Greater Richmond Real Estate BlogRecently posted or modified blog postshttps://www.aliciaandcompany.com/blog/Copyright AliciaAndCompany.com2023-01-20T09:20:44-07:00tag:aliciaandcompany.com,2012-09-20:14808What’s Really Happening with Home Prices?What’s Really Happening with Home Prices? [INFOGRAPHIC]
<img width="1046" height="2447" src="https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-1046x2447.png" class="attachment-entry size-entry wp-post-image" alt="What’s Really Happening with Home Prices? [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-1046x2447.png 1046w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-256x600.png 256w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-438x1024.png 438w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-768x1797.png 768w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-657x1536.png 657w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-876x2048.png 876w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM-100x234.png 100w, https://files.mykcm.com/2023/01/19134245/Whats-Really-Happening-With-Home-Prices-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re thinking about selling your house, <a href="https://www.simplifyingthemarket.com/2023/01/10/the-truth-about-negative-home-equity-headlines/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="recent headlines" target="_blank" rel="noopener noreferrer">recent headlines</a> about home prices falling month-over-month may have you <a href="https://www.simplifyingthemarket.com/2022/12/27/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="second guessing" target="_blank" rel="noopener noreferrer">second guessing</a> your decision—but perspective matters.
While home prices are down slightly month-over-month in some markets, home values are still up <a href="https://www.spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-continued-to-decline-in-october/" title="almost 10%" target="_blank" rel="noopener noreferrer">almost 10%</a> nationally on a year-over-year basis. A nearly 10% <a href="https://www.simplifyingthemarket.com/2022/12/20/homeowners-still-have-positive-equity-gains-over-the-past-12-months/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="gain" target="_blank" rel="noopener noreferrer">gain</a> is still dramatic compared to the more normal level of appreciation, which is 3-4%.
<a href="https://www.simplifyingthemarket.com/2022/12/29/planning-to-sell-your-house-its-critical-to-hire-a-pro/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="Let’s connect" target="_blank" rel="noopener noreferrer">Let’s connect</a> to find out how much <a href="https://blog.firstam.com/economics/house-prices-decline-but-equity-buffers-remain-robust" title="equity" target="_blank" rel="noopener noreferrer">equity</a> you have in your current home and how you can use it to fuel your <a href="https://www.simplifyingthemarket.com/2023/01/02/what-are-your-goals-in-the-housing-market-this-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="next purchase" target="_blank" rel="noopener noreferrer">next purchase</a>.
2023-01-20T09:30:00-07:002023-01-20T09:20:44-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14799Pre-Approval in 2023: What You Need To KnowPre-Approval in 2023: What You Need To Know
<img width="750" height="410" src="https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Pre-Approval in 2023: What You Need To Know | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM.jpg 750w, https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/18114845/pre-approval-in-2023-what-you-need-to-know-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
One of the first steps in your <a href="https://www.simplifyingthemarket.com/2023/01/06/tips-to-reach-your-homebuying-goals-in-2023-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="homebuying journey" target="_blank" rel="noopener noreferrer">homebuying journey</a> is getting pre-approved. To understand why it’s such an important step, you need to understand what <a href="https://www.simplifyingthemarket.com/2022/12/26/financial-fundamentals-for-first-time-homebuyers/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="pre-approval" target="_blank" rel="noopener noreferrer">pre-approval</a> is and what it does for you. Business Insider <a href="https://www.businessinsider.com/personal-finance/mortgage-preapproval" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand your options and what you may be able to borrow.
How does it work? As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher <a href="https://www.simplifyingthemarket.com/2023/01/17/think-twice-before-waiting-for-3-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes <a href="https://www.forbes.com/advisor/mortgages/what-it-takes-to-be-preapproved-for-a-mortgage-and-why-it-matters/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”
This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool <a href="https://www.nasdaq.com/articles/this-is-the-most-important-reason-to-get-pre-approved-according-to-dave-ramsey.-but-is-he" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it may be the most important part of making an offer:
“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.
The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”
Bottom Line
Getting pre-approved is an important first step towards buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase a home in today’s market.
2023-01-19T15:30:00-07:002023-01-19T15:11:38-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14719Today’s Housing Market Is Nothing Like 15 Years AgoToday’s Housing Market Is Nothing Like 15 Years Ago
<img width="750" height="410" src="https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM.jpg 750w, https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/01/10124016/todays-housing-market-is-nothing-like-15-years-ago-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There’s no doubt today’s <a href="https://www.simplifyingthemarket.com/2023/01/09/what-experts-are-saying-about-the-2023-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> is very different than the frenzied one from the past couple of years. In the second half of 2022, there was a dramatic shift in real estate, and it caused many people to make comparisons to the 2008 housing crisis. While there may be a few similarities, when looking at key variables now compared to the last housing cycle, there are significant differences.
In the latest <a href="https://www.nar.realtor/sites/default/files/documents/2022-12-13-nar-real-estate-forecast-summit-the-year-ahead-lawrence-yun-presentation-slides-12-13-2022.pdf" title="Real Estate Forecast Summit" target="_blank" rel="noopener noreferrer">Real Estate Forecast Summit</a>, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), drew the comparisons below between today’s housing market and the previous cycle:
<a href="https://files.mykcm.com/2023/01/10124010/today-is-nothing-like-15-years-ago-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106779" src="https://files.mykcm.com/2023/01/10124010/today-is-nothing-like-15-years-ago-MEM.png" alt="Today’s Housing Market Is Nothing Like 15 Years Ago | MyKCM" width="600" height="450" /></a>
Looking at the facts, it’s clear: today is very different than the <a href="https://www.simplifyingthemarket.com/2022/12/21/what-to-expect-from-the-housing-market-in-2023/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> of 15 years ago.
There’s Opportunity in Real Estate Today
And in today’s market, with inventory rising and <a href="https://www.simplifyingthemarket.com/2022/12/14/you-may-have-more-negotiation-power-when-you-buy-a-home-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="less competition" target="_blank" rel="noopener noreferrer">less competition</a> from other buyers, there’s opportunity right now. According to <a href="https://www.linkedin.com/pulse/reminder-home-prices-always-rise-over-time-david-h-stevens-cmb/?trackingId=v4Fg7EqLTTCx94toGrR%2Ffw%3D%3D" title="David Stevens" target="_blank" rel="noopener noreferrer">David Stevens</a>, former Assistant Secretary of Housing:
“So be advised…this may be the one and only window for the next few years to get into a buyer’s market. And remember…as the Federal Reserve data shows…home prices only go up and always recover from recessions no matter how mild or severe. Long term homeowners should view this market…right now…as a unique buying opportunity.”
Bottom Line
Today’s housing market is nothing like the real estate market 15 years ago. If you’re a buyer right now, this may be the chance you’ve been waiting for.
2023-01-12T12:15:00-07:002023-01-12T12:18:54-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14668Wondering How Much You Need To Save for a Down Payment?Wondering How Much You Need To Save for a Down Payment?
<img width="750" height="410" src="https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Wondering How Much You Need To Save for a Down Payment? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM.jpg 750w, https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/22134046/wondering-how-much-you-need-to-save-for-a-down-payment-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be.
Understand 20% Isn’t Always the Typical Down Payment
Freddie Mac <a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”
Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. 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), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):
<a href="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106555" src="https://files.mykcm.com/2022/12/22134044/todays-median-down-payment-is-less-than-20-percent-MEM.png" alt="Wondering How Much You Need To Save for a Down Payment? | MyKCM" width="600" height="450" /></a>
Learn About Options That Can Help You Toward Your Goal
If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest <a href="https://downpaymentresource.com/professional-resource/homebuyer-assistance-programs-proliferate-in-q3-as-median-u-s-down-payment-skyrockets/" title="Homeownership Program Index" target="_blank" rel="noopener noreferrer">Homeownership Program Index</a> from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.
Plus there are even loan types, like <a href="https://www.hud.gov/buying/loans" title="FHA loans" target="_blank" rel="noopener noreferrer">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.simplifyingthemarket.com/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="VA loans" target="_blank" rel="noopener noreferrer">VA loans</a> and USDA loans with no down payment requirements for qualified applicants.
To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like <a href="http://www.downpaymentresource.com/" title="Down Payment Resource" target="_blank" rel="noopener noreferrer">Down Payment Resource</a>. Then, partner with a trusted lender to learn what you qualify for on your homebuying journey.
Bottom Line
Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options.
2023-01-06T15:00:00-07:002023-01-06T14:48:05-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14577 Confused About What’s Going on in the Housing Market? Lean on a ProfessionalConfused About What’s Going on in the Housing Market? Lean on a Professional.
<img width="750" height="410" src="https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Confused About What’s Going on in the Housing Market? Lean on a Professional. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM.jpg 750w, https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying" target="_blank" rel="noopener noreferrer">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="selling" target="_blank" rel="noopener noreferrer">selling</a> a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a>.
A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.
Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.
Bottom Line
If you have questions about the headlines or what’s happening in the housing market today, let’s connect so you have expert insights and advice on your side.
2022-12-27T10:00:00-07:002022-12-27T09:50:49-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14565Thank You for All of Your SupportWhat Makes a House a Home?
<img width="750" height="410" src="https://files.mykcm.com/2022/11/23103116/what-makes-a-house-a-home-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Makes a House a Home? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/23103116/what-makes-a-house-a-home-KCM.jpg 750w, https://files.mykcm.com/2022/11/23103116/what-makes-a-house-a-home-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/23103116/what-makes-a-house-a-home-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There’s no denying the long-term <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="financial benefits" target="_blank" rel="noopener noreferrer">financial benefits</a> of owning a home, but today’s housing market may have you wondering if now’s still the time to buy. While the financial aspects of <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a> are important, the non-financial and emotional reasons are too.
Home means something different to all of us. Whether it’s sharing memories with loved ones at the kitchen table or settling in to read a book in a favorite chair, the emotional connections to our homes can be just as important as the financial ones. Here are some of the things that make a house a home.
1. You Can Be Proud of Your Accomplishment
Buying a home is a major life milestone. Whether you’re setting out to buy your first home or your fifth, congratulations will be in order when you’ve achieved your goal. The sense of accomplishment you’ll feel at the end of your journey will truly make your home feel like a special place.
2. You Have Your Own Designated Happy Place
Owning your own home offers not only safety and security, but also a comfortable place where you can relax and unwind after a long day. Sometimes that’s just what you need to feel recharged and content.
3. You Can Find the Space To Meet Your Needs
Whether you want more room for your changing lifestyle (like retirement, dedicated space for a hobby, or a personal gym) or you simply prefer to have a large backyard for entertaining, you can invest in a home that truly works for your evolving needs.
4. You Can Customize Your Surroundings
Looking to try one of those decorative wall treatments you saw online? Tired of paying an additional pet deposit for your apartment building? Or maybe you want to create an in-home yoga studio. You can do all these things in your own home.
Bottom Line
Whether you’re <a href="https://www.simplifyingthemarket.com/2022/10/31/taking-the-fear-out-of-saving-for-a-home/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="planning to purchase" target="_blank" rel="noopener noreferrer">planning to purchase</a> your first home or you’re ready to buy a different home to meet your needs, consider the emotional benefits that can turn a house into a happy home. When you’re ready to make a move, let’s connect.
2022-12-23T07:00:00-07:002022-12-23T06:55:32-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14557What To Expect From the Housing Market in 2023What To Expect From the Housing Market in 2023
<br />he 2022 housing market has been defined by two key things: inflation and rapidly rising <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>. And in many ways, it's put the market into a reset position.
As the Federal Reserve (the Fed) made moves this year to try to lower inflation, mortgage rates more than <a href="https://www.freddiemac.com/research/forecast/20221021-quarterly-forecast-rapidly-rising-rates-declining-demand-driving-housing-market" title="doubled" target="_blank" rel="noopener noreferrer">doubled</a> – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="supply and demand" target="_blank" rel="noopener noreferrer">supply and demand</a>, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.
But what does that mean for next year? What everyone really wants is more stability in the market in 2023. For that to happen we’ll need to see the Fed bring inflation down even more and keep it there. Here’s what housing market experts say we can expect next year.
What’s Ahead for Mortgage Rates in 2023?
Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, <a href="https://www.simplifyingthemarket.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> will likely respond. While there may be early signs inflation is easing as we round out this year, we’re not out of the woods just yet. Inflation is still something to watch in 2023.
Right now, experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more in 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):
<a href="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106529" src="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png" alt="What To Expect from the Housing Market in 2023 | MyKCM" width="600" height="450" /></a>
That means, we’ll start the year out about where we are right now. But we could see rates tick down if inflation continues to drop. As Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-market-predictions-2023/#home-values" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . mortgage rates could pull back meaningfully next year if inflation pressures ease.”
In the meantime, expect some volatility as rates will likely fluctuate in the weeks ahead. If we see inflation come back under control, that would be good news for the housing market.
What Will Happen to Home Prices Next Year?
Homes prices will always be defined by supply and demand. The more buyers and fewer homes there are on the market, the more home prices will rise. And that’s exactly what we saw during the pandemic.
But this year, things changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates. The level of moderation has varied by local area – with the biggest changes happening in overheated markets. But do experts think that will continue?
The graph below shows the latest home price forecasts for 2023. As the different colored bars indicate, some experts are saying home prices will appreciate next year, and others are saying home prices will come down. But again, if we take the average of all the forecasts (shown in green), we can get a feel for what 2023 may hold.
<a href="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106442" src="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png" alt="What To Expect from the Housing Market in 2023 | MyKCM" width="600" height="450" /></a>
The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation in 2023. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy#:~:text=Housing%20inventory%20is%20expected%20to,appreciation%20will%20slow%2C%20he%20added." title="says" target="_blank" rel="noopener noreferrer">says</a>:
“After a big boom over the past two years, there will essentially be no change nationally . . . Half of the country may experience small price gains, while the other half may see slight price declines.”
Bottom Line
The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor. Let’s connect.
2022-12-21T15:00:00-07:002022-12-21T14:56:03-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14448Reasons To Sell Your House This SeasonReasons To Sell Your House This Season
<img width="1046" height="2601" src="https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-1046x2601.png" class="attachment-entry size-entry wp-post-image" alt="Reasons To Sell Your House This Season [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-1046x2601.png 1046w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-241x600.png 241w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-412x1024.png 412w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-768x1910.png 768w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-618x1536.png 618w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-824x2048.png 824w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-100x249.png 100w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re planning to make a move but aren’t sure if now’s the right time, here are a few reasons why you shouldn’t wait to <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a>.
The supply of homes for sale, while <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="growing" target="_blank" rel="noopener noreferrer">growing</a>, is still low today. Plus, <a href="https://blog.firstam.com/economics/whats-the-outlook-for-housing-market-potential-for-the-rest-of-2022" title="serious buyers" target="_blank" rel="noopener noreferrer">serious buyers</a> are out looking right now, and many are hoping to avoid falling into the <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" title="rental trap" target="_blank" rel="noopener noreferrer">rental trap</a> for another year.
Let’s connect to determine if selling your house <a href="https://www.simplifyingthemarket.com/2022/11/16/top-questions-about-selling-your-home-this-winter/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="before the new year" target="_blank" rel="noopener noreferrer">before the new year</a> is the right move for you.
2022-12-09T11:30:00-07:002022-12-09T11:21:47-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14391Winter Home Selling Checklist [INFOGRAPHIC]
<img width="1046" height="1715" src="https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-1046x1715.png" class="attachment-entry size-entry wp-post-image" alt="Winter Home Selling Checklist [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-1046x1715.png 1046w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-366x600.png 366w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-625x1024.png 625w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-768x1259.png 768w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-937x1536.png 937w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-1249x2048.png 1249w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM-100x164.png 100w, https://files.mykcm.com/2022/11/17130959/Winter-Checklist-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
As you get ready to <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a>, focus on tasks that make it inviting, show it’s cared for, and boost your curb appeal.
This list will help you get started, but don’t forget, a real estate professional will provide other helpful tips based on your specific situation.
Let’s connect so you have advice on what you may want to do to get your house ready to <a href="https://www.simplifyingthemarket.com/2022/10/13/perspective-matters-when-selling-your-house-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell this season" target="_blank" rel="noopener noreferrer">sell this season</a>.
2022-12-02T13:37:47-07:002022-12-02T13:42:23-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:143543 Ways You Can Use Your Home Equity<img width="750" height="410" src="https://files.mykcm.com/2022/11/21144827/3-ways-you-can-use-your-home-equity-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="3 Ways You Can Use Your Home Equity | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/21144827/3-ways-you-can-use-your-home-equity-KCM.jpg 750w, https://files.mykcm.com/2022/11/21144827/3-ways-you-can-use-your-home-equity-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/21144827/3-ways-you-can-use-your-home-equity-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
If you’re a homeowner, odds are your <a href="https://www.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/'?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="equity" target="_blank" rel="noopener noreferrer">equity</a> has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="Home&nbsp;equity" target="_blank" rel="noopener noreferrer">Home equity</a> builds over time and can help you achieve certain goals. According to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Equity Insights Report" target="_blank" rel="noopener noreferrer">Equity Insights Report</a> from CoreLogic, the average borrower with a home loan has almost $300,000 in equity right now.
As you weigh your options, especially in the face of inflation and talk of a <a href="https://www.simplifyingthemarket.com/2022/10/25/what-happens-to-housing-when-theres-a-recession/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="recession" target="_blank" rel="noopener noreferrer">recession</a>, it’s important to understand your assets and how you can leverage them. A real estate professional is the best resource to help you understand how much home equity you have and advise you on some of the ways you can use it. Here are a few examples.
1. Buy a Home That Fits Your Needs
If you no longer have the space you need, it might be time to move into a larger home. Or it’s possible you have too much space and need something smaller. No matter the situation, consider using your equity to power a move into a home that fits your changing lifestyle.
If you want to upgrade your house, you can put your equity toward a <a href="https://www.simplifyingthemarket.com/2022/10/10/saving-for-a-down-payment-heres-what-you-should-know/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="down payment" target="_blank" rel="noopener noreferrer">down payment</a> on the home of your dreams. And if you’re planning to downsize, you may be surprised that your equity may cover some, if not all, of the cost of your next home. A real estate advisor can help you figure out how much equity you have and how you can use it toward the purchase of your next home.
2. Reinvest in Your Current House
According to a recent survey from <a href="https://hello.point.com/hubfs/PR/fall2022-homeowner-survey.pdf" title="Point" target="_blank" rel="noopener noreferrer">Point</a>, 39% of homeowners would invest in home improvement projects if they chose to access their equity. This is a great option if you want to change some things about your living space but you aren’t ready to make a move just yet.
Home improvement projects allow you to customize your home to suit your needs and sense of style. Just remember to think ahead with any updates you make, as some renovations add more value to your home and are more likely to appeal to future buyers than others. For example, a <a href="https://www.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf" title="report" target="_blank" rel="noopener noreferrer">report</a> from the National Association of Realtors (NAR) shows refinishing or replacing wood flooring has a high cost recovery. Lean on a local professional for the best advice on which projects to invest in to get the greatest return on your investment when you sell.
3. Pursue Your Personal Goals
In addition to making a move or updating your house, home equity can also help you achieve the life goals you’ve dreamed of. That could mean investing in a new business venture, retiring or downsizing, or funding an education. While you shouldn’t use your equity for unnecessary spending, leveraging it to start a business or putting it toward education costs can help you achieve other lifelong goals.
Bottom Line
Your equity can be a game changer. If you’re unsure how much equity you have in your home, let’s connect so you can start planning your next move.
2022-11-29T15:22:02-07:002022-11-29T15:28:16-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14338Your House Could Be the #1 Item on a Homebuyer’s Wish List During the Holidays<img width="750" height="410" src="https://files.mykcm.com/2022/11/22093516/your-house-could-be-the-number-one-item-on-a-homebuyers-wishlist-during-the-holidays-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Your House Could Be the #1 Item on a Homebuyer’s Wish List During the Holidays | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/22093516/your-house-could-be-the-number-one-item-on-a-homebuyers-wishlist-during-the-holidays-KCM.jpg 750w, https://files.mykcm.com/2022/11/22093516/your-house-could-be-the-number-one-item-on-a-homebuyers-wishlist-during-the-holidays-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/22093516/your-house-could-be-the-number-one-item-on-a-homebuyers-wishlist-during-the-holidays-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
Each year, homeowners planning to make a move are faced with a decision: sell their house <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="during the holidays" target="_blank" rel="noopener noreferrer">during the holidays</a> or wait. And others who have already listed their homes may think about removing their listings and waiting until the new year to go back on the market.
The truth is many buyers want to purchase a home for the holidays, and your house might be just what they’re looking for. Here are five great reasons you shouldn’t wait to sell your house.
1. While the <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="supply of homes" target="_blank" rel="noopener noreferrer">supply of homes</a> for sale has increased this year, there still aren’t enough homes on the market to keep up with buyer demand. As Nadia Evangelou, Senior Economist & Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.msn.com/en-us/money/realestate/soaring-mortgage-rates-get-all-the-attention-but-a-decade-of-underinvestment-in-housing-is-the-big-culprit-behind-the-country-s-affordability-crisis/ar-AA13H2ze" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“There’s still this gap between demand and supply because we were underbuilding for many years. . . . So now we see demand is slowing, but it still outpaces supply.”
2. Serious homebuyers are out looking right now. Millennials are driving homebuying demand today, and many are eager to make a purchase. Mark Fleming, Chief Economist at First American, <a href="https://www.thestreet.com/investing/housing-market-slump-forecast-continues-into-late-2023" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
"While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
3. The desire to <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="own a home" target="_blank" rel="noopener noreferrer">own a home</a> doesn’t stop during the holidays. In fact, homes decorated for the holidays appeal to many buyers. Plus, purchasers who look for homes during the holidays are ready to buy.
4. You can restrict the showings in your house to days and times that are most convenient for you. That can help you minimize disruptions, which is especially important this time of year.
5. Rents have <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" title="skyrocketed" target="_blank" rel="noopener noreferrer">skyrocketed</a> in recent years. And, many buyers are looking to escape <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="rising rents" target="_blank" rel="noopener noreferrer">rising rents</a> and avoid falling into the rental trap for another year. As an article from <a href="https://zillow.mediaroom.com/2022-09-29-Expert-panel-Expect-a-buyers-market-before-the-end-of-2023" title="Zillow" target="_blank" rel="noopener noreferrer">Zillow</a> says:
“Over the next 12 months, rents are expected to grow more than inflation, the stock market and home values."
Your home could be their ticket to leaving renting behind for good.
Bottom Line
There are still many reasons it makes sense to list your house during the holiday season. Let’s connect to determine if selling now is your best move.
2022-11-28T09:24:56-07:002022-11-28T09:28:26-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14311What Buyers Need To Know About the Inventory of Homes Available for Sale
<img width="750" height="410" src="https://files.mykcm.com/2022/11/21161633/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Buyers Need To Know About the Inventory of Homes Available for Sale | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/21161633/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale-KCM.jpg 750w, https://files.mykcm.com/2022/11/21161633/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/21161633/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/01/3-trends-that-are-good-news-for-todays-homebuyers/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a>, you’re likely trying to juggle your needs, current mortgage rates, home prices, your schedule, and more to try to decide if you want to jump into the market.
If this sounds like you, here’s one key factor that could help you with your decision: there are more homes for sale today than there were at this time last year. According to <a href="https://www.calculatedriskblog.com/2022/11/housing-november-21st-weekly-update.html" title="Calculated Risk" target="_blank" rel="noopener noreferrer">Calculated Risk</a>, for the week ending in November 18th, there were 47.7% more homes available for sale than there were at the same time in 2021. And having more options for your home search may be exactly what you need to feel confident about making a move.
Here’s a look at where the increased housing supply is coming from so you can get a better sense of what’s happening in the market today and what it means for you.
What Caused the Growth in Housing Inventory This Year?
The increase we’ve seen in housing supply this year isn’t from the source you think it is. Rather than an influx of recent homeowners listing their houses for sale (known as new listings), the primary reason the supply has grown is because homes are staying on the market a bit longer (known as active listings).
That’s happening because higher <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> and home prices have helped moderate the peak frenzy of buyer demand, which has slowed down the pace of sales. And, as the pace of sales has eased, inventory has grown as a result.
The graph below uses <a href="https://www.realtor.com/research/data/" title="data" target="_blank" rel="noopener noreferrer">data</a> from realtor.com to show that it’s active listings, not new listings, that have driven the growth we’ve seen over the past few months:
<a href="https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105927" src="https://files.mykcm.com/2022/11/21161631/more-homes-available-for-sale-but-not-due-to-new-listings-MEM.png" alt="What Buyers Need To Know About the Inventory of Homes Available for Sale | MyKCM" width="600" height="450" /></a>
And while overall inventory gains may slow down this winter due to typical housing market seasonality, you still have a chance to capitalize on the current supply.
What This Means for Your Home Search
Regardless of the source, the increase in available housing supply is good for buyers. More homes available for sale means you have more options to choose from as you search for your next home, and you may even have more time to consider them.
So, if you tried to buy a home last year and lost out in a bidding war or just couldn’t find something you liked, this may be the news you’ve been waiting for. If you start your search today, those additional options should make it less difficult to find a home you love, especially as some other buyers pause their search this holiday season.
Just remember, housing supply is still low overall, so it won’t suddenly be easy – it’ll just be less challenging than it was at this time last year. As a recent article from realtor.com <a href="https://www.realtor.com/research/october-2022-data/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Despite this improvement in the number of homes actively for sale, active listings still lag their pre-pandemic levels.”
The increase in housing supply helps put you in a great position to kick off the new year in your dream home. And who better to help you find it than a trusted, local real estate professional?
Bottom Line
If you’re ready to jump into the housing market and see what’s available in our local area, let’s connect.
2022-11-23T07:28:46-07:002022-11-23T07:39:55-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14236Why It May Be Time To Add Newly Built Homes to Your Search
<img width="750" height="410" src="https://files.mykcm.com/2022/11/14151103/why-it-may-be-time-to-add-newly-built-homes-to-your-search-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Why It May Be Time To Add Newly Built Homes to Your Search | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/14151103/why-it-may-be-time-to-add-newly-built-homes-to-your-search-KCM.jpg 750w, https://files.mykcm.com/2022/11/14151103/why-it-may-be-time-to-add-newly-built-homes-to-your-search-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/14151103/why-it-may-be-time-to-add-newly-built-homes-to-your-search-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you put a pause on your home search because you weren’t sure where you’d go once you <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sold your house" target="_blank" rel="noopener noreferrer">sold your house</a>, it might be a good time to get back into the market. If you’re willing to work with a trusted agent to consider a newly built home, you may have even more options and incentives than you realize. That may be why the National Association of Home Builders (NAHB) <a href="https://www.builderonline.com/data-analysis/share-of-buyers-looking-for-new-construction-homes-continues-to-increase_c" title="says" target="_blank" rel="noopener noreferrer">says</a> the share of buyers looking for new construction is increasing:
“According to the quarterly Housing Trends Report, the popularity of new construction homes is continuing to rebound . . .”
Here’s a few reasons more buyers may be drawn to newly built homes.
More Options To Choose from and Potential Builder Incentives
When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the inventory of existing homes has increased this year, it’s still <a href="https://www.calculatedriskblog.com/2022/11/housing-november-14th-weekly-update.html" title="below" target="_blank" rel="noopener noreferrer">below</a> more typical years like 2019. Currently, according to the National Association of Realtors (NAR), there is a <a href="https://www.nar.realtor/newsroom/existing-home-sales-decreased-1-5-in-september" title="3.2-month supply" target="_blank" rel="noopener noreferrer">3.2-month supply</a> at the current sales pace. For reference, a roughly 6-month supply is considered a balanced market, leaving us in a sellers’ market today.
While it’s a smaller segment of the overall inventory of homes for sale, the supply of newly built homes has grown even more. The National Association of Home Builders (NAHB) <a href="https://eyeonhousing.org/2022/10/new-home-sales-fall-back-in-september/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“New single-family home inventory remained elevated at a 9.2 months’ supply (of varying stages of construction). A measure near a 6 months’ supply is considered balanced.”
Here’s why this matters for you. While you have more homes to choose from in either category, there’s one extra benefit of newly built homes. Because the inventory of newly built homes has grown so much, builders are motivated to sell their properties before they build more.
Back in the housing <a href="https://www.simplifyingthemarket.com/2022/10/26/3-graphs-showing-why-todays-housing-market-isnt-like-2008/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="crash of 2008" target="_blank" rel="noopener noreferrer">crash of 2008</a>, builders were building too many homes, and that oversupply is part of what contributed to the housing bubble bursting. Now, builders don’t want to have a surplus of inventory in their pipeline, and many are offering buyers incentives to help move that inventory along. As Doug Duncan, Chief Economist at Fannie Mae, <a href="https://www.builderonline.com/data-analysis/new-home-sales-decline-10-9-in-september_o" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . a continual increase in the number of completed homes available for sale is now occurring, with the inventories of such homes now at the highest level since July 2020. . . . This suggests to us that builders may be increasingly willing to offer more aggressive incentives and discounts to maintain sales of completed inventory.”
While specifics will vary by builder and market, some buyers are seeing builders reduce prices and offer incentives. To find out what’s available in your area, lean on a trusted real estate professional.
Lifestyle Benefits of Buying a Newly Built Home
In addition to more supply and the potential for builder incentives, newly built homes have various benefits that may suit your lifestyle. For example, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. That can free up time for you to do other things you’re passionate about.
Another perk of a new home is that nothing in the house is used. It’s brand new and uniquely yours from day one. You’ll have all new appliances, windows, roofing, and more. These things can help lower your energy costs, which can add up to significant savings over time. You may even have the latest and greatest technology features built into your new home.
Builder <a href="https://www.builderonline.com/design/technology/what-drives-new-homebuyers-to-buy-new-build-homes-instead-of-existing" title="sums" target="_blank" rel="noopener noreferrer">sums</a> up why some buyers today are turning to newly built homes:
“For some, it’s the lure of something new and modern. For others, it’s the move-in ready experience. And now there’s another factor to consider when making this decision: technology.”
If any of these benefits appeal to you, it’s time to connect with a trusted real estate advisor to learn more.
Bottom Line
If you’re considering a newly built home, let’s connect so you have an expert guide on what’s available in our local market. Together we’ll explore your options and the benefits of an all-new home.
2022-11-15T13:33:57-07:002022-11-15T13:40:14-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14228Home Equity: A Source of Strength for Homeowners Today<img width="750" height="410" src="https://files.mykcm.com/2022/11/10112259/home-equity-a-source-of-strength-for-homeowners-today-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Home Equity: A Source of Strength for Homeowners Today | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/10112259/home-equity-a-source-of-strength-for-homeowners-today-KCM.jpg 750w, https://files.mykcm.com/2022/11/10112259/home-equity-a-source-of-strength-for-homeowners-today-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/10112259/home-equity-a-source-of-strength-for-homeowners-today-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
Experts agree there’s no chance of a large-scale <a href="https://www.simplifyingthemarket.com/2022/10/26/3-graphs-showing-why-todays-housing-market-isnt-like-2008/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="foreclosure crisis" target="_blank" rel="noopener noreferrer">foreclosure crisis</a> like we saw back in 2008, and that’s good news for the housing market. As Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/pandemic-boom-markets-cooling-the-fastest" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . don’t expect a housing bust like the mid-2000s, as lending standards in this housing cycle have been much tighter and homeowners have historically high levels of home equity, so there likely won’t be a surge in foreclosures.”
<a href="https://www.mba.org/news-and-research/newsroom/news/2022/10/17/share-of-mortgage-loans-in-forbearance-decreases-to-069-in-september-" title="Data" target="_blank" rel="noopener noreferrer">Data</a> from the Mortgage Bankers Association (MBA) helps tell this story. It shows the overall percentage of homeowners at risk is decreasing significantly with time (see graph below):
<a href="https://files.mykcm.com/2022/11/10112256/percent-of-mortgages-in-forebearance-decreases-to-0.69-percent-in-september-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105697" src="https://files.mykcm.com/2022/11/10112256/percent-of-mortgages-in-forebearance-decreases-to-0.69-percent-in-september-MEM.png" alt="Home Equity: A Source of Strength for Homeowners Today | MyKCM" width="600" height="450" /></a>But even though the volume of homeowners at risk is very low, there is still a small percentage of homeowners who may be coming face to face with foreclosure as a possibility today. If you’re facing difficulties yourself, it can help to understand your options. It starts with knowing what foreclosure is. Investopedia <a href="https://www.investopedia.com/terms/f/foreclosure.asp" title="defines" target="_blank" rel="noopener noreferrer">defines</a> it like this:
“Typically, default is triggered when a borrower misses a specific number of monthly payments . . . Foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.”
The good news is there are <a href="https://www.nerdwallet.com/article/mortgages/what-is-foreclosure" title="alternatives available" target="_blank" rel="noopener noreferrer">alternatives available</a> to help you avoid going through the foreclosure process, including:
Reinstatement
Loan modification
Deed-in-lieu of foreclosure
Short sale
But before you go down any of those paths, it’s worth seeing if you have enough equity in your home to sell it and protect your investment.
You May Be Able To Use Your Equity To Sell Your House
<a href="https://www.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="Equity" target="_blank" rel="noopener noreferrer">Equity</a> is the difference between what you owe on the home and its market value based on factors like price appreciation.
In today’s real estate market, many homeowners have far more equity in their homes than they realize due to the home price appreciation we’ve seen over the past few years. According to <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>:
“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”
So, what does that mean for you? If you’ve lived in your house for at least a few years or more, chances are your home’s value, and your equity, has <a href="https://www.simplifyingthemarket.com/2022/10/05/the-long-term-benefit-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="risen dramatically" target="_blank" rel="noopener noreferrer">risen dramatically</a>. In addition, the mortgage payments you’ve made during that time chipped away at the balance of your loan. If your home’s <a href="https://www.simplifyingthemarket.com/2022/09/26/the-true-strength-of-homeowners-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="current value" target="_blank" rel="noopener noreferrer">current value</a> is higher than what you still owe on your loan, you may be able to use that increase to your advantage.
Rick Sharga, Executive VP of Market Intelligence at ATTOM Data, <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-september-and-q3-2022-u-s-foreclosure-market-report/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> how equity can help:
“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure. . . We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”
Lean on Experts To Explore Your Options
To find out how much equity you have, work with a local real estate professional. They can give you an estimate of what your house could sell for based on recent sales of similar homes in your area. You may be able to sell your house to avoid foreclosure.
If you find out you have to pursue other options, your agent can help with that too. They’ll be able to connect you with other professionals in the industry, like housing counselors, who can look into your unique situation and offer advice on next steps if selling isn’t your best alternative.
Bottom Line
If you’re a homeowner facing hardship, let’s connect so you have an expert on your side to explore your options and see if you can sell your house to avoid foreclosure.
2022-11-14T11:38:50-07:002022-11-14T11:40:12-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14194VA Loans Can Help Veterans Achieve Their Dream of HomeownershipFor over 78 years, Veterans Affairs (VA) home loans have provided millions of veterans with the opportunity to <a href="https://www.simplifyingthemarket.com/2022/11/01/3-trends-that-are-good-news-for-todays-homebuyers/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="purchase" target="_blank" rel="noopener noreferrer" style="font-size: 17px;">purchase</a> homes of their own. If you or a loved one have served, it’s important to understand this program and its benefits.
Here are some things you should know about VA loans before you start the homebuying process.
What Are VA Loans?
VA home loans provide a pathway to homeownership for those who have served our nation. The <a href="https://www.benefits.va.gov/homeloans/index.asp" title="U.S. Department of Veterans Affairs" target="_blank" rel="noopener noreferrer">U.S. Department of Veterans Affairs</a> describes the program like this:
“VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy.”
Top Benefits of the VA Home Loan Program
In addition to helping eligible buyers achieve their homeownership dreams, VA loans have several other great benefits for buyers who qualify. According to the <a href="https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/" title="Department of Veteran Affairs" target="_blank" rel="noopener noreferrer">Department of Veteran Affairs</a>:
Qualified borrowers can often purchase a home with no down payment.
Many other loans with down payments under 20% require Private Mortgage Insurance (PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.
VA-Backed Loans often offer competitive terms and mortgage interest rates.
A recent article from <a href="https://www.veteransunited.com/valoans/10-things-many-borrowers-dont-know-about-va-loans/" title="Veterans United" target="_blank" rel="noopener noreferrer">Veterans United</a> sums up just how impactful this loan option can be:
“For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market. These flexible, $0-down payment mortgages have helped more than 24 million service members become homeowners since 1944.”
John Bell, Acting Executive Director of the Department of Veterans Affairs Loan Guaranty Service, also <a href="https://www.nar.realtor/videos/va-home-loans-part-2-reducing-barriers-for-va-borrowers" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why this program is so powerful:
“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long term financial security by being able to own a house and let that equity grow.”
Bottom Line
Homeownership is the <a href="https://www.simplifyingthemarket.com/2022/11/08/the-majority-of-americans-still-view-homeownership-as-the-american-dream/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="American Dream" target="_blank" rel="noopener noreferrer">American Dream</a>. Our veterans sacrifice so much in service of our nation, and one way we can honor and thank them is to ensure they have the best information about the benefits of VA home loans. Thank you for your service.
2022-11-10T14:59:40-07:002022-11-10T15:02:24-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14174What’s Ahead for Mortgage Rates and Home Prices?
<img width="750" height="410" src="https://files.mykcm.com/2022/11/08144742/whats-ahead-for-mortgage-rates-and-home-prices-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What’s Ahead for Mortgage Rates and Home Prices? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/08144742/whats-ahead-for-mortgage-rates-and-home-prices-KCM.jpg 750w, https://files.mykcm.com/2022/11/08144742/whats-ahead-for-mortgage-rates-and-home-prices-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/08144742/whats-ahead-for-mortgage-rates-and-home-prices-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Now that the end of 2022 is within sight, you may be wondering what’s going to happen in the housing market next year and what that may mean if you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a>. Here’s a look at the latest expert insights on both mortgage rates and home prices so you can make your best move possible.
Mortgage Rates Will Continue To Respond to Inflation
There’s no doubt <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> have skyrocketed this year as the market responded to high inflation. The <a href="https://www.freddiemac.com/pmms/archive" title="increases" target="_blank" rel="noopener noreferrer">increases</a> we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate even surpassed <a href="https://freddiemac.gcs-web.com/node/26166/pdf" title="7%" target="_blank" rel="noopener noreferrer">7%</a> at the end of last month. In fact, it’s the first time they’ve risen this high in over 20 years (see graph below):
<a href="https://files.mykcm.com/2022/11/08144740/mortgage-rates-rising-this-year-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105632" src="https://files.mykcm.com/2022/11/08144740/mortgage-rates-rising-this-year-MEM.png" alt="What’s Ahead for Mortgage Rates and Home Prices? | MyKCM" width="600" height="450" /></a>
In their latest quarterly report, Freddie Mac <a href="https://www.freddiemac.com/research/forecast/20221021-quarterly-forecast-rapidly-rising-rates-declining-demand-driving-housing-market" title="explains" target="_blank" rel="noopener noreferrer">explains</a> just how fast the climb in rates has been:
“Just one year ago, rates were under 3%. This means that while mortgage rates are not as high as they were in the 80’s, they have more than doubled in the past year. Mortgage rates have never doubled in a year before.”
Because we’re in unprecedented territory, it’s hard to say with certainty where mortgage rates will go from here. Projecting the future of mortgage rates is far from an exact science, but experts do agree that, moving forward, mortgage rates will continue to respond to inflation. If inflation stays high, mortgage rates likely will too.
Home Price Changes Will Vary by Market
As <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buyer demand" target="_blank" rel="noopener noreferrer">buyer demand</a> has eased this year in response to those higher mortgage rates, home prices have moderated in many markets too. In terms of the forecast for next year, expert projections are mixed. The general consensus is home price appreciation will vary by local market, with more significant changes happening in overheated areas. As Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/pandemic-boom-markets-cooling-the-fastest" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”
Basically, some areas may still see slight price growth while others may see slight price declines. It all depends on other factors at play in that local market, like the balance between supply and demand. This may be why experts are divided on their latest national forecasts (see graph below):
<a href="https://files.mykcm.com/2022/11/08144736/home-price-forecasts-for-2023-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105631" src="https://files.mykcm.com/2022/11/08144736/home-price-forecasts-for-2023-MEM.png" alt="What’s Ahead for Mortgage Rates and Home Prices? | MyKCM" width="600" height="450" /></a>
Bottom Line
If you want to know what’s happening with home prices or mortgage rates, let’s connect so you have the latest on what experts are saying and what that means for our area.
2022-11-09T15:17:24-07:002022-11-09T15:41:54-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14156The Majority of Americans Still View Homeownership as the American Dream
<img width="750" height="410" src="https://files.mykcm.com/2022/11/07102109/the-majority-of-americans-still-view-homeownership-as-the-american-dream-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="The Majority of Americans Still View Homeownership as the American Dream | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/07102109/the-majority-of-americans-still-view-homeownership-as-the-american-dream-KCM.jpg 750w, https://files.mykcm.com/2022/11/07102109/the-majority-of-americans-still-view-homeownership-as-the-american-dream-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/07102109/the-majority-of-americans-still-view-homeownership-as-the-american-dream-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Buying a home is a powerful decision, and it remains a key part of the American Dream. In fact, the 2022 Consumer Insights Report from <a href="https://www.mynd.co/real-estate-market-consumer-insight-report" title="Mynd" target="_blank" rel="noopener noreferrer">Mynd</a> found the majority of people polled still view homeownership as a key life achievement. Let’s explore just a few of the reasons why so many Americans continue to value homeownership.
The Financial Benefits of Owning a Home
One possible reason homeownership is viewed so highly is because owning a home is a significant <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="wealth-building tool" target="_blank" rel="noopener noreferrer">wealth-building tool</a>, and it provides meaningful <a href="https://www.simplifyingthemarket.com/2022/10/19/should-you-still-buy-a-home-with-the-latest-news-about-inflation/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="financial stability" target="_blank" rel="noopener noreferrer">financial stability</a> over renting by locking in your monthly housing payments for the length of your home loan. An article from <a href="https://www.forbes.com/sites/forbesfinancecouncil/2022/08/03/three-ways-homeownership-can-build-wealth/?sh=196ed94423e5" title="Forbes" target="_blank" rel="noopener noreferrer">Forbes</a> explains:
“Understanding the potential benefits of homeownership helps individuals see the value of owning property instead of renting. . . . household wealth among homeowners is a whopping 1,469% higher on average compared to renters, excluding home equity, making the allure of homeownership even more enticing.”
Over time, owning a home not only helps boost your own <a href="https://www.simplifyingthemarket.com/2022/09/06/how-owning-a-home-builds-your-net-worth/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a>, but it also sets future generations up for success as you pass that wealth down. That may be why the Mynd <a href="https://www.mynd.co/real-estate-market-consumer-insight-report" title="report" target="_blank" rel="noopener noreferrer">report</a> also says:
“Most Americans (78%) still associate homeownership with the ‘American dream.’ And nearly two-thirds of Americans (65%) see homeownership as a means of building intergenerational wealth.”
The Non-Financial Benefits of Homeownership
While the financial benefits of owning a home are important, becoming a homeowner impacts you on a social and emotional level, too. As Mark Fleming, Chief Economist for First American, <a href="https://blog.firstam.com/economics/the-reconomy-podcast-what-is-the-fed-signaling-on-interest-rates" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . buying a home is not just a financial decision. It's also a lifestyle decision.”
Your home provides feelings of achievement, responsibility, and more. <a href="https://3by30.org/homeownership-101/benefits-of-homeownership/" title="3by30" target="_blank" rel="noopener noreferrer">3by30</a> highlights the top 10 benefits homeowners enjoy. A few non-financial advantages include:
Providing you with more freedom and control over your living space
Giving you a greater sense of pride
Helps with community engagement
What Does That Mean for You?
If your definition of the American Dream involves greater freedom and prosperity, then homeownership could play a major role in helping you <a href="https://www.simplifyingthemarket.com/2022/10/14/tips-for-first-time-homebuyers-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="achieve that dream" target="_blank" rel="noopener noreferrer">achieve that dream</a>. While it may feel challenging to buy a home today as <a href="https://www.simplifyingthemarket.com/2022/10/12/four-things-that-help-determine-your-mortgage-rate/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> and <a href="https://www.simplifyingthemarket.com/2022/10/20/whats-ahead-for-home-prices/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> rise, if the time is right for you, know that there are <a href="https://www.simplifyingthemarket.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="incredible benefits" target="_blank" rel="noopener noreferrer">incredible benefits</a> waiting for you at the end of your journey. You’ll have a place you can <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="grow your wealth" target="_blank" rel="noopener noreferrer">grow your wealth</a>, call your own, and feel most comfortable.
Like the National Association of Realtors (NAR) <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . research has consistently shown that homeownership is also associated with multiple economic and social benefits to individual homeowners. Homeownership has always been an important way to build wealth.”
Bottom Line
Buying a home is a powerful decision and a key part of the long-term dream for many Americans. And if homeownership is part of your dreams this year, let’s connect to start the process today.
2022-11-08T08:13:49-07:002022-11-08T08:21:12-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:141073 Trends That Are Good News for Today’s Homebuyers
<img width="750" height="410" src="https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="3 Trends That Are Good News for Today’s Homebuyers | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM.jpg 750w, https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/10/31110909/3-trends-that-are-good-news-for-todays-homebuyers-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
While higher <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are creating affordability challenges for <a href="https://www.simplifyingthemarket.com/2022/10/19/should-you-still-buy-a-home-with-the-latest-news-about-inflation/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="homebuyers" target="_blank" rel="noopener noreferrer">homebuyers</a> this year, there is some good news for those people still looking to buy a home.
As the market has cooled this year, some of the intensity buyers faced during the peak frenzy of the pandemic has cooled too. Here are just a few trends that may benefit you when you go to buy a home today.
1. More Homes To Choose from
During the pandemic, housing supply hit a record low at the same time buyer demand skyrocketed. This combination made it difficult to find a home because there just weren’t enough to meet buyer demand. According to Calculated Risk, the supply of homes for sale increased by <a href="https://www.calculatedriskblog.com/2022/10/housing-october-31st-weekly-update.html" title="39.5%" target="_blank" rel="noopener noreferrer">39.5%</a> for the week ending October 28 compared to the same week last year.
Even though it’s still a sellers’ market and supply is still lower than more normal levels, you have more to choose from in your home search. That makes finding your dream home a bit less difficult.
2. Bidding Wars Have Eased
One of the top stories in real estate over the past two years was the intensity and frequency of bidding wars. But today, things are different. With more options, you’ll likely see less competition from other buyers looking for homes. According to the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-09-realtors-confidence-index-10-20-2022.pdf" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the average number of offers on recently sold homes has declined. This September, the average was 2.5 offers per sale. In contrast, last September, the average was 3.7 offers per sale.
If you tried to buy a house over the past two years, you probably experienced the bidding war frenzy firsthand and may have been outbid on several homes along the way. Now you have a chance to jump back into the market and enjoy searching for a home with less competition.
3. More Negotiation Power
And when you have less competition, you also have more negotiating power as a buyer. Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or <a href="https://www.simplifyingthemarket.com/2022/08/19/why-a-home-inspection-is-important-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inspection" target="_blank" rel="noopener noreferrer">inspection</a>, to try to win a bidding war. But the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-09-realtors-confidence-index-10-20-2022.pdf" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from the National Association of Realtors (NAR) shows the percentage of buyers waiving those contingencies is going down.
As a buyer, this is good news. The appraisal and the inspection give you important information about the value and condition of the home you’re buying. And if something turns up in the inspection, you have more power today to renegotiate with the seller.
A <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" title="survey" target="_blank" rel="noopener noreferrer">survey</a> from realtor.com confirms more sellers are accepting offers that include contingencies today. According to that report, 95% of sellers said buyers requested a home inspection, and 67% negotiated with buyers on repairs as a result of the inspection findings.
Bottom Line
While buyers still face challenges today, they’re not necessarily the same ones you may have been up against just a year or so ago. If you were outbid or had trouble finding a home in the past, now may be the moment you’ve been waiting for. Let’s connect to start the homebuying process today.
2022-11-01T14:20:18-07:002022-11-01T14:22:30-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14072Applying for a Mortgage Doesn’t Have To Be Scary [INFOGRAPHIC]
<img width="1046" height="2514" src="https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-1046x2514.png" class="attachment-entry size-entry wp-post-image" alt="Applying for a Mortgage Doesn’t Have To Be Scary [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-1046x2514.png 1046w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-250x600.png 250w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-426x1024.png 426w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-768x1846.png 768w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-639x1536.png 639w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-852x2048.png 852w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM-100x240.png 100w, https://files.mykcm.com/2022/10/27090656/applying-for-a-mortgage-doesnt-have-to-be-scary-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
Even with higher mortgage rates, the <a href="https://www.simplifyingthemarket.com/2022/10/12/four-things-that-help-determine-your-mortgage-rate/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage process" target="_blank" rel="noopener noreferrer">mortgage process</a> doesn’t need to be something you fear. Here are some steps to help as you set out to buy a home.
Know your <a href="https://myhome.freddiemac.com/buying/what-can-you-afford.html" title="credit score" target="_blank" rel="noopener noreferrer">credit score</a> and work to build strong credit. When you’re ready, <a href="https://myhome.freddiemac.com/buying/finding-your-team" title="lean on the pros" target="_blank" rel="noopener noreferrer">lean on the pros</a> and connect with a <a href="https://myhome.freddiemac.com/buying/finding-the-right-loan.html" title="lender" target="_blank" rel="noopener noreferrer">lender</a> so you can get <a href="https://www.simplifyingthemarket.com/2022/10/24/pre-approval-is-a-critical-first-step-on-your-homebuying-journey/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a> and begin your <a href="https://www.simplifyingthemarket.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home search" target="_blank" rel="noopener noreferrer">home search</a>.
Any major life change can be scary, and buying a home is no different. Let’s connect so you have an advisor by your side to take fear out of the equation.
2022-10-28T06:20:53-07:002022-10-28T06:24:37-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14064Millennials Are Still a Driving Force of Today’s Buyer Demand
<img width="750" height="410" src="https://files.mykcm.com/2022/10/25130523/millennials-are-still-a-driving-force-of-todays-buyer-demand-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Millennials Are Still a Driving Force of Today’s Buyer Demand | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/25130523/millennials-are-still-a-driving-force-of-todays-buyer-demand-KCM.jpg 750w, https://files.mykcm.com/2022/10/25130523/millennials-are-still-a-driving-force-of-todays-buyer-demand-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/10/25130523/millennials-are-still-a-driving-force-of-todays-buyer-demand-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/10/13/perspective-matters-when-selling-your-house-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="selling your house" target="_blank" rel="noopener noreferrer">selling your house</a> but wondering if buyers are still out there, know that there are still people who are searching for a home to buy today. And your house may be exactly what they’re looking for.
While the millennial generation has been dubbed the <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="renter" target="_blank" rel="noopener noreferrer">renter</a> generation, that namesake may not be appropriate anymore. Millennials, the largest generation, are actually a significant driving force for buyer demand in the housing market today. Here’s why.
Millennial Homebuying Power
While there’s no denying higher <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are making it more challenging to afford a home today, many millennials are still eager and able to buy homes – whether it’s their first or they’re moving up. That’s in large part because of the value they place on education.
A <a href="https://blog.firstam.com/economics/why-educated-millennials-still-hold-the-key-to-future-homeownership-demand" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> from First American says millennials may be the most educated generation in our nation’s history. Because of that, they tend to earn higher wages, and that translates to greater homebuying power. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-educated-millennials-still-hold-the-key-to-future-homeownership-demand" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In 2020, millennials with a bachelor’s degree had a median household income of over $100,000, while those with at least a graduate degree had a median household income of over $120,000. Compare those income levels with the median household income of millennials with just a high school degree (or some college) of $60,000 and the earning power benefits of higher education are undeniable. . . . Millennials’ pursuit of higher education is good news for the housing market. . . because education is the key to unlock both greater earning power and, in turn, homeownership.”
And since wages are one of the key things that factor into affordability when it comes to buying a home, these higher earnings can help millennials achieve their homeownership goals.
Millennials Continue To Be a Driving Force of Demand
A number of studies have looked into how the millennial generation views homeownership and how they’re uniquely positioned to define the housing market moving forward. As the largest generation, the volume of potential millennial homebuyers will have an impact on the market for years to come. As an article in Forbes <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2022/05/25/the-power-to-drive-change-how-millennials-are-affecting-the-housing-market/?sh=3c55ec63716c" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”
If you’re thinking of selling your house but are hesitant because you’re worried that <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buyer demand" target="_blank" rel="noopener noreferrer">buyer demand</a> has disappeared in the face of higher mortgage rates, know that isn’t the case for everyone. While demand has eased this year, millennials are still looking for homes. As Mark Fleming, Chief Economist at First American, <a href="https://www.thestreet.com/investing/housing-market-slump-forecast-continues-into-late-2023" title="says" target="_blank" rel="noopener noreferrer">says</a> in an article:
"While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”
Bottom Line
Millennials are interested in and well-positioned to achieve their homeownership dreams. If you’re ready to sell your house, know that it may be just what they’re looking for.
2022-10-27T07:03:12-07:002022-10-27T07:06:15-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:140603 Graphs Showing Why Today’s Housing Market Isn’t Like 2008
<img width="750" height="410" src="https://files.mykcm.com/2022/10/25110844/3-graphs-showing-why-todays-housing-market-isnt-like-2008-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/25110844/3-graphs-showing-why-todays-housing-market-isnt-like-2008-KCM.jpg 750w, https://files.mykcm.com/2022/10/25110844/3-graphs-showing-why-todays-housing-market-isnt-like-2008-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/10/25110844/3-graphs-showing-why-todays-housing-market-isnt-like-2008-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With all the headlines and talk in the media about the <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="shift" target="_blank" rel="noopener noreferrer">shift</a> in the housing market, you might be thinking this is a housing bubble. It’s only natural for those thoughts to creep in that make you think it could be a repeat of what took place in 2008. But the good news is, there’s concrete data to show why this is nothing like the last time.
There’s Still a Shortage of Homes on the Market Today, Not a Surplus
For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="Supply" target="_blank" rel="noopener noreferrer">Supply</a> has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to almost 15 years of underbuilding homes.
The graph below uses <a href="https://www.nar.realtor/newsroom/existing-home-sales-decreased-1-5-in-september" title="data" target="_blank" rel="noopener noreferrer">data</a> from the National Association of Realtors (NAR) to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 3.2-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for <a href="https://www.simplifyingthemarket.com/2022/10/20/whats-ahead-for-home-prices/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> to come crashing down like they did last time, even though some overheated markets may experience slight declines.
<a href="https://files.mykcm.com/2022/10/25110841/supply-of-homes-is-nothing-like-last-time-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105320" src="https://files.mykcm.com/2022/10/25110841/supply-of-homes-is-nothing-like-last-time-MEM.png" alt="3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | MyKCM" width="600" height="450" /></a>
Mortgage Standards Were Much More Relaxed Back Then
During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Running up to 2006, banks were creating artificial demand by lowering <a href="https://www.simplifyingthemarket.com/2022/06/01/why-home-loans-today-arent-what-they-were-in-the-past/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="lending standards" target="_blank" rel="noopener noreferrer">lending standards</a> and making it easy for just about anyone to qualify for a home loan or refinance their current home.
Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies.
The graph below uses Mortgage Credit Availability Index (MCAI) <a href="https://www.mba.org/news-and-research/newsroom/news/2022/10/11/mortgage-credit-availability-decreased-in-september" title="data" target="_blank" rel="noopener noreferrer">data</a> from the Mortgage Bankers Association (MBA) to help tell this story. In that index, the higher the number, the easier it is to get a mortgage. The lower the number, the harder it is. In the latest report, the index fell by 5.4%, indicating standards are tightening.
<a href="https://files.mykcm.com/2022/10/25110839/lending-standards-still-under-control-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105319" src="https://files.mykcm.com/2022/10/25110839/lending-standards-still-under-control-MEM.png" alt="3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | MyKCM" width="600" height="450" /></a>
This graph also shows just how different things are today compared to the spike in credit availability leading up to the crash. Tighter lending standards over the past 14 years have helped prevent a scenario that would lead to a wave of foreclosures like the last time.
The Foreclosure Volume Is Nothing Like It Was During the Crash
Another difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans. The graph below uses <a href="https://www.attomdata.com/wp-content/uploads/2022/10/Foreclosure-Starts-Q322.jpg" title="data" target="_blank" rel="noopener noreferrer">data</a> from ATTOM Data Solutions to help paint the picture of how different things are this time:
<a href="https://files.mykcm.com/2022/10/25110845/foreclosure-starts-then-and-now-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105322" src="https://files.mykcm.com/2022/10/25110845/foreclosure-starts-then-and-now-MEM.png" alt="3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | MyKCM" width="600" height="450" /></a>
Not to mention, homeowners today have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Today, many homeowners are <a href="https://www.simplifyingthemarket.com/2022/09/26/the-true-strength-of-homeowners-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="equity rich" target="_blank" rel="noopener noreferrer">equity rich</a>. That equity comes, in large part, from the way home prices have appreciated over time. <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="According" target="_blank" rel="noopener noreferrer">According</a> to CoreLogic:
“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”
Rick Sharga, Executive VP of Market Intelligence at ATTOM Data, <a href="https://www.attomdata.com/news/market-trends/foreclosures/attom-september-and-q3-2022-u-s-foreclosure-market-report/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> the impact this has:
“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure. . . . We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”
This goes to show homeowners are in a completely different position this time. For those facing challenges today, many have the option to use <a href="https://www.simplifyingthemarket.com/2022/10/05/the-long-term-benefit-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="their equity" target="_blank" rel="noopener noreferrer">their equity</a> to sell their house and avoid the foreclosure process.
Bottom Line
If you’re concerned we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your fears. Concrete data and expert insights clearly show why this is nothing like the last time.
2022-10-26T14:09:16-07:002022-10-26T14:13:51-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:14045What Happens to Housing when There’s a Recession?
<img width="750" height="410" src="https://files.mykcm.com/2022/10/24110945/what-happens-to-housing-when-theres-a-recession-KCM.png" class="attachment-entry size-entry wp-post-image" alt="What Happens to Housing when There’s a Recession? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/24110945/what-happens-to-housing-when-theres-a-recession-KCM.png 750w, https://files.mykcm.com/2022/10/24110945/what-happens-to-housing-when-theres-a-recession-KCM-600x328.png 600w, https://files.mykcm.com/2022/10/24110945/what-happens-to-housing-when-theres-a-recession-KCM-100x55.png 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Since the 2008 housing bubble burst, the word recession strikes a stronger emotional chord than it ever did before. And while there’s some debate around whether we’re officially in a recession right now, the good news is experts say a recession today would likely be mild and the economy would rebound quickly. As the 2022 CEO Outlook from KPMG <a href="https://home.kpmg/xx/en/home/media/press-releases/2022/09/global-ceo-short-recession-optimistic-global-economy-over-3-years.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . .
More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.”
To add to that sentiment, housing is typically one of the first sectors to rebound during a slowdown. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.builderonline.com/data-analysis/single-family-housing-demand-will-remain-solid-for-the-next-decade_o" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Housing is traditionally one of the first sectors to slow as the economy shifts but is also one of the first to rebound.”
Part of that rebound is tied to what has historically happened to mortgage rates during recessions. Here’s a look back at rates during previous economic slowdowns to help put your mind at ease.
Mortgage Rates Typically Fall During Recessions
<a href="https://mtg-specialists.com/2022/05/11/recession-interest-rates-and-real-estate/" title="Historical data" target="_blank" rel="noopener noreferrer">Historical data</a> helps paint the picture of how a recession could impact the cost of financing a home. Looking at recessions in this country going all the way back to 1980, the graph below shows 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/2022/10/24110947/a-recession-means-falling-mortgage-rates-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105278" src="https://files.mykcm.com/2022/10/24110947/a-recession-means-falling-mortgage-rates-MEM.png" alt="What Happens to Housing when There’s a Recession? | MyKCM" width="600" height="450" /></a><br />Fortune <a href="https://fortune.com/2019/06/19/next-recession-assets-mortgage-rates/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> mortgage rates typically fall during an economic slowdown:
“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”
While history doesn’t always repeat itself, we can learn from and find comfort in the trends of what’s happened in the past. If you’re thinking about buying or selling a home, you can make the best decision by working with a trusted <a href="https://www.simplifyingthemarket.com/2022/09/27/how-an-expert-can-help-you-understand-inflation-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate professional" target="_blank" rel="noopener noreferrer">real estate professional</a>. That way you have expert advice on what a recession could mean for the housing market.
Bottom Line
History shows you don’t need to fear the word recession when it comes to the housing market. If you have questions about what’s happening today, let’s connect so you have expert advice and insights you can trust.
2022-10-25T13:24:09-07:002022-10-25T13:34:33-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13999Pre-Approval Is a Critical First Step on Your Homebuying Journey
<img width="750" height="410" src="https://files.mykcm.com/2022/10/20111034/pre-approval-is-a-critical-first-step-on-your-homebuying-journey-share-KCM.png" class="attachment-entry size-entry wp-post-image" alt="Pre-Approval Is a Critical First Step on Your Homebuying Journey | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/20111034/pre-approval-is-a-critical-first-step-on-your-homebuying-journey-share-KCM.png 750w, https://files.mykcm.com/2022/10/20111034/pre-approval-is-a-critical-first-step-on-your-homebuying-journey-share-KCM-600x328.png 600w, https://files.mykcm.com/2022/10/20111034/pre-approval-is-a-critical-first-step-on-your-homebuying-journey-share-KCM-100x55.png 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re planning to <a href="https://www.simplifyingthemarket.com/2022/10/06/two-questions-every-homebuyer-should-ask-themselves-right-now/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> this year, one of the first steps on your <a href="https://www.simplifyingthemarket.com/2022/10/07/the-journey-to-buy-a-home-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="journey" target="_blank" rel="noopener noreferrer">journey</a> is getting pre-approved. Especially in today’s market when <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> are higher than they were just a few months ago, getting a <a href="https://www.simplifyingthemarket.com/2022/09/16/a-crucial-first-step-mortgage-pre-approval-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage pre-approval" target="_blank" rel="noopener noreferrer">mortgage pre-approval</a> can be a game changer. Here’s why.
What Is Pre-Approval?
To better understand why pre-approval is key, it’s important to know what pre-approval is. The Mortgage Reports <a href="https://themortgagereports.com/62952/how-to-get-mortgage-preapproval-in-3-steps" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“When you’re ready to take the leap into homeownership, your first step is mortgage preapproval. . . . A mortgage preapproval is when a lender determines you’re qualified for a home loan. Your preapproval letter shows the maximum loan amount you’re approved for (your home buying budget), as well as the specific interest rate and loan term you can expect.”
As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand your true price range and how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with <a href="https://www.simplifyingthemarket.com/2022/10/12/four-things-that-help-determine-your-mortgage-rate/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> rising and impacting affordability, a solid understanding of your numbers is even more important.
Pre-Approval Can Signal You’re a Serious Buyer
Another added benefit is that pre-approval lets the seller know you’re qualified to buy their house. A recent article from realtor.com <a href="https://www.realtor.com/advice/finance/do-i-need-a-pre-approval-letter-to-make-an-offer/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
". . . getting pre-approved can actually improve your chances of falling into the sellers’ good graces, and you’ll want to get it done as early as you possibly can in the home-buying process."
Even though <a href="https://www.simplifyingthemarket.com/2022/08/31/buyers-you-may-face-less-competition-as-bidding-wars-ease/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="bidding wars" target="_blank" rel="noopener noreferrer">bidding wars</a> are easing this year as the market shifts, preapproval is still an important part of making a strong offer. It can help a seller feel more confident because it shows you’re serious about their home and that you’re a qualified buyer.
Bottom Line
Getting pre-approved for a mortgage is critical. It helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to succeed as a homebuyer in today’s market.
2022-10-24T07:22:37-07:002022-10-24T07:27:50-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13986What’s Ahead for Home Prices?
<img width="750" height="410" src="https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What’s Ahead for Home Prices? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/19093404/20221020-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As the <a href="https://www.simplifyingthemarket.com/2022/10/11/what-are-experts-saying-about-the-fall-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> cools in response to the dramatic rise in <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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.
2022-10-20T07:29:34-07:002022-10-20T07:32:57-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13960The Latest on Supply and Demand in Housing
<img width="750" height="410" src="https://files.mykcm.com/2022/10/14164955/20221018-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Latest on Supply and Demand in Housing | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/14164955/20221018-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/14164955/20221018-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/14164955/20221018-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Over the past two years, the substantial imbalance of low housing supply and high buyer demand pushed home sales and buyer competition to new heights. But this year, things are shifting as supply and demand reach an <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inflection point" target="_blank" rel="noopener noreferrer">inflection point</a>.
The graph below helps tell the story of just how different things are today.
<img class="aligncenter wp-image-105104" src="https://files.mykcm.com/2022/10/14164953/20221020-MEM-Eng-1.png" alt="The Latest on Supply and Demand in Housing | MyKCM" width="600" height="450" />
This year, buyer demand has eased as higher <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> and mounting economic uncertainty moderated the market. This slowdown in demand is clear when you look at the red bar on the graph. It uses the <a href="https://www.showingtime.com/blog/august-2022-showing-index-results/" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from ShowingTime to illustrate how showings (an indicator of buyer demand) have softened by just over 12% compared to the same time last year.
Now for a look at how housing supply has changed, turn to the green bar. It uses <a href="https://news.move.com/2022-09-29-Realtor-com-R-September-Housing-Report-Fall-Home-Shoppers-Find-More-Options-Amid-Still-High-Listing-Prices" title="data" target="_blank" rel="noopener noreferrer">data</a> from realtor.com to show active listings are up nearly 27% compared to last year. That’s because the moderation of demand allowed housing inventory to increase in 2022.
What Does This Inflection Point Mean for Buyers?
If you’re thinking of buying a home, you’ll have less competition and more options than you would have had last year. Enjoy having more homes to choose from in your home search and lean on a trusted real estate professional to understand how the increase in supply has also increased your <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="negotiation" target="_blank" rel="noopener noreferrer">negotiation</a> power. That professional can talk you through the opportunities and challenges buyers face in today’s shifting market. You may be surprised to find they’re different than they were a year ago.
What Does This Inflection Point Mean for Sellers?
If you’re looking to sell your house, know that inventory is still low overall. That means, if you work with an agent to <a href="https://www.simplifyingthemarket.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="price your house" target="_blank" rel="noopener noreferrer">price your house</a> based on current market value, it will still sell despite the inventory gains and moderating <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buyer demand" target="_blank" rel="noopener noreferrer">buyer demand</a> this year. That’s because there are still buyers out there who want to move, and your house may be exactly what they’re looking for.
Bottom Line
If you’re thinking of buying or selling a home, the best place to turn to for information on today's supply and demand is a trusted real estate professional. Let’s connect so you know what’s happening in our local market and what that means for you.
2022-10-18T09:04:50-07:002022-10-18T09:10:24-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13948The Emotional and Non-financial Benefits of Homeownership
<img width="750" height="410" src="https://files.mykcm.com/2022/10/14103825/20221017-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Emotional and Non-financial Benefits of Homeownership | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/14103825/20221017-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/14103825/20221017-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/14103825/20221017-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With higher <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>, you might be wondering if now's the best time to buy a home. While the <a href="https://www.simplifyingthemarket.com/2022/10/05/the-long-term-benefit-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="financial aspects" target="_blank" rel="noopener noreferrer">financial aspects</a> are important to consider, there are also powerful non-financial reasons it may make sense to make a move. Here are just a few of the benefits that come with homeownership.
Homeowners Can Make Their Home Truly Their Own
Owning your home gives you a significant sense of accomplishment because it’s a space you can customize to your heart’s desire. That can bring you added happiness.
In fact, a <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf" title="report" target="_blank" rel="noopener noreferrer">report</a> from the National Association of Realtors (NAR) shows making updates or remodeling your home can help you feel more at ease and comfortable in your living space. NAR measures this with a Joy Score that indicates how much happiness specific home upgrades bring. According to NAR:
“There were numerous interior projects that received a perfect Joy Score of 10: paint entire interior of home, paint one room of home, add a new home office, hardwood flooring refinish, new wood flooring, closet renovation, insulation upgrade, and attic conversion to living area.”
And as a homeowner, unless there are specific homeowner’s association requirements, you typically won’t have to worry about the changes you can and can’t make.
If you <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="rent" target="_blank" rel="noopener noreferrer">rent</a>, you may not have the same freedom. And if you do make changes as a renter, there’s a good chance you’ll need to revert them back at the end of your lease based on your rental agreement. That can add additional costs when you move out.
The Responsibilities of Homeownership Give You a Greater Sense of Achievement
There’s no denying taking care of your home is a large responsibility, but it’s one you’ll take pride in as a homeowner. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/4-benefits-owning-home" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“As the homeowner, you have the freedom to adopt a pet, paint the walls any color you choose, renovate your kitchen, and more. . . . Of course, along with the freedoms of homeownership come responsibilities, such as making your monthly mortgage payments on time and maintaining your home. But as the property owner, you'll be caring for your own investment.”
You’re not taking care of a living space that belongs to someone else. The space is yours. As an added benefit, you may get a <a href="https://www.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="return on investment" target="_blank" rel="noopener noreferrer">return on investment</a> for any upgrades or repairs you make.
Homeownership Can Lead to Greater Community Engagement
That sense of ownership and your feelings of responsibility can even extend beyond the walls of your home. Your home also gives you a stake in your community. Because the <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf" title="average homeowner" target="_blank" rel="noopener noreferrer">average homeowner</a> stays in their home for longer than just a few years, that can lead to having a stronger connection to your local area. NAR <a href="https://www.nar.realtor/promoting-home-ownership" title="notes" target="_blank" rel="noopener noreferrer">notes</a> how that can benefit you:
“Living in one place for a longer amount of time creates an obvious sense of community pride, which may lead to more investment in said community.”
If you’re looking to put down roots, homeownership can help fuel a sense of connection to the area and those around you.
Bottom Line
If you’re planning to buy a home this year, there are incredible benefits waiting for you at the end of <a href="https://www.simplifyingthemarket.com/2022/10/07/the-journey-to-buy-a-home-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="your journey" target="_blank" rel="noopener noreferrer">your journey</a>, including the ability to customize your home, the sense of achievement homeownership brings, and a greater connection to your community. Let’s connect to discuss everything homeownership has to offer.
2022-10-17T07:00:00-07:002022-10-17T07:03:04-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13929Tips For First-Time Homebuyers [INFOGRAPHIC]
<img width="1046" height="2153" src="https://files.mykcm.com/2022/10/13123748/20221014-MEM-1046x2153.png" class="attachment-entry size-entry wp-post-image" alt="Tips For First-Time Homebuyers [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/13123748/20221014-MEM-1046x2153.png 1046w, https://files.mykcm.com/2022/10/13123748/20221014-MEM-291x600.png 291w, https://files.mykcm.com/2022/10/13123748/20221014-MEM-497x1024.png 497w, https://files.mykcm.com/2022/10/13123748/20221014-MEM-768x1581.png 768w, https://files.mykcm.com/2022/10/13123748/20221014-MEM-746x1536.png 746w, https://files.mykcm.com/2022/10/13123748/20221014-MEM-995x2048.png 995w, https://files.mykcm.com/2022/10/13123748/20221014-MEM-100x206.png 100w, https://files.mykcm.com/2022/10/13123748/20221014-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re trying to buy your <a href="https://www.simplifyingthemarket.com/2022/10/10/saving-for-a-down-payment-heres-what-you-should-know/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="first home" target="_blank" rel="noopener noreferrer">first home</a> in today’s housing market, you’ll want to know what you can do as <a href="https://www.simplifyingthemarket.com/2022/10/12/four-things-that-help-determine-your-mortgage-rate/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> rise and inventory stays low overall.
Connect with a lender to get <a href="https://themortgagereports.com/95212/buying-a-home-for-the-first-time-tips/" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a>, prioritize your wish list, <a href="https://www.nerdwallet.com/article/mortgages/tips-for-first-time-home-buyers" title="consider condos" target="_blank" rel="noopener noreferrer">consider condos</a>, and expand your <a href="https://www.cnet.com/personal-finance/mortgages/how-to-buy-a-home-2022-6-tips-from-a-real-estate-agent/" title="search radius" target="_blank" rel="noopener noreferrer">search radius</a>.
Your <a href="https://www.simplifyingthemarket.com/2022/06/08/what-are-the-best-options-for-todays-first-time-homebuyers/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="first home" target="_blank" rel="noopener noreferrer">first home</a> is out there. Let’s connect to explore your options and what other first-time buyers are doing to find their homes.
2022-10-14T06:38:00-07:002022-10-14T07:06:39-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13925Perspective Matters When Selling Your House Today
<img width="750" height="410" src="https://files.mykcm.com/2022/10/12112112/20221013-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Perspective Matters When Selling Your House Today | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/12112112/20221013-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/12112112/20221013-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/12112112/20221013-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Does the latest news about the housing market have you questioning your plans to <a href="https://www.simplifyingthemarket.com/2022/09/29/if-youre-thinking-of-selling-your-house-this-fall-hire-a-pro/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell your house" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="the shift" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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" target="_blank" rel="noopener noreferrer"><img 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" /></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.simplifyingthemarket.com/2022/09/27/how-an-expert-can-help-you-understand-inflation-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>. But again, perspective is key. Getting 3-5 offers like <a href="https://www.simplifyingthemarket.com/2022/09/21/top-reasons-homeowners-are-selling-their-houses-right-now/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sellers" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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.simplifyingthemarket.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="price your house" target="_blank" rel="noopener noreferrer">price your house</a> at current market value, you’ll still be able <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell your house" target="_blank" rel="noopener noreferrer">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.
2022-10-13T10:31:00-07:002022-10-13T10:34:54-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13910Four Things That Help Determine Your Mortgage Rate
<img width="750" height="410" src="https://files.mykcm.com/2022/10/11132136/20221012-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Four Things That Help Determine Your Mortgage Rate | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/11132136/20221012-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/11132136/20221012-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/11132136/20221012-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re looking to buy a home, you probably want to secure the lowest <a href="https://www.simplifyingthemarket.com/2022/09/27/how-an-expert-can-help-you-understand-inflation-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="interest rate" target="_blank" rel="noopener noreferrer">interest rate</a> possible for your home loan. Over the last couple of years, that was easier to do as the housing market saw record-low mortgage rates, but this year rates have <a href="https://www.freddiemac.com/pmms/archive" title="risen dramatically" target="_blank" rel="noopener noreferrer">risen dramatically</a>.
If you’re looking for ways to combat today’s <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="higher rates" target="_blank" rel="noopener noreferrer">higher rates</a> and lock in the lowest one you can, here are a few factors to focus on. Since approval opportunities can vary, connect with a trusted lender for customized advice.
Your Credit Score
Credit scores can play a big role in your mortgage rate. Freddie Mac <a href="https://myhome.freddiemac.com/buying/understanding-your-credit" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely. Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate.”
That’s why it’s important to maintain a good credit score. If you want to focus on improving your score, your trusted advisor can give you expert advice to help.
Your Loan Type
There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) <a href="https://www.consumerfinance.gov/about-us/blog/7-factors-determine-your-mortgage-interest-rate/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”
When working with your real estate advisor, make sure you find out what’s available in your area and which types of loans you may qualify for.
Your Loan Term
Another factor to consider is the term of your loan. Just like with location and loan types, you have options. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homeownership/beginners-guide-home-loans" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”
Depending on your situation, the length of your loan can also change your mortgage rate.
Your Down Payment
If you’re a current homeowner looking to sell and make a move, you can use the <a href="https://www.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home equity" target="_blank" rel="noopener noreferrer">home equity</a> you’ve built over time toward the <a href="https://www.simplifyingthemarket.com/2022/10/10/saving-for-a-down-payment-heres-what-you-should-know/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="down payment" target="_blank" rel="noopener noreferrer">down payment</a> on your next home. The CFPB <a href="https://www.consumerfinance.gov/about-us/blog/7-factors-determine-your-mortgage-interest-rate/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In general, a larger down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can comfortably put 20 percent or more down, do it—you’ll usually get a lower interest rate.”
To learn more, connect with a lender to find out the difference a higher down payment can make for your new mortgage.
Bottom Line
These are just few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Connect with a local real estate professional and a trusted lender so you have the expert advice you need in each step of the process.
2022-10-12T11:40:00-07:002022-10-12T11:44:41-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13901What Are Experts Saying About the Fall Housing Market?
<img width="750" height="410" src="https://files.mykcm.com/2022/10/07101559/20221010-KCM-Share-1.jpg" class="attachment-entry size-entry wp-post-image" alt="What Are Experts Saying About the Fall Housing Market? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/07101559/20221010-KCM-Share-1.jpg 750w, https://files.mykcm.com/2022/10/07101559/20221010-KCM-Share-1-600x328.jpg 600w, https://files.mykcm.com/2022/10/07101559/20221010-KCM-Share-1-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The housing market is <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="rapidly changing" target="_blank" rel="noopener noreferrer">rapidly changing</a> from the peak frenzy it saw over the past two years. That means you probably have questions about what your best move is if you’re thinking of <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying" target="_blank" rel="noopener noreferrer">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/10/03/how-to-prep-your-house-for-sale-this-fall/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="selling" target="_blank" rel="noopener noreferrer">selling</a> this fall.
To help you make a confident decision, lean on the professionals for insights. Here are a few things experts are saying about the fall housing market.
Expert Quotes for Fall Homebuyers
A recent article from <a href="https://www.realtor.com/research/august-2022-data/" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home.”
Michael Lane, VP and General Manager, <a href="https://www.showingtime.com/blog/august-2022-showing-index-results/" title="ShowingTime" target="_blank" rel="noopener noreferrer">ShowingTime</a>:
“Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.”
Expert Quotes for Fall Sellers
Selma Hepp, Interim Lead of the Office of the Chief Economist, <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>:
“. . . record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.”
Danielle Hale, Chief Economist, <a href="https://news.move.com/2022-09-29-Realtor-com-R-September-Housing-Report-Fall-Home-Shoppers-Find-More-Options-Amid-Still-High-Listing-Prices" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>:
“For homeowners deciding whether to make a move this year, remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you're still likely to find opportunities to cash-in on record-high levels of equity, particularly if you've owned your home for a longer period of time.”
Bottom Line
Mortgage rates, home prices, and the supply of homes for sale are top of mind for buyers and sellers today. And if you want the latest information for our area, let’s connect today.
2022-10-11T07:17:00-07:002022-10-11T07:21:20-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13888Saving for a Down Payment? Here’s What You Should Know.
<img width="750" height="410" src="https://files.mykcm.com/2022/10/05164531/20221010-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Saving for a Down Payment? Here’s What You Should Know. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/05164531/20221010-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/05164531/20221010-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/05164531/20221010-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
As you set out to <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a>, saving for a down payment is likely top of mind. But you may still have questions about the process, including how much to save and where to start.
If that sounds like you, your down payment could be more in reach than you originally thought. Here’s why.
The 20% Down Payment Myth
If you believe you have to put 20% down on a home, you may have based your goal on a common misconception. Freddie Mac <a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”
Unless it’s specified by your loan type or lender, it’s typically not required to put 20% down. According to the latest <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="Profile of Home Buyers and Sellers" target="_blank" rel="noopener noreferrer">Profile of Home Buyers and Sellers</a> from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. There are even loan types, like <a href="https://www.hud.gov/buying/loans" title="FHA loans" target="_blank" rel="noopener noreferrer">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.benefits.va.gov/homeloans/index.asp" title="VA loans" target="_blank" rel="noopener noreferrer">VA loans</a> and <a href="https://www.rd.usda.gov/newsroom/news-release/usda-rural-home-loans-offer-100-financing-and-no-down-payment" title="USDA loans" target="_blank" rel="noopener noreferrer">USDA loans</a> with no down payment requirements for qualified applicants.
This is good news for you because it means you could be closer to your homebuying dream than you realize. For more information, turn to a trusted lender.
Down Payment Assistance Programs Can Be a Game Changer
A professional will be able to show you other options that could help you get closer to your down payment goal. According to latest <a href="https://downpaymentresource.com/homebuyer-resource/homeownership-program-index-highlights-programs-for-community-heroes/" title="Homeownership Program Index" target="_blank" rel="noopener noreferrer">Homeownership Program Index</a> from downpaymentresource.com, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.
A recent article <a href="https://downpaymentresource.com/homebuyer-resource/5-ways-you-can-benefit-from-down-payment-programs/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why programs like these are helpful:
“These resources can immediately build your home buying power and help you take action sooner than you thought possible.”
And if you’re wondering if you have to be a <a href="https://www.simplifyingthemarket.com/2022/06/29/homeownership-could-be-in-reach-with-down-payment-assistance-programs/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="first-time buyer" target="_blank" rel="noopener noreferrer">first-time buyer</a> to qualify for these programs, that’s not always the case. According to an article from <a href="https://downpaymentresource.com/professional-resource/more-homebuyer-assistance-programs-introduced-as-affordability-declines-in-most-u-s-counties/" title="downpaymentresource.com" target="_blank" rel="noopener noreferrer">downpaymentresource.com</a>:
“It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.”
There are also location and profession-based programs you could qualify for as well.
Bottom Line
Saving for your down payment is an important first step on your homebuying journey. Let’s connect today and make sure you have a trusted lender to help explore your options.
2022-10-10T06:28:00-07:002022-10-10T09:32:12-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13861The Journey To Buy a Home [INFOGRAPHIC]
<img width="1046" height="2399" src="https://files.mykcm.com/2022/10/06110305/20221007-MEM-1046x2399.png" class="attachment-entry size-entry wp-post-image" alt="The Journey To Buy a Home [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/06110305/20221007-MEM-1046x2399.png 1046w, https://files.mykcm.com/2022/10/06110305/20221007-MEM-262x600.png 262w, https://files.mykcm.com/2022/10/06110305/20221007-MEM-447x1024.png 447w, https://files.mykcm.com/2022/10/06110305/20221007-MEM-768x1761.png 768w, https://files.mykcm.com/2022/10/06110305/20221007-MEM-670x1536.png 670w, https://files.mykcm.com/2022/10/06110305/20221007-MEM-893x2048.png 893w, https://files.mykcm.com/2022/10/06110305/20221007-MEM-100x229.png 100w, https://files.mykcm.com/2022/10/06110305/20221007-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
When you head out to <a href="https://www.simplifyingthemarket.com/2022/10/05/the-long-term-benefit-of-homeownership/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a>, there are a number of key milestones you’ll encounter along the way.
The process includes everything from building your team and <a href="https://www.simplifyingthemarket.com/2022/09/16/a-crucial-first-step-mortgage-pre-approval-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="understanding your finances" target="_blank" rel="noopener noreferrer">understanding your finances</a> to going <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="house hunting" target="_blank" rel="noopener noreferrer">house hunting</a>, making an offer, and more.
Your journey starts here. Let’s connect so you have <a href="https://www.simplifyingthemarket.com/2022/09/09/why-its-so-important-to-hire-a-pro-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="expert guidance" target="_blank" rel="noopener noreferrer">expert guidance</a> each step of the way.
2022-10-07T03:27:00-07:002022-10-07T06:35:59-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13847Two Questions Every Homebuyer Should Ask Themselves Right Now
<img width="750" height="410" src="https://files.mykcm.com/2022/10/05121225/20221006-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Two Questions Every Homebuyer Should Ask Themselves Right Now | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/05121225/20221006-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/05121225/20221006-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/05121225/20221006-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Rising <a href="https://www.simplifyingthemarket.com/2022/10/04/the-cost-of-waiting-for-mortgage-rates-to-go-down/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="interest rates" target="_blank" rel="noopener noreferrer">interest rates</a> have begun to slow an overheated housing market as monthly mortgage payments have <a href="https://www.simplifyingthemarket.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="risen dramatically" target="_blank" rel="noopener noreferrer">risen dramatically</a> since the beginning of the year. This is leaving some people who want to purchase a home priced out of the market and others wondering if now is the time to buy one. But this rise in borrowing cost shows no signs of letting up soon.
Economic uncertainty and the volatility of the financial markets are causing mortgage rates to rise. George Ratiu, Senior Economist and Manager of Economic Research at realtor.com, <a href="https://www.realtor.com/research/freddie-mac-mortgage-rates-sep-29-2022/" title="says" target="_blank" rel="noopener noreferrer">says</a> this:
“While even two months ago rates above 7% may have seemed unthinkable, at the current pace, we can expect rates to surpass that level in the next three months.”
So, is now the right time to buy a home? Anyone thinking about buying a home today should ask themselves two questions:
1. Where Do I Think Home Prices Are Heading?
There are two places to turn to answer this question. First is the consensus of what experts are saying. If you look at what <a href="https://www.simplifyingthemarket.com/2022/09/22/what-experts-say-will-happen-with-home-prices-next-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="experts are projecting" target="_blank" rel="noopener noreferrer">experts are projecting</a> for home prices in 2023, they’re forecasting home price appreciation around 2%. While it’s true some are calling for depreciation, most are calling for appreciation in home values over the next year.
The second spot to turn to for information is 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> from Pulsenomics – a survey of a national panel of over one hundred economists, real estate experts, and investment and market strategists. According to the latest release, the experts surveyed are also calling for home price appreciation for the next several years (see graph below):
<a href="https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105034" src="https://files.mykcm.com/2022/10/05121228/20221003-MEM-Eng-1-1.png" alt="Two Questions Every Homebuyer Should Ask Themselves Right Now | MyKCM" width="600" height="450" /></a>
2. Where Do I Think Interest Rates Are Heading?
Like mentioned above, Ratiu sees mortgage rates rising over the next several months. Another expert agrees. Mark Fleming, Chief Economist at First American, <a href="https://www.firstam.com/news/2022/overvalued-markets-increasing-20220927.html" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While mortgage rates are expected to continue to drift higher over the coming months, much of the rapid increase in rates is likely behind us.”
The instability in the world and higher inflation are driving this volatile market, resulting in higher borrowing rates for those looking to buy homes.
Bottom Line
If you’re thinking about buying a home, asking yourself about home prices and mortgage rates will help you make a powerful and confident decision. Experts see both prices and rates rising in the future. The alternative is to rent, but rents are also increasing. That may mean <a href="https://www.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a> makes more sense than renting.
2022-10-06T06:26:00-07:002022-10-06T11:53:31-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13832The Long-Term Benefit of Homeownership
<img width="750" height="410" src="https://files.mykcm.com/2022/10/04143006/20221005-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Long-Term Benefit of Homeownership | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/04143006/20221005-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/04143006/20221005-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/04143006/20221005-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Today’s cooling <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="housing market" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="equity" target="_blank" rel="noopener noreferrer">equity</a> and <a href="https://www.simplifyingthemarket.com/2022/09/26/the-true-strength-of-homeowners-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="wealth" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/08/30/whats-actually-happening-with-home-prices-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home price appreciation" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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.simplifyingthemarket.com/2022/09/06/how-owning-a-home-builds-your-net-worth/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="drastic gains" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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.simplifyingthemarket.com/2022/09/22/what-experts-say-will-happen-with-home-prices-next-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="experts say" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/30/why-buying-a-home-may-make-more-sense-than-renting-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="renting" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying a home" target="_blank" rel="noopener noreferrer">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.
2022-10-05T07:15:00-07:002022-10-05T10:17:43-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13822The Cost of Waiting for Mortgage Rates To Go Down
<img width="750" height="410" src="https://files.mykcm.com/2022/10/03144306/20221003-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Cost of Waiting for Mortgage Rates To Go Down | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/10/03144306/20221003-KCM-Share.jpg 750w, https://files.mykcm.com/2022/10/03144306/20221003-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/10/03144306/20221003-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Mortgage rates have <a href="https://www.freddiemac.com/pmms/archive" title="increased significantly" target="_blank" rel="noopener noreferrer">increased significantly</a> in recent weeks. And that may mean you have questions about what this means for you if you’re planning to buy a home. Here’s some information that can help you make an informed decision when you set your homebuying plans.
The Impact of Rising Mortgage Rates
As mortgage rates rise, they impact your purchasing power by raising the cost of buying a home and limiting how much you can comfortably afford. Here’s how it works.
Let’s assume you want to buy a $400,000 home (the median-priced home according to the National Association of Realtors is <a href="https://www.nar.realtor/newsroom/existing-home-sales-slipped-0-4-in-august" title="$389,500" target="_blank" rel="noopener noreferrer">$389,500</a>). If you’re trying to shop at that price point and keep your monthly payment about $2,500-2,600 or below, here’s how your purchasing power can change as mortgage rates climb (see chart below). The red shows payments above that threshold and the green indicates a payment within your target range.
<a href="https://files.mykcm.com/2022/10/03144304/20221004-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-105012" src="https://files.mykcm.com/2022/10/03144304/20221004-MEM-Eng-1.png" alt="The Cost of Waiting for Mortgage Rates To Go Down | MyKCM" width="600" height="450" /></a>
As the chart shows, as rates go up, the amount you can afford to borrow decreases and that may mean you have to look at homes at a different price point. That’s why it’s important to work with a <a href="https://www.simplifyingthemarket.com/2022/09/09/why-its-so-important-to-hire-a-pro-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a> to understand how mortgage rates impact your monthly mortgage payment at various home loan amounts.
Are Mortgage Rates Going To Go Down?
The rise in mortgage rates and the resulting decrease in purchasing power may leave you wondering if you should wait for rates to go down before making your purchase. Realtor.com <a href="https://www.realtor.com/news/trends/column-homebuyers-have-hard-the-bad-news-heres-the-good/" title="says" target="_blank" rel="noopener noreferrer">says</a> this about where rates could go from here:
“Many homebuyers likely winced . . . upon hearing that the Federal Reserve yet again boosted its short-term interest rates by three-quarters of a percentage point—a move that’s pushing mortgage rates through the roof. And the already high rates are just going to get higher.”
So, if you’re waiting for mortgage rates to drop, you may be waiting for a while as the Federal Reserve works to get <a href="https://www.simplifyingthemarket.com/2022/09/27/how-an-expert-can-help-you-understand-inflation-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inflation" target="_blank" rel="noopener noreferrer">inflation</a> under control.
And if you’re considering renting as your alternative while you wait it out, remember that’s going to get more expensive with time too. As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-september-15-2022" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“There is no doubt that these higher rates hurt housing affordability. Nevertheless, apart from borrowing costs, rents additionally rose at their highest pace in nearly four decades.”
Basically, it is true that it costs more to buy a home today than it did last year, but the same is true for renting. This means, either way, you’re going to be paying more. The difference is, with homeownership, you’re also gaining <a href="https://www.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="equity" target="_blank" rel="noopener noreferrer">equity</a> over time which will help grow your <a href="https://www.simplifyingthemarket.com/2022/09/06/how-owning-a-home-builds-your-net-worth/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a>. The question now becomes: what makes more sense for you?
Bottom Line
Each person’s situation is unique. To make the best decision for you, let's connect to explore your options.
2022-10-04T07:51:00-07:002022-10-04T10:55:19-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13782Why Buying a Home May Make More Sense Than Renting [INFOGRAPHIC]Why Buying a Home May Make More Sense Than Renting [INFOGRAPHIC]
<img width="1046" height="1845" src="https://files.mykcm.com/2022/09/29141015/20220930-MEM-1046x1845.png" class="attachment-entry size-entry wp-post-image" alt="Why Buying a Home May Make More Sense Than Renting [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/29141015/20220930-MEM-1046x1845.png 1046w, https://files.mykcm.com/2022/09/29141015/20220930-MEM-340x600.png 340w, https://files.mykcm.com/2022/09/29141015/20220930-MEM-581x1024.png 581w, https://files.mykcm.com/2022/09/29141015/20220930-MEM-768x1355.png 768w, https://files.mykcm.com/2022/09/29141015/20220930-MEM-871x1536.png 871w, https://files.mykcm.com/2022/09/29141015/20220930-MEM-1161x2048.png 1161w, https://files.mykcm.com/2022/09/29141015/20220930-MEM-100x176.png 100w, https://files.mykcm.com/2022/09/29141015/20220930-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re trying to decide whether to rent or buy a home, consider the <a href="https://www.simplifyingthemarket.com/2022/08/03/buying-a-home-may-make-more-financial-sense-than-renting-one/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="advantages" target="_blank" rel="noopener noreferrer">advantages</a> homeownership offers.
Buying a home can help you escape the cycle of <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" title="rising rents" target="_blank" rel="noopener noreferrer">rising rents</a>, it’s a powerful <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" title="wealth-building tool" target="_blank" rel="noopener noreferrer">wealth-building tool</a>, and it’s typically considered a good hedge against <a href="https://www.realtor.com/research/july-2022-rent/" title="inflation" target="_blank" rel="noopener noreferrer">inflation</a>.
If you’re ready to take advantage of the benefits of homeownership, let’s connect to <a href="https://www.simplifyingthemarket.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="explore your options" target="_blank" rel="noopener noreferrer">explore your options</a>.
2022-09-30T10:59:00-07:002022-09-30T14:11:57-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13767If You’re Thinking of Selling Your House This Fall, Hire a ProIf You’re Thinking of Selling Your House This Fall, Hire a Pro
<img width="750" height="410" src="https://files.mykcm.com/2022/09/28114648/20220929-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="If You’re Thinking of Selling Your House This Fall, Hire a Pro | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/28114648/20220929-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/28114648/20220929-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/28114648/20220929-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Today’s market is at a <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="turning point" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/21/top-reasons-homeowners-are-selling-their-houses-right-now/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="selling your house" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate advisor" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="bringing in buyers" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="negotiation power" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="asking price" target="_blank" rel="noopener noreferrer">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.
2022-09-29T09:49:00-07:002022-09-29T12:52:13-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13761Why You Should Consider Condos as Part of Your Home SearchWhy You Should Consider Condos as Part of Your Home Search
<img width="750" height="410" src="https://files.mykcm.com/2022/09/27124715/20220928-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why You Should Consider Condos as Part of Your Home Search | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/27124715/20220928-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/27124715/20220928-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/27124715/20220928-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The historically low inventory over the past few years led to challenges for many buyers trying to find a home that met their needs and their budget. If you’re in the same boat, you should know the recent shift in the housing market may have opened up doors for you to restart your search.
The inventory of homes for sale <a href="https://www.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="has increased" target="_blank" rel="noopener noreferrer">has increased</a> this year, and that’s giving buyers much needed options. As Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-sep-10-2022/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“. . . today’s shoppers have more than 5 homes to consider for every 4 they had at this time a year ago.”
But perspective is important. Overall, housing supply is still low. If you need even more choices, <a href="https://www.simplifyingthemarket.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="expanding your search" target="_blank" rel="noopener noreferrer">expanding your search</a> by adding additional housing types, like condominiums, could help.
Exploring Condos Could Add Options That Fit Your Budget
One thing to consider is condos generally differ from single-family homes in average space and floorplans. But that size difference is one reason why condos can be a more affordable option. According to a <a href="https://www.realtor.com/research/2022-condo-affordability/" title="recent report" target="_blank" rel="noopener noreferrer">recent report</a> from realtor.com, condo buyers paid roughly 7% less for their home than buyers of other housing types last year. With rising mortgage rates and home prices, the relative affordability of a condo could be worth considering.
Remember, your first home doesn’t have to be your forever home. The important thing is to get your foot in the door as a homeowner. Buying a condo now can springboard you into a bigger home later on. An <a href="https://www.urban.org/urban-wire/housing-market-needs-more-condos-why-are-so-few-being-built" title="article" target="_blank" rel="noopener noreferrer">article</a> from the Urban Institute explains:
“Because condos and co-ops are generally more affordable, they tend to help first-time homebuyers step onto the first rung of the homeownership ladder. These buyers often use the equity on their condo to then purchase a larger single-family home.”
In other words, owning a condo will help you start <a href="https://www.simplifyingthemarket.com/2022/09/06/how-owning-a-home-builds-your-net-worth/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="building wealth" target="_blank" rel="noopener noreferrer">building wealth</a> in the form of home equity. In time, the <a href="https://www.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="equity" target="_blank" rel="noopener noreferrer">equity</a> you build can fuel a future purchase should you decide you want to buy a home with more space or different amenities.
Condo Living Provides Several Great Perks
Boosting the number of options in your budget during your home search is just one reason to consider condos, but there are several other benefits to condo living.
First, they tend to require minimal upkeep and lower maintenance – and that can give you more time to spend doing the things you enjoy. A recent article from Bankrate highlights this, <a href="https://www.bankrate.com/real-estate/buy-house-condo-townhouse-apartment/" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Condos can be a good option for anyone who wants to keep home maintenance to a minimum . . . if the roof is leaking or the carpet in the lobby needs to be replaced, that’s not your responsibility — the condo association handles those duties.”
Plus, since many condos are located in or near city centers, they offer the added benefit of being in close proximity to work and leisure. Again, realtor.com <a href="https://www.realtor.com/research/2022-condo-affordability/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Buying a condo, which is generally less expensive than a single-family home, enables a household to afford to own in the middle of it all, and often means a newer-built home with less maintenance responsibility.”
Ultimately, owning and living in a condo can be a lifestyle choice. And if that appeals to you, they could give you the added options you need to buy your first home.
Bottom Line
Adding condominiums to your housing search could be a great move. If you’re ready to search condos in our area, let’s connect today.
2022-09-28T09:32:00-07:002022-09-28T12:37:56-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13750How an Expert Can Help You Understand Inflation & Mortgage RatesHow an Expert Can Help You Understand Inflation & Mortgage Rates
<img width="750" height="410" src="https://files.mykcm.com/2022/09/26123312/202209207-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How an Expert Can Help You Understand Inflation & Mortgage Rates | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/26123312/202209207-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/26123312/202209207-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/26123312/202209207-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
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.simplifyingthemarket.com/2022/05/20/dont-let-rising-inflation-delay-your-homeownership-plans-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inflation" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></a>
The mortgage rate increases this year are the big reason <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buyer demand" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/09/13/three-things-buyers-can-do-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="affordability" target="_blank" rel="noopener noreferrer">affordability</a> and priced some buyers out of the market, so home sales slowed and the <a href="https://www.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inventory" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="best advice" target="_blank" rel="noopener noreferrer">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.
2022-09-27T10:25:00-07:002022-09-27T13:33:39-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13733The True Strength of Homeowners TodayThe True Strength of Homeowners Today
<img width="750" height="410" src="https://files.mykcm.com/2022/09/22164603/20220926-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The True Strength of Homeowners Today | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/22164603/20220926-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/22164603/20220926-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/22164603/20220926-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The real estate market is on just about everyone’s mind these days. That’s because the unsustainable market of the past two years is behind us, and the difference is being felt. The question now is, just how financially strong are homeowners throughout the country? Mortgage debt grew beyond <a href="https://www.newyorkfed.org/newsevents/news/research/2022/20220802" title="10 trillion dollars" target="_blank" rel="noopener noreferrer">10 trillion dollars</a> over the past year, and many called that a troubling sign when it happened for the first time in history.
Recently Odeta Kushi, Deputy Chief Economist at First American, answered that question when she <a href="https://twitter.com/odetakushi/status/1569338892830265344" title="said" target="_blank" rel="noopener noreferrer">said</a>:
“U.S. households own $41 trillion in owner-occupied real estate, just over $12 trillion in debt, and the remaining ~$29 trillion in equity. The national "LTV" in Q2 2022 was 29.5%, the lowest since 1983.”
She continued on to <a href="https://twitter.com/odetakushi/status/1569338906604359685" title="say" target="_blank" rel="noopener noreferrer">say</a>:
“Homeowners had an average of $320,000 in inflation-adjusted equity in their homes in Q2 2022, an all-time high.”
What Is LTV?
The term LTV refers to loan to value ratio. For more context, here’s how the Mortgage Reports <a href="https://themortgagereports.com/13598/loan-to-value-for-mortgages-explained-in-plain-english" title="defines" target="_blank" rel="noopener noreferrer">defines</a> it:
“Your ‘loan to value ratio’ (LTV) compares the size of your mortgage loan to the value of the home. For example: If your home is worth $200,000, and you have a mortgage for $180,000, your LTV ratio is 90% — because the loan makes up 90% of the total price.
You can also think about LTV in terms of your down payment. If you put 20% down, that means you’re borrowing 80% of the home’s value. So your LTV ratio is 80%.”
Why Is This Important?
This is yet <a href="https://www.simplifyingthemarket.com/2022/09/14/is-the-real-estate-market-slowing-down-or-is-this-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="another reason" target="_blank" rel="noopener noreferrer">another reason</a> we won’t see the housing market crash. <a href="https://www.simplifyingthemarket.com/2022/09/20/watching-the-stock-market-check-the-value-of-your-home-for-good-news/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="Home equity" target="_blank" rel="noopener noreferrer">Home equity</a> allows homeowners to be in control. For example, if someone did need to sell their home, they likely have the equity they need to be able to <a href="https://www.simplifyingthemarket.com/2022/09/08/should-i-sell-my-house-this-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell it" target="_blank" rel="noopener noreferrer">sell it</a> and still put money in their pocket. This was not the case back in 2008, when many owed more on their homes than they were worth.
Bottom Line
Homeowners today have more financial strength than they have had since 1983. This is a combination of how homeowners have handled equity since the crash and rising home prices of the last two years. And this is yet another reason homeownership in any market makes sense.
2022-09-26T13:30:00-07:002022-09-26T13:35:37-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13713Fall Home Selling Checklist [INFOGRAPHIC]Fall Home Selling Checklist [INFOGRAPHIC]
<img width="1046" height="1686" src="https://files.mykcm.com/2022/09/20145029/20220923-MEM-1046x1686.png" class="attachment-entry size-entry wp-post-image" alt="Fall Home Selling Checklist [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/20145029/20220923-MEM-1046x1686.png 1046w, https://files.mykcm.com/2022/09/20145029/20220923-MEM-372x600.png 372w, https://files.mykcm.com/2022/09/20145029/20220923-MEM-635x1024.png 635w, https://files.mykcm.com/2022/09/20145029/20220923-MEM-768x1238.png 768w, https://files.mykcm.com/2022/09/20145029/20220923-MEM-953x1536.png 953w, https://files.mykcm.com/2022/09/20145029/20220923-MEM-1271x2048.png 1271w, https://files.mykcm.com/2022/09/20145029/20220923-MEM-100x161.png 100w, https://files.mykcm.com/2022/09/20145029/20220923-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
When it comes to <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="selling your house" target="_blank" rel="noopener noreferrer">selling your house</a>, you want it to look its best inside and out so it catches the attention of buyers. A real estate professional can help you decide what to do to make that happen.
Focus on tasks that can make it inviting, show it’s cared for, and boost your <a href="https://www.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="curb appeal" target="_blank" rel="noopener noreferrer">curb appeal</a>.
Let’s connect so you have advice on what you may want to do to get your house ready to <a href="https://www.simplifyingthemarket.com/2022/09/08/should-i-sell-my-house-this-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell this season" target="_blank" rel="noopener noreferrer">sell this season</a>.
2022-09-23T09:32:00-07:002022-09-23T09:35:45-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13706What Experts Say Will Happen with Home Prices Next Year
<img width="750" height="410" src="https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1.jpg" class="attachment-entry size-entry wp-post-image" alt="What Experts Say Will Happen with Home Prices Next Year | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1.jpg 750w, https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1-600x328.jpg 600w, https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace. Over the past couple of years, <a href="https://www.simplifyingthemarket.com/2022/08/30/whats-actually-happening-with-home-prices-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home, know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value.
Historically, home prices have appreciated at a rate near <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>. For 2023, the average of six major forecasters noted below is 2.5%. While one, <a href="https://www.zelmanassociates.com/" title="Zelman &amp; Associates" target="_blank" rel="noopener noreferrer">Zelman & Associates</a>, is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year.
<a href="https://files.mykcm.com/2022/09/21134209/20220922-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104843" src="https://files.mykcm.com/2022/09/21134209/20220922-MEM-Eng-1.png" alt="What Experts Say Will Happen with Home Prices Next Year | MyKCM" width="600" height="450" /></a>
To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, <a href="https://www.youtube.com/watch?v=NDDwGqTVAdU" title="says" target="_blank" rel="noopener noreferrer">says</a> this:
“The root issue of what drives house prices almost always is supply and demand . . .”
Two things are driving home prices upward. First, the <a href="https://www.simplifyingthemarket.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="undersupply" target="_blank" rel="noopener noreferrer">undersupply</a> of homes on the market is an issue we continue to face in this country. We still don’t have <a href="https://www.simplifyingthemarket.com/2022/09/08/should-i-sell-my-house-this-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="enough homes" target="_blank" rel="noopener noreferrer">enough homes</a> on the market for the <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="number of people" target="_blank" rel="noopener noreferrer">number of people</a> that want to buy them. To further that point, we’re still in a <a href="https://www.simplifyingthemarket.com/2022/09/02/heres-why-its-still-a-sellers-market-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sellers’ market" target="_blank" rel="noopener noreferrer">sellers’ market</a> nationally, and in that scenario, home prices tend to appreciate.
Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon.
Bottom Line
Experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come.
2022-09-22T08:48:00-07:002022-09-22T08:53:00-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13689Top Reasons Homeowners Are Selling Their Houses Right Now
<img width="750" height="410" src="https://files.mykcm.com/2022/09/20103544/20220921-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Top Reasons Homeowners Are Selling Their Houses Right Now | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/20103544/20220921-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/20103544/20220921-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/20103544/20220921-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Some people believe there’s a group of homeowners who may be reluctant to <a href="https://www.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell their houses" target="_blank" rel="noopener noreferrer">sell their houses</a> because they don’t want to lose the historically low mortgage rate they have on their current home. You may even have the same hesitation if you’re <a href="https://www.simplifyingthemarket.com/2022/09/08/should-i-sell-my-house-this-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="thinking about selling" target="_blank" rel="noopener noreferrer">thinking about selling</a> your house.
<a href="https://nationalmortgageprofessional.com/news/mortgage-rates-rise-half-homeowners-say-so-what" title="Data" target="_blank" rel="noopener noreferrer">Data</a> shows 51% of homeowners have a mortgage rate under 4% as of April this year. And while it’s true mortgage rates are higher than that right now, there are other non-financial factors to consider when it comes to making a move. In other words, your mortgage rate is important, but you may have other things going on in your life that make a move essential, regardless of where rates are today. As Jessica Lautz, Vice President of Demographics and Behavioral Insights at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/newsroom/home-buyers-motivated-by-desire-to-be-closer-to-family-and-friends-sellers-collected-full-asking-price" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Home sellers have historically moved when something in their lives changed – a new baby, a marriage, a divorce or a new job. . . .”
So, if you’re thinking about selling your house, it may help to explore the other reasons homeowners are choosing to make a move today. The <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" title="2022 Summer Sellers Survey" target="_blank" rel="noopener noreferrer">2022 Summer Sellers Survey</a> by realtor.com asked recent home sellers why they decided to sell. The visual below breaks down how those homeowners responded:
<a href="https://files.mykcm.com/2022/09/20103542/20220921-MEM-Eng.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104830" src="https://files.mykcm.com/2022/09/20103542/20220921-MEM-Eng.png" alt="Top Reasons Homeowners Are Selling Their Houses Right Now | MyKCM" width="600" height="450" /></a>
As the visual shows, an appetite for different features or the fact that their current home could no longer meet their needs topped the list for recent sellers. Additionally, remote work and whether or not they need a home office or are tied to a specific physical office location also factored in, as did the desire to live close to their loved ones.
The realtor.com <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" title="survey" target="_blank" rel="noopener noreferrer">survey</a> summarizes the findings like this:
“The primary reason homeowners decided to sell in the last year was the realization that, after so much time spent at home, they wanted different features and amenities, such as walkability, outdoor space, pool, etc. . . . ”
If you, like the homeowners they surveyed, find yourself wanting features, space, or amenities your current home just can’t provide, it may be time to consider listing your house for sale.
Even with today’s mortgage rates, your lifestyle needs may be enough to motivate you to make a change. The best way to find out what’s right for you is to partner with a trusted <a href="https://www.simplifyingthemarket.com/2022/09/09/why-its-so-important-to-hire-a-pro-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate professional" target="_blank" rel="noopener noreferrer">real estate professional</a> who can provide expert guidance and advice throughout the process. They can help walk you through your options, so you can make a confident decision based on what matters most to you and your loved ones.
Bottom Line
While the financial reasons for moving are important, there’s often far more to consider. Non-financial reasons can also be a significant motivating factor. If you need help weighing the pros and cons of selling your house, let’s connect today.
2022-09-21T08:46:00-07:002022-09-21T08:46:28-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13678 Watching the Stock Market? Check the Value of Your Home for Good News.
<img width="750" height="410" src="https://files.mykcm.com/2022/09/19101325/20229020-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Watching the Stock Market? Check the Value of Your Home for Good News. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/19101325/20229020-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/19101325/20229020-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/19101325/20229020-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
While watching the stock market recently may have started to feel pretty challenging, checking the value of your home should come as welcome relief in this volatile time. If you’re a homeowner, your <a href="https://www.simplifyingthemarket.com/2022/09/06/how-owning-a-home-builds-your-net-worth/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a> got a big boost over the past few years thanks to rising home prices. And that increase in your wealth came in the form of home equity. Here’s how it works.
Equity is the current value of your home minus what you owe on the loan. Because there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase over the past few years, home prices appreciated substantially. And while <a href="https://www.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="rising inventory" target="_blank" rel="noopener noreferrer">rising inventory</a> and <a href="https://www.simplifyingthemarket.com/2022/09/07/expert-forecasts-on-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> have cooled the market some in recent months, home prices nationally remain strong.
That’s why, according to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-2022/" title="Homeowner Equity Insights" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights</a> from CoreLogic, the average homeowner equity has grown by $60,000 over the last 12 months. While that’s the national number, if you want to know what happened, on average, over the past year in your area, look at the map below from CoreLogic:
<a href="https://files.mykcm.com/2022/09/19101326/20220920-MEM-Eng.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104780" src="https://files.mykcm.com/2022/09/19101326/20220920-MEM-Eng.png" alt="Watching the Stock Market? Check the Value of Your Home for Good News. | MyKCM" width="600" height="450" /></a>
Why This Is So Important Right Now
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), helps <a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-consumer-price-index-september-13-2022" title="explain" target="_blank" rel="noopener noreferrer">explain</a> why this matters so much today:
“. . . the decline in the stock market has dented overall net wealth. It has fallen by $6 trillion from the first to the second quarter. Only housing wealth has held on, with homeowners' real estate wealth (home value minus mortgage balance) rising by $1.2 trillion.”
While equity helps increase your overall net worth, it can also help you achieve other goals like buying your next home. When you sell your current house, the equity you built up comes back to you in the sale, and 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
There’s volatility in today’s stock market, but home equity is still incredibly strong. To find out just how much equity you have in your current home, let’s connect.
2022-09-20T07:10:00-07:002022-09-20T07:15:08-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13672Will My House Still Sell in Today’s Market?
<img width="750" height="410" src="https://files.mykcm.com/2022/09/15114636/20220919-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Will My House Still Sell in Today’s Market? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/15114636/20220919-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/15114636/20220919-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/15114636/20220919-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If recent headlines about the housing market cooling and buyer demand moderating have you worried you’ve missed your <a href="https://www.simplifyingthemarket.com/2022/09/08/should-i-sell-my-house-this-year/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="chance to sell" target="_blank" rel="noopener noreferrer">chance to sell</a>, here’s what you need to know. Buyer demand hasn’t disappeared, it’s just eased from the peak intensity we saw over the past two years.
Buyer Demand Then and Now
During the pandemic, <a href="https://www.simplifyingthemarket.com/2022/09/07/expert-forecasts-on-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> hit record lows, and that spurred a significant rise in buyer demand. This year, as rates increased due to factors like rising <a href="https://www.simplifyingthemarket.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inflation" target="_blank" rel="noopener noreferrer">inflation</a>, buyer demand pulled back or softened as a result. The <a href="https://www.showingtime.com/blog/july-2022-showing-index-results" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from ShowingTime confirms this trend (see graph below):
<a href="https://files.mykcm.com/2022/09/15114634/20220919-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104766" src="https://files.mykcm.com/2022/09/15114634/20220919-MEM-Eng-1.png" alt="Will My House Still Sell in Today’s Market? | MyKCM" width="600" height="450" /></a>
The orange bars in the graph above represent the last few months of data and the clear cooldown in the volume of home showings the market has seen since mortgage rates started to rise. But context is important. To get the full picture of where today's demand stands, let's look at the July data for the past six years (see graph below):
<a href="https://files.mykcm.com/2022/09/15114637/20220919-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104768" src="https://files.mykcm.com/2022/09/15114637/20220919-MEM-Eng-2.png" alt="Will My House Still Sell in Today’s Market? | MyKCM" width="600" height="450" /></a>
This second visual makes it clear that, while moderating compared to the frenzy in 2020 and 2021, showing activity is still beating pre-pandemic levels – and those pre-pandemic years were great years for the housing market. That goes to show there’s still demand if you <a href="https://www.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a> today.
What That Means for You When You Sell
The key to selling in a changing market is understanding where the housing market is now. It’s not the same market we had last year or even earlier this year, but that doesn’t mean the opportunity to sell has passed.
While things have cooled a bit, it’s still a <a href="https://www.simplifyingthemarket.com/2022/09/02/heres-why-its-still-a-sellers-market-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sellers’ market" target="_blank" rel="noopener noreferrer">sellers’ market</a>. If you work with a trusted local expert to price your house at the <a href="https://www.simplifyingthemarket.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="current market value" target="_blank" rel="noopener noreferrer">current market value</a>, the demand is still there, and it should sell quickly. According to a <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from realtor.com, 92% of homeowners who sold in August reported being satisfied with the outcome of their sale.
Bottom Line
Buyer demand hasn’t disappeared, it’s just moderated this year. If you’re ready to sell your house today, let’s connect so you have expert insights on how the market has shifted and how to plan accordingly for your sale.
2022-09-19T09:59:00-07:002022-09-19T10:02:04-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13657A Crucial First Step: Mortgage Pre-Approval [INFOGRAPHIC]<img width="1046" height="1558" src="https://files.mykcm.com/2022/09/15085222/20220916-MEM-1046x1558.png" class="attachment-entry size-entry wp-post-image" alt="A Crucial First Step: Mortgage Pre-Approval [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/15085222/20220916-MEM-1046x1558.png 1046w, https://files.mykcm.com/2022/09/15085222/20220916-MEM-403x600.png 403w, https://files.mykcm.com/2022/09/15085222/20220916-MEM-687x1024.png 687w, https://files.mykcm.com/2022/09/15085222/20220916-MEM-768x1144.png 768w, https://files.mykcm.com/2022/09/15085222/20220916-MEM-1031x1536.png 1031w, https://files.mykcm.com/2022/09/15085222/20220916-MEM-100x149.png 100w, https://files.mykcm.com/2022/09/15085222/20220916-MEM.png 1301w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
Mortgage <a href="https://www.ftc.gov/sites/default/files/documents/one-stops/real-estate-competition/realestateglossary.pdf" title="pre-approval" target="_blank" rel="noopener noreferrer">pre-approval</a> means a lender has reviewed your finances and, based on <a href="https://www.investopedia.com/financial-edge/0411/5-things-you-need-to-be-pre-approved-for-a-mortgage.aspx" title="factors" target="_blank" rel="noopener noreferrer">factors</a> like your income, debt, and credit history, determined how much you’re <a href="https://www.bankrate.com/mortgages/pre-approval/" title="qualified to borrow" target="_blank" rel="noopener noreferrer">qualified to borrow</a>.
Being <a href="https://www.simplifyingthemarket.com/2022/07/19/why-pre-approval-is-a-game-changer-for-homebuyers/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="pre-approved" target="_blank" rel="noopener noreferrer">pre-approved</a> for a loan can give you clarity while planning your <a href="https://www.simplifyingthemarket.com/2022/04/05/what-you-need-to-budget-for-when-buying-a-home/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="homebuying budget" target="_blank" rel="noopener noreferrer">homebuying budget</a>, confidence in your ability to secure a loan, and helps sellers know your offer is serious.
Connect with a trusted professional to learn more and start your homebuying process today.
2022-09-16T08:13:00-07:002022-09-16T08:19:46-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13650Buyers Are Regaining Some of Their Negotiation Power in Today’s Housing Market
<img width="750" height="410" src="https://files.mykcm.com/2022/09/13143439/20220915-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Buyers Are Regaining Some of Their Negotiation Power in Today’s Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/13143439/20220915-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/13143439/20220915-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/13143439/20220915-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you're thinking about buying a home today, there's welcome news. Even though it’s still a <a href="https://www.simplifyingthemarket.com/2022/08/04/why-its-still-a-sellers-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sellers’ market" target="_blank" rel="noopener noreferrer">sellers’ market</a>, it’s a more moderate sellers’ market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close.
Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and <a href="https://www.simplifyingthemarket.com/2022/08/31/buyers-you-may-face-less-competition-as-bidding-wars-ease/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="bidding wars" target="_blank" rel="noopener noreferrer">bidding wars</a> is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market.
1. The Return of Contingencies
Over the last two years, more buyers were willing to skip important steps in the homebuying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the <a href="https://www.simplifyingthemarket.com/2022/08/19/why-a-home-inspection-is-important-infographic/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="inspection" target="_blank" rel="noopener noreferrer">inspection</a> and appraisal.
The <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-07-realtors-confidence-index-08-18-2022.pdf" title="latest data" target="_blank" rel="noopener noreferrer">latest data</a> from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a <a href="https://www.realtor.com/research/2022-summer-sellers-survey/" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study:
95% of sellers reported buyers requested a home inspection
67% of sellers negotiated with buyers on repairs as a result of the inspection findings
This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.
2. Sellers Are More Willing To Help with Closing Costs
Generally, closing costs range between <a href="https://www.simplifyingthemarket.com/2022/03/15/dont-get-caught-off-guard-by-closing-costs/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="2% and 5%" target="_blank" rel="noopener noreferrer">2% and 5%</a> of the purchase price for the home. Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn't happen as much during the peak buyer frenzy over the past two years.
Today, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A <a href="https://news.move.com/2022-08-30-Realtor-com-R-Survey-Bargaining-Power-is-Back-92-of-Recent-Sellers-Accepted-Buyer-Friendly-Terms" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in your area.
Bottom Line
Regardless of the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you're planning to enter the housing market. To find out how the market is shifting in our area, let's connect.
2022-09-15T13:38:00-07:002022-09-15T13:49:21-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13638 Is the Real Estate Market Slowing Down, or Is This a Housing Bubble?
<img width="750" height="410" src="https://files.mykcm.com/2022/09/13112611/20220914-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Is the Real Estate Market Slowing Down, or Is This a Housing Bubble? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/13112611/20220914-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/13112611/20220914-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/13112611/20220914-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
The talk of a <a href="https://www.simplifyingthemarket.com/2022/08/02/3-graphs-to-show-this-isnt-a-housing-bubble/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="housing bubble" target="_blank" rel="noopener noreferrer">housing bubble</a> in the coming year seems to be at a fever pitch as rising mortgage rates continue to slow down an overheated real estate market. Over the past two years, home prices have appreciated at an unsustainable pace causing many to ask: are things just slowing down, or is a crash coming?
To answer this question, there are two things we want to understand. The first is the reality of the shift in today’s housing market. And the second is what experts are saying about home prices in the coming year.
The Reality of the Shift in Today’s Housing Market
The reality is we’re seeing an inflection point in housing supply and demand. According to <a href="https://news.move.com/2022-09-01-Realtor-com-R-August-Housing-Report-Days-on-Market-Grows-for-the-First-Time-in-Over-Two-Years" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>, active listings have increased more than 26% over last year, while showings from the latest ShowingTime <a href="https://www.showingtime.com/blog/july-2022-showing-index-results/" title="Showing Index" target="_blank" rel="noopener noreferrer">Showing Index</a> have decreased almost 17% from last year (see graph below). This is an inflection point for housing because, over the past two years, we’ve seen a massive amount of demand (showings) and not enough homes available for sale for the number of people that wanted to buy. That caused the market frenzy.
Today, supply and demand look very different, and the market is slowing down from the pace we’ve seen. This offers proof of the sudden slowdown so many people are feeling.
<a href="https://files.mykcm.com/2022/09/13113948/20220914-MEM-Eng-1-.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104659" src="https://files.mykcm.com/2022/09/13113948/20220914-MEM-Eng-1-.png" alt="Is the Real Estate Market Slowing Down, or Is This a Housing Bubble? | MyKCM" width="600" height="450" /></a>
What Experts Are Saying About Home Prices in the Coming Year
Right now, most experts are forecasting home price appreciation in 2023, but at a much slower pace than the last two years. The average of the six forecasters below is for national <a href="https://www.simplifyingthemarket.com/2022/08/30/whats-actually-happening-with-home-prices-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> to appreciate by 2.5% in the coming year. Only one of the six is calling for home price depreciation.
<a href="https://files.mykcm.com/2022/09/13112608/20220914-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104656" src="https://files.mykcm.com/2022/09/13112608/20220914-MEM-Eng-2.png" alt="Is the Real Estate Market Slowing Down, or Is This a Housing Bubble? | MyKCM" width="600" height="450" /></a>
When we look at the shift taking place along with what experts are saying, we can conclude the national real estate market is slowing down but is <a href="https://www.simplifyingthemarket.com/2022/08/24/why-todays-housing-inventory-proves-the-market-isnt-headed-for-a-crash/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="not a bubble" target="_blank" rel="noopener noreferrer">not a bubble</a> getting ready to burst. This isn’t to say that a few overheated markets won’t experience home price depreciation, but there isn’t a case to be made for a national housing bubble.
Bottom Line
The real estate market is slowing down, and that’s causing many to fear we’re in a housing bubble. What we’ve experienced in the housing market over the past two years were historic levels of demand and constrained supply. That led to homes going up in value at a record pace. While some overheated markets may experience price depreciation in the short term, according to experts, the national real estate market will appreciate in the coming year.
2022-09-14T08:06:00-07:002022-09-14T08:07:44-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13627Three Things Buyers Can Do in Today’s Housing MarketThree Things Buyers Can Do in Today’s Housing Market
<img width="750" height="410" src="https://files.mykcm.com/2022/09/12105825/20220913-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Three Things Buyers Can Do in Today’s Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/12105825/20220913-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/12105825/20220913-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/12105825/20220913-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
It’s clear the 2022 housing market has been defined by rising <a href="https://www.simplifyingthemarket.com/2022/09/07/expert-forecasts-on-mortgage-rates/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>. With rates on the rise, it’s also become more costly to purchase a home. According to the <a href="https://www.nar.realtor/blogs/economists-outlook/housing-affordability-conditions-fade-as-mortgage-rates-push-monthly-payments-higher-in-june-2022" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR):
“Compared to one year ago, the monthly mortgage payment rose to $1,944 from $1,265, an increase of 53.7%.”
If you’re thinking of <a href="https://www.simplifyingthemarket.com/2022/08/31/buyers-you-may-face-less-competition-as-bidding-wars-ease/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a> or have been trying to recently, that’s a big increase in a monthly mortgage payment – and it may be causing you to press pause on your plans. This jump is making homes less affordable, especially compared to the last two years when mortgage rates were at historic lows.
The good news is you can navigate today’s housing market and this rising rate environment with a few <a href="https://www.simplifyingthemarket.com/2022/08/22/3-tips-for-buying-a-home-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="simple tips" target="_blank" rel="noopener noreferrer">simple tips</a>. Here are three things you may want to consider to help make your <a href="https://www.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="homeownership" target="_blank" rel="noopener noreferrer">homeownership</a> goals a reality.
1. Expand Your Search Area and Criteria
If you’ve been looking for a home in the city center or a specific area that’s starting to feel out of your price range, you may want to try looking a little further out in a location that could be more affordable. Expanding your search location or re-prioritizing the items on your wish list can open up opportunities you haven’t considered, and that could help you afford more of what you need (and want) in a home. As CNET <a href="https://www.cnet.com/personal-finance/mortgages/6-tips-for-buyers-in-competitive-real-estate-markets/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Area growth is likely to keep pace with the market, which means that the outskirts of town might be hopping within five years. Consider stepping out of your ideal location by searching in the nearby cities. You may find better prices and more square footage.”
2. Explore Alternative Financing Options
Working with a trusted lender to learn about the different loan types and options is essential too. According to <a href="https://www.nerdwallet.com/article/mortgages/tips-for-first-time-home-buyers" title="Nerd Wallet" target="_blank" rel="noopener noreferrer">Nerd Wallet</a>:
“A variety of mortgages are available with varying down payment and eligibility requirements.”
Experts know how to point you in the right direction when it comes to exploring ways to find the best home loan for your situation. With rising mortgage rates making it more costly to finance a home today, there may be an ideal option out there your loan officer can introduce you to. This could make a home purchase more affordable and within your financial reach over the life of your loan.
3. Look for Grants, Gift Funds, and Down Payment Assistance
There are also many options available when it comes to securing the funding you need to purchase a home. One valuable resource to explore is <a href="https://downpaymentresource.com/" title="downpaymentresource.com" target="_blank" rel="noopener noreferrer">downpaymentresource.com</a>. Searching for specific down payment assistance options available in your local community could be a game changer when it comes to taking your first step toward homeownership. As <a href="https://www.nar.realtor/first-time-homebuyers/first-time-homebuyer-loans-grants" title="NAR" target="_blank" rel="noopener noreferrer">NAR</a> indicates:
“Many local governments and non-profit organizations offer down-payment assistance grants and loans, targeted to area borrowers and often with specific borrower requirements.”
Plus, there are programs and special benefits for individuals working in certain professions or with unique statuses, including teachers, doctors and nurses, and veterans.
Ultimately, that means there are many federal, state, and local programs available for you to explore. The best way to do that is to connect with a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate professional" target="_blank" rel="noopener noreferrer">real estate professional</a> and your lender to learn more about what’s available in your area.
Bottom Line
If you’ve been searching for a home and have found yourself stepping out of the process because you’re worried about rising costs, let’s connect. Having a team of local advisors on your side may be just what you need to guide your search in a new and more affordable direction.
2022-09-13T06:38:00-07:002022-09-13T06:39:47-07:00Alicia Soekawatag:aliciaandcompany.com,2012-09-20:13613Getting Your House Ready To Sell? Work with an Agent for Expert Advice
<img width="750" height="410" src="https://files.mykcm.com/2022/09/09102806/20220912-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Getting Your House Ready To Sell? Work with an Agent for Expert Advice | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/09102806/20220912-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/09102806/20220912-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/09102806/20220912-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
In a market that’s <a href="https://www.simplifyingthemarket.com/2022/08/23/what-sellers-need-to-know-in-todays-housing-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="shifting" target="_blank" rel="noopener noreferrer">shifting</a> as fast as it is today, many homeowners wonder what, if anything, needs to be renovated before they <a href="https://www.simplifyingthemarket.com/2022/08/09/selling-your-house-your-asking-price-matters-more-now-than-ever/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sell their house" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="homes for sale" target="_blank" rel="noopener noreferrer">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.simplifyingthemarket.com/2022/08/04/why-its-still-a-sellers-market/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="sellers’ market" target="_blank" rel="noopener noreferrer">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" target="_blank" rel="noopener noreferrer"><img 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" /></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.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=395871-45b1ee3fbe95512b3172e3eb137eee39" title="real estate professional" target="_blank" rel="noopener noreferrer">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.
2022-09-12T08:17:00-07:002022-09-12T08:19:29-07:00Alicia Soekawa