity</a> can help get you there. It may be some (if not all) of what you’d need as your down payment on a home that better fits your changing needs.
To find out how much equity to have in your home, reach out to a trusted <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="real estate professional">real estate professional</a> today.
Bottom Line
Retirement is a big step and so is buying or selling a home. As you move into this new phase of life, let’s connect so you have an expert to guide you through the process as you sell your current home and give you expert advice as you buy one that’ll better suit your needs.2022-08-18T12:17:00-07:002022-08-18T12:20:47-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7963What Would a Recession Mean for the Housing Market?<img src="https://files.mykcm.com/2022/08/15125226/20220816-KCM-Share.jpg" alt="What Would a Recession Mean for the Housing Market? | MyKCM" />
According to a <a href="https://www.wsj.com/articles/economic-forecasting-survey-archive-11617814998" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.
And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?
Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.
A Recession Doesn’t Mean Falling Home Prices
To show that home prices don’t fall every time there’s a <a href="https://www.corelogic.com/blog/2019/03/housing-recessions-and-recoveries.aspx" title="recession" target="_blank" rel="noopener noreferrer">recession</a>, it helps to turn to <a href="https://www.thebalance.com/the-history-of-recessions-in-the-united-states-3306011" title="historical data" target="_blank" rel="noopener noreferrer">historical data</a>. As the graph below illustrates, looking at the recessions going all the way back to 1980, <a href="https://www.mykcm.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/" title="home prices">home prices</a> appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.
<a href="https://files.mykcm.com/2022/08/15125227/20220816-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104033" src="https://files.mykcm.com/2022/08/15125227/20220816-MEM-Eng-1.png" alt="What Would a Recession Mean for the Housing Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/15125227/20220816-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/08/15125227/20220816-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/08/15125227/20220816-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/08/15125227/20220816-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" title="isn’t about to crash">isn’t about to crash</a>. The <a href="https://www.mykcm.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/" title="fundamentals">fundamentals</a> are very different today than they were in 2008. So, don’t assume we’re heading down the same path.
A Recession Means Falling Mortgage Rates
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" title="Research" target="_blank" rel="noopener noreferrer">Research</a> also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, <a href="https://www.freddiemac.com/pmms/archive" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> decreased.
<a href="https://files.mykcm.com/2022/08/15125229/20220816-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-104034" src="https://files.mykcm.com/2022/08/15125229/20220816-MEM-Eng-2.png" alt="What Would a Recession Mean for the Housing Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/15125229/20220816-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/08/15125229/20220816-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/08/15125229/20220816-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/08/15125229/20220816-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Fortune <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> that mortgage rates typically fall during an economic slowdown:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.
Bottom Line
There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.
If you’re thinking about buying or selling a home, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.2022-08-16T12:14:00-07:002022-08-16T12:17:43-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7937Selling Your House? Your Asking Price Matters More Now Than Ever<img src="https://files.mykcm.com/2022/08/08165259/20220809-KCM-Share.jpg" alt="Selling Your House? Your Asking Price Matters More Now Than Ever | MyKCM" />
There’s no doubt about the fact that the <a href="https://www.mykcm.com/2022/07/28/a-real-estate-professional-helps-you-separate-fact-from-fiction/" title="housing market">housing market</a> is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling your house?
While <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are still appreciating in most markets and experts say that will continue, they’re climbing at a slower pace because rising mortgage rates are creating less <a href="https://www.mykcm.com/2022/07/26/a-window-of-opportunity-for-homebuyers/" title="buyer demand">buyer demand</a>. Because of this, there are <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="more homes">more homes</a> on the market. And in a shift like this one, the way you price your home matters more than ever.
Why Today’s Housing Market Is Different
During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.
Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.
Why Pricing Your House at Market Value Matters
The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.
When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-july-23-2022/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> the impact that’s having:
“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”
To avoid the headache of having to lower your price, you’ll want to price it right from the onset. A <a href="https://www.mykcm.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/" title="real estate advisor">real estate advisor</a> knows how to determine that perfect asking price. To find the right price, they balance the value of homes in your neighborhood, current market trends and buyer demand, the condition of your house, and more.
Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.
Why You Still Have an Opportunity When You Sell Today
Rest assured, it’s still a <a href="https://www.mykcm.com/2022/08/04/why-its-still-a-sellers-market/" title="sellers’ market">sellers’ market</a>, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
Mike Simonsen, the Founder and CEO of Altos Research, also <a href="https://www.housingwire.com/articles/mike-simonsen-inventory-is-climbing-is-the-supply-crisis-over/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“We can see that demand is still there for the homes that are priced properly.”
Bottom Line
Homes priced right are selling quickly in today’s real estate market. Let’s connect to make sure you price your house based on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.2022-08-09T12:10:00-07:002022-08-09T12:12:36-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7925Why It’s Still a Sellers’ Market<img src="https://files.mykcm.com/2022/08/03124413/20220804-KCM-Share.jpg" alt="Why It’s Still a Sellers’ Market | MyKCM" />
As there’s more and more talk about the <a href="https://www.mykcm.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/" title="real estate market">real estate market</a> cooling off from the peak frenzy it saw during the pandemic, you may be questioning what that means for your plans to <a href="https://www.mykcm.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/" title="sell your house">sell your house</a>. If you’re thinking of making a move, you should know the market is still anything but normal.
Even though the supply of <a href="https://www.mykcm.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/" title="homes for sale">homes for sale</a> has been growing this year, there’s still a shortage of homes on the market. And that means conditions continue to favor sellers today. That’s because the level of <a href="https://www.mykcm.com/2022/07/22/great-news-about-housing-inventory-infographic/" title="inventory">inventory</a> of homes for sale can help determine if buyers or sellers are in the driver’s seat. Think of it like this:
A buyers’ market is when there are more homes for sale than buyers looking to buy. When that happens, buyers have the negotiation power because sellers are more willing to compromise so they can sell their house.
In a sellers’ market, it’s just the opposite. There are too few homes available for the number of buyers in the market and that gives the seller all the leverage. In that situation, buyers will do what they can to compete for the limited number of homes for sale.
A neutral market is when supply is balanced and there are enough homes to meet buyer demand at the current sales pace.
And for the past two years, we’ve been in a red-hot sellers’ market because inventory has been near record lows. The blue section of this graph <a href="https://www.nar.realtor/topics/existing-home-sales" title="highlights" target="_blank" rel="noopener noreferrer">highlights</a> just how far below a neutral market inventory still is today.
<a href="https://files.mykcm.com/2022/08/03124408/20220804-MEM-Eng.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-103759" src="https://files.mykcm.com/2022/08/03124408/20220804-MEM-Eng.png" alt="Why It’s Still a Sellers’ Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/08/03124408/20220804-MEM-Eng.png 960w, https://files.mykcm.com/2022/08/03124408/20220804-MEM-Eng-600x450.png 600w, https://files.mykcm.com/2022/08/03124408/20220804-MEM-Eng-768x576.png 768w, https://files.mykcm.com/2022/08/03124408/20220804-MEM-Eng-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What Does This Mean for You?
Ed Pinto, Director of the American Enterprise Institute’s Housing Center, gives a perfect summary of what’s happening in today’s market, <a href="https://fortune.com/2022/06/26/housing-market-outlook-prices-appreciation/" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Overall, the best summary is that we’ll move from a gangbuster sellers’ market to a modest sellers’ market.”
Conditions are still in your favor even though the market is cooling. If you work with an agent to price your house at market value, you’ll find success when you <a href="https://www.mykcm.com/2022/06/30/if-youre-selling-your-house-this-summer-hiring-a-pro-is-critical/" title="sell your house">sell your house</a> today. While buyer demand is softening due to higher mortgage rates, homes that are <a href="https://www.mykcm.com/2022/06/06/why-you-need-an-expert-to-determine-the-right-price-for-your-house/" title="priced right">priced right</a> are still selling fast. That means your window of opportunity to list your house hasn’t closed.
Bottom Line
Today’s housing market still favors sellers. If you’re ready to sell your house, let’s connect so you can start making your moves.2022-08-04T12:52:00-07:002022-08-04T12:52:47-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7737 Homeownership Is a Great Hedge Against the Impact of Rising Inflation<img src="https://files.mykcm.com/2022/06/22164521/20220623-KCM-Share.jpg" alt="Homeownership Is a Great Hedge Against the Impact of Rising Inflation | MyKCM" />
If you’re following along with the news today, you’ve heard about rising inflation. Today, <a href="https://www.mykcm.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/" title="inflation">inflation</a> is at a <a href="https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html" title="40-year high" target="_blank" rel="noopener noreferrer">40-year high</a>. According to the <a href="https://eyeonhousing.org/2022/06/inflation-hits-a-fresh-40-year-high-in-may/" title="National Association of Home Builders" target="_blank" rel="noopener noreferrer">National Association of Home Builders</a> (NAHB):
“Consumer prices accelerated again in May as shelter, energy and food prices continued to surge at the fastest pace in decades. This marked the third straight month for inflation above an 8% rate and was the largest year-over-year gain since December 1981.”
With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile.
If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation.
Homeownership Helps You Stabilize One of Your Biggest Monthly Expenses
Investopedia <a href="https://www.investopedia.com/terms/i/inflation.asp" title="explains" target="_blank" rel="noopener noreferrer">explains</a> that during a period of high inflation, prices rise across the board. That’s true for things like food, entertainment, and other goods and services, even housing. Both rental prices and <a href="https://www.mykcm.com/2022/06/16/home-price-deceleration-doesnt-mean-home-price-depreciation/" title="home prices">home prices</a> are on the rise. So, as a buyer, how can you protect yourself from increasing costs? The answer lies in <a href="https://www.mykcm.com/2022/06/10/the-top-reasons-to-own-your-home-infographic/" title="homeownership">homeownership</a>.
Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same. That’s certainly not the case if you’re renting.”
So even if other prices increase, your housing payment will be a reliable amount that can help keep your budget in check. If you rent, you don’t have that same benefit, and you won’t be protected from rising housing costs.
Investing in an Asset That Historically Outperforms Inflation
While it’s true rising home prices and higher mortgage rates mean that buying a house today costs more than it did even a few months ago, you still have an opportunity to set yourself up for a long-term win. That’s because, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value.
The graph below shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation (see graph below):
<a href="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-103042" src="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png" alt="Homeownership Is a Great Hedge Against the Impact of Rising Inflation | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/06/22164524/20220623-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
So, what does that mean for you? Today, experts <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" title="forecast">forecast</a> home prices will only go up from here thanks to the ongoing imbalance of supply and demand. Once you buy a house, any home price appreciation that does occur will grow your <a href="https://www.mykcm.com/2022/06/21/the-average-homeowner-gained-64k-in-equity-over-the-past-year/" title="equity">equity</a> and your <a href="https://www.mykcm.com/2022/03/28/a-key-to-building-wealth-is-homeownership/" title="net worth">net worth</a>. And since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one.
That means, if you’re ready and able, it makes sense to buy today before prices rise further.
Bottom Line
If you’ve been thinking about buying a home this year, it makes sense to act soon, even with inflation rising. That way you can stabilize your monthly housing cost and invest in an asset that historically outperforms inflation. If you’re ready to get started, let’s connect so you have expert advice on your specific situation when you’re ready to buy a home.2022-06-23T12:10:00-07:002022-06-23T12:10:33-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7717Home Price Deceleration Doesn’t Mean Home Price Depreciation<img src="https://files.mykcm.com/2022/06/15152402/20220616-KCM-Share.jpg" alt="Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM" />
Experts in the real estate industry use a number of terms when they talk about what’s happening with home prices. And some of those words sound a bit similar but mean very different things. To help clarify what’s happening with <a href="https://www.mykcm.com/2022/05/24/sellers-have-an-opportunity-with-todays-home-prices/" title="home prices">home prices</a> and where experts say they’re going, here’s a look at a few terms you may hear:
Appreciation is when home prices increase.
Depreciation is when home prices decrease.
Deceleration is when home prices continue to appreciate, but at a slower pace.
Where Home Prices Have Been in Recent Years
For starters, you’ve probably heard home prices have skyrocketed over the past two years, but homes were actually appreciating long before that. You might be surprised to learn that home prices have climbed for <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-Datasets.aspx#qpo" title="122" target="_blank" rel="noopener noreferrer">122</a> consecutive months (see graph below):
<a href="https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102951" src="https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1.png" alt="Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/06/15152359/20220616-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
As the graph shows, houses have gained value consistently over the past 10 consecutive years. But since 2020, the increase has been <a href="https://www.fhfa.gov/Media/PublicAffairs/Pages/US-House-Prices-Rise-18pt7-Percent-over-the-Last-Year-Up-4pt6-Percent-from-the-Fourth-Quarter.aspx" title="more dramatic" target="_blank" rel="noopener noreferrer">more dramatic</a> as home price growth accelerated.
So why did home prices climb so much? It’s because there were more buyers than there were homes for sale. That imbalance put upward pressure on home prices because demand was high and supply was low.
Where Experts Say Home Prices Are Going
While this is helpful context, if you’re a buyer or seller in today’s market, you probably want to know what’s going to happen with home prices moving forward. Will they continue that same growth path or will home prices fall?
Experts are <a href="https://www.mykcm.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/" title="forecasting">forecasting</a> ongoing appreciation, just at a decelerated pace. In other words, prices will keep climbing, just not as fast as they have been. The graph below shows home price forecasts from seven industry leaders. None are calling for prices to fall (see graph below):
<a href="https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102953" src="https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2.png" alt="Home Price Deceleration Doesn’t Mean Home Price Depreciation | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/06/15152405/20220616-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/the-housing-market-is-slowing-by-design-but-dont-expect-a-bust" title="identifies" target="_blank" rel="noopener noreferrer">identifies</a> a key reason why home prices won’t depreciate or drop:
“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect house prices to decline.”
And although <a href="https://www.mykcm.com/2022/05/11/are-there-more-homes-coming-to-the-market/" title="housing supply">housing supply</a> is starting to tick up, it’s not enough to make home prices decline because there’s still a gap between the number of homes available for sale and the volume of buyers looking to make a purchase.
Terry Loebs, Founder of the research firm Pulsenomics, notes that most real estate experts and economists anticipate home prices will continue rising. As he <a href="https://www.forbes.com/sites/brendarichardson/2022/06/07/rising-rates-and-buyer-urgency-keep-home-price-gains-above-20-in-april/?sh=c5446d229ec7" title="puts it" target="_blank" rel="noopener noreferrer">puts it</a>:
“With home values at record-high levels and a vast majority of experts projecting additional price increases this year and beyond, home prices and expectations remain buoyant.”
Bottom Line
Experts forecast price deceleration, not depreciation. That means home prices will continue to rise, just at a slower pace. Let’s connect so you can get the full picture of what’s happening with home prices in our local market and to discuss your buying and selling goals2022-06-16T00:49:00-07:002022-06-16T12:49:24-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7405 Why Rising Mortgage Rates Push Buyers off the Fence<img src="https://files.mykcm.com/2022/05/13142733/20220517-KCM-Share.jpg" alt="Why Rising Mortgage Rates Push Buyers off the Fence | MyKCM" />
If you’re thinking about <a href="https://www.mykcm.com/2022/05/05/three-tips-for-first-time-homebuyers/" title="buying a home">buying a home</a>, you’ve probably heard <a href="https://www.mykcm.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/" title="mortgage rates">mortgage rates</a> are rising and have wondered what that means for you. Since mortgage rates have increased over <a href="https://www.freddiemac.com/pmms/archive" title="two percentage points" target="_blank" rel="noopener noreferrer">two percentage points</a> this year, it’s natural to think about how this will impact your homeownership plans.
Today, buyers are reacting in one of two ways: they’re either making the decision to buy now before rates climb higher or they’re waiting it out in hopes rates will fall. Let’s look at some context that can help you understand why so many buyers are jumping off the fence and into action rather than waiting to buy.
A Look Back: How the Current Mortgage Rate Compares to Historical Data
One factor that could help you make your decision to buy now is how today’s mortgage rates compare to historical data. While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971 (see graph below):
<a href="https://files.mykcm.com/2022/05/13142736/20220517-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102349" src="https://files.mykcm.com/2022/05/13142736/20220517-MEM-Eng-1.png" alt="Why Rising Mortgage Rates Push Buyers off the Fence | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/05/13142736/20220517-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/05/13142736/20220517-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/05/13142736/20220517-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/05/13142736/20220517-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/how-do-rapidly-rising-mortgage-rates-impact-affordability" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“. . . historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.”
If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still gives you a window of opportunity to lock in a rate that’s comparatively lower than decades past.
A Look Ahead: What Happens if Rates Climb Further
The <a href="https://www.mykcm.com/2022/05/10/will-home-prices-fall-this-year-heres-what-experts-say/" title="buyers">buyers</a> who are springing into action now are also motivated to make their move because they know rates have risen steadily this year, and they’re eager to get ahead of any further increases.
Why? When mortgage rates climb, they impact the <a href="https://www.mykcm.com/2022/05/09/how-todays-mortgage-rates-impact-your-home-purchase/" title="monthly mortgage payment">monthly mortgage payment</a> you’ll have on the home you’re buying. Basically, it’ll likely cost you more to buy a home if you wait. Experts say mortgage rates will rise (although more moderately) in the months ahead. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://www.marketwatch.com/story/the-pandemic-boom-in-home-sales-is-over-mortgage-rates-soar-to-highest-level-since-2009-as-the-fed-pressures-the-housing-market-11651760108" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
So, if you’re ready and financially able to buy now, it may make more sense to get off the fence and make your purchase sooner rather than later. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), <a href="https://themortgagereports.com/90320/home-prices-not-dropping-in-2022-experts-say" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“With even higher interest rates on the horizon, I don’t see any reason to hold off from purchasing a home right now. If you feel financially secure, you should start looking for a home.”
At the end of the day, there is no perfect advice on when to buy a home. What you should do depends on your goals, your <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="finances">finances</a>, and your personal situation. Use this information with the help of local real estate professionals to make an informed decision on what’s best for you. The Mortgage Reports <a href="https://themortgagereports.com/90320/home-prices-not-dropping-in-2022-experts-say" title="sums it up" target="_blank" rel="noopener noreferrer">sums it up</a> best:
“. . . if you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise. That said, home buying is always a personal decision. Whether you should buy in 2022 depends on your financial situation and the local housing market where you live.”
Bottom Line
For many buyers, rising mortgage rates are motivating them to act now and make a purchase before rates rise higher. To decide what move is best for you, let’s connect so you have expert advice on your side.2022-05-17T12:06:00-07:002022-05-17T12:05:28-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7390Are There More Homes Coming to the Market?<img src="https://files.mykcm.com/2022/05/10163604/20220511-KCM-Share.jpg" alt="Are There More Homes Coming to the Market? | MyKCM" />
According to a <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-obstacles-to-home-buying-04-12-2022.pdf" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from the National Association of Realtors (NAR), one of the top challenges buyers face in today’s <a href="https://www.mykcm.com/2022/04/22/myths-about-todays-housing-market-infographic/" title="housing market">housing market</a> is finding a home that meets their needs. That’s largely because the <a href="https://www.mykcm.com/2022/04/01/its-still-a-sellers-market-infographic/" title="inventory">inventory</a> of homes for sale is so low today.
If you’re looking to <a href="https://www.mykcm.com/2022/04/27/the-dream-of-homeownership-is-worth-the-effort/" title="buy a home">buy a home</a>, you may have noticed this yourself. But there is good news. Recent data shows more sellers are listing their houses this season, which may give you more options for your <a href="https://www.mykcm.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/" title="home search">home search</a>.
Early Signs Inventory May Be Growing
The <a href="https://www.realtor.com/research/data/" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from realtor.com shows the number of listings coming onto the market, known in the industry as “new listings,” has increased since the start of the year (see graph below):
<a href="https://files.mykcm.com/2022/05/10163607/20220511-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102200" src="https://files.mykcm.com/2022/05/10163607/20220511-MEM-Eng-1.png" alt="Are There More Homes Coming to the Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/05/10163607/20220511-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/05/10163607/20220511-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/05/10163607/20220511-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/05/10163607/20220511-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
This indicates more sellers are listing their homes for sale each month this year. And according to realtor.com, this growth is expected to continue. Their <a href="https://www.realtor.com/research/2022-spring-home-sellers/#anchor-9" title="research" target="_blank" rel="noopener noreferrer">research</a> finds the majority of potential sellers plan to list their homes over the next six months. Realtor.com says:
“. . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.”
Homes Are Still Selling Quickly
But while new listings are increasing, it’s important to know they’re also selling quickly. The latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-03-realtors-confidence-index-04-20-2022.pdf" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> from NAR shows the median days on market for recently sold homes since the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-02-realtors-confidence-index-03-18-2022.pdf" title="beginning of the year" target="_blank" rel="noopener noreferrer">beginning of the year</a> (see chart below). The time on market has decreased month-over-month. That means homes are selling even faster than they did the previous month.
<a href="https://files.mykcm.com/2022/05/10163610/20220511-MEM-Eng-2.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-102201" src="https://files.mykcm.com/2022/05/10163610/20220511-MEM-Eng-2.png" alt="Are There More Homes Coming to the Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/05/10163610/20220511-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/05/10163610/20220511-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/05/10163610/20220511-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/05/10163610/20220511-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What That Means for You
While a low-inventory market is difficult to navigate as a <a href="https://www.mykcm.com/2022/04/25/is-it-enough-to-offer-asking-price-in-todays-housing-market/" title="buyer">buyer</a>, there is hope. The growing number of new listings and the expectation more sellers will list their homes in the coming months is great news if you’ve had a hard time finding a home that <a href="https://www.mykcm.com/2022/04/04/balancing-your-wants-and-needs-as-a-homebuyer-today/" title="fits your needs">fits your needs</a>. Just remember, those new listings are going fast. That means you’ll want to keep your foot on the gas and <a href="https://www.mykcm.com/2022/04/19/why-pre-approval-is-an-important-step-for-todays-homebuyers/" title="be ready">be ready</a> to act if you find a home you love this season.
Your agent can help you stay on top of the latest listings in your area so you can find the home that’s right for you and submit your <a href="https://www.mykcm.com/2022/05/03/things-that-could-help-you-win-a-bidding-war-on-a-home/" title="strongest offer">strongest offer</a> as quickly as possible.
Bottom Line
If you’ve been having a hard time finding your dream home, stick with your search. More options are coming to market and your ideal home could be one of them. Let’s connect so you can stay up to date on the latest listings in our market, so you can be ready to move fast when you find the one that’s right for you.2022-05-12T12:11:00-07:002022-05-12T12:09:36-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:7347What You Need To Know About Selling in a Sellers’ Market<img src="https://files.mykcm.com/2022/04/25155918/20220428-KCM-Share.jpg" alt="What You Need To Know About Selling in a Sellers' Market | MyKCM" />
Even if you haven’t been following real estate news, you’ve likely heard about the current <a href="https://www.mykcm.com/2022/04/01/its-still-a-sellers-market-infographic/" title="sellers’ market">sellers’ market</a>. That’s because there’s a lot of talk about how strong market <a href="https://www.mykcm.com/2022/03/14/this-spring-presents-sellers-with-a-golden-opportunity/" title="conditions">conditions</a> are for people who want to <a href="https://www.mykcm.com/2022/04/14/on-the-fence-of-whether-or-not-to-move-this-spring-consider-this/" title="sell their houses">sell their houses</a>. But if you’re thinking about listing your house, you probably want to know: what does being in a sellers’ market really mean?
What Is a Sellers’ Market?
The latest <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-03-2022-overview-2022-04-20.pdf" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from the National Association of Realtors (NAR) shows housing supply is still very low. There’s a 2-month supply of homes at the current sales pace.
Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers’ market territory (see graph below):
<a href="https://files.mykcm.com/2022/04/25155923/20220428-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-101935" src="https://files.mykcm.com/2022/04/25155923/20220428-MEM-Eng-1.png" alt="What You Need To Know About Selling in a Sellers' Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/04/25155923/20220428-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/04/25155923/20220428-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/04/25155923/20220428-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/04/25155923/20220428-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What Does This Mean for You When You Sell?
When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more <a href="https://www.mykcm.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/" title="bidding wars">bidding wars</a>. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final price of your house up.
And because <a href="https://www.mykcm.com/2022/04/20/how-to-approach-rising-mortgage-rates-as-a-buyer/" title="mortgage rates">mortgage rates</a> and <a href="https://www.mykcm.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/" title="home prices">home prices</a> are climbing, serious buyers are motivated to make their purchase soon, before those two things rise further. That means, if you put your house <a href="https://www.mykcm.com/2022/03/18/spring-cleaning-checklist-for-sellers-infographic/" title="on the market">on the market</a> while supply is still low, it will likely get a lot of attention from competitive buyers.
Bottom Line
The current real estate market has incredible opportunities for homeowners looking to make a move. Listing your house this season means you’ll be in front of serious buyers who are ready to buy. Let’s connect so you can jumpstart the selling process.2022-04-28T12:11:00-07:002022-04-28T12:10:20-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6888The Average Homeowner Gained More Than $55K in Equity over the Past Year<img src="https://files.mykcm.com/2022/03/17105132/20220321-KCM-Share-1.jpg" alt="The Average Homeowner Gained More Than $55K in Equity over the Past Year | MyKCM" />
If you’re a current homeowner, you should know your net worth just got a big boost. It comes in the form of rising home equity. Equity is the current value of your home minus what you owe on the loan. Today, you’re building that equity far faster than you may expect – and this gain is great news for you.
Here’s how it happened. <a href="https://www.mykcm.com/2022/02/10/want-top-dollar-for-your-house-nows-the-time-to-list-it/" title="Home values">Home values</a> are on the rise thanks to <a href="https://www.mykcm.com/2022/02/24/the-1-reason-to-sell-your-house-today/" title="low housing supply">low housing supply</a> and <a href="https://www.mykcm.com/2022/02/23/how-supply-and-demand-can-impact-your-buying-and-selling-goals/" title="high buyer demand">high buyer demand</a>. Basically, there aren’t enough homes available to meet this <a href="https://www.mykcm.com/2022/02/18/whats-driving-todays-high-buyer-demand-infographic/" title="high buyer interest">high buyer interest</a>, so bidding wars are driving <a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/" title="home prices">home prices</a> up. When you own a home, the rising prices mean your home is worth more in today’s market. And as home values climb, your equity does too. As Dr. Frank Nothaft, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth.”
The latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights</a> from CoreLogic shed light on just how much rising home values have boosted homeowner equity. According to that report, the average homeowner’s equity has grown by $55,300 over the last 12 months.
Want to know what’s happening in your area? Here’s a breakdown of the average year-over-year equity growth for each state based on that data.
<a href="https://files.mykcm.com/2022/03/17105135/20220321-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101531" src="https://files.mykcm.com/2022/03/17105135/20220321-MEM-Eng-1.png" alt="The Average Homeowner Gained More Than $55K in Equity over the Past Year | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/03/17105135/20220321-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/03/17105135/20220321-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/03/17105135/20220321-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/03/17105135/20220321-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
How Rising Equity Impacts You<br />
In addition to building your overall net worth, equity can also help you achieve other goals like buying your next home. It works like this: when you sell your house, the equity you built up comes back to you in the sale.
In a market where you’re gaining so much equity, it may be just what you need to cover a large portion – if not all – of the <a href="https://www.mykcm.com/2022/01/03/how-much-do-you-need-for-your-down-payment/" title="down payment">down payment</a> on your next home. So, if you’ve been holding off on <a href="https://www.mykcm.com/2022/01/27/why-right-now-is-a-once-in-a-lifetime-opportunity-for-sellers/" title="selling">selling</a> and worried about being priced out of your next home because of today’s home price appreciation, rest assured your equity can help fuel your move.
Bottom Line
Equity can be a real game-changer if you’re planning to make a move. To find out just how much equity you have in your home and how you can use it to fuel your next purchase, let’s connect so you can get a professional equity assessment report on your house.2022-03-22T12:19:00-07:002022-03-22T12:19:01-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6865Did Your Dream Home Just Come on the Market<img src="https://files.mykcm.com/2022/03/16093503/20220317-KCM-Share.jpg" alt="Did Your Dream Home Just Come on the Market? | MyKCM" />
For the first time in a long time, the number of newly listed homes is beginning to rise. In their latest <a href="https://www.realtor.com/research/data/" title="monthly release" target="_blank" rel="noopener noreferrer">monthly release</a>, realtor.com reveals the number of existing homes entering the market has increased for two months in a row (this comes after six months of declines). Here’s a graph showing the monthly new listings going back to January of last year. The green bars indicate the first gains since June.
<a href="https://files.mykcm.com/2022/03/16093505/20220317-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101517" src="https://files.mykcm.com/2022/03/16093505/20220317-MEM-Eng-1.png" alt="Did Your Dream Home Just Come on the Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/03/16093505/20220317-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/03/16093505/20220317-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/03/16093505/20220317-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/03/16093505/20220317-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
However, buying demand is still outpacing housing supply.
Though the increase in homes coming to the market is great news for prospective homebuyers, the number of buyers is still outpacing the number of homes available for sale. As realtor.com explains in their <a href="https://news.move.com/2022-03-03-Realtor-com-R-February-Housing-Report-Home-Prices-Hit-All-Time-High-Ahead-of-Spring-Buying-Season" title="latest report" target="_blank" rel="noopener noreferrer">latest report</a>:
“During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”
In fact, according to the latest <a href="https://www.showingtime.com/blog/january-2022-showing-index-results" title="ShowingTime Showing Index" target="_blank" rel="noopener noreferrer">ShowingTime Showing Index</a>, which tracks the average number of appointments received on active listings during the month, buyer demand was greater this January than any other January in the last five years (see graph below):
<a href="https://files.mykcm.com/2022/03/16093508/20220317-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101518" src="https://files.mykcm.com/2022/03/16093508/20220317-MEM-Eng-2.png" alt="Did Your Dream Home Just Come on the Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/03/16093508/20220317-MEM-Eng-2.png 1000w, https://files.mykcm.com/2022/03/16093508/20220317-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2022/03/16093508/20220317-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2022/03/16093508/20220317-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
This prompted ShowingTime to say:
“The latest data from ShowingTime . . . shows a surge in home buyer demand in January. . . . This enormous activity occurred in a month when buyer activity typically slows and followed a historic 2021, where buyer demand across the country was extraordinarily strong.”
What does that mean for you?
Basically, as homes come to the market, they are quickly being purchased by eagerly awaiting buyers. So even though the number of newly listed homes is increasing, the number of active listings is still shrinking every month because buyers are purchasing homes almost as soon as they come up for sale. That means listings are coming on and off the market so fast that they don’t carry over to be counted in the active listing numbers the following month. Here’s a graph showing the number of active listings each month since last January using <a href="https://www.realtor.com/research/data/" title="data released" target="_blank" rel="noopener noreferrer">data released</a> by realtor.com:
<a href="https://files.mykcm.com/2022/03/16093511/20220317-MEM-Eng-3.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101519" src="https://files.mykcm.com/2022/03/16093511/20220317-MEM-Eng-3.png" alt="Did Your Dream Home Just Come on the Market? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/03/16093511/20220317-MEM-Eng-3.png 1000w, https://files.mykcm.com/2022/03/16093511/20220317-MEM-Eng-3-600x450.png 600w, https://files.mykcm.com/2022/03/16093511/20220317-MEM-Eng-3-768x576.png 768w, https://files.mykcm.com/2022/03/16093511/20220317-MEM-Eng-3-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
This graph shows that the number of active listings has decreased for each of the last five months even though the number of newly listed homes has increased over the last two months.
Bottom Line
Whether you’re looking to upgrade to a home that will better suit your lifestyle or looking to purchase your first house, let’s connect so you can stay updated on what’s happening in your area. And <a href="https://www.mykcm.com/2022/03/10/how-to-navigate-a-market-where-multiple-offers-is-the-new-normal/" title="be prepared">be prepared</a> to move immediately if a home fitting your needs hits the market. Your dream home may be one of those new listings that just became available, but if you don’t act quickly, it could be gone tomorrow.2022-03-17T12:02:00-07:002022-03-17T12:02:06-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6860Don’t Get Caught Off Guard by Closing Costs<img src="https://files.mykcm.com/2022/03/11143516/20220321-KCM-Share.jpg" alt="Don’t Get Caught Off Guard by Closing Costs | MyKCM" />
As a homebuyer, it’s important to plan and budget for the expenses you’ll encounter when you purchase a home. While most people understand the need to save for a <a href="https://www.mykcm.com/2022/01/03/how-much-do-you-need-for-your-down-payment/" title="down payment">down payment</a>, a recent <a href="https://www.rockethomes.com/blog/housing-market/down-payment-keeping-americans-becoming-homeowners" title="survey" target="_blank" rel="noopener noreferrer">survey</a> found 41% of homebuyers were surprised by their closing costs. Here’s some information to help you get started so you’re not caught off guard when it’s time to close on your home.
What Are Closing Costs?
One possible reason some people are surprised by closing costs may be because they don’t know what they are or what they cover. According to <a href="https://loans.usnews.com/articles/what-are-closing-costs" title="U.S. News and World Report" target="_blank" rel="noopener noreferrer">U.S. News and World Report</a>:
“Closing costs encompass a variety of expenses above your property’s purchase price. They include things like lender fees, title insurance, government processing fees, upfront tax payments and homeowners insurance.”
In other words, your closing costs are a collection of fees and payments made to a variety of individuals and organizations who are involved with your transaction. According to <a href="https://myhome.freddiemac.com/buying/understanding-costs" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>, while they can vary by location and situation, closing costs typically include:
Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services
Tax service fees
Survey fees
Attorney fees
Underwriting Fees
How Much Will You Need To Budget for Closing Costs?
Understanding what closing costs include is important, but knowing what you’ll need to budget to cover them is critical to achieving your <a href="https://www.mykcm.com/2022/01/07/how-to-hit-your-homebuying-goals-this-year-infographic/" title="homebuying goals">homebuying goals</a>. According to the Freddie Mac article mentioned above, the costs to close are typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to cover your closing costs.
Let’s say you find a home you want to purchase for the <a href="https://www.nar.realtor/research-and-statistics" title="median price" target="_blank" rel="noopener noreferrer">median price</a> of $350,300. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,000 and $17,500.
Keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
What’s the Best Way To Make Sure You’re Prepared At Closing Time?
Freddie Mac provides great advice for homebuyers, <a href="https://myhome.freddiemac.com/buying/understanding-costs" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”
The best way to understand what you’ll need at the closing table is to work with a team of trusted real estate professionals. An agent can help connect you with a lender, and together they can provide you with answers to the questions you might have.
Bottom Line
In today’s real estate market, it’s more important than ever to make sure your budget includes any fees and payments due at closing. Let’s connect so you have the knowledge you need to be confident going into the homebuying process.2022-03-15T12:08:00-07:002022-03-15T12:07:18-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6842 Key Factors That Impact Affordability Today<img src="https://files.mykcm.com/2022/03/08130721/20220309-KCM-Share.jpg" alt="Key Factors That Impact Affordability Today | MyKCM" />
You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There’s no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable.
There are three measures used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each of these components.
1. Home Prices
The most recent <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights/" title="Home Price Insights" target="_blank" rel="noopener noreferrer">Home Price Insights</a> report by CoreLogic shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.
2. Mortgage Rates
While the current <a href="https://www.mykcm.com/2022/03/08/how-global-uncertainty-is-impacting-mortgage-rates/" title="global uncertainty">global uncertainty</a> makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. According to <a href="https://www.freddiemac.com/pmms/pmms30" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>, the average monthly rate for last February was 2.81%. This February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year.
3. Wages
The one big, positive component in the affordability equation is an increase in American wages. In a <a href="https://www.realtytrac.com/blog/can-real-estate-prices-go-even-higher/" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> by RealtyTrac, Peter Miller addresses that point:
“Prices are up, but what about wages? ADP reports that job holder incomes increased 5.9% last year but rose 8.0% for those who switched employers. In effect, some of the higher cost to buy a home has been offset by more cash income.”
The National Association of Realtors (NAR) also recently released information that looks at income and affordability. The NAR <a href="https://www.nar.realtor/blogs/economists-outlook/housing-affordability-conditions-fade-in-December" title="data" target="_blank" rel="noopener noreferrer">data</a> provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. Here’s a graph of their findings:
<a href="https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101389" src="https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1.png" alt="Key Factors That Impact Affordability Today | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2022/03/08130724/20220309-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
As the graph shows, the median family income (shown in blue on the graph) is greater than the qualifying income needed to buy a median-priced home (shown in green on the graph) in all four regions of the country. While those figures may vary in certain locations within each region, it’s important to note that, in most of the country, homes are still affordable.
So, when you think about affordability, remember that the picture includes more than just <a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/" title="home prices">home prices</a> and <a href="https://www.mykcm.com/2022/02/02/the-top-indicator-if-you-want-to-know-where-mortgage-rates-are-heading/" title="mortgage rates">mortgage rates</a>. When prices rise and rates rise, it does impact affordability, and experts project both of those things will climb in the months ahead. That’s why it’s less affordable to buy a home than it was over the past two years when prices and rates were lower than they are today. But wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable, homes are not unaffordable today.
Bottom Line
To find out more about affordability in our local area, let’s discuss where home prices are locally, what’s happening with mortgage rates, and get you in contact with a lender so you can make an informed financial decision. Remember, while less affordable, homes are not unaffordable, which still gives you an opportunity to buy today.2022-03-10T14:21:00-07:002022-03-10T14:20:20-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6764How Supply and Demand Can Impact Your Buying and Selling Goals<img src="https://files.mykcm.com/2022/02/22152831/20220223-KCM-Share.jpg" alt="How Supply and Demand Can Impact Your Buying and Selling Goals | MyKCM" />
In today’s <a href="https://www.mykcm.com/2022/02/10/want-top-dollar-for-your-house-nows-the-time-to-list-it/" title="housing market">housing market</a>, there are far more buyers looking for homes than sellers listing their houses. Based on the concept of supply and demand, this means home prices will naturally rise. Why is that? When there are more people trying to buy an item than there are making that item available for sale, that drives prices up. And that’s exactly the case in today’s housing market. So, knowing what’s happening with the inventory of homes for sale and the demand for housing is crucial for today’s buyers and sellers.
Nationally, Demand Is High and Supply Is Very Low
The latest buyer and seller <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="activity data" target="_blank" rel="noopener noreferrer">activity data</a> from the National Association of Realtors (NAR) indicates buyer traffic heavily outweighs seller traffic today, as shown in the maps below. There are far darker blues (strong buyer activity) on the left and much lighter blues (weak seller activity) on the right. In other words, this shows how the demand for homes is significantly greater than what’s available to purchase.
<a href="https://files.mykcm.com/2022/02/22152834/20220223-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101244" src="https://files.mykcm.com/2022/02/22152834/20220223-MEM-Eng-1.png" alt="How Supply and Demand Can Impact Your Buying and Selling Goals | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2022/02/22152834/20220223-MEM-Eng-1.png 1000w, https://files.mykcm.com/2022/02/22152834/20220223-MEM-Eng-1-600x338.png 600w, https://files.mykcm.com/2022/02/22152834/20220223-MEM-Eng-1-768x432.png 768w, https://files.mykcm.com/2022/02/22152834/20220223-MEM-Eng-1-100x56.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What Does This Mean if You’re a Seller?
Supply is struggling to keep pace with demand. In fact, the inventory of homes for sale recently hit an <a href="https://www.mykcm.com/2022/01/27/why-right-now-is-a-once-in-a-lifetime-opportunity-for-sellers/" title="all-time low">all-time low</a>. That gives you an <a href="https://www.mykcm.com/2021/11/02/sellers-have-incredible-leverage-in-todays-market/" title="incredible advantage">incredible advantage</a> when you sell your house. With so few listings, it’s likely more potential buyers will view your house – especially if you work with an agent to price it right. That means there’s a high chance you’ll receive <a href="https://www.mykcm.com/2022/02/10/want-top-dollar-for-your-house-nows-the-time-to-list-it/" title="multiple offers">multiple offers</a> or buyers will enter a bidding war for your house. And that dynamic can drive the sale price of your home up.
What Does This Mean if You’re a Buyer?
As a buyer with <a href="https://www.mykcm.com/2022/01/20/buyers-want-to-know-why-is-housing-supply-still-so-low/" title="fewer options">fewer options</a> available, you’re likely to see more competition, so you need to be strategic to <a href="https://www.mykcm.com/2022/02/11/how-to-win-as-a-buyer-in-a-sellers-market-infographic/" title="win">win</a>. First, make sure you have a trusted professional on your side. Your real estate agent will help you understand your local market and work with you to <a href="https://www.mykcm.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/" title="act quickly">act quickly</a> when the time is right. Even when it’s challenging to find a home, you can still succeed as a buyer today if you have a trusted advisor on your side every step of the way.
Bottom Line
Whether you’re a homebuyer, seller, or both, knowledge truly is power. Let’s connect today so you can better understand what’s happening in our local market and achieve your homebuying and selling goals this year.2022-02-24T13:42:00-07:002022-02-24T13:44:06-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6752 Real Estate Voted the Best Investment Eight Years in a Row<img src="https://files.mykcm.com/2022/02/18105859/20220221-KCM-Share.jpg" alt="Real Estate Voted the Best Investment Eight Years in a Row | MyKCM" />
In an annual <a href="https://news.gallup.com/poll/349607/americans-expect-home-prices-rise-divided-buying.aspx" title="Gallup" target="_blank" rel="noopener noreferrer">Gallup</a> poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best <a href="https://www.mykcm.com/2022/01/21/americans-choose-real-estate-as-the-best-investment-infographic/" title="long-term investment">long-term investment</a> (see graph below):
<a href="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101232" src="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png" alt="Real Estate Voted the Best Investment Eight Years in a Row | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png 960w, https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG-600x450.png 600w, https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG-768x576.png 768w, https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>If you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.
Why Is Real Estate a Great Investment During Times of High Inflation?
With inflation reaching its highest level in <a href="https://www.cbsnews.com/news/consumer-prices-inflation-highest-rate-in-40-years/" title="40 years" target="_blank" rel="noopener noreferrer">40 years</a>, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
If you’re a <a href="https://www.mykcm.com/2022/01/04/avoid-the-rental-trap-in-2022/" title="renter">renter</a>, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.
History Shows During Inflationary Periods, Home Prices Rise as Well
As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes <a href="https://www.mykcm.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/" title="buying a home">buying a home</a> a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbes, <a href="https://www.forbes.com/advisor/mortgages/homebuying-can-hedge-against-inflation/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”
Bottom Line
Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.2022-02-22T13:27:00-07:002022-02-22T13:29:40-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:6080The Truth About Today’s Buyer DemandWhen it comes to the latest news in <a href="https://www.mykcm.com/2021/09/02/5-reasons-todays-housing-market-is-anything-but-normal/" title="real estate">real estate</a>, there are a lot of sensational headlines in the media. In times like this, when it can be hard to know what to believe, put your trust in the <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" title="experts">experts</a>. Those of us in the housing market respect that buying or selling a home is a major life decision, and we offer advice based on what the data shows.
Despite what you may have read, the housing market is still undeniably strong. Here’s a look at what leading experts have to say about <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" title="buyer demand">buyer demand</a> today and how it continues to shape the industry:
<a href="https://www.showingtime.com/blog/july-2021-showing-index-results/?utm_source=feedotter&utm_medium=email&utm_content=july-2021-showing-index-results-traffic-cools-though-showings-remain-at-historic-levels" title="Michael Lane" target="_blank" rel="noopener noreferrer">Michael Lane</a>, President at ShowingTime:
“In general, there are definite signs of cooling demand. However, buyer traffic is still at historically high levels compared to pre-pandemic showings.”
<a href="https://twitter.com/odetakushi/status/1433074722028273665" title="Odeta Kushi" target="_blank" rel="noopener noreferrer">Odeta Kushi</a>, Deputy Chief Economist at First American:
“Seasonally adjusted purchase applications tick up slightly to the highest level since July. Demand for homes remains strong and steady. Excluding 2020 (not a good benchmark) purchase applications are the strongest in a decade.”
<a href="https://www.corelogic.com/intelligence/u-s-sp-corelogic-case-shiller-reflects-consumer-post-vaccination-optimism-surges-18-6/" title="Selma Hepp" target="_blank" rel="noopener noreferrer">Selma Hepp</a>, Deputy Chief Economist at CoreLogic:
“Home buyer demand pushed price growth to a new record high in June, with S&P CoreLogic national Case-Shiller Index clocking in an 18.6% year-over-year growth rate. The month-to-month index jumped 2.18%, making it another strong monthly growth, and the fastest May-to-June increase since the data series began.”
What It Means for You
As a seller, buyer demand is an important factor that helps influence how fast your house will sell and how many buyers may be competing for it. When buyers have to compete against each other for a limited supply of available homes, bidding wars can drive prices up. While things have cooled slightly since the peak of the pandemic housing rush, buyer demand is still far surpassing historical norms. That’s why we’re still in a <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a>.
Bottom Line
If you’re torn on whether or not you want to sell your home this year, rest assured it’s still a <a href="https://www.mykcm.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/" title="great time">great time</a> to make a move. Let’s connect to discuss how you can sell now and do it on your best terms thanks to today’s buyer demand.2021-09-14T08:37:00-07:002021-09-14T08:38:24-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5978What Does Being in a Sellers’ Market Mean?What Does Being in a Sellers’ Market Mean?
<img width="750" height="410" src="https://files.mykcm.com/2021/08/16121520/20210817-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What Does Being in a Sellers’ Market Mean? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/16121520/20210817-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/16121520/20210817-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/16121520/20210817-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Whether or not you’ve been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious sellers’ market. But what does that really mean? And why are conditions today so good for people who want to list their house?
It starts with the number of houses available for sale. The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="Existing Home Sales Report&nbsp;" target="_blank" rel="noopener noreferrer">Existing Home Sales Report </a>from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):<a href="https://files.simplifyingthemarket.com/2021/08/16121526/20210817-MEM-Eng-1.png?a=409387-7262c924fe93ac742b96ce89127eca65" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99005" src="https://files.mykcm.com/2021/08/16121526/20210817-MEM-Eng-1.png" alt="What Does Being in a Sellers’ Market Mean? | MyKCM" width="600" height="338" /></a>When the <a href="https://www.simplifyingthemarket.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/?a=409387-7262c924fe93ac742b96ce89127eca65" title="supply of houses">supply of houses</a> for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which leads to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do <a href="https://www.simplifyingthemarket.com/2021/06/08/in-todays-market-listing-prices-are-like-an-auctions-reserve-price/?a=409387-7262c924fe93ac742b96ce89127eca65" title="their best">their best</a> to submit a very <a href="https://www.simplifyingthemarket.com/2021/06/21/5-things-homebuyers-need-to-know-when-making-an-offer/?a=409387-7262c924fe93ac742b96ce89127eca65" title="attractive offer">attractive offer</a>. As this happens, <a href="https://www.simplifyingthemarket.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/?a=409387-7262c924fe93ac742b96ce89127eca65" title="home prices rise">home prices rise</a>, and <a href="https://www.simplifyingthemarket.com/2021/07/12/4-major-incentives-to-sell-this-summer/?a=409387-7262c924fe93ac742b96ce89127eca65" title="sellers">sellers</a> are in the best position to negotiate deals that meet their ideal terms.
Right now, there are many buyers who are ready, willing, and able to purchase a home. Low <a href="https://www.simplifyingthemarket.com/2021/07/19/what-you-should-do-before-interest-rates-rise/?a=409387-7262c924fe93ac742b96ce89127eca65" title="mortgage rates">mortgage rates</a> and the ongoing rise in remote work have prompted buyers to think differently about where they live – and they’re taking action. If you put your house on <a href="https://www.simplifyingthemarket.com/2021/07/13/why-this-isnt-your-typical-summer-housing-market/?a=409387-7262c924fe93ac742b96ce89127eca65" title="the market">the market</a> while supply is still low, it will likely get a lot of attention from competitive buyers.
Bottom Line
Today’s ultimate sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious buyers who will actively compete against each other to purchase it. Let’s connect to <a href="https://www.simplifyingthemarket.com/2021/06/28/save-time-and-effort-by-selling-with-an-agent/?a=409387-7262c924fe93ac742b96ce89127eca65" title="discuss">discuss</a> how to jumpstart the selling process.
2021-08-17T11:29:00-07:002021-08-17T11:31:07-07:00Krista Brittontag:hillshirerealtygroup.com,2012-09-20:5828What To Expect as Appraisal Gaps GrowIn today’s real estate market, low inventory and high demand are driving up home prices. As many as <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-05-realtors-confidence-index-06-22-2021.pdf" title="54%" target="_blank" rel="noopener noreferrer">54%</a> of homes are getting offers over the listing price, based on the latest <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-05-realtors-confidence-index-06-22-2021.pdf" title="Realtors Confidence Index" target="_blank" rel="noopener noreferrer">Realtors Confidence Index</a> from the National Association of Realtors (NAR). Shawn Telford, Chief Appraiser at CoreLogic, <a href="https://www.seattletimes.com/business/homebuyers-increasingly-willing-to-pay-above-asking-price/" title="elaborates" target="_blank" rel="noopener noreferrer">elaborates</a>:
“The frequency of buyers being willing to pay more than the market data supports is increasing.”
While this is great news for today’s sellers, it can be tricky to navigate if the price of your contract doesn’t match up with the <a href="https://www.mykcm.com/2021/01/26/whats-the-difference-between-an-appraisal-and-a-home-inspection/" title="appraisal">appraisal</a> for the house. It’s called an appraisal gap, and it’s happening more in today’s market than the norm.
According to recent data from CoreLogic, 19% of homes had their appraised value come in below the contract price in April of this year. That’s more than double the percentage in each of the two previous Aprils.
The chart below uses the latest insights from NAR’s Realtors Confidence Index to showcase how often an issue with an appraisal slowed or stalled the momentum of a house sale in May of this year compared to May of last year.
<a href="https://files.mykcm.com/2021/06/28172021/20210629-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-98414" src="https://files.mykcm.com/2021/06/28172021/20210629-MEM-Eng-1.png" alt="What To Expect as Appraisal Gaps Grow | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/06/28172021/20210629-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/06/28172021/20210629-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/06/28172021/20210629-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/06/28172021/20210629-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
If an appraisal comes in below the contract price, the buyer’s lender won’t loan them more than the house’s appraised value. That means there’s going to be a gap between the amount of loan the buyer can secure and the contract price on the house.
In this situation, both the buyer and seller have a vested interest in making sure the sale moves forward with little to no delay. The seller will want to make sure the deal closes, and the buyer won’t want to risk losing the home. That’s why it’s common for sellers to ask the buyer to make up the difference themselves in today’s competitive market.
Bottom Line
Whether you’re <a href="https://www.mykcm.com/2021/06/21/5-things-homebuyers-need-to-know-when-making-an-offer/" title="buying">buying</a> or <a href="https://www.mykcm.com/2021/06/16/dont-wait-to-sell-your-house/" title="selling">selling</a>, let’s connect so you have an <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" title="ally">ally</a> throughout the process to help you navigate the unexpected, including appraisal gaps.2021-06-29T15:10:00-07:002021-06-29T15:11:53-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:5762The Right Expert Will Guide You Through This Unprecedented MarketIn a normal market, it’s good to have an experienced guide coaching you through the process of buying or selling a home. That person can advise you on important things like <a href="https://www.mykcm.com/2021/06/09/home-price-appreciation-is-as-simple-as-supply-and-demand/" title="pricing">pricing</a> your home correctly or the first <a href="https://www.mykcm.com/2020/12/04/the-path-to-homeownership-infographic/" title="steps">steps</a> to take when you’re ready to buy. However, the market we’re in today is far from normal. As a result, an expert isn’t just good to have by your side – an expert is essential.
Today’s housing market is full of extremes. <a href="https://www.mykcm.com/2021/04/21/planning-to-move-you-can-still-secure-a-low-mortgage-rate-on-your-next-home/" title="Mortgage rates">Mortgage rates</a> hovering near record-lows are driving high <a href="https://www.mykcm.com/2021/05/26/buying-a-home-is-still-affordable/" title="buyer demand">buyer demand</a>. On the other hand, an absence of <a href="https://www.mykcm.com/2021/05/13/your-house-could-be-the-oasis-in-an-inventory-desert/" title="sellers">sellers</a> is creating record-low housing inventory. This imbalance in supply and demand is leading to a skyrocketing rate of bidding wars and more houses selling <a href="https://www.mykcm.com/2021/06/08/in-todays-market-listing-prices-are-like-an-auctions-reserve-price/" title="over">over</a> their asking price. This is driving home price <a href="https://www.mykcm.com/2021/05/11/experts-say-home-prices-will-continue-to-appreciate/" title="appreciation">appreciation</a> and gains in home <a href="https://www.mykcm.com/2021/05/20/should-i-move-or-refinance/" title="equity">equity</a>. These market conditions aren’t just extreme – they can be overwhelming. Having a trusted expert to coach you through the process of buying and selling a home gives you clarity, confidence, and success through each step.
Here are just a few of the ways a real estate expert is invaluable:
Contracts – We help with the disclosures and contracts necessary in today’s heavily regulated environment.
Experience – We’re well-versed in real estate and experienced with the entire sales process, including how it’s changed over the past year.
Negotiations – We act as a buffer in negotiations with all parties throughout the entire transaction while advocating for your best interests.
Education – We simply and effectively explain today’s market conditions and decipher what they mean for your individual goals.
Pricing – We help you understand today’s real estate values when setting the price of your home or making an offer to purchase one.
A real estate agent can be your essential guide through this unprecedented market, but truth be told, not all agents are created equal. A true expert can carefully walk you through the whole real estate process, look out for your unique needs, and advise you on the best ways to achieve success. Finding the right agent should be your top priority when you’re ready to buy or sell a home.
So, how do you choose the right expert?
It starts with trust. You’ll have to be able to trust the advice your agent is going to give you, so make sure you’re connected to a true professional. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in this unique market. A true professional expert can, however, give you the best possible advice based on the information and situation at hand, helping you make the necessary adjustments and best decisions along the way. The right agent – the professional – will help you plan the steps to take for success, advocate for you throughout the process, and coach you on the essential knowledge you need to make confident decisions toward your goals. That’s exactly what you want and deserve.
Bottom Line
It’s crucial right now to work with a real estate expert who understands how the market is changing and what that means for home buyers and sellers. If you’re planning to make a move this year, let’s connect so you have someone who can answer your questions, give you the best advice, and guide you along the way.2021-06-14T09:51:00-07:002021-06-14T09:53:37-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4933Are There Going To Be More Homes To Buy This Year?If you’re looking for a home to purchase right now and having trouble finding one, you’re not alone. At a time like this when there are so <a href="https://www.mykcm.com/2021/01/29/is-right-now-the-right-time-to-sell-infographic/" title="few">few</a> houses for sale, it’s normal to wonder if you’ll actually find one to buy. According to the National Association of Realtors (<a href="https://www.nar.realtor/newsroom/existing-home-sales-rise-0-7-in-december-annual-sales-see-highest-level-since-2006" title="NAR" target="_blank" rel="noopener noreferrer">NAR</a>), across the country, inventory of available homes for sale is at an all-time low – the lowest point recorded since NAR began tracking this metric in 1982. There are, however, more homes expected to hit the market later this year. Let’s break down the three key places they’ll likely come from as 2021 continues on.
1. Homeowners Who Didn’t Sell Last Year
In 2020, many sellers decided to pause their moving plans for a number of different reasons. From health concerns about the pandemic to financial uncertainty, plenty of homeowners decided not to move last year.
Now that vaccines are being distributed and there’s a light at the end of the COVID-19 tunnel, it should bring some peace of mind to many potential sellers. As Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-feb-6-2021/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”
Many of the homeowners who decided not to sell in 2020 will enter the market later this year as they begin to feel more comfortable showing their house in person, understanding their financial situation, and simply having more security in life.
2. More New Homes Will Be Built
Last year was a strong year for home builders, and according to the National Association of Home Builders (<a href="https://www.washingtonpost.com/business/2021/01/11/2021-housing-market-predictions/" title="NAHB" target="_blank" rel="noopener noreferrer">NAHB</a>), 2021 is expected to be even better:
“For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”
With more houses being built in many markets around the country, homeowners looking for new houses that meet their <a href="https://www.mykcm.com/2021/01/12/4-reasons-people-are-buying-homes-in-2021/" title="changing">changing</a> needs will be able to move into their dream homes. When they sell their current houses, this will create opportunities for those looking to find a home that’s already built to do so. It sets a simple chain reaction in motion for hopeful buyers.
3. Those Impacted Financially by the Economic Crisis
Many experts don’t anticipate a large wave of <a href="https://www.mykcm.com/2021/01/13/will-forbearance-plans-lead-to-a-tsunami-of-foreclosures/" title="foreclosures">foreclosures</a> coming to the market, given the <a href="https://www.mykcm.com/2020/12/14/5-steps-to-follow-when-applying-for-forbearance/" title="forbearance">forbearance</a> options afforded to current homeowners throughout the pandemic. Some homeowners who have been impacted economically will, however, need to move this year. There are also homeowners who didn’t take advantage of the forbearance option or were already in a foreclosure situation before the pandemic began. In those cases, homeowners may decide to sell their houses instead of going into the foreclosure process, especially given the <a href="https://www.mykcm.com/2021/02/17/3-ways-home-equity-can-have-a-major-impact-on-your-life/" title="equity">equity</a> in homes today. Lawrence Yun, Chief Economist at NAR, <a href="https://www.investors.com/news/housing-market-outlook-2021-watch-these-stocks-trends-cities/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Given the huge price gains recently, I don’t think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that’s a bit of a silver lining in that we don’t expect a massive sale of distressed properties.”
As we can see, it looks like we’re going to have an increase in the number of homes for sale in 2021. With fears of the pandemic starting to ease, new homes being built, and more listings coming to the market prior to foreclosure, there’s hope if you’re planning to buy this year. And if you’re thinking of selling and making a move, doing so while demand for your house is high might create an outstanding move-up option for you.
Bottom Line
Housing demand is high and supply is low, so if you’re thinking of moving, it’s a great time to do so. There are likely many buyers who are looking for a home just like yours, and there are options coming for you to find a new house too. Let’s connect today to see how you can benefit from the opportunities available in our local market.2021-02-25T06:37:00-07:002021-02-25T09:38:21-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4788Why Moving May Be Just the Boost You NeedAs we look back over the past year, we’ve certainly lived through one of the most stressful periods in recent history. After spending so much more time at home throughout the health crisis, some are wondering if they should move to improve their mental health and well-being. This is no surprise since the U.S. Census Bureaureported an increase in the percentage of adults with symptoms of anxiety and depression in a recent <a href="https://www.census.gov/library/stories/2021/01/young-adults-living-alone-report-anxiety-depression-during-pandemic.html?utm_campaign=20210113msacos1ccstors&utm_medium=email&utm_source=govdelivery" title="Household Pulse Survey" target="_blank" rel="noopener noreferrer">Household Pulse Survey</a>.
There’s logic behind the idea that making a move could improve someone’s quality of life. When people change their scenery, they often feel happier. Catherine Hartley, an Assistant Professor at New York University’s Department of Psychology and co-author of a <a href="https://www.nyu.edu/about/news-publications/news/2020/may/new-and-diverse-experiences-linked-to-enhanced-happiness--new-st.html" title="study" target="_blank" rel="noopener noreferrer">study</a> on how new experiences impact happiness, mentioned:
“Our results suggest that people feel happier when they have more variety in their daily routines—when they go to novel places and have a wider array of experiences.”
If you’re looking for a new experience, planning a move into a new home may be something you’ve started to consider more carefully. If so, you’re not alone. The <a href="https://www.unitedvanlines.com/newsroom/movers-study-2020" title="2020 Annual National Movers Study" target="_blank" rel="noopener noreferrer">2020 Annual National Movers Study</a> by United Van Lines shows:
“For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.”
So, if you’re thinking of moving this year to help boost your happiness factor, here are a few questions to ask yourself as you make your decision.
How’s the Weather?
Is the weather something that’s important to you? Does it have a tendency to impact your mood? The World Population Review <a href="https://worldpopulationreview.com/state-rankings/states-with-the-best-weather" title="shares" target="_blank" rel="noopener noreferrer">shares</a>:
“What states have the best weather? When evaluating each state for temperature, rain, and sun, some states stand out. Although climate and weather preferences are personal and subjective, some criteria are considered to make up the best weather, according to Current Results:
Comfortable temperatures from 63°F to 86°F for more than half of the year.
Dry weather with no more than 60 inches of rain per year.
Mostly clear skies with an average of sunshine for at least 60% of the year.”
“Better weather” can mean different things to different people – some prefer the heat, others cooler temperatures, and some want to experience all four seasons. Think about what makes you feel happiest if you’re looking for a new location.
Should I Choose the City, Suburbs, or Country?
With the COVID-19 pandemic, some people are deciding to move to lower-density areas. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="http://eyeonhousing.org/2021/01/top-posts-of-2020-suburban-shift-for-home-building/" title="mentions" target="_blank" rel="noopener noreferrer">mentions</a>:
“The third quarter Home Building Geography Index (HBGI) reveals that a suburban shift for consumer home buying preferences in the wake of the COVID-19 pandemic is accelerating as telecommuting is providing consumers more flexibility to live further out within large metros or even to relocate to more affordable, smaller metro areas.”
Can you work from home? Are you open to a longer commute in the future? If so, a move to the suburbs or even a quieter rural area may be a win for you. Or, if you’ve always dreamed of life in the city, now may be your chance to move into town.
Bottom Line
As we look beyond the trials of the pandemic, many are hoping for a new beginning, and that may mean moving. Let’s connect today to talk about your new goals and options in today’s market.2021-01-25T13:48:00-07:002021-01-25T16:50:16-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4737Real Estate Definitions: Months of Inventory2021-01-15T06:50:00-07:002021-01-15T09:53:05-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:45993 Reasons to Be Optimistic about Real Estate in 2021This year will be remembered for many reasons, and optimism is one thing that’s been in short supply since the spring. We’re experiencing a global pandemic, social unrest, an economic downturn, and natural disasters, just to name a few. The challenges brought on by the health crisis have also forced many homeowners to reevaluate their space and what they need in a home going into 2021. So, experts are forecasting that next year is one in which we can be optimistic about real estate for three key reasons.
1. The Economy Is Expected to Continue Improving
Tim Duy from the University of Oregon puts it this <a href="https://www.bloomberg.com/opinion/articles/2020-11-11/biden-is-stepping-into-a-dream-economic-scenario?srnd=opinion&sref=BRvilyBN" title="way" target="_blank" rel="noopener noreferrer">way</a>:
“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.”
2. Interest Rates Are Projected to Stay Low
In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year. These low rates will continue to make homes more affordable, driving demand for housing in 2021.<a href="https://files.mykcm.com/2020/12/15104833/20201216-MEM-Eng-1.jpg" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-96787" src="https://files.mykcm.com/2020/12/15104833/20201216-MEM-Eng-1.jpg" alt="3 Reasons to Be Optimistic about Real Estate in 2021 | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2020/12/15104833/20201216-MEM-Eng-1.jpg 1000w, https://files.mykcm.com/2020/12/15104833/20201216-MEM-Eng-1-600x450.jpg 600w, https://files.mykcm.com/2020/12/15104833/20201216-MEM-Eng-1-768x576.jpg 768w, https://files.mykcm.com/2020/12/15104833/20201216-MEM-Eng-1-100x75.jpg 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
3. Future Home Sales Are Forecasted to Grow
While the economy improves and interest rates remain low, homes are also expected to continue appreciating as more people buy in the coming year. Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/2021-national-housing-forecast/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.”
Bottom Line
Experts forecast that buyers and sellers are going to be active in 2021. If you’ve thought about buying or selling your home this year but have held off, now may be the time to take advantage of this market. Let’s connect to take the first step toward your new home today.2020-12-16T07:04:00-07:002020-12-16T10:06:33-07:00Caitlin Beckerttag:hillshirerealtygroup.com,2012-09-20:4466Tips to Sell Your House Safely Right NowTips to Sell Your House Safely Right Now
<img width="1046" height="1641" src="https://files.mykcm.com/2020/11/12090934/20201113-MEM-1046x1641.png" class="attachment-entry size-entry wp-post-image" alt="Tips to Sell Your House Safely Right Now [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/11/12090934/20201113-MEM-1046x1641.png 1046w, https://files.mykcm.com/2020/11/12090934/20201113-MEM-382x600.png 382w, https://files.mykcm.com/2020/11/12090934/20201113-MEM-653x1024.png 653w, https://files.mykcm.com/2020/11/12090934/20201113-MEM-768x1205.png 768w, https://files.mykcm.com/2020/11/12090934/20201113-MEM-979x1536.png 979w, https://files.mykcm.com/2020/11/12090934/20201113-MEM-100x157.png 100w, https://files.mykcm.com/2020/11/12090934/20201113-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
Your agent now has over 6 months of experience selling houses during the pandemic and can make the process easier and safer for you today.
COVID-19 protocols and technology usage recommendations from the National Association of Realtors (<a href="https://www.nar.realtor/coronavirus-a-guide-for-realtors%C2%AE" title="NAR" target="_blank" rel="noopener noreferrer">NAR</a>) are making it possible to sell houses right now, while agents continue to abide first and foremost by state and local regulations.
Let’s connect to discuss how to sell your house <a href="https://www.simplifyingthemarket.com/2020/11/09/is-it-safe-to-sell-my-house-right-now/?a=409387-7262c924fe93ac742b96ce89127eca65" title="safely" target="_blank" rel="noopener noreferrer">safely</a> in today’s housing market.
2020-11-17T10:07:00-07:002020-11-17T13:09:33-07:00Krista Brittontag:hillshirerealtygroup.com,2012-09-20:4438Is it Safe to Sell My House Right Now?Is it Safe to Sell My House Right Now?
<img width="750" height="410" src="https://files.mykcm.com/2020/11/06120122/20201109-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Is it Safe to Sell My House Right Now? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2020/11/06120122/20201109-KCM-Share.jpg 750w, https://files.mykcm.com/2020/11/06120122/20201109-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/11/06120122/20201109-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In today’s real estate market, the buzz is all about how it’s a great time to sell your house. Buyer <a href="https://www.simplifyingthemarket.com/2020/10/28/buyer-interest-is-growing-among-younger-generations/?a=409387-7262c924fe93ac742b96ce89127eca65" title="demand" target="_blank" rel="noopener noreferrer">demand</a> is high, and there simply aren’t enough homes available to buy to meet that growing need. This means now is the time to make a <a href="https://www.simplifyingthemarket.com/2020/10/29/three-ways-low-inventory-is-a-win-for-sellers/?a=409387-7262c924fe93ac742b96ce89127eca65" title="move" target="_blank" rel="noopener noreferrer">move</a> so you can close the deal on your ideal terms.
Even in today’s strong sellers’ market, there are homeowners who are choosing not to sell due to ongoing concerns around the health crisis, financial uncertainty, and life in general. According to Zillow, here are the top three <a href="http://zillow.mediaroom.com/2020-10-27-COVID-19-is-Driving-the-Housing-Inventory-Crisis-in-Unexpected-Ways" title="reasons" target="_blank" rel="noopener noreferrer">reasons</a> homeowners who are thinking of selling sometime in the next three years are not putting their houses on the market right now:
34% - Life is too uncertain right now
31% - Financial uncertainty
25% - COVID-19 health concerns
If you identify with any of these, you’re not alone. Whether it’s the future of your employment situation or simply being uncomfortable having guests in your home for showings, life feels a lot different than it did at this time last year. The good news is, real estate professionals have spent the majority of 2020 figuring out how to sell homes safely, and it’s paying off for those who are choosing to move this year.
Real estate agents are doing two things very well to make selling your house possible:
1. Agents Are Implementing Technology in the Process
While abiding by state and local regulations as a top priority, real estate agents are making sales happen safely and effectively by leveraging key pieces of technology. Agents know exactly what today’s buyers and sellers need and how to put the necessary digital steps in place. For example, agents have capitalized on the technology buyers find <a href="https://www.simplifyingthemarket.com/2020/04/17/how-technology-is-helping-buyers-navigate-the-home-search-process-infographic/?a=409387-7262c924fe93ac742b96ce89127eca65" title="most helpful" target="_blank" rel="noopener noreferrer">most helpful</a> when deciding on a new home:
Virtual tours
Accurate and detailed listing information
Detailed neighborhood information
High-quality listing photos
Agent-led video chats
They’re listening to their audience and leveraging the tools that help buyers get an initial look at a home without having to step inside. This helps reduce the number of people entering your home, so only those who are very seriously interested need to take the next step: in-person showings.
2. Agents Are Facilitating Safe and Effective In-Person Showings
After leveraging technology, if you have serious buyers who still want to see your house in person, agents are following the guidelines set by the National Association of Realtors (NAR) and utilizing <a href="https://www.nar.realtor/coronavirus-a-guide-for-realtors" title="safe" target="_blank" rel="noopener noreferrer">safe</a> ways to proceed. Here are a few of them, understanding again that the agent’s top priority is always to follow­ state and local restrictions first:
Limiting in-person activity
R­­­equiring guests to wash their hands or use an alcohol-based sanitizer
Removing shoes or covering them with booties
Following <a href="https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/prevention.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fprepare%2Fprevention.html" title="CDC" target="_blank" rel="noopener noreferrer">CDC</a> guidance on social distancing and wearing face coverings
Getting comfortable with your agent – a true trusted advisor – taking these steps under the modern-era safety standards might be your best plan. This is especially important if you’re in a position where you need to sell your house sooner rather than later.
As Jeff Tucker, Senior Economist for Zillow <a href="http://zillow.mediaroom.com/2020-10-27-COVID-19-is-Driving-the-Housing-Inventory-Crisis-in-Unexpected-Ways" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Homeowners who feel life is uncertain right now may think they can still get a strong price if they delay selling until they have more clarity. The catch is that waiting to sell may raise the cost of a trade-up. This fall's record low mortgage rates, which make a trade-up more affordable on a monthly basis, are not guaranteed to last.”
Bottom Line
In this new era in our lives, things are shifting quickly, and virtual strategies for sellers may be your ideal option. Opening your doors up to new approaches could be game-changing when it comes to selling your house while the market is leaning in your favor. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate all that’s new when it comes to making your next move.
2020-11-10T12:48:00-07:002020-11-10T15:53:00-07:00Krista Brittontag:hillshirerealtygroup.com,2012-09-20:4155Homebuyer Traffic Is on the RiseHomebuyer Traffic Is on the Rise
<img width="750" height="410" src="https://files.mykcm.com/2020/09/08101528/20200910-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Homebuyer Traffic Is on the Rise | MyKCM" srcset="https://files.mykcm.com/2020/09/08101528/20200910-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/08101528/20200910-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/08101528/20200910-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
One of the biggest surprises of 2020 is the resilience of the residential real estate market. Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), is now forecasting that <a href="https://www.nar.realtor/newsroom/pending-home-sales-rise-5-9-in-july" title="more homes" target="_blank" rel="noopener noreferrer">more homes</a> will sell this year than last year. He’s also predicting home sales to <a href="https://magazine.realtor/daily-news/2020/08/19/will-home-sales-keep-defying-expectations" title="increase" target="_blank" rel="noopener noreferrer">increase</a> by 8-12% next year. There’s strong evidence that he will be right.
ShowingTime, a leading showing software and market stat service provider for the residential real estate industry, just <a href="https://www.showingtime.com/blog/july-2020-showing-index-results/" title="reported" target="_blank" rel="noopener noreferrer">reported</a> on their latest the ShowingTime Showing Index:
“Home buyer traffic jumped again in July, recording a 60.7 percent year-over-year increase in nationwide showing activity.”
That means there are 60% more buyers setting appointments to see homes than there were at this same time last year. The number of potential purchasers was also up dramatically in every region of the country:
The Northeast was up 76.6%
The West was up 56.7%
The Midwest was up 52.1%
The South was up 46.7%
The Housing Market Is Showing a ‘V’ Type Recovery
ShowingTime also <a href="https://showingindex.stats.showingtime.com/docs/lmu/x/UnitedStates?src=page" title="indicates" target="_blank" rel="noopener noreferrer">indicates</a> the real estate market has already come back from the downturn earlier this year that was caused by shelter-in-place orders. Here are the year-over-year numbers for each region on a monthly basis (See graph below):<a href="https://files.simplifyingthemarket.com/2020/09/08102658/20200910-MEM-Eng-1-1.jpg?a=409387-7262c924fe93ac742b96ce89127eca65" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-95611" src="https://files.mykcm.com/2020/09/08102658/20200910-MEM-Eng-1-1.jpg" alt="Homebuyer Traffic Is on the Rise | MyKCM" width="600" height="450" /></a>We’re way ahead of where we were at this time last year. This data validates the thoughts of Frank Martell, President and CEO of CoreLogic, who recently <a href="https://www.corelogic.com/insights-download/home-price-index.aspx" title="noted" target="_blank" rel="noopener noreferrer">noted</a>:
“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic.”
Bottom Line
If you’re thinking about selling your house, this may be a great time to get the best price and the most favorable terms.
2020-09-10T05:07:00-07:002020-09-10T08:08:43-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:3973A Real Estate Pro Is More Helpful Now than EverA Real Estate Pro Is More Helpful Now than Ever
<img width="1046" height="1655" src="https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-1046x1655.jpg" class="attachment-entry size-entry wp-post-image" alt="A Real Estate Pro Is More Helpful Now than Ever | MyKCM" srcset="https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-1046x1655.jpg 1046w, https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-379x600.jpg 379w, https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-647x1024.jpg 647w, https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-768x1215.jpg 768w, https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-971x1536.jpg 971w, https://files.mykcm.com/2020/07/23094435/20200717-MEM-1-100x158.jpg 100w, https://files.mykcm.com/2020/07/23094435/20200717-MEM-1.jpg 1080w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
A recent study shared by <a href="https://www.nar.realtor/sites/default/files/documents/2020-market-recovery-survey-07-09-2020.pdf" title="NAR" target="_blank" rel="noopener noreferrer">NAR</a> notes that both buyers and sellers think an agent is more helpful than ever during the current health crisis.
Expertise and professionalism are highly valued and can save buyers and sellers time and effort along the way.
If you’re thinking of buying or selling a home this year, let’s connect to be sure you have a trusted professional on your side.
2020-07-27T09:12:00-07:002020-07-27T12:13:43-07:00Hillshire Realty Group Teamtag:hillshirerealtygroup.com,2012-09-20:3916 Not All Agents Are Created EqualNot All Agents Are Created Equal
<img width="746" height="410" src="https://files.mykcm.com/2020/07/07131848/20200709-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Not All Agents Are Created Equal | MyKCM" srcset="https://files.mykcm.com/2020/07/07131848/20200709-KCM-Share.jpg 746w, https://files.mykcm.com/2020/07/07131848/20200709-KCM-Share-600x330.jpg 600w, https://files.mykcm.com/2020/07/07131848/20200709-KCM-Share-100x55.jpg 100w" sizes="(max-width: 746px) 100vw, 746px" /><br /><br />
In today’s fast-paced world where answers are just a Google search away, there are some who may question the benefits of hiring a real estate professional when selling a house. The reality is, the addition of more information can lead to more confusion. A real estate agent can be your essential guide, but truth be told, not all agents are created equal. Finding the right agent for you and your family should be your top priority when you’re ready to sell your house.
The right agent is the person who can truly walk you through the whole process, look out for your best interest, and seamlessly lead you through all the steps along the way. In today’s complex market, the way we execute real estate transactions is changing constantly, especially as more elements can be done <a href="https://www.simplifyingthemarket.com/2020/04/22/keys-to-selling-your-house-virtually/?a=409387-7262c924fe93ac742b96ce89127eca65" title="virtually" target="_blank" rel="noopener noreferrer">virtually</a>. Making sure you have the best advice on your side is more important than ever.
So, how do you choose the perfect agent?<br />
It starts with trust. You must trust the advice this person is going to give you, and you’ll want to begin by making sure you’re connected to a true professional. An agent can’t give you perfect advice because it’s impossible to know exactly what’s going to happen at every turn – especially in this unique market. A true professional agent can, however, give you the best advice possible based on the information and situation at hand, helping you make the necessary adjustments and best decisions along the way. The right agent – the professional – will get you the best offer available. That’s exactly what you want and deserve.
What do you need to trust your agent to do?<br />
1. Navigate the Process
There are over <a href="https://www.flkeysboardofrealtors.com/wp-content/uploads/2014/12/The_Critical_Role_of_the_REA_2.pdf" title="230 possible steps" target="_blank" rel="noopener noreferrer">230 possible steps</a> that take place during a successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to ensure you have a positive selling experience?
2. Negotiate on Your Behalf
Today, hiring a trusted and talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step – from the buyer submitting an original offer, to the possible renegotiation of that offer after a home inspection, to the potential cancelation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.
3. Price Your House Competitively
There’s so much information in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s going on in our local area? Who do you turn to in order to competitively and correctly price your home at the beginning of the selling process?
Dave Ramsey, known as the 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 a trusted professional who has a finger on the pulse of the market and is eager to help you learn will make your experience an informed and educated one. You need someone who’s going to tell you the truth, not just what they think you want to hear.<br />
Bottom Line
Today’s real estate market is highly competitive. Having a trusted professional who’s been there before to guide you through the process is a simple step that will give you a huge advantage when you’re ready to sell your house. Let’s make it happen together.
2020-07-10T05:47:00-07:002020-07-10T08:57:02-07:00Hillshire Realty Group Teamtag:hillshirerealtygroup.com,2012-09-20:3868What Are Experts Saying About the Rest of 2020?<img width="750" height="410" src="https://files.mykcm.com/2020/06/26084641/20200629-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What Are Experts Saying About the Rest of 2020? | MyKCM" srcset="https://files.mykcm.com/2020/06/26084641/20200629-KCM-Share.jpg 750w, https://files.mykcm.com/2020/06/26084641/20200629-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/06/26084641/20200629-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
One of the biggest questions on everyone’s minds these days is: What’s going to happen to the housing market in the second half of the year? Based on recent data on the economy, unemployment, real estate, and more, many economists are revising their forecasts for the remainder of 2020 – and the outlook is extremely encouraging. Here’s a look at what some experts have to say about key areas that will power the industry and the economy forward this year.
Mortgage Purchase Originations: <a href="https://www.bankrate.com/real-estate/summer-housing-market-off-to-strong-start/" title="Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association" target="_blank" rel="noopener noreferrer">Joel Kan, Associate Vice President of Economic and Industry Forecasting, Mortgage Bankers Association</a>
“The recovery in housing is happening faster than expected. We anticipated a drop off in Q3. But, we don’t think that’s the case anymore. We revised our Q3 numbers higher. Before, we predicted a 2 percent decline in purchase originations in 2020, now we think there will be 2 percent growth this year.”
Home Sales: <a href="https://www.nar.realtor/newsroom/existing-home-sales-fall-9-7-in-may-while-nar-expects-strong-rebound-in-coming-months" title="Lawrence Yun, Chief Economist, National Association of Realtors" target="_blank" rel="noopener noreferrer">Lawrence Yun, Chief Economist, National Association of Realtors</a>
“Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lock down and hence the cyclical low point...Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year.”
Inventory: <a href="https://www.realtor.com/research/new-listings-lead-loss-home-sales-2020/" title="George Ratiu, Senior Economist, realtor.com" target="_blank" rel="noopener noreferrer">George Ratiu, Senior Economist, realtor.com</a>
“We can project that the next few months will see a slow-yet-steady improvement in new inventory...we projected a stepped improvement for the May through August months, followed by a return to historical trend for the September through December time frame."
Mortgage Rates: <a href="http://www.freddiemac.com/fmac-resources/research/pdf/202006-Forecast.pdf" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>
“Going forward, we forecast the 30-year fixed-rate mortgage to remain low, falling to a yearly average of 3.4% in 2020 and 3.2% in 2021.”
New Construction: <a href="https://www.bankrate.com/real-estate/summer-housing-market-off-to-strong-start/" title="Doug Duncan, Chief Economist, Fannie Mae" target="_blank" rel="noopener noreferrer">Doug Duncan, Chief Economist, Fannie Mae</a>
“The weaker-than-expected single-family starts number may be a matter of timing, as single-family permits jumped by a stronger 11.9 percent. In addition, the number of authorized single-family units not yet started rose 5.4 percent to the second-highest level since 2008. This suggests that a significant acceleration in new construction will likely occur.”
Bottom Line
The experts are optimistic about the second half of the year. If you paused your 2020 real estate plans this spring, let’s connect today to determine how you can re-engage in the process.
2020-06-29T18:43:00-07:002020-06-29T21:45:40-07:00David Caldwelltag:hillshirerealtygroup.com,2012-09-20:3739Home Prices: It’s All About Supply and DemandHome Prices: It’s All About Supply and Demand
<img width="750" height="410" src="https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Home Prices: It’s All About Supply and Demand | MyKCM" srcset="https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share.jpg 750w, https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/06/01123121/20200602-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As we enter the summer months and work through the challenges associated with the current health crisis, many are wondering what impact the economic slowdown will have on home prices. Looking at the big picture, supply and demand will give us the clearest idea of what’s to come.
Making our way through the month of June and entering the second half of the year, we face an undersupply of homes on the market. Keep in mind, this undersupply is going to vary by location and by price point. According to the National Association of Realtors (NAR), across the country, we currently have a 4.1 months <a href="https://www.nar.realtor/newsroom/existing-home-sales-wane-17-8-in-april" title="supply" target="_blank" rel="noopener noreferrer">supply</a> of homes on the market. Historically, 6 months of supply is considered a balanced market. Anything over 6 months is a buyer’s market, meaning prices will depreciate. Anything below 6 months is a seller’s market, where prices appreciate. The graph below shows inventory across the country since 2010 in months supply of homes for sale.<a href="https://files.simplifyingthemarket.com/2020/06/01123023/20200602-MEM-ENG1.jpg?a=409387-7262c924fe93ac742b96ce89127eca65" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-93993" src="https://files.mykcm.com/2020/06/01123023/20200602-MEM-ENG1.jpg" alt="Home Prices: It’s All About Supply and Demand | MyKCM" width="600" height="450" /></a>Robert Dietz, Chief Economist for the National Home Builders Association (NAHB) <a href="http://eyeonhousing.org/2020/05/gain-for-housing-share-of-gdp-during-1q20/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt. Estimates vary, but based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
Given the undersupply of homes on the market today, there is upward pressure on prices. Looking at simple economics, when there is less of an item for sale and the demand is high, consumers are willing to pay more for that item. The undersupply is also prompting bidding wars, which can drive price points higher in the home sale process. According to a recent MarketWatch <a href="https://www.marketwatch.com/story/home-price-gains-continued-in-march-as-the-coronavirus-pandemic-swept-the-us-case-shiller-index-shows-2020-05-26?mod=economic-report" title="article" target="_blank" rel="noopener noreferrer">article</a>:
“As buyers return to the market as the country rebounds from the pandemic, a limited inventory of homes for sale could fuel bidding wars and push prices higher.”
In addition, experts forecasting home prices have updated their projections given the impact of the pandemic. The major institutions expect home prices to appreciate through 2022. The chart below, updated as of earlier this week, notes these forecasts. As the year progresses, we may see these projections revised in a continued upward trend, given the lack of homes on the market. This could drive home prices even higher.<a href="https://files.simplifyingthemarket.com/2020/06/01123053/20200602-MEM-ENG2.jpg?a=409387-7262c924fe93ac742b96ce89127eca65" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-93994" src="https://files.mykcm.com/2020/06/01123053/20200602-MEM-ENG2.jpg" alt="Home Prices: It’s All About Supply and Demand | MyKCM" width="600" height="450" /></a>
Bottom Line
Many may think home prices will depreciate due to the economic slowdown from the coronavirus, but experts disagree. As we approach the second half of this year, we may actually see home prices rise even higher given the lack of homes for sale.
2020-06-02T13:11:00-07:002020-06-02T16:12:40-07:00Hillshire Realty Group Teamtag:hillshirerealtygroup.com,2012-09-20:3731Why This Summer Is the 2020 Real Estate SeasonWhy This Summer Is the 2020 Real Estate Season
<img width="750" height="410" src="https://files.mykcm.com/2020/05/26130804/20200527-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why This Summer Is the 2020 Real Estate Season | MyKCM" srcset="https://files.mykcm.com/2020/05/26130804/20200527-KCM-Share.jpg 750w, https://files.mykcm.com/2020/05/26130804/20200527-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/05/26130804/20200527-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With stay-at-home orders starting to gradually <a href="https://www.nytimes.com/interactive/2020/us/states-reopen-map-coronavirus.html" title="lift" target="_blank" rel="noopener noreferrer">lift</a> throughout parts of the country, data indicates homebuyers are <a href="https://www.showingtime.com/impact-of-coronavirus/" title="jumping back" target="_blank" rel="noopener noreferrer">jumping back</a> into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.
<a href="https://www.cnbc.com/2020/05/20/weekly-mortgage-applications-point-to-remarkable-bounce-in-homebuying.html" title="Joel Kan" target="_blank" rel="noopener noreferrer">Joel Kan</a>, Economist at The Mortgage Bankers Association (MBA) notes:
“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
Additionally, according to Google Trends, which scores search terms online, searches for <a href="https://trends.google.com/trends/explore?q=real%20estate&geo=US" title="real estate" target="_blank" rel="noopener noreferrer">real estate</a> increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes <a href="https://www.simplifyingthemarket.com/2020/04/17/how-technology-is-helping-buyers-navigate-the-home-search-process-infographic/?a=409387-7262c924fe93ac742b96ce89127eca65" title="virtually" target="_blank" rel="noopener noreferrer">virtually</a>.
What’s the Opportunity for Buyers?
Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac <a href="https://freddiemac.gcs-web.com/node/19846/pdf" title="indicates" target="_blank" rel="noopener noreferrer">indicates</a>:
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.
What’s the Opportunity for Sellers?
Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for <a href="http://zillow.mediaroom.com/2020-05-26-Coronavirus-Causes-Biggest-Annual-Rent-Growth-Slowdown-in-at-Least-Five-Years" title="sale" target="_blank" rel="noopener noreferrer">sale</a> this month as compared to last month, current inventory is still well below last year’s level.
According to last week’s Weekly Economic and Housing Market Update from <a href="https://www.realtor.com/research/video-weekly-economic-and-housing-market-update-may-22-2020/" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”<br />
If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list <a href="https://www.simplifyingthemarket.com/2020/04/22/keys-to-selling-your-house-virtually/?a=409387-7262c924fe93ac742b96ce89127eca65" title="safely and effectively" target="_blank" rel="noopener noreferrer">safely and effectively</a>, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.
Bottom Line
If you’re thinking of selling, many buyers may be eager to find a home just like yours. Let’s connect today to make sure you can get your house in on the action this summer.
2020-05-28T07:56:00-07:002020-05-28T10:58:50-07:00Hillshire Realty Group Teamtag:hillshirerealtygroup.com,2012-09-20:3724Buying or Selling a Home? You Need an Expert Kind of GuideBuying or Selling a Home? You Need an Expert Kind of Guide
<img width="750" height="410" src="https://files.mykcm.com/2020/05/22111114/20200526-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Buying or Selling a Home? You Need an Expert Kind of Guide | MyKCM" srcset="https://files.mykcm.com/2020/05/22111114/20200526-KCM-Share.jpg 750w, https://files.mykcm.com/2020/05/22111114/20200526-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/05/22111114/20200526-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In a normal housing market, whether you’re buying or selling a home, you need an experienced guide to help you navigate through the process. You need someone you can turn to who will tell you how to price your home correctly right from the start. You need someone who can help you determine what to offer on your dream home without paying too much or offending the seller with a low-ball offer.
We are, however, in anything but a normal market right now. We are amid one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers take to purchase or sell a home. To successfully navigate the landscape today, you need more than an experienced guide. You need a ‘Real Estate Sherpa.’
According to <a href="https://www.lexico.com/en/definition/sherpa" title="Lexico" target="_blank" rel="noopener noreferrer">Lexico</a>, a Sherpa is a “member of a Himalayan people living on the borders of Nepal and Tibet, renowned for their skill in mountaineering.” Sherpas are skilled in leading their parties through the extreme altitudes of the peaks and passes in the region - some of the most treacherous trails in the world. They take pride in their hardiness, expertise, and experience at very high altitudes.
They are much more than just guides.
This is much more than a normal real estate market.
Today, the average guide just won’t do. You need a Sherpa. You need an expert who understands how COVID-19 is impacting the thoughts and actions of the consumer (ex: virtual showings, proper safety protocols, e-signing documents). You need someone who can simply and effectively explain the changes in today’s process to you and your family. You need an expert who will guarantee you make the right decision, especially in these challenging times.
Bottom Line
Hiring an agent who understands how the pandemic is reshaping the real estate processes is crucial right now. Let’s connect today to guarantee your journey is a safe and successful one.
2020-05-27T06:08:00-07:002020-05-27T09:12:47-07:00Hillshire Realty Group Team