Rhode Island Real Estate BlogRecently posted or modified blog postshttps://www.searchrhodeislandhouses.com/blog/Copyright SearchRhodeIslandHouses.com2024-03-18T10:44:51-07:00tag:searchrhodeislandhouses.com,2012-09-20:69344 Tips To Make Your Strongest Offer on a Home4 Tips To Make Your Strongest Offer on a Home
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240314/20240318-Four-tips-to-make-your-strongest-offer-on-a-home.png" width="600" /><br /><br />
Are you thinking about <a href="https://www.simplifyingthemarket.com/en/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buying</a> a home soon? If so, you should know today’s market is competitive in many areas because the number of homes for sale is still low – and that’s leading to multiple-offer scenarios. And moving into the peak homebuying season this spring, this is only expected to ramp up more.
Remember these four tips to make your best offer.
1. Partner with a Real Estate Agent
Rely on a <a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate agent</a> who can support your goals. As PODS <a href="https://www.pods.com/blog/making-home-offer" rel="noopener noreferrer" target="_blank">notes</a>:
“Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”
Agents are local market experts. They know what’s worked for other buyers in your area and what sellers may be looking for. That advice can be game changing when you’re deciding what offer to bring to the table.
2. Understand Your Budget
Knowing your numbers is even more important right now. The best way to understand your budget is to work with a lender so you can get <a href="https://www.simplifyingthemarket.com/en/2024/03/01/the-first-step-getting-pre-approved-for-a-mortgage-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">pre-approved</a> for a home loan. Doing so helps you be more financially confident and shows sellers you’re serious. That gives you a <a href="https://www.simplifyingthemarket.com/en/2024/03/01/the-first-step-getting-pre-approved-for-a-mortgage-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">competitive edge</a>. As Investopedia <a href="https://www.investopedia.com/mortgage-preapproval-4776405" rel="noopener noreferrer" target="_blank">says</a>:
“. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”
3. Make a Strong, but Fair Offer
It’s only natural to want the best deal you can get on a home, especially when <a href="https://www.simplifyingthemarket.com/en/2024/03/11/finding-your-perfect-home-in-a-fixer-upper/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">affordability</a> is tight. However, submitting an offer that’s too low does have some risks. You don’t want to make an offer that’ll be tossed out as soon as it’s received just to see if it sticks. As Realtor.com <a href="https://www.realtor.com/advice/buy/five-tips-successful-lowball-offer/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
The expertise your agent brings to this part of the process will help you stay competitive and find a price that’s fair to you and the seller.
4. Trust Your Agent During Negotiations
After you submit your offer, the seller may decide to counter it. When negotiating, it's smart to understand what matters to the seller. Once you do, being as flexible as you can on things like moving dates or the condition of the house can make your offer more attractive.
Your <a href="https://www.simplifyingthemarket.com/en/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate agent</a> is your partner in navigating these details. Trust them to lead you through negotiations and help you figure out the best plan. As an article from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-work-with-a-realtor" rel="noopener noreferrer" target="_blank">explains</a>:
“There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs . . .”
Bottom Line
In today's competitive market, let’s work together to find you a home you love and craft a strong offer that stands out. 2024-03-18T10:43:52-07:002024-03-18T10:44:51-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6927Breaking Down Barriers to Homeownership with RIHousing's Extra Assistance Program<img src="https://assets.site-static.com/userFiles/1161/image/RI_Housings_Extra_Assistance_Program.jpg" width="2240" height="1260" data-uw-rm-alt-original="" alt="Contact" data-uw-rm-alt="CT" />
Breaking Down Barriers to Homeownership with RIHousing's Extra Assistance Program
Becoming a homeowner is a dream for many, but for some, the journey can feel daunting, particularly when faced with the hurdle of a down payment. In Rhode Island, however, RIHousing is stepping in to help turn that dream into a reality with its Extra Assistance program.
RIHousing's Extra Assistance program is designed to provide down payment assistance to eligible first-time homebuyers in the state. This initiative recognizes that the down payment often poses the most significant challenge to individuals or families striving to purchase their first home. By offering financial support in this critical area, Extra Assistance aims to make homeownership more accessible and achievable for Rhode Islanders.
The program targets first-time homebuyers who meet certain criteria:
1.First-Time Homebuyer Status: Applicants must be first-time homebuyers looking to purchase a 1-4 family home or condominium in Rhode Island.<br role="presentation" data-uw-rm-sr="" /><br role="presentation" data-uw-rm-sr="" />2. Minimum Credit Score: A minimum credit score of 620 is required to qualify for Extra Assistance.
3. Homebuyer Education Course: Completion of a homebuyer education course, available through RIHousing, is mandatory. This educational component ensures that participants are equipped with the knowledge and skills necessary to navigate the homebuying process successfully.
4. RIHousing-Funded First Mortgage: Eligible candidates must obtain a RIHousing-funded first mortgage through Total Mortgage, a Participating Lender, or the RIHousing Loan Center.
5. Primary Residence Occupancy: Recipients of Extra Assistance must occupy the purchased home as their primary residence.
What are the Terms and Conditions?
Extra Assistance offers the following terms and conditions:
Financial Assistance: Participants can receive up to 6% of the purchase price, capped at $15,000, whichever is lower. For 3 or 4 unit properties, the limit is $9,000, and funds may only be applied to closing costs.
Interest Rate: In most cases, the interest rate on an Extra Assistance loan will match that of the RIHousing first mortgage.
No Fees or Charges: There are no additional fees or charges associated with obtaining Extra Assistance.
Second Mortgage Lien: It's important to note that an Extra Assistance loan represents a second mortgage lien on the purchased home.
Breaking Down Barriers, Building Brighter Futures.
RIHousing's Extra Assistance program serves as a beacon of hope for aspiring homeowners in Rhode Island. Partnering with real estate agencies like Century21 Limitless PRG and lenders such as Total Mortgage, RIHousing ensures that individuals and families have the support they need throughout the homebuying process.
By addressing the formidable challenge of the down payment, the program opens doors and paves the way for individuals and families to achieve the stability and security that come with homeownership.
Through its commitment to accessibility, education, and support, RIHousing exemplifies a dedication to the well-being and prosperity of Rhode Islanders. As more individuals and families find themselves welcomed into the realm of homeownership, communities thrive, and the promise of a brighter future becomes a tangible reality.
In the journey toward homeownership, every step forward is a victory. With Extra Assistance, RIHousing ensures that more Rhode Islanders can take those steps confidently, empowered by the knowledge that their dreams of owning a home are within reach.
Source 🌐<br role="presentation" data-uw-rm-sr="" />RI Housing - <a href="https://www.rihousing.com/extra-assistance/">https://www.rihousing.com/extra-assistance/</a><br role="presentation" data-uw-rm-sr="" />Participating Lenders - <a href="https://www.rihousing.com/buyers/participating-lenders/">https://www.rihousing.com/buyers/participating-lenders/</a> 2024-03-15T11:34:18-07:002024-03-15T11:37:37-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6902What Mortgage Rate Do You Need To Move?What Mortgage Rate Do You Need To Move?
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-What-Mortgage-Rate-Do-You-Need-To-Move.png" width="600" /><br /><br />
If you’ve been thinking about <a href="https://www.simplifyingthemarket.com/en/2024/02/20/strategic-tips-for-buying-your-first-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buying a home</a>, mortgage rates are probably top of mind for you. They may even be why you’ve put your plans on hold for now. When <a href="https://www.simplifyingthemarket.com/en/2024/02/12/whats-really-happening-with-mortgage-rates/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">rates</a> climbed <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">near 8%</a> last year, some buyers found <a href="https://www.simplifyingthemarket.com/en/2024/02/23/how-changing-mortgage-rates-impact-you-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">the numbers</a> just didn’t make sense for their <a href="https://www.simplifyingthemarket.com/en/2024/01/18/3-key-factors-affecting-home-affordability/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">budget</a> anymore. That may be the case for you too.
<a href="https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024" rel="noopener noreferrer" target="_blank">Data</a> from Bright MLS shows the top reason buyers delayed their plans to move is due to high mortgage rates (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" alt="a graph of blue rectangles with text" /></a>
David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent <a href="https://www.youtube.com/watch?v=wD0su_jp9lk" rel="noopener noreferrer" target="_blank">How’s The Market</a> podcast:
“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”
That’s because <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down off their peak last October. And while there’s still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates <a href="https://www.simplifyingthemarket.com/en/2024/02/21/some-experts-say-mortgage-rates-may-fall-below-6-later-this-year/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">below 6%</a> by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from Realtor.com <a href="https://mediaroom.realtor.com/2024-02-21-Americans-Hold-on-to-the-Dream-of-Homeownership" rel="noopener noreferrer" target="_blank">says</a>:
“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead. If your plans were delayed, there’s light at the end of the tunnel again. That means it may be time to start thinking about your move. The best question you can ask yourself right now, is this:
What number do I want to see rates hit before I’m ready to move?
The exact <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">percentage</a> where you feel comfortable kicking off your search again is personal. Maybe it’s 6.5%. Maybe it’s 6.25%. Or maybe it’s once they drop below 6%.
Once you have that number in mind, here’s what you do. Connect with a local <a href="https://www.simplifyingthemarket.com/en/2024/02/28/why-you-want-an-agents-advice-for-your-move/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate professional</a>. They’ll help you stay informed on what’s happening. And when rates hit your target, they’ll be the first to let you know.
Bottom Line
If you’ve put your plans to move on hold because of where mortgage rates are, think about the number you want to see rates hit that would make you ready to re-enter the market.
Once you have that number in mind, let’s connect so you have someone on your side to let you know when we get there.2024-03-11T11:08:00-07:002024-03-12T11:09:44-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6875Rhode Island Housing Market in 2024: Trends, Insights, and Solutions<img src="https://assets.site-static.com/userFiles/1161/image/Rhode_Island_Housing_Market_in_2024_Trends_Insights_and_Solutions.jpg" width="2240" height="1260" data-uw-rm-alt-original="" alt="Rhode Island Housing Market in 2024: Trends, Insights, and Solutions" data-uw-rm-alt="CT" />
Rhode Island Housing Market in 2024: Trends, Insights, and Solutions
In 2024, the Rhode Island housing market is characterized by significant trends that warrant attention and understanding. Let's take a closer look:
Price Increase: Home prices have surged by 12.6% year-over-year as of January 2024, indicating robust demand and limited inventory.
Continued Growth: Despite concerns, the market is expected to sustain its upward trajectory without a crash, providing stability and potential for appreciation.
Decrease in Sales: January saw a 5.3% decline in home sales compared to the previous year, reflecting challenges such as affordability and limited supply.
Long-term Trends: The market experienced a notable drop in home sales in 2023, emphasizing the importance of adaptability and informed decision-making amidst volatility.
In light of these trends, finding a trusted real estate partner becomes paramount. Century21 Limitless PRG stands out as a solution for navigating the Rhode Island housing market in 2024. With the expertise, personalized service, and deep understanding of local market dynamics, Century21 Limitless PRG can help homeowners, buyers, and investors make informed decisions and achieve their real estate goals.
As we navigate the Rhode Island housing market this year, it's essential to stay informed and proactive. With Century21 Limitless PRG as a trusted real estate partner, you can navigate the market with confidence, capitalize on opportunities, and mitigate risks effectively.<br role="presentation" data-uw-rm-sr="" /><br role="presentation" data-uw-rm-sr="" />
🌐 Sources
1.<a href="https://www.redfin.com/state/Rhode-Island/housing-market"> redfin.com - Rhode Island Housing Market: House Prices & Trends</a><br role="presentation" data-uw-rm-sr="" />2. <a href="https://www.houzeo.com/blog/rhode-island-real-estate-market">houzeo.com - Rhode Island Real Estate Market: Predictions for 2024</a><br role="presentation" data-uw-rm-sr="" />3. <a href="https://www.rirealtors.org/news/">rirealtors.org - News - Rhode Island Association of REALTORS®</a>2024-03-06T10:57:33-07:002024-03-06T10:58:27-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6872Why There Won’t Be a Recession That Tanks the Housing MarketWhy There Won’t Be a Recession That Tanks the Housing Market
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Why-There-Won-t-Be-a-Recession-That-Tanks-the-Housing-Market.png" width="600" /><br /><br />
There’s been a lot of recession talk over the past couple of years. And that may leave you worried we’re headed for a repeat of what we saw back in 2008. Here’s a look at the latest expert projections to show you why that isn’t going to happen.
<a href="https://www.builderonline.com/data-analysis/how-the-election-and-unemployment-could-impact-the-2024-housing-market_c" rel="noopener noreferrer" target="_blank">According</a> to Jacob Channel, Senior Economist at LendingTree, the economy’s pretty strong:
“At least right now, the fundamentals of the economy, despite some hiccups, are doing pretty good. While things are far from perfect, the economy is probably doing better than people want to give it credit for.”
That might be why a <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">recent survey</a> from the Wall Street Journal shows only 39% of economists think there’ll be a recession in the next year. That’s way down from 61% projecting a recession just one year ago (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-More-Economists-Now-See-a-Soft-Landing.png" alt="a graph of the economic growth of the economy" /></a>
Most experts believe there won’t be a recession in the next 12 months. One reason why is the current unemployment rate. Let’s compare where we are now with historical data from <a href="https://www.macrotrends.net/countries/USA/united-states/unemployment-rate" rel="noopener noreferrer" target="_blank">Macrotrends</a>, the <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" rel="noopener noreferrer" target="_blank">Bureau of Labor Statistics</a> (BLS), and <a href="https://tradingeconomics.com/united-states/unemployment-rate#:~:text=Unemployment%20Rate%20in%20the%20United,percent%20in%20May%20of%201953." rel="noopener noreferrer" target="_blank">Trading Economics</a>. When we do, it’s clear the unemployment rate today is still very low (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployment-Rate-Near-All-Time-Lows.png" alt="a graph of a graph showing the number of employment rate" /></a>
The orange bar shows the average unemployment rate since 1948 is about 5.7%. The red bar shows that right after the financial crisis in 2008, when the housing market crashed, the unemployment rate was up to 8.3%. Both of those numbers are much larger than the unemployment rate this January (shown in blue).
But will the unemployment rate go up? To answer that, look at the graph below. It uses data from that same Wall Street Journal <a href="https://www.wsj.com/economy/economic-forecasting-survey-archive-11617814998" rel="noopener noreferrer" target="_blank">survey</a> to show what the experts are projecting for unemployment over the next three years compared to the long-term average (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240305-Unemployement-Expected-to-stay-below-5-percent.png" alt="a graph of blue bars" /></a>
As you can see, economists don’t expect the unemployment rate to even come close to the long-term average over the next three years – much less the 8.3% we saw when the market last crashed.
Still, if these projections are correct, there will be people who lose their jobs next year. Anytime someone’s out of work, that’s a tough situation, not just for the individual, but also for their friends and loved ones. But the big question is: will enough people lose their jobs to create a flood of foreclosures that could crash the housing market?
Looking ahead, projections show the unemployment rate will likely stay below the 75-year average. That means you shouldn't expect a wave of foreclosures that would impact the housing market in a big way.
Bottom Line
Most experts now think we won't have a recession in the next year. They also don't expect a big jump in the unemployment rate. That means you don’t need to fear a flood of foreclosures that would cause the housing market to crash.2024-03-04T09:56:00-07:002024-03-06T09:58:49-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6850Why We Aren't Headed for a Housing Crash
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229-Why-We-re-Not-Headed-for-a-Housing-Crash.png" width="600" /><br /><br />
If you’re holding out hope that the housing market is going to crash and bring <a href="https://www.simplifyingthemarket.com/en/2024/02/15/dont-let-the-latest-home-price-headlines-confuse-you/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home prices</a> back down, here’s a look at what the data shows. And spoiler alert: that’s not in the cards. Instead, experts say <a href="https://www.simplifyingthemarket.com/en/2024/02/22/expert-home-price-forecasts-for-2024-revised-up/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home prices</a> are going to keep going up.
Today’s market is very different than it was before the housing crash in 2008. Here’s why.
It’s Harder To Get a Loan Now – and That’s Actually a Good Thing
It was much easier to get a home loan during the lead-up to the 2008 housing crisis than it is today. Back then, banks had different lending standards, making it easy for just about anyone to qualify for a home loan or refinance an existing one.
Things are different today. Homebuyers face increasingly higher standards from mortgage companies. The graph below uses <a href="https://www.mba.org/news-and-research/newsroom/news/2024/02/09/mortgage-credit-availability-increased-in-january" rel="noopener noreferrer" target="_blank">data</a> from the Mortgage Bankers Association (MBA) to show this difference. The lower the number, the harder it is to get a mortgage. The higher the number, the easier it is:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229-Lending-Regulations-Are-Steady.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229-Lending-Regulations-Are-Steady.png" alt="a graph showing a line going up" /></a>
The peak in the graph shows that, back then, lending standards weren’t as strict as they are now. That means lending institutions took on much greater risk in both the person and the mortgage products offered around the crash. That led to mass defaults and a flood of <a href="https://www.simplifyingthemarket.com/en/2024/01/31/foreclosure-activity-is-still-lower-than-the-norm/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">foreclosures</a> coming onto the market.
There Are Far Fewer Homes for Sale Today, so Prices Won’t Crash
Because there were too many homes for sale during the housing crisis (many of which were short sales and <a href="https://www.simplifyingthemarket.com/en/2024/02/02/theres-no-foreclosure-wave-in-sight-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">foreclosures</a>), that caused home prices to fall dramatically. But today, there’s an inventory shortage – not a surplus.
The graph below uses data from the <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR) and the <a href="https://fred.stlouisfed.org/series/HOSSUPUSM673N" rel="noopener noreferrer" target="_blank">Federal Reserve</a> to show how the months’ supply of homes available now (shown in blue) compares to the crash (shown in red):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229-Housing-Supply-Is-Lower-Than-Before.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229-Housing-Supply-Is-Lower-Than-Before.png" alt="a graph of a number of people" /></a>
Today, unsold inventory sits at just a <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-01-2024-overview-2024-02-22.pdf" rel="noopener noreferrer" target="_blank">3.0-months’</a> supply. That’s compared to the peak of 10.4 month’s supply back in 2008. That means there’s nowhere near enough inventory on the market for home prices to come crashing down like they did back then.
People Are Not Using Their Homes as ATMs Like They Did in the Early 2000s
Back in the lead up to the housing crash, many homeowners were borrowing against the equity in their homes to finance new cars, boats, and vacations. So, when prices started to fall, as inventory rose too high, many of those homeowners found themselves underwater.
But today, homeowners are a lot more cautious. Even though prices have skyrocketed in the past few years, homeowners aren’t tapping into their equity the way they did back then.
Black Knight <a href="https://www.blackknightinc.com/wp-content/uploads/2024/02/ICE_MM_FEB2024_Report.pdf" rel="noopener noreferrer" target="_blank">reports</a> that tappable equity (the amount of equity available for homeowners to access before hitting a maximum 80% loan-to-value ratio, or LTV) has actually reached an all-time high:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229Tappable-Equity-at-an-All-Time-High.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240228/20240229Tappable-Equity-at-an-All-Time-High.png" alt="a graph of a growing graph" /></a>
That means, as a whole, homeowners have more equity available than ever before. And that’s great. Homeowners are in a much stronger position today than in the early 2000s. That same report from Black Knight goes on to <a href="https://www.blackknightinc.com/wp-content/uploads/2024/02/ICE_MM_FEB2024_Report.pdf" rel="noopener noreferrer" target="_blank">explain</a>:
“Only 1.1% of mortgage holders (582K) ended the year underwater, down from 1.5% (807K) at this time last year.”
And since homeowners are on more solid footing today, they’ll have options to avoid foreclosure. That limits the number of distressed properties coming onto the market. And without a flood of inventory, prices won’t come tumbling down.
Bottom Line
While you may be hoping for something that brings prices down, that’s not what the data tells us is going to happen. The most current research clearly shows that today’s market is nothing like it was last time.2024-02-26T10:35:00-07:002024-02-29T10:36:31-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6811It’s Time To Prepare Your House for a Spring Listing<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240214/20240219-It-s-Time-To-Prepare-Your-House-for-a-Spring-Listing.png" width="600" style="font-size: 17px;" />
If you're thinking of <a href="https://www.simplifyingthemarket.com/en/2024/02/06/houses-are-still-selling-fast/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">selling</a> your house this spring, now is the perfect <a href="https://www.simplifyingthemarket.com/en/2024/02/01/dont-wait-until-spring-to-sell-your-house/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">time</a> to start getting it ready. With the market gearing up for its busiest time of year, it'll be important to make sure your house shines bright among the competition.
Here are some valuable tips you can use to get your house <a href="https://www.simplifyingthemarket.com/en/2024/01/22/3-must-dos-when-selling-your-house-in-2024/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">market-ready</a>.
Declutter and Organize
First impressions matter, and if your house is a mess, that can easily turn off potential buyers. Before listing, take the time to declutter and organize each room. Decluttering is about more than just tidying up – it's about creating a sense of space and openness that allows potential buyers to envision themselves living in your home. <a href="https://www.moving.com/tips/how-to-declutter-your-home-before-moving/" rel="noopener noreferrer" target="_blank">According</a> to Moving.com:
“Decluttering and organizing your space will go a long way in appealing to potential buyers. . . .decluttering will help the buyers see themselves living in your home. Less clutter inside a home also helps a place appear larger and cleaner, which should attract more buyers.”
Deep Clean Your Kitchen and Bathrooms
The kitchen and bathrooms are focal points for many buyers, and often influence their overall opinion of the house. Ensure these spaces dazzle by giving them a thorough deep cleaning. Pay attention to details like scrubbing grout lines, polishing fixtures, and decluttering countertops. A sparkling kitchen and bathroom can leave a lasting positive impression on potential buyers.
Maintain Your Yard
Your home’s exterior is the first thing potential buyers see, so it’s important to make a good impression from the moment they arrive. A well-maintained yard not only enhances curb appeal, but also shows buyers the home has been well taken care of.
Take the time to spruce up your yard by mowing the lawn, trimming bushes, and clearing away any debris or dead plants. Remember, the goal is to create a welcoming environment that entices buyers to step inside and imagine themselves living there. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/easy-ways-to-add-curb-appeal-to-your-home-this-fall" rel="noopener noreferrer" target="_blank">says</a>:
“A beautifully landscaped front yard can elevate an ordinary house into a charming home and will help homes sell faster and for more money.”
Find a Listing Agent
A skilled <a href="https://www.simplifyingthemarket.com/en/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">listing agent</a> is your partner in minimizing <a href="https://www.simplifyingthemarket.com/en/2024/01/02/things-to-consider-if-your-house-didnt-sell/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">stress</a> when selling your home. Lean on your agent for advice on decluttering, staging, and enhancing your home's appeal to potential buyers. Their insights into market trends and recommendations for reliable contractors and stagers are invaluable. As Realtor.com <a href="https://www.realtor.com/advice/sell/what-should-i-expect-from-my-realtor/" rel="noopener noreferrer" target="_blank">says</a>:
“A good listing agent will help you price your home . . . recommend a photographer and stager to make it look its best, and put your home on the multiple listing service.”
Bottom Line
By decluttering, deep cleaning, and tidying up your house, you can create a welcoming environment that resonates with buyers and increases your chances of a successful <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sale</a>. Let’s connect on what you need to do to get your house ready to sell this spring.2024-02-19T11:45:00-07:002024-02-20T11:46:56-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6792Best Neighborhoods to Invest in Rhode Island<img src="https://assets.site-static.com/userfiles/1161/image/Best_Neighborhoods_to_Invest_in_Rhode_Island.jpg" width="2240" height="1260" />
Are you on the lookout for the perfect neighborhood to invest in Rhode Island? Look no further! Making the right investment in real estate is crucial, and finding the ideal neighborhood can be a game-changer. In this blog post, we'll delve into the problem many investors face when searching for the right neighborhood and introduce you to the solution with Century21 Limitless PRG.
Picture this: you're eager to invest in real estate in Rhode Island, but you're overwhelmed by the myriad of neighborhoods available. Which one will offer the best returns? Which area is poised for growth? These questions can leave you scratching your head and second-guessing your choices.
Century21 Limitless PRG, your trusted partner in real estate investment. With our expertise and dedication, navigating the Rhode Island real estate market becomes a breeze. Our team of professionals is equipped with in-depth knowledge of the local neighborhoods, market trends, and investment opportunities.
At Century21 Limitless PRG, we take the time to understand your investment goals and preferences. Whether you're seeking a bustling urban environment or a serene suburban retreat, we'll help you find the perfect match. With our guidance, you can make informed decisions and invest with confidence.
Investing in real estate is more than just buying a property; it's about securing your financial future. By choosing the right neighborhood, you set yourself up for long-term success. Century21 Limitless PRG not only helps you find lucrative investment opportunities but also provides ongoing support to ensure your investment thrives.
When it comes to investing in Rhode Island real estate, Century21 Limitless PRG is your ultimate ally. With our expertise and personalized approach, you can uncover the best neighborhoods and make smart investment choices.
Ready to explore the best neighborhoods in Rhode Island? Contact Century21 Limitless PRG today and take the first step towards a successful real estate investment journey. Your dream neighborhood awaits!2024-02-14T11:17:00-07:002024-02-15T11:19:48-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6768What’s Really Happening with Mortgage Rates?
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-Whats-really-happening-with-mortgage-rates.png" width="600" /><br /><br />
Are you feeling a bit unsure about what’s really happening with <a href="https://www.simplifyingthemarket.com/en/2024/01/18/3-key-factors-affecting-home-affordability/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a>? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.
The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
<a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">Mortgage rates</a> don’t move in a straight line. There are too <a href="https://www.simplifyingthemarket.com/en/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">many factors</a> at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.
Take a look at the graph below. It uses <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" rel="noopener noreferrer" target="_blank">data</a> from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" /></a>
If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.
For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have <a href="https://www.simplifyingthemarket.com/en/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">trended down</a>. So, what’s the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point (October) compared to where rates are now, you can see they’ve <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">come down</a> compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">continue this year</a>.
Bottom Line
Let’s connect if you have any questions about what you’re reading or hearing about the housing market.2024-02-12T12:24:43-07:002024-02-12T12:27:21-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6765Explore Rhode Island's Housing Market: Discoveries, Breakdowns, and What's Ahead<img src="https://assets.site-static.com/userfiles/1161/image/Rhode Island's Housing Market.jpg" width="2240" height="1260" />
If you've ever found yourself perplexed by the intricacies of our state's housing market, fear not. Today, we're diving deep into the realm of Rhode Island real estate, armed with insights, analysis, and a vision for the future.
Picture this: you're in search of your dream home in Rhode Island, but navigating the market feels like solving a complex puzzle. Sound familiar? You're not alone. Many buyers and sellers face the challenge of deciphering fluctuating prices, neighborhood dynamics, and more.
Enter Century21 Limitless PRG, your trusted partner in unraveling Rhode Island's real estate mysteries. With our extensive expertise and unwavering commitment, we provide invaluable insights to guide you through every step of the process. Whether you're a first-time buyer or a seasoned investor, our team is here to offer clarity and confidence.
At Century21 Limitless PRG, we're not just in the business of transactions—we're in the business of building relationships and empowering our clients. With personalized guidance and a deep understanding of the local market, we ensure that each client feels supported and informed on their real estate journey.
Deciphering the Rhode Island housing market may seem daunting, but with Century21 Limitless PRG at your side, it becomes an exciting adventure. Our expertise and dedication set us apart as trusted advisors, ready to help you navigate the complexities of buying or selling with ease.
Ready to unlock the potential of Rhode Island real estate? Reach out to Century21 Limitless PRG today and discover how we can help you achieve your goals. Don't let uncertainty hold you back—let's embark on this journey together!2024-02-09T12:47:44-07:002024-02-09T12:49:33-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6742A Deep Dive into Home Price Trends<img src="https://assets.site-static.com/userfiles/1161/image/A_Deep_Dive_into_Home_Price_Trends.jpg" width="2240" height="1260" />
Embarking on a journey in the real estate market demands a thorough understanding of local dynamics, especially in regions like Rhode Island where trends can significantly impact buying and selling decisions. Let's delve into the latest insights from CoreLogic® to uncover the nuances of the Rhode Island housing market.
Rhode Island shines as a beacon of opportunity in the latest CoreLogic report, boasting the highest annual price gains nationwide at an impressive 13.3% in December 2023. For homeowners, sellers, and investors in the Ocean State, these numbers signify a promising landscape ripe with potential.
Behind this remarkable growth lies the steady pulse of the job market. With January 2024 witnessing the addition of 353,000 new jobs across the country, Rhode Island benefits from this economic momentum, driving housing demand and bolstering property values.
Beyond the statistics, Rhode Island's allure lies in its unique blend of coastal charm, vibrant communities, and rich cultural heritage. From the historic streets of Providence to the picturesque shores of Newport, the state offers a diverse range of neighborhoods and lifestyles to suit every preference.
As we gaze into the horizon, CoreLogic forecasts a moderation in annual home price gains to 2.8% by December 2024. For Rhode Island residents and prospective buyers, this projection underscores the importance of seizing opportunities in the current market while also planning for long-term growth and stability.
Rhode Island stands as a beacon of opportunity in the ever-evolving landscape of the U.S. housing market. With its impressive annual price gains and robust job market, the Ocean State offers a promising environment for homeowners, sellers, and investors alike.
Ready to explore the thriving real estate market in Rhode Island? Connect with Century21 Limitless PRG today to unlock the full potential of your property journey. Let our experienced team guide you towards your goals and dreams in the vibrant communities of Rhode Island.2024-02-07T02:40:16-07:002024-02-07T08:03:42-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6737Houses Are Still Selling Fast
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Houses-Are-Still-Selling-Fast.png" width="600" /><br /><br />
Have you been thinking about <a href="https://www.simplifyingthemarket.com/en/2024/02/01/dont-wait-until-spring-to-sell-your-house/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">selling your house</a>? If so, here’s some good news. While the housing market isn't as frenzied as it was during the <a href="https://www.simplifyingthemarket.com/en/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> when houses were selling quicker than ever, they’re still selling faster than normal.
The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to tell the story of median days on the market for every January from 2017 all the way through the latest numbers available. For Realtor.com, days on the market means from the time a house is listed for sale until its closing date or the date it’s taken off the market. This metric can help give you an idea of just how quickly homes are selling compared to more normal years:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Homes-Spent-Less-Time-on-Market.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240205/20240206-Homes-Spent-Less-Time-on-Market.png" /></a>
When you look at the most recent data (shown in green), it's clear homes are selling faster than they usually would (shown in blue). In fact, the only years when houses sold even faster than they are right now were the abnormal ‘unicorn’ years (shown in pink). <a href="https://www.realtor.com/research/january-2024-data/" rel="noopener noreferrer" target="_blank">According</a> to Realtor.com:
“Homes spent 69 days on the market, which is three days shorter than last year and more than two weeks shorter than before the COVID-19 pandemic.”
What Does This Mean for You?
Homes are <a href="https://www.simplifyingthemarket.com/en/2024/01/22/3-must-dos-when-selling-your-house-in-2024/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">selling faster</a> than the norm for this time of year – and your house may sell quickly too. That’s because more people are looking to buy now that <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down, but there still aren’t <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">enough homes</a> to go around. Mike Simonsen, Founder of Altos Research, <a href="https://www.housingwire.com/articles/the-strong-spring-real-estate-market-will-surprise-you-altos/" rel="noopener noreferrer" target="_blank">says</a>:
“. . . 2024 is starting stronger than last year. And demand is increasing each week.”
Bottom Line
If you’re wondering if it’s a good time to <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sell your home</a>, the most recent data suggests it is. The housing market appears to be stronger than it usually is at this time of year. To get the <a href="https://www.simplifyingthemarket.com/en/2024/01/29/will-a-silver-tsunami-change-the-2024-housing-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">latest updates</a> on what’s happening in our local market, let’s connect.2024-02-05T10:03:00-07:002024-02-06T10:05:41-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6719Exploring Rhode Island: A Real Estate Adventure with Century 21 Limitless PRG<img src="https://assets.site-static.com/userfiles/1161/image/Exploring_Rhode_Island_A_Real_Estate_Adventure_with_Century_21_Limitless_PRG.jpg" width="2240" height="1260" />
Are you planning a visit to Rhode Island, the picturesque state with its coastal charm and vibrant culture? As exciting as it sounds, finding the perfect accommodation can be a daunting task. Fear not! We've got the perfect solution to make your stay memorable and stress-free
Rhode Island's real estate market can be overwhelming for visitors. Whether you're considering a short stay or contemplating a more permanent move, understanding the local real estate landscape is crucial. With so many options, where do you start?
Enter Century 21 Limitless PRG, your trusted real estate partner in Rhode Island, Connecticut, and Massachusetts. Our dedicated team professionals is here to guide you through the process, ensuring a seamless experience whether you're a first-time homebuyer or a seasoned investor.
If you're seeking professional assistance, look no further than Century 21 Limitless PRG. Licensed in Rhode Island, Massachusetts, and Connecticut, Our expertise extends to both residential and commercial properties.
Beyond the real estate realm, Rhode Island offers a plethora of attractions. From exploring historic sites to savoring delectable seafood, there's something for everyone. Plan your itinerary, immerse yourself in the local culture, and let Century 21 Limitless PRG handle your real estate needs.
Conclusion: Embarking on a real estate journey in a new place can be intimidating, but with Century 21 Limitless PRG by your side, it becomes an exciting adventure. Trust the experts to find your dream property and make the most of your Rhode Island experience.
Ready to explore Rhode Island with confidence? Contact Century 21 Limitless PRG at 401-288-3600 and let them turn your real estate aspirations into reality.2024-01-31T07:24:00-07:002024-02-02T07:29:21-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6698Will a Silver Tsunami Change the 2024 Housing Market?Will a Silver Tsunami Change the 2024 Housing Market?
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240125/20240129-Will-a-Silver-Tsunami-Change-the-2024-Housing-Market.png" width="600" /><br /><br />
Have you ever heard the <a href="https://www.simplifyingthemarket.com/en/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">term</a> “Silver Tsunami” and wondered what it's all about? If so, that might be because there’s been lot of talk about it online recently. Let's dive into what it is and why it won't drastically impact the housing market.
What Does Silver Tsunami Mean?
A recent article from HousingWire <a href="https://www.housingwire.com/articles/silver-tsunami-could-have-a-bigger-impact-on-2024s-housing-market-analyst/" rel="noopener noreferrer" target="_blank">calls it</a>:
“. . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . .”
The thought is that as baby boomers <a href="https://www.simplifyingthemarket.com/en/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">grow older</a>, a significant number will start <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">downsizing</a> their homes. Considering how large that generation is, if these moves happened in a big wave, it would affect the housing market by causing a significant uptick in the number of larger homes for sale. That influx of homes coming onto the market would impact the balance of supply and demand and more.
The concept makes sense in theory, but will it happen? And if so, when?
Why It Won’t Have a Huge Impact on the Housing Market in 2024
Experts say, so far, a silver tsunami hasn’t happened – and it probably won't anytime soon. According to that same <a href="https://www.housingwire.com/articles/silver-tsunami-could-have-a-bigger-impact-on-2024s-housing-market-analyst/" rel="noopener noreferrer" target="_blank">article</a> from HousingWire:
“. . . the silver tsunami’s transformative potential for the U.S. housing market has not yet materialized in any meaningful way, and few expect it to anytime soon.”
Here’s just one reason why. Many baby boomers don’t want to move. <a href="https://www.aarp.org/content/dam/aarp/research/surveys_statistics/liv-com/2021/2021-home-community-preferences-chartbook.doi.10.26419-2Fres.00479.001.pdf" rel="noopener noreferrer" target="_blank">Data</a> from the AARP shows over half of the surveyed adults ages 65 and up plan to stay put and age in place in their current home rather than move (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240125/20240129-60-percent-of-adults-aged-65-expect-to-stay-in-their-home-as-they-get-older.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240125/20240129-60-percent-of-adults-aged-65-expect-to-stay-in-their-home-as-they-get-older.png" /></a>
Clearly, not every baby boomer is planning to sell or move – and even those who do won’t do it all at once. Instead, it will be more gradual, happening slowly over time. As Mark Fleming, Chief Economist at First American, <a href="https://finance.yahoo.com/news/tides-changed-housing-market-experts-113000181.html" rel="noopener noreferrer" target="_blank">says</a>:
“Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they're going to take about two decades to work their way through.”
Bottom Line
If you’re worried about a Silver Tsunami shaking up the housing market, don’t be. Any impact from baby boomers moving will be gradual over many years. Fleming <a href="https://finance.yahoo.com/news/tides-changed-housing-market-experts-113000181.html" rel="noopener noreferrer" target="_blank">sums</a> it up best:
“Demographic trends, they don't tsunami. They trickle.”2024-01-29T07:11:00-07:002024-01-30T07:12:50-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6677Rhode Island Home Buying: Mastering the Market with Confidence<img src="https://assets.site-static.com/userFiles/1161/file/Rhode_Island_Home_Buying_Mastering_the_Market_with_Confidence.jpg" width="2240" height="1260" data-uw-rm-alt-original="" alt="The Ultimate Guide to Buying a Home in Rhode Island: Navigating the Housing Market with Confidence" data-uw-rm-alt="CT" />
The Ultimate Guide to Buying a Home in Rhode Island: Navigating the Housing Market with Confidence
Are you considering buying a home in Rhode Island but feeling a bit overwhelmed by the real estate landscape? Fear not! In this guide, we'll walk you through the current state of the Rhode Island real estate market, focusing on the positive aspects without causing undue concern about mortgage rates.
The Rhode Island housing market has seen a surge in home prices, with a 4.9% year-over-year increase in the median sale price. However, the prospect of rising mortgage rates might make potential homebuyers apprehensive.
While mortgage rates are a concern, it's essential to approach this with a balanced perspective. Despite challenges, the Rhode Island market remains promising. Realtor.com predicts continued price growth in 2024, instilling confidence in potential buyers.
Understanding the nuances of the market is crucial. We'll provide insights on navigating the Rhode Island rental market in 2024, giving you a holistic view based on trends from the previous year.
Ready to take the plunge into Rhode Island real estate? Our team at Century21 Limitless PRG is here to guide you every step of the way. With our expertise, you can make informed decisions and confidently embark on your home-buying journey.
In conclusion, Rhode Island's housing market presents exciting opportunities for homebuyers. By focusing on the positive aspects and approaching potential challenges with a solution-oriented mindset, you can navigate the market with confidence.
🌐 Sources<br role="presentation" data-uw-rm-sr="" />1. <a href="https://www.houzeo.com/blog/rhode-island-real-estate-market/">houzeo.com - Rhode Island Real Estate Market: Predictions for 2024</a><br role="presentation" data-uw-rm-sr="" />2. <a href="https://www.noradarealestate.com/blog/rhode-island-housing-market/">noradarealestate.com - Will the Rhode Island Housing Market Crash in 2024?</a><br role="presentation" data-uw-rm-sr="" />3. <a href="https://www.wpri.com/money/rhode-island-home-prices-expected-to-keep-rising-in-2024-report-finds/">wpri.com - Rhode Island home prices expected to keep rising in 2024</a><br role="presentation" data-uw-rm-sr="" />4. <a href="https://www.premrg.com/blog/americas-hottest-housing-markets-for-2024/">premrg.com - America's Hottest Housing Markets for 2024</a><br role="presentation" data-uw-rm-sr="" />5. <a href="https://www.linkedin.com/pulse/2024-rhode-island-rental-market-predictions-zpwfe">linkedin.com - 2024 Rhode Island Rental Market Predictions.</a><br role="presentation" data-uw-rm-sr="" />6. <a href="https://www.searchrhodeislandhouses.com/blog/category/market-news/">searchrhodeislandhouses.com - Market News - Rhode Island Real Estate Blog</a>2024-01-24T11:27:28-07:002024-01-24T11:46:51-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:66703 Must-Do’s When Selling Your House in 20243 Must-Do’s When Selling Your House in 2024
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-3-Must-Do-s-When-Selling-Your-House-in-2024.png" width="600" /><br /><br />
If one of the goals on your list is <a href="https://www.simplifyingthemarket.com/en/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">selling your house</a> and <a href="https://www.simplifyingthemarket.com/en/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">making a move</a> this year, you’re likely juggling a mix of excitement about what’s ahead and feeling a little sentimental about your current home.
A great way to balance those emotions and make sure you’re confident in your decision is to keep these three best practices in mind when you’re <a href="https://www.simplifyingthemarket.com/en/2024/01/09/ways-your-home-equity-can-help-you-reach-your-goals/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">ready to sell</a>.
1. Price Your Home Right
The <a href="https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">housing market</a> shifted in 2023 as <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> rose and <a href="https://www.simplifyingthemarket.com/en/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home price appreciation</a> started to <a href="https://www.simplifyingthemarket.com/en/2023/10/20/home-price-growth-is-returning-to-normal-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">normalize</a> once again. As a seller, you still need to recognize how important it is to price your house appropriately based on where the market is today. Hannah Jones, Economic Research Analyst for Realtor.com, <a href="https://www.realtor.com/news/trends/home-seller-alert-weve-found-the-very-best-week-to-list-your-home-in-2023/" rel="noopener noreferrer" target="_blank">explains</a>:
“Sellers need to become familiar with their local market and work closely with a local agent to make sure their listing is attractive to buyers. Buyers feeling the pressure of affordability are likely to be pickier, so a well-priced, well-maintained home is the ticket to drumming up big demand.”
If you price your house too high, you run the risk of deterring <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buyers</a>. And if you go too low, you’re leaving money on the table. An experienced <a href="https://www.simplifyingthemarket.com/en/2023/12/21/sell-smarter-why-working-with-a-real-estate-agent-may-beat-going-solo/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate agent</a> can help determine what your ideal asking price should be, so your house moves quickly and for top dollar.
2. Keep Your Emotions in Check
Today, homeowners are staying in their houses <a href="https://www.simplifyingthemarket.com/en/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">longer</a> than they used to. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR), since 1985, the average time a homeowner has owned their home has increased from 6 to 10 years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240118/20240122-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-10-years.png" /></a>
This is much more than what used to be the norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even tougher to separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations and the best pricing strategy along the way. Trust the professionals who have your best interests in mind.
3. Stage Your Home Properly
While you may love your decor and how you’ve customized your house over the years, not all buyers will feel the same way about your vibe. That’s why it’s so important to make sure you focus on your home’s first impression, so it appeals to as many buyers as possible.
Buyers want to be able to picture themselves in the home. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. As Jessica Lautz, Deputy Chief Economist and Vice President of Research at NAR, <a href="https://www.nar.realtor/newsroom/nearly-half-of-sellers-agents-said-staging-a-home-reduced-its-time-on-market-nar-report-finds" rel="noopener noreferrer" target="_blank">says</a>:
“Buyers want to easily envision themselves within a new home and home staging is a way to showcase the property in its best light.”
A real estate professional can help you with expertise on getting your house <a href="https://www.simplifyingthemarket.com/en/2023/12/22/get-your-house-ready-to-sell-this-winter-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">ready to sell</a>.
Bottom Line
If you’re considering selling your house, let’s connect so you have help navigating the process while prioritizing these must-do’s.2024-01-22T06:57:00-07:002024-01-23T07:02:43-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6656America's Hottest Housing Markets for 2024<img src="https://assets.site-static.com/userFiles/1161/image/PRG_Blog_Posts_Banner.jpg" width="2240" height="1260" data-uw-rm-alt-original="" alt="The Surprising Twist in America's Hottest Housing Markets: Providence, Rhode Island Shines" data-uw-rm-alt="CT" />The Surprising Twist in America's Hottest Housing Markets: Providence, Rhode Island Shines
When it comes to the hottest housing markets in 2024, you might be surprised to learn that the Midwest and Northeast are back in the game. Zillow's list of the top 10 real estate markets reveals a shift from the Sun Belt to regions like the Midwest and Northeast. And guess what? Providence, Rhode Island, is not just a participant but a shining star in this unexpected resurgence.
In recent years, skyrocketing property prices in coastal cities like San Francisco and San Jose led to a mass exodus as homebuyers found themselves priced out. While cities in the Sun Belt initially offered an affordable alternative, rising interest rates brought about a new challenge. With the highest interest rates in decades, homebuyers have had to cast a wider net to find affordability.
Enter the Midwest and Northeast, featuring surprising contenders like Buffalo, Cincinnati, Columbus, Indianapolis, and our star player, Providence, Rhode Island. These cities are not only defying expectations but also offering a remarkable solution – home prices well below the national average.
The top five cities, despite their cold winters, boast average home prices over $100,000 less than the national average of $513,000. This becomes a significant advantage for buyers, especially with interest rates ranging between 6% and 7%. Compare this to the million-dollar averages in cities like Los Angeles and San Francisco, and the Midwest becomes a haven of affordability.
Cities like Buffalo, Cincinnati, and Columbus, besides offering cost-effective housing, are also substantial enough to provide diverse employment opportunities. The savings are substantial enough that new homeowners in these areas can deck out their households in Canada goose jackets and still have money left over compared to their counterparts in glamorous cities.
While the trend of Americans moving to the Midwest may raise eyebrows, it seems destined to endure as long as affordable housing remains abundant. The Midwest and Northeast are not just making a comeback; they are becoming the go-to destinations for savvy homebuyers seeking a perfect blend of affordability and opportunity.
Ready to explore the thriving real estate market in Providence, Rhode Island, and other surprising cities? Connect with Century21 Limitless PRG, your key to unlocking the door to affordable and promising homeownership in America's hottest housing markets.
Don't miss out on this unique opportunity – find your dream home where affordability meets potential!<br role="presentation" data-uw-rm-sr="" /><br role="presentation" data-uw-rm-sr="" />Source: <a href="https://www.aarp.org/home-family/your-home/info-2024/zillow-hottest-housing-markets.html">https://www.aarp.org/home-family/your-home/info-2024/zillow-hottest-housing-markets.html </a>2024-01-17T07:02:00-07:002024-01-19T07:31:29-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:66482 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers
<img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/2024017-2-reasons-why-today-s-mortgage-rate-trend-is-good-for-sellers..png" width="600" /><br /><br />
If you’ve been holding off on selling your house to <a href="https://www.simplifyingthemarket.com/en/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">make a move</a> because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been <a href="https://freddiemac.gcs-web.com/node/28231/pdf" rel="noopener noreferrer" target="_blank">below 7%</a> for over a month now (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Mortgage-Rates-Continue-to-Hover-in-the-Mid-6-percent-Range.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Mortgage-Rates-Continue-to-Hover-in-the-Mid-6-percent-Range.png" /></a>
And while they’re not going back to the 3% we saw during the <a href="https://www.simplifyingthemarket.com/en/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>, they are expected to continue to <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">go down</a> from where they are now in the near future. As Dean Baker, Senior Economist at the Center for Economic Research, <a href="https://cepr.net/contrary-to-what-the-washington-post-tells-you-homeownership-rates-for-young-people-are-above-the-pre-pandemic-level/" rel="noopener noreferrer" target="_blank">explains</a>:
“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”
Here are two reasons why this recent trend, and the <a href="https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">expectation</a> it’ll continue, is such <a href="https://www.simplifyingthemarket.com/en/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">good news</a> for you.
You May Not Feel as Locked-In to Your Current Mortgage Rate
With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, <a href="https://www.simplifyingthemarket.com/en/2023/12/22/get-your-house-ready-to-sell-this-winter-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">moving</a> to a new home meant possibly trading in a low rate for one up near 8%.
However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes <a href="https://www.simplifyingthemarket.com/en/2023/12/18/why-now-is-still-a-great-time-to-sell-your-house/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">moving</a> more affordable than it was just a few months ago. As Lance Lambert, Founder of ResiClub, <a href="https://www.resiclubanalytics.com/p/lockin-effect-told-2-maps?utm_source=www.resiclubanalytics.com&utm_medium=newsletter&utm_campaign=the-lock-in-effect-as-told-by-2-maps&jwt_token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJzdWJzY3JpYmVyX2lkIjoiZTFhYmVkNWYtMjMwOC00ZDlhLWEzY2YtMmNiNmJkNzg0YTc0IiwiZXhwIjoxNzA0MjI5Njg4LCJpc3MiOiJodHRwczovL2FwcC5iZWVoaWl2LmNvbSIsImlhdCI6MTcwNDA1Njg4OH0.kgtTWNpT6CQaG3sypDr0uRJAnyMH9ozLhjjxYVWTThI" rel="noopener noreferrer" target="_blank">explains</a>:
“We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”
More Buyers Will Be Coming to the Market
According to <a href="https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024" rel="noopener noreferrer" target="_blank">data</a> from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Top-3-Reasons-Buyers-Paused-Decision.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240116/20240116-Top-3-Reasons-Buyers-Paused-Decision.png" /></a>
Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.
Bottom Line
If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to move. When you’re ready, let’s connect.2024-01-15T12:28:00-07:002024-01-17T12:29:41-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6606What Lower Mortgage Rates Mean for Your Purchasing PowerWhat Lower Mortgage Rates Mean for Your Purchasing Power
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-What-Lower-Mortgage-Rates-Mean-for-Your-Purchasing-Power.png" width="600" /><br /><br />
If you want to <a href="https://www.simplifyingthemarket.com/en/2023/11/23/why-homeowners-are-thankful-they-own/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buy a home</a>, it's important to know how <a href="https://www.simplifyingthemarket.com/en/2023/12/20/why-mortgage-rates-could-continue-to-decline/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under <a href="https://freddiemac.gcs-web.com/node/28216/pdf" rel="noopener noreferrer" target="_blank">7%</a>, according to Freddie Mac (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Mortgage-Rates-Fall-Below-Seven-Percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Mortgage-Rates-Fall-Below-Seven-Percent.png" /></a>
This recent trend is great news for <a href="https://www.simplifyingthemarket.com/en/2023/12/15/what-you-need-to-know-about-down-payments-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buyers</a>. As a recent article from Bankrate <a href="https://www.bankrate.com/mortgages/analysis/" rel="noopener noreferrer" target="_blank">says</a>:
“The rate cool-off somewhat eases the housing affordability squeeze.”
And <a href="https://www.mba.org/news-and-research/newsroom/news/2023/12/21/mortgage-application-payments-increased-2.0-percent-to-2-199-in-october" rel="noopener noreferrer" target="_blank">according</a> to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association (MBA):
“MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .”
Here’s a bit more context on how this could help with your plans to <a href="https://www.simplifyingthemarket.com/en/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buy a home</a>.
How Mortgage Rates Affect Your Search for a Home
Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">become a homeowner</a>. The chart below illustrates how your ability to afford a home changes when mortgage rates shift. Imagine your budget allows for a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Buyers-Purchasing-Power.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Buyers-Purchasing-Power.png" /></a>
As you can see, even small changes in rates can affect your budget and the loan amount you can afford.
Get Help from Reliable Experts To Understand Your Budget and Plan Ahead
When you're looking to <a href="https://www.simplifyingthemarket.com/en/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">buy a home</a>, it's important to get guidance from a local real estate agent and a trusted lender. They can help you explore different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you.
By looking at the numbers and the latest data together, then adjusting your strategy based on today's rates, you'll be better prepared and ready to buy a home.
Bottom Line
If you’re looking to <a href="https://www.mykcm.com/2023/11/24/why-homeowners-feel-thankful-for-their-homes-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a>, you should know the recent downward trend in mortgage rates is good news for your move. <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">Let’s connect</a> and plan your next steps.2024-01-08T10:11:34-07:002024-01-08T10:15:48-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6579Why Pre-Approval Is Your Homebuying Game ChangerWhy Pre-Approval Is Your Homebuying Game Changer
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20240103-Why-Pre-Approval-Is-Your-Homebuying-Game-Changer.png" width="600" /><br /><br />
If you’re thinking about buying a home, pre-approval is a crucial part of the process you definitely don’t want to skip. So, before you start picturing yourself in your new living room or dining on your future all-season patio, be sure you’re working with a trusted lender to prioritize this essential step. Here’s why.
While <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home price</a> growth is moderating and <a href="https://www.simplifyingthemarket.com/en/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">mortgage rates</a> have been coming down in recent weeks, <a href="https://www.simplifyingthemarket.com/en/2023/11/28/are-the-top-3-housing-market-questions-on-your-mind/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">affordability</a> is still tight. At the same time, there’s a <a href="https://www.simplifyingthemarket.com/en/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">limited number of homes</a> for sale right now, and that means ongoing competition among hopeful buyers. But, if you’re strategic, there are ways to navigate these waters – and pre-approval is the game changer.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know more about pre-approval. As part of the homebuying process, a lender looks at your finances to determine what they’re willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Getting pre-approved starts to put you in the mindset of seeing the bigger financial picture, one step at a time. And the key is actually more than just getting a pre-approval letter from your lender. The combination of pre-approval and strategic budgeting is your golden ticket to understanding what you can actually afford. It saves you from painful heartaches down the road so you don’t fall in love with a house that might be out of reach.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
But that's just the beginning. Let’s face it, there are more people looking to buy than there are homes available for <a href="https://www.simplifyingthemarket.com/en/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sale</a>, and that creates competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you get ready to make your move. But getting pre-approved for a mortgage can help you stand out from other buyers.
In today's fast-moving housing market, having that pre-approval in your back pocket can be your secret weapon. When sellers see you're pre-approved, it tells them you're a strategic and serious buyer. In a world of multiple offers, that's a big deal. As an article from the Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows sellers you’re more than just a window shopper. You’re a buyer who’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or issues. Sellers love that because they see your offer as a reliable one. A win-win, right?
Bottom Line
So, before you start mentally arranging furniture in your dream home, work with a trusted lender to get your pre-approval set. It’ll save you time, stress, and a lot of headaches that could come up along the way without it. The reality is, the more prepared you are, the more likely you are to land the home you’re longing for.2024-01-03T09:41:00-07:002024-01-04T09:42:26-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6553Revealing 2024: An Extravaganza Beyond Real Estate Featuring Century 21 Limitless PRG<img src="https://assets.site-static.com/userfiles/1161/image/ur.jpg" width="2240" height="1260" />
As the countdown to 2024 begins, Century 21 Limitless PRG invites you to embrace the new year in a way that extends far beyond real estate transactions. Discover how this unique approach fosters a sense of community, commemorates significant milestones, and unlocks endless possibilities for an exciting journey ahead.
Fostering Community Connection with Century 21 Limitless PRG
In a fast-paced world, community becomes the heartbeat of Century 21 Limitless PRG's approach to the new year. This celebration isn't just about personal resolutions; it's a chance to strengthen community bonds. Explore engaging events and initiatives that transform neighbors into friends and emphasize the importance of belonging. Join us in making 2024 a year where your connection with the community is as vibrant as the homes we offer.
Milestone Moments: Celebrate Success with Century 21 Limitless PRG
At Century 21 Limitless PRG, we recognize the significance of your journey's milestones. As you welcome 2024, take a moment to celebrate achievements—whether you're a first-time homeowner, seasoned investor, or embarking on a new chapter. Our commitment is to make your real estate experiences memorable, offering personalized services and acknowledging your successes. Let's make your journey with us one marked with joy and accomplishment.
Embracing Infinite Possibilities in 2024
The dawn of a new year symbolizes a blank canvas, ready to be painted with the brushstrokes of your dreams and aspirations. Century 21 Limitless PRG believes in the endless possibilities that a new year brings—both in real estate and beyond. Whether you're exploring new neighborhoods, investing in properties, or embarking on a different life chapter, our team is prepared to support you in realizing your goals.
Toasting to New Beginnings: Century 21 Limitless PRG and Your 2024 Journey
In conclusion, welcoming 2024 with Century 21 Limitless PRG is an immersive experience that transcends traditional real estate boundaries. It's about building community, celebrating milestones, and embracing limitless potential. Let's make 2024 a memorable year of growth, connection, and unparalleled possibilities. Here's to new beginnings—cheers!2023-12-29T13:14:13-07:002023-12-29T13:17:34-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6544Retiring Soon? Why Moving Might Be the Perfect Next StepRetiring Soon? Why Moving Might Be the Perfect Next Step
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Retiring-Soon-Why-Moving-Might-Be-the-Perfect-Next-Step.png" width="600" /><br /><br />
If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.
Fortunately, you may be in a better position to <a href="https://www.simplifyingthemarket.com/en/2023/12/05/when-you-sell-your-house-where-do-you-plan-to-go/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">make a move</a> than you realize. Here are a few things to think about as you decide whether or not to sell and make a move.
How Long You’ve Been in Your Home
From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">rising</a> today, meaning many homeowners are living in their houses even longer (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Homeowners-Are-Living-In-Their-Homes-Longer-In-Recent-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-Homeowners-Are-Living-In-Their-Homes-Longer-In-Recent-Years.png" /></a>
When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those <a href="https://www.simplifyingthemarket.com/en/2023/11/13/life-changing-events-that-move-the-housing-market/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">life changes</a> and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
How Much Equity You’ve Gained
Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to <a href="https://www.simplifyingthemarket.com/en/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">home price appreciation</a>. Data from the Federal Housing Finance Agency (FHFA) <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" rel="noopener noreferrer" target="_blank">illustrates</a> that point (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-How-Home-Prices-Have-Grown-over-Time.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231220/20231227-How-Home-Prices-Have-Grown-over-Time.png" /></a>
While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.
Consider Your Retirement Goals
Whether you're looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">shares</a> that for recent home sellers, the primary reason to move was to be closer to loved ones.
Whatever your home goals are, a trusted <a href="https://www.simplifyingthemarket.com/en/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">real estate agent</a> can work with you to find the best option. They’ll help you <a href="https://www.simplifyingthemarket.com/en/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">sell</a> your current house and <a href="https://www.simplifyingthemarket.com/en/2023/12/08/your-homebuying-adventure-infographic/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">guide you</a> through buying the home that’s right for your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore the available homes in our area.2023-12-28T02:57:15-07:002023-12-28T09:12:51-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6473Down Payment Assistance Programs Can Help Pave the Way to HomeownershipDown Payment Assistance Programs Can Help Pave the Way to Homeownership
<br /><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Down-Payment-Assistance-Programs-Can-Help-Pave-the-Way-to-Homeownership.png" width="600" /><br /><br />
If you’re looking to buy a home, your down payment doesn’t have to be a big hurdle. <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR), 38% of first-time homebuyers find saving for a down payment the most challenging step. But the reality is, you probably don’t need to put down as much as you think:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Todays-Median-Down-Payment-Is-Much-Lower.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231207/20231212-Todays-Median-Down-Payment-Is-Much-Lower.png" /></a>
Data from NAR <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-profile-of-home-buyers-and-sellers-highlights-11-13-2023.pdf" rel="noopener noreferrer" target="_blank">shows</a> the median down payment hasn’t been over 20% since 2005. In fact, the median down payment for all homebuyers today is only 15%. And it’s even lower for first-time homebuyers at 8%. But just because that’s the median, it doesn’t mean you have to put that much down. Some qualified buyers put down even less.
For example, there are loan types, like <a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank">FHA loans</a>, with down payments as low as 3.5%, as well as options like <a href="https://www.simplifyingthemarket.com/en/2022/11/10/va-loans-can-help-veterans-achieve-their-dream-of-homeownership/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">VA loans</a> and <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program" rel="noopener noreferrer" target="_blank">USDA loans</a> with no down payment requirements for qualified applicants. But let’s focus in on another valuable resource that may be able to help with your down payment: down payment assistance programs.
First-Time and Repeat Buyers Are Often Eligible
According to <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>, there are thousands of programs available for homebuyers – and 75% of these are down payment assistance programs.
And it’s not just first-time <a href="https://www.simplifyingthemarket.com/en/2023/10/26/affordable-homeownership-strategies-for-gen-z/?a=188547-c59ef38371c9f6e0f31ecc280a497db5" rel="noopener noreferrer" target="_blank">homebuyers</a> that are eligible. That means no matter where you are in your homebuying journey, there could be an option available for you. As Down Payment Resource <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">notes</a>:
“You don’t have to be a first-time buyer. Over 39% of all [homeownership] programs are for repeat homebuyers who have owned a home in the last 3 years.”
The best place to start as you search for more information is with a trusted real estate professional. They’ll be able to share more information about what may be available, including additional programs for specific professions or communities.
Additional Down Payment Resources That Can Help
Here are a few down payment assistance programs that are helping many of today’s buyers achieve the dream of homeownership:
<a href="https://www.teachernextdoor.us/FAQs#What%20is%20Teacher%20Next%20Door?" rel="noopener noreferrer" target="_blank">Teacher Next Door</a> is designed to help teachers, first responders, health providers, government employees, active-duty military personnel, and veterans reach their down payment goals.
<a href="https://www.fanniemae.com/casa" rel="noopener noreferrer" target="_blank">Fannie Mae</a> provides down-payment assistance to eligible first-time homebuyers living in majority-Latino communities.
<a href="https://myhome.freddiemac.com/buying/down-payments-and-pmi" rel="noopener noreferrer" target="_blank">Freddie Mac</a> also has options designed specifically for homebuyers with modest credit scores and limited funds for a down payment.
The <a href="https://3by30.org/homeownership-101/get-help-buying-a-home/" rel="noopener noreferrer" target="_blank">3By30</a> program lays out actionable strategies to add 3 million new Black homeowners by 2030. These programs offer valuable resources for potential buyers, making it easier for them to secure down payments and realize their dream of homeownership.
For Native Americans, <a href="https://downpaymentresource.com/homebuyer-resource/highlighting-42-native-american-homebuyer-assistance-programs-in-honor-of-native-american-heritage-month/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a> highlights 42 U.S. homebuyer assistance programs across 14 states that ease the path to homeownership by providing support with down payments and other associated costs.
Even if you don’t qualify for these types of programs, there are many other federal, state, and local options available to look into. And a real estate professional can help you find the ones that meet your needs as you explore what’s available.
Bottom Line
Achieving the dream of having a home may be more within reach than you think, especially when you know where to find the right support. To learn more about your options, let’s connect.2023-12-12T10:26:06-07:002023-12-12T10:35:10-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6278Why Home Prices Keep Going Up
<img src="https://assets.site-static.com/userfiles/1161/image/20231023-Why-Home-Prices-Keep-Going-Up.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you've ever dreamed of buying your own place, or selling your current house to upgrade, you're no stranger to the rollercoaster of emotions changing <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">home prices</a> can stir up. It's a tale of financial goals, doubts, and a dash of anxiety that many have been through.
But if you put off moving because you’re worried home prices might drop, make no mistake, they’re not going down. In fact, it's just the opposite. National <a href="https://www.blackknightinc.com/data-reports/" rel="noopener noreferrer" target="_blank">data</a> from several <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">sources</a> says they’ve been <a href="https://www.freddiemac.com/research/indices/house-price-index" rel="noopener noreferrer" target="_blank">going up</a> consistently this year (see graph below):
<a href="https://www.mykcm.com/content/images/20231018/20231023-Percent-Change-In-Home-Values.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231018/20231023-Percent-Change-In-Home-Values.png" /></a>
Here’s what this graph shows. In the first half of 2022, home prices rose significantly (the green bars on the left side of the graphs above). Those increases were dramatic and unsustainable.
So, in the second half of the year, prices went through a correction and started dipping a bit (shown in red). But those slight declines were shallow and short-lived. Still, the media really focused on those drops in their headlines – and that created a lot of fear and uncertainty among consumers.
But here’s what hasn’t been covered fully. So far in 2023, prices are going up once more, but this time at a more normal pace (the green bars on the right side of the graphs above). And after price gains that were too high and then the corrections that followed in 2022, the fact that all three reports show more normal or typical price appreciation this year is good news for the housing market.
Orphe Divounguy, Senior Economist at Zillow, <a href="https://www.zillow.com/research/total-market-value-2023-33031/" rel="noopener noreferrer" target="_blank">explains</a> changing home prices over the past 12 months this way:
“The U.S. housing market has surged over the past year after a temporary hiccup from July 2022-January 2023. . . . That downturn has proven to be short lived as housing has rebounded impressively so far in 2023. . .”
Looking ahead, home price appreciation typically starts to ease up <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">this time of year</a>. As that happens, there’s some risk the media will confuse slowing price growth (deceleration of appreciation) with home prices falling (depreciation). Don’t be fooled. Slower price growth is still growth.
Why Are Home Prices Increasing Now?
One reason why home prices are going back up is because there still <a href="https://www.mykcm.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">aren't enough homes</a> for sale for all the people who want to buy them.
Even though higher <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> cause <a href="https://www.mykcm.com/2023/09/15/plenty-of-buyers-are-still-active-today-infographic/" rel="noopener noreferrer" target="_blank">buyer demand</a> to moderate, they also cause the <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">supply of available homes</a> to go down. That’s because of the mortgage rate lock-in effect. When rates rise, some homeowners are reluctant to sell and lose their current low mortgage rate just to take on a higher one for their next home.
So, with higher mortgage rates impacting both buyers and sellers, the supply and demand equation of the housing market has been affected. But since there are still more people who want to purchase homes than there are <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">homes available to buy</a>, prices continue to rise. As Freddie Mac <a href="https://www.freddiemac.com/research/forecast/20230921-overall-economic-growth-has-been-resilient" rel="noopener noreferrer" target="_blank">states</a>:
“While rising interest rates have reduced affordability—and therefore demand—they have also reduced supply through the mortgage rate lock-in effect. Overall, it appears the reduction in supply has outweighed the decrease in demand, thus house prices have started to increase . . .”
Here’s How This Impacts You
Buyers: If you've been waiting to <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">buy a home</a> because you were afraid its value might drop, knowing that home prices have gone back up should make you feel better. <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">Buying a home</a> gives you a chance to own something that usually becomes <a href="https://www.mykcm.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">more valuable over time</a>.
Sellers: If you've been holding off on selling your house because you were worried about how changing home prices would impact its value, it could be a smart move to work with a <a href="https://www.mykcm.com/2023/10/09/key-skills-you-need-your-listing-agent-to-have/" rel="noopener noreferrer" target="_blank">real estate agent</a> and put your house <a href="https://www.mykcm.com/2023/09/15/plenty-of-buyers-are-still-active-today-infographic/" rel="noopener noreferrer" target="_blank">on the market</a>. You don't have to wait any longer because the most recent data indicates home prices have turned in your favor.
Bottom Line
If you put off moving because you were worried that home prices might go down, data shows they’re <a href="https://www.mykcm.com/2023/10/03/home-prices-are-not-falling/" rel="noopener noreferrer" target="_blank">increasing</a> across the country. Let’s connect so you can understand how home prices are changing in our local area.
2023-10-23T10:34:00-07:002023-10-26T10:35:57-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6276Home Price Growth Is Returning to Normal [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/1161/image/Home-Price-Growth-Is-Returning-To-Normal-MEM.jpg" width="1300" height="4410" />
Some Highlights
If you're wondering what’s happening with <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">home prices</a>, know they’re still <a href="https://www.mykcm.com/2023/10/03/home-prices-are-not-falling/" rel="noopener noreferrer" target="_blank">rising</a>, just at a slower pace – and that’s perfectly normal for this time of year.
Based on <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">typical seasonality</a> in the market, <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#overview" rel="noopener noreferrer" target="_blank">prices</a> go up most in the spring during the peak buying season, and then price growth slows down as the year goes on.
Home prices aren’t falling. They’re just rising slower and going <a href="https://www.corelogic.com/intelligence/us-home-price-insights-september-2023/" rel="noopener noreferrer" target="_blank">back to normal</a> seasonal trends. That’s a good thing. If you're curious about prices in our area, let’s connect.
2023-10-20T10:29:00-07:002023-10-26T10:30:23-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6273What Are the Real Reasons You Want To Move Right Now?
<img src="https://assets.site-static.com/userfiles/1281/image/20231018-What-are-the-real-reasons-you-want-to-move-right-now.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you're considering <a href="https://www.mykcm.com/2023/09/15/plenty-of-buyers-are-still-active-today-infographic/" rel="noopener noreferrer" target="_blank">selling your house</a> right now, it's likely because something in your life has changed. And while things like mortgage rates play a big role in your decision, you don’t want that to overshadow why you thought about <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">making a move</a> in the first place.
It’s true <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher right now, and that has an impact on affordability. As a result, some homeowners are deciding they’ll wait to sell because they don’t want to move and have a higher mortgage rate on their next home.
But your lifestyle and your changing needs matter, too. As a recent article from Realtor.com <a href="https://www.realtor.com/advice/sell/should-i-sell-my-house-now-reasons-to-list-times-to-wait/" rel="noopener noreferrer" target="_blank">says</a>:
“No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change.”
Here are a few of the most common reasons people choose to sell today. You may find any one of these resonates with you and may be reason enough to move, even today.
Relocation
Some of the things that can motivate a move to a new area include <a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">changing jobs</a>, a desire to be closer to friends and <a href="https://www.mykcm.com/2023/10/10/are-grandparents-moving-to-be-closer-to-their-grandkids/" rel="noopener noreferrer" target="_blank">loved ones</a>, wanting to live in your ideal location, or just looking for a change in scenery.
For example, if you just landed your <a href="https://www.mykcm.com/2023/09/20/remote-work-is-changing-how-some-buyers-search-for-their-dream-homes/" rel="noopener noreferrer" target="_blank">dream job</a> in another state, you may be thinking about selling your current home and moving for work.
Upgrading
Many homeowners decide to sell to move into a larger home. This is especially common when there’s a need for more room to entertain, a home office or gym, or additional bedrooms to accommodate a growing number of loved ones.
For example, if you’re living in a condo and your household is growing, it may be time to find a home that better fits those needs.
Downsizing
Homeowners may also decide to sell because someone’s moved out of the home recently and there’s now more space than needed. It could also be that they’ve recently <a href="https://www.mykcm.com/2023/09/11/planning-to-retire-your-equity-can-help-you-make-a-move/" rel="noopener noreferrer" target="_blank">retired</a> or are ready for a change.
For example, you’ve just kicked off your retirement and you want to move somewhere warmer with less house to maintain. A different home may be better suited for your new lifestyle.
Change in Relationship Status
Divorce, separation, or marriage are other common reasons individuals sell.
For example, if you’ve recently separated, it may be difficult to still live under one roof. Selling and getting a place of your own may be a better option.
Health Concerns
If a homeowner faces mobility challenges or health issues that require specific living arrangements or modifications, they might sell their house to find one that works better for them.
For example, you may be looking to sell your house and use the proceeds to help pay for a unit in an assisted-living facility.
With higher mortgage rates and <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">rising prices</a>, there are some <a href="https://www.mykcm.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">affordability challenges</a> right now – but your needs and your lifestyle matter too. As a recent article from Bankrate <a href="https://www.bankrate.com/real-estate/should-i-sell-my-house-now-or-wait/#sell-now" rel="noopener noreferrer" target="_blank">says</a>:
“Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”
Bottom Line
If you want to sell your house and find a new one that better fits your needs, <a href="https://www.mykcm.com/2023/10/09/key-skills-you-need-your-listing-agent-to-have/" rel="noopener noreferrer" target="_blank">let’s connect</a>. That way, you’ll have someone to guide you through the process and help you find a home that works for you.
2023-10-18T10:11:00-07:002023-10-26T10:13:27-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6272Are Higher Mortgage Rates Here To Stay?
<img src="https://assets.site-static.com/userfiles/1161/image/20231016-Are-Higher-Mortgage-Rates-Here-To-Stay.png" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
<a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">Mortgage rates</a> have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their <a href="https://freddiemac.gcs-web.com/node/27781/pdf" rel="noopener noreferrer" target="_blank">highest level</a> in over two decades (see graph below):
<a href="https://www.mykcm.com/content/images/20231012/20231016-Mortgage-Rates-Reach-Highest-Level-In-Almost-23-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231012/20231016-Mortgage-Rates-Reach-Highest-Level-In-Almost-23-Years.png" /></a>
That can feel like a little bit of a gut punch if you’re thinking about <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">making a move</a>. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.
How Higher Mortgage Rates Impact You
There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall <a href="https://www.mykcm.com/2023/09/07/get-ready-for-smaller-more-affordable-homes/" rel="noopener noreferrer" target="_blank">home affordability</a>. It works like this. The higher the rate, the more expensive it is to borrow money when you <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">buy a home</a>. That’s because, as rates trend up, your monthly <a href="https://www.mykcm.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank">mortgage payment</a> for your future home loan also increases.
Urban Institute <a href="https://www.urban.org/urban-wire/rising-interest-rates-put-brakes-mortgage-market-borrowers-low-incomes" rel="noopener noreferrer" target="_blank">explains</a> how this is impacting buyers and sellers right now:
“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”
Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good <a href="https://www.mykcm.com/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/" rel="noopener noreferrer" target="_blank">strategy</a>?
Where Will Mortgage Rates Go from Here?
If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.
<a href="https://www.mykcm.com/2023/08/04/housing-market-forecast-for-the-rest-of-2023-infographic-1/" rel="noopener noreferrer" target="_blank">Forecasts</a> project rates will fall in the months ahead, but what the latest <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">data</a> says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.
The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News <a href="https://www.cbsnews.com/news/dont-wait-for-mortgage-rates-to-drop-do-this-instead/" rel="noopener noreferrer" target="_blank">states</a>:
“If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”
Instead, work on building a team of <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">skilled professionals</a>, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">changing jobs</a>, want to be closer to family, or are in the middle of another big <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">life change</a>, the right team can help you <a href="https://www.mykcm.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">achieve your goal</a>, even now.
Bottom Line
The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.
2023-10-16T10:10:00-07:002023-10-26T10:11:51-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6270The Difference Between Renting and Buying a Home [INFOGRAPHIC]<img src="https://assets.site-static.com/userfiles/1161/image/The-Difference-Between-Renting-And-Buying-A-Home-MEM.jpg" width="1300" height="3955" />
Some Highlights
When deciding between <a href="https://www.mykcm.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buying a home</a> or renting, think about these three important factors.
Buying a home means <a href="http://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">avoiding</a> rising rents, <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">owning</a> a tangible and valuable asset, and <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">growing</a> your <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" rel="noopener noreferrer" target="_blank">wealth</a> over time.
If you’re ready to enjoy the <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">advantages</a> of <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">owning a home</a>, let’s connect to discuss your <a href="https://www.mykcm.com/2023/09/18/are-more-homes-coming-onto-the-market/" rel="noopener noreferrer" target="_blank">options</a>.
2023-10-13T10:01:00-07:002023-10-26T10:02:51-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6268The Latest Expert Forecasts for Home Prices in 2023
<img src="https://assets.site-static.com/userfiles/1161/image/20231011-The-Latest-Expert-Forecasts-for-Home-Prices-in-2023.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Are you thinking about <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">making a move</a>? If so, all the speculation that <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">home prices</a> would crash this year may have you feeling a bit on edge about your decision. Let the data and the experts reassure you. Prices aren’t in a downward spiral and will actually finish the year strong.
Even though you may have heard talk that prices would drop 5, 10, or even 20% this year, that hasn’t happened. The big reason why is the <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">supply of homes</a> for sale is too low. There are just <a href="https://www.mykcm.com/2023/09/15/plenty-of-buyers-are-still-active-today-infographic/" rel="noopener noreferrer" target="_blank">more buyers</a> looking to buy than <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">homes available</a>, and that’s kept prices from falling.
To prove this year wasn’t a bust for <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home prices</a>, let’s look at the latest 2023 forecast from a number of experts.
Most Experts Project Home Prices Will Net Positive this Year
The general consensus from industry experts is that home <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">price appreciation</a> will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:
<a href="https://www.mykcm.com/content/images/20231005/20231011-2023-Year-End-Home-Price-Forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231005/20231011-2023-Year-End-Home-Price-Forecasts.png" /></a>
As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.
If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q3-2023-us-economic-outlook-07-27-2023.pdf" rel="noopener noreferrer" target="_blank">projection</a> from the National Association of Realtors (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3% positive growth for the year.
If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average from all 100 of those experts is 3.3% price growth for the year.
If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3% appreciation is a completely different story than prices falling.
Bottom Line
If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in our local area, let’s connect.
2023-10-11T09:58:00-07:002023-10-26T09:59:16-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6266Key Skills You Need Your Listing Agent To Have
<img src="https://assets.site-static.com/userfiles/1161/image/20231009-Key-skills-you-need-your-listing-agent-to-have.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
<a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">Selling</a> your house is a big decision. And that can make it feel both exciting and a little bit nerve-wracking. But the key to a successful sale is finding the perfect listing agent to work with you throughout the process. A listing agent, also known as a <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">seller's agent</a>, helps market and sell your house while advocating for you every step of the way.
But, how do you know you've found the perfect match in an agent? Here are three key skills you’ll want your listing agent to have.
They Price Your House Based on the Latest Data
While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may <a href="https://www.mykcm.com/2023/09/28/why-your-house-didnt-sell/" rel="noopener noreferrer" target="_blank">cost you</a>. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean it’ll sit on the market longer because the higher price is actually deterring buyers.
Instead, you want to pick an agent who’s going to have an open conversation about how they think you should price your house and why. A great agent will base their pricing strategy on solid data. They won't throw out a number just to win your listing. Instead, they'll show you the facts, explain their pricing strategy, and make sure you're on the same page. As NerdWallet <a href="https://www.nerdwallet.com/article/mortgages/are-all-real-estate-agents-the-same-which-realtor-is-right-for-you" rel="noopener noreferrer" target="_blank">explains</a>:
“An agent who recommends the highest price isn't always the best choice. Choose an agent who backs up the recommendation with market knowledge.”
They’re a Great Negotiator
The home-selling process can be emotional, especially if you’ve been in your house for a long time. You’re connected to it and have a lot of memories there. This can make the negotiation process harder. That’s where a trusted professional comes in.
A skilled listing agent will be calm under pressure and will be your point-person in all of those conversations. Their experience in handling the back-and-forth gives you with the peace of mind that you've got someone on your side who’s got your best interests in mind throughout this journey.
They’re a Skilled Problem Solver
At the heart of it all, a listing agent's main priority is to get your house sold. A great agent never loses sight of that goal and will help you prioritize your needs above all else. If they identify any necessary steps you need to take, they’ll be open with you about it. Their commitment to your success means they'll work with you to address any potential roadblocks and find creative solutions to anything that pops up along the way.
BankRate <a href="https://www.bankrate.com/real-estate/finding-best-real-estate-agent/#go-with-your-gut" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“Just as important as the knowledge and experience agents bring is their ability to guide you smoothly through the process. Above all, go with an agent you trust and will feel comfortable with. . .”
Bottom Line
Whether you're a first-time seller or you’ve been through selling a house before, a great listing agent is the key to success. Let’s connect so you have a skilled local expert by your side to guide you through every step of the process.
2023-10-09T09:54:00-07:002023-10-26T09:55:14-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6263Are You a Homebuyer Worried About Climate Risks?
<img src="https://assets.site-static.com/userfiles/1281/image/20231005-are-you-a-homebuyer-worried-about-climate-risks.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
The increasing effects of natural disasters are leading to new obstacles in residential real estate. As a recent article from CoreLogic <a href="https://www.corelogic.com/intelligence/case-studies/climate-risk-modeling-future-for-real-estate-portfolios/" rel="noopener noreferrer" target="_blank">explains</a>:
“As the specter of climate change looms large, the world braces for unprecedented challenges. In the world of real estate, one of those challenges will be the effects of natural catastrophes on property portfolios, homeowners, and communities.”
That may be why, <a href="https://zillow.mediaroom.com/2023-09-05-More-than-80-of-home-shoppers-consider-climate-risks-when-looking-for-a-new-home" rel="noopener noreferrer" target="_blank">according</a> to Zillow, more and more Americans now consider how climate risks and natural disasters can impact their homeownership plans (see below):
<a href="https://www.mykcm.com/content/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" /></a>
This study goes on to explain that climate risks affect where many people look for a home. That’s because homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.
If you’re in the same situation and are thinking about what to do next, here’s some important information to consider as you start looking for a home.
Expert Advice for Homebuyers To Reduce Climate Risks
The <a href="https://www.mykcm.com/2023/09/25/beginning-with-pre-approval/" rel="noopener noreferrer" target="_blank">first thing</a> to do is understand how to go about buying a home while thinking about climate risks. With the right help and resources, you can simplify the process.
The Mortgage Reports provides these <a href="https://themortgagereports.com/99491/climate-change-global-warming-home-buying-impact" rel="noopener noreferrer" target="_blank">tips</a> for buying your next home:
Evaluate climate risks: Before buying a home, it's important to check if it's in a flood-prone area using the <a href="https://msc.fema.gov/portal/home" rel="noopener noreferrer" target="_blank">FEMA website</a>, review the seller's property disclosure for any past damage, and get an inspection for issues like cracks and mold to make sure it's a safe investment.
Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial. You should shop around and talk to multiple insurance agents to compare prices and options before deciding to bid on a home.
Above all else, your most <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">valuable resource</a> during this process is a trusted real estate expert. They'll always focus on your goals while keeping your concerns top of mind. Even if they don't have all the answers about how your home can handle natural disasters, they can connect you with the right experts and information.
Bottom Line
If you want to <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">buy a home</a>, but you're also thinking about climate risks, you're not alone. Your home is a big investment, and if anything can impact that, you want to know. Let’s connect so you have someone you can trust to guide you as you find your next home.
2023-10-05T09:37:00-07:002023-10-26T09:40:07-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6262Home Prices Are Not Falling
<img src="https://assets.site-static.com/userfiles/1161/image/20231003-Home-Prices-Are-Not-Falling.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
During the fourth quarter of last year, some housing experts projected <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> were going to crash in 2023. The media ran with those forecasts and put out headlines calling for doom and gloom in the housing market. All of this negative news coverage made a lot of people have doubts about the strength of the residential real estate market.
If it made you question if you should delay your own <a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">plans to move</a>, here’s what you really need to know.
Home Prices Never Crashed
Disregard what you saw in the headlines. The actual <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> shows home prices were <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">remarkably resilient</a> and performed far better than the media would have you believe (see graph below):
<a href="https://www.mykcm.com/content/images/20230929/20231003-Percent-Change-In-Home-Values.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230929/20231003-Percent-Change-In-Home-Values.png" /></a>
This graph uses <a href="https://www.blackknightinc.com/data-reports/" rel="noopener noreferrer" target="_blank">reports</a> from three trusted <a href="https://www.freddiemac.com/research/indices/house-price-index" rel="noopener noreferrer" target="_blank">sources</a> to clearly illustrate prices have <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">already rebounded</a> after experiencing only slight declines nationally. That’s a far cry from the crash so many articles called for.
The declines that did happen (shown in red), weren’t drastic but were short-lived. As Nicole Friedman, a reporter at the Wall Street Journal (WSJ), <a href="https://www.wsj.com/economy/housing/the-fall-in-home-prices-may-already-be-over-3496d6bb" rel="noopener noreferrer" target="_blank">says</a>:
“Home prices aren’t falling anymore. . . The surprisingly quick recovery suggests that the residential real-estate downturn is turning out to be shorter and shallower than many housing economists expected . . .”
Even though some media coverage made a big deal about home prices pulling back, the slight correction that happened is already in the rearview mirror. Basically, this data shows you home prices aren’t falling anymore – they’re actually going back up.
What’s Next for Home Prices?
The consensus from experts is that <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home price growth</a> will continue in the years ahead and is <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">returning to normal</a> levels for the market. That means we’ll still see home prices appreciating, just at a slower pace than the last few years – and that’s a good thing.
Some news sources will see home price growth slowing and put out stories that make you think prices are falling again. The return of misleading headlines like those is already having an impact on how homebuyers are feeling again. You can see how this affects general opinion in the <a href="https://www.fanniemae.com/research-and-insights/surveys-indices/national-housing-survey/national-housing-survey-archive" rel="noopener noreferrer" target="_blank">Consumer Confidence Survey</a> from Fannie Mae (see graph below):
<a href="https://www.mykcm.com/content/images/20230929/20231003---of-Americans-Who-Think-Home-Prices-Will-Go-Down-over-the-Next-12-Months.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230929/20231003---of-Americans-Who-Think-Home-Prices-Will-Go-Down-over-the-Next-12-Months.png" /></a>
While the percentage of Americans who think prices will fall has been slowly declining this year, the latest Consumer Confidence data indicates that’s ticked back up recently (shown in red). This change is surprising especially since the home price data shows prices are going up, not down. It tells you the impact the media still has on public opinion.
Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.
Bottom Line
Even though the media may make things sound doom and gloom, the data shows home prices aren’t falling anymore. So, don’t let the headlines scare you or delay your plans. Let's connect so you have a trusted resource to cut through the noise and tell you what’s really happening in our area.
2023-10-03T09:34:00-07:002023-10-26T09:37:37-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6260Unpacking the Long-Term Benefits of Homeownership
<img src="https://assets.site-static.com/userfiles/1161/image/20231002-Unpacking-the-long-term-benefits-of-homeownership.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re thinking about buying a home soon, higher <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a>, rising <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">home prices</a>, and ongoing affordability concerns may make you wonder if it still makes sense to buy a home right now. While those market factors are important, there's more to consider. You should think about the long-term benefits of <a href="https://www.mykcm.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">homeownership</a> too.
Think about 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 home values grow with time and how, by extension, that grows your <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">own wealth</a>. That may be why, in a recent Fannie Mae <a href="https://www.fanniemae.com/research-and-insights/perspectives/consumers-homeownership-aspirations-remain-high-despite-higher-home-prices-and-interest-rates" rel="noopener noreferrer" target="_blank">survey</a>, 76% of respondents say they believe buying a home is a safe investment.
Here’s a look at how just the home price appreciation piece can really add up over the years.
Home Price Growth over Time
The map below uses <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" rel="noopener noreferrer" target="_blank">data</a> from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since <a href="https://www.mykcm.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/" rel="noopener noreferrer" target="_blank">home prices</a> vary by area, the map is broken out regionally to help convey larger market trends:
<a href="https://files.keepingcurrentmatters.com/content/images/20230928/20231002-Percent-Change-in-Home-Prices-over-5-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230928/20231002-Percent-Change-in-Home-Prices-over-5-years.png" /></a>
If you look at the percent change in home prices, you can see home prices grew on average by just over 57% nationwide over a five-year period.
Some regions are slightly above or below that average, but overall, <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> gained solid ground in a short time. And if you expand that time frame even more, the benefit of homeownership and the drastic gains homeowners made over the years become even clearer (see map below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230928/20231002-Percent-Change-in-Home-Prices-since-91.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230928/20231002-Percent-Change-in-Home-Prices-since-91.png" /></a>
The second map shows, nationwide, home prices appreciated by an average of over 297% over a roughly 30-year span.
This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. That’s a key factor in why so many homeowners who bought their homes years ago are still happy with their decision.
And while you may have heard talk throughout the year that <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> would crash, it hasn’t happened. In fact, experts <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">project</a> home prices will continue to rise for years to come.
Bottom Line
If you’re wondering if it still makes sense to buy a home today, it's important to focus on the long-term advantages that come with homeownership. When you’re ready to start your homebuying journey, let’s chat.
2023-10-02T09:30:00-07:002023-10-26T09:31:43-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6258Why Your House Didn’t Sell
<img src="https://assets.site-static.com/userfiles/1161/image/20230928-Why-your-house-didn-t-sell.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If your listing expired and your house didn’t <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">sell</a>, you’re likely feeling a little frustrated. Not to mention, you're also probably wondering what went wrong. Here are three questions to think about as you figure out what to do next.
Did You Limit Access to Your House?
One of the biggest mistakes you can make when <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">selling your house</a> is restricting the days and times when <a href="https://www.mykcm.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">potential buyers</a> can tour it. Being flexible with your schedule is important when you're selling your house, even though it might feel a bit stressful to drop everything and leave when buyers want to see it. After all, minimal access means minimal exposure to buyers. ShowingTime <a href="https://www.showingtime.com/blog/6-reasons-your-house-isnt-getting-showings-and-how-to-fix-it/" rel="noopener noreferrer" target="_blank">advises</a>:
“. . . do your best to be as flexible as possible when granting access to your house for showings.”
Sometimes, the most determined <a href="https://www.mykcm.com/2023/09/20/remote-work-is-changing-how-some-buyers-search-for-their-dream-homes/" rel="noopener noreferrer" target="_blank">buyers</a> might come from far away. Since they're traveling to see your house, they may not be able to change their plans easily if you only offer limited times for showings. So, try to make your house available as much as you can to accommodate them. It’s simple. If no one’s able to look at it, how’s it going to sell?
Did You Make Your House Stand Out?
When <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">selling your house</a>, the old saying matters: you never get a second chance to make a first impression. Putting in the work to make the exterior of your home look nice is just as important as how you stage it inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact upfront. As an article from U.S. News <a href="https://realestate.usnews.com/real-estate/articles/how-to-sell-your-home-while-living-in-it" rel="noopener noreferrer" target="_blank">says</a>:
“After all, if people drive by, but aren’t interested enough to walk through the front door, you’ll never sell your house.”
But don’t let that impact stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Additionally, a new coat of paint or cleaning the floors can go a long way to freshening up a room.
Did You Price Your House Compellingly?
Setting the <a href="https://www.mykcm.com/2023/07/31/pricing-your-house-right-still-matters-today/" rel="noopener noreferrer" target="_blank">right price</a> is extremely important when you're selling your house. Even though it might feel tempting to push the price higher to maximize your profit, overpricing can scare away buyers and make it hard to sell quickly. Business Insider <a href="https://www.businessinsider.com/mistakes-people-make-trying-to-sell-home-real-estate-agents-tips-2019-5" rel="noopener noreferrer" target="_blank">notes</a>:
“. . . the biggest mistake sellers make is overpricing their home.”
If your house is priced higher than others like it, it could make buyers lose interest. Pay attention to the feedback people give your agent during open houses and showings. If lots of people are saying the same thing, it might be a good idea to think about lowering the price.
For all these insights and more, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it <a href="https://www.mykcm.com/2023/08/24/more-jobs-and-better-pay-leads-to-more-buyer-demand/" rel="noopener noreferrer" target="_blank">sold</a>.
Bottom Line
It’s natural to feel disappointed when your listing has expired and your house didn’t <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">sell</a>. Let’s connect to figure out what happened and what to reconsider or change if you want to get your house back on the market.
2023-09-28T09:27:00-07:002023-10-26T09:28:08-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6255Beginning with Pre-Approval
<img src="https://assets.site-static.com/userfiles/1161/image/20230925-The-Benefit-Of-Beginning-With-Pre-Approval.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re looking to buy a home this fall, there are a few things you need to know. Affordability is tight with today’s <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and rising <a href="https://www.mykcm.com/2023/09/08/home-price-forecasts-revised-for-2023-infographic/" rel="noopener noreferrer" target="_blank">home prices</a>. At the same time, there’s a <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">limited number of homes</a> on the market right now and that’s creating some competition among buyers. But, if you’re strategic, there are ways to navigate these waters. The first thing you’ll want to do is get pre-approved for a mortgage. That way you’ll know your numbers and can set yourself up for success from the start of your home search.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know what pre-approval is. As part of the homebuying process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you know how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow. Why does this help you, especially today? With higher <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> impacting affordability for many buyers right now, a solid understanding of your numbers is even more important so you can truly wrap your head around your options.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
Let’s face it, there are more buyers looking to buy than there are homes available for sale and that imbalance is creating some competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you make an offer on a home. But getting pre-approved for a mortgage can help you stand out from other hopeful buyers.
As an article from Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows the seller you’re a serious buyer that’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or financial issues.
Bottom Line
Getting pre-approved is an important first step when you’re buying a home. The more prepared you are, the better chance you have of getting the home you want. Connect with a trusted lender so you have the tools you need to purchase a home in today’s market.
2023-09-26T09:18:00-07:002023-10-26T09:21:42-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6252Your Home Equity Can Offset Affordability Challenges
<img src="https://assets.site-static.com/userfiles/1281/image/20230919-Your-Home-Equity-Can-Offset-Affordability-Challenges.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Are you thinking about <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">selling your house</a>? If so, today’s <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">mortgage rates</a> may be making you wonder if that’s the right decision. Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is <a href="https://www.mykcm.com/2023/09/11/planning-to-retire-your-equity-can-help-you-make-a-move/" rel="noopener noreferrer" target="_blank">home equity</a>. Here’s what you need to know.
Bankrate <a href="https://www.bankrate.com/home-equity/reasons-to-use-home-equity/" rel="noopener noreferrer" target="_blank">explains</a> exactly what equity is and how it grows:
“Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.”
In other words, equity is how much your home is worth now, minus what you still owe on your home loan.
How Much Equity Do Homeowners Have Now?
Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic <a href="https://www.corelogic.com/press-releases/home-equity-increases-winter-spring-reducing-underwater-properties-q2/" rel="noopener noreferrer" target="_blank">says</a>:
“. . . the average U.S. homeowner now has about $290,000 in equity.”
That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the market has started to normalize, there are still more people wanting to <a href="https://www.mykcm.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">buy homes</a> than there are homes available <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">for sale</a>. This high demand is causing <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home prices</a> to go up again.
According to the <a href="https://www.fhfa.gov/Media/Blog/Pages/Homeowners-Equity-Remains-High.aspx" rel="noopener noreferrer" target="_blank">Federal Housing Finance Agency</a> (FHFA), the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a>, and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below):
<a href="https://www.mykcm.com/content/images/20230914/20230919-Americans-Sitting-On-Tremendous-Equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230914/20230919-Americans-Sitting-On-Tremendous-Equity.png" /></a>
That means nearly 70% of homeowners have a tremendous amount of equity right now.
How Equity Helps with Your Affordability Concerns
With today’s affordability challenges, your equity can make a big difference when you decide to move. After you <a href="https://www.mykcm.com/2023/09/13/should-baby-boomers-buy-or-rent-after-selling-their-houses/" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use the equity you've built up in your home to help you buy your next one. Here’s how:
Be an all-cash buyer: If you've been living in your current home for a long time, you might have enough equity to buy a new house without having to take out a loan. If that's the case, you won't need to borrow any money or worry about mortgage rates. The National Association of Realtors (NAR) <a href="https://www.nar.realtor/blogs/economists-outlook/cash-rules" rel="noopener noreferrer" target="_blank">states</a>:
“These all-cash home buyers are happily avoiding the higher mortgage interest rates . . .”
Make a larger down payment: Your <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">equity</a> could be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won't have to borrow as much money so today’s rates become less of a sticking point. Experian <a href="https://www.experian.com/blogs/ask-experian/does-your-down-payment-affects-your-mortgage/" rel="noopener noreferrer" target="_blank">explains</a>:
“Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender.”
Bottom Line
If you're thinking about <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">moving</a>, the equity you've built up can make a big difference, especially today. To find out how much equity you've got in your current house and how you can use it for your next home, let’s connect.
2023-09-20T09:13:00-07:002023-10-26T09:15:23-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6251The Perks of Selling Your House When Inventory Is Low
<img src="https://assets.site-static.com/userfiles/1161/image/20231024-The-Perks-of-Selling-Your-House-When-Inventory-Is-Low.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
When it comes to <a href="https://www.mykcm.com/2023/09/19/your-home-equity-can-offset-affordability-challenges/" rel="noopener noreferrer" target="_blank">selling your house</a>, you’re probably trying to juggle the current market conditions and your <a href="https://www.mykcm.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">own needs</a> as you plan your move.
One thing that may be working in your favor is how few homes there are for sale right now. Here’s what you need to know about the current <a href="https://www.mykcm.com/2023/08/25/todays-housing-market-has-only-half-the-usual-inventory-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> situation and what it means for you.
The Supply of Homes for Sale Is Far Below the Norm
When you’re selling something, it helps if what you’re selling is in demand, but is also in <a href="https://www.mykcm.com/2023/09/14/why-is-housing-inventory-so-low/" rel="noopener noreferrer" target="_blank">low supply</a>. Why? That makes it even more desirable since there’s not enough to go around. That’s exactly what’s happening in the housing market today. There are more buyers looking to buy than there are homes for sale.
To tell the story of just how low <a href="https://www.mykcm.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/" rel="noopener noreferrer" target="_blank">inventory</a> is, here’s the latest information on active listings, or homes available for sale. The graph below uses <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> from Realtor.com to show how many active listings there were in September of this year compared to what’s more typical in the market.
<a href="https://www.mykcm.com/content/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231023/20231024-The-Supply-of-Homes-for-sale-Is-Still-Low.png" /></a>
As you can see in the graph, if you look at the last normal years for the market (shown in the blue bars) versus the latest numbers for this year (shown in the red bar), it’s clear <a href="https://www.mykcm.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">inventory</a> is still far lower than the norm.
What That Means for You
<a href="https://www.mykcm.com/2023/08/30/buyer-traffic-is-still-stronger-than-the-norm/" rel="noopener noreferrer" target="_blank">Buyers</a> have fewer choices now than they did in more typical years. And that’s why you could still see some great perks if you sell today. Because there aren’t enough homes to go around, homes that are priced right are still selling fast and the average <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">seller</a> is getting multiple offers from eager buyers. Based on the latest data from the <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" rel="noopener noreferrer" target="_blank">Confidence Index</a> from the National Association of Realtors (NAR):
69% of homes sold in less than a month.
2.6 offers: the average number of offers on recently sold homes.
An <a href="https://www.realtor.com/research/september-2023-data/" rel="noopener noreferrer" target="_blank">article</a> from Realtor.com also explains how the limited number of houses for sale benefits you if you’re selling:
“. . . homes spent two weeks less on the market this past month than they did in the average September from 2017 to 2019 . . . as still-limited supply spurs homebuyers to act quickly . . .”
Bottom Line
Because the supply of homes for sale is so low, buyers desperately want more options – and your house may be just what they’re looking for. Let’s connect to get your <a href="https://www.mykcm.com/2023/10/09/key-skills-you-need-your-listing-agent-to-have/" rel="noopener noreferrer" target="_blank">house listed</a> at the right price for today’s market. You could still see it sell quickly and potentially get multiple offers.
2023-09-18T09:11:00-07:002023-10-26T09:12:02-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6077What Experts Project for Home Prices Over the Next 5 Years
<img src="https://assets.site-static.com/userfiles/1161/image/20230912-What-Experts-Project-for-Home-Prices-Over-The-Next-5-Years.png" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you're planning to <a href="https://www.mykcm.com/2023/09/07/get-ready-for-smaller-more-affordable-homes/" rel="noopener noreferrer" target="_blank">buy a home</a>, one thing to consider is what experts project <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">expected</a> and are rising across the country. And data shows, experts forecast home prices will keep appreciating.
Experts Project Ongoing Appreciation
Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):<a href="https://www.mykcm.com/content/images/20230911/20230912-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230911/20230912-Estimated-Home-Price-Performance.png" /></a>If you’re someone who was worried home prices would fall because of stories you’ve read online, here's the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">home price appreciation</a>.
And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct, after your home’s value rises by 3.32% this year, it’ll appreciate by another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time.
What Does This Mean for You?
Once you buy a home, price appreciation raises your home’s value, and that grows your <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">household wealth</a>. To see how a typical home's value could change in the next few years using the expert projections from the HPES, check out the graph below:<a href="https://www.mykcm.com/content/images/20230911/20230912-Potential-Growth-In-Household-Wealth.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230911/20230912-Potential-Growth-In-Household-Wealth.png" /></a>In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the forecast from the HPES, you could potentially accumulate more than $71,000 in household wealth over the next five years.
So, if you're thinking about whether buying a home is a good choice, remember how it can be a powerful way to grow your <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">wealth</a> in the long run.
Bottom Line
According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today.
2023-09-15T11:05:02-07:002023-10-26T09:14:11-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:6016Gen Z: The Next Generation Is Making Moves in the Housing Market
<img src="https://assets.site-static.com/userfiles/1161/image/20230828-Gen-Z-The-Next-Generation-Is-Making-Moves-in-the-Housing-Market.png" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to <a href="https://www.mykcm.com/2023/07/04/americans-still-view-homeownership-as-the-american-dream/" rel="noopener noreferrer" target="_blank">homeownership</a>. According to the latest <a href="https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf" rel="noopener noreferrer" target="_blank">Home Buyers and Sellers Generational Trends Report</a> from the National Association of Realtors (NAR), 30% of Gen Z buyers transitioned straight from living under their parents' roofs to owning their own homes.
If you’re a member of this generation, and you’re interested in pursuing your own <a href="https://www.mykcm.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">dream of homeownership</a>, here’s some information you may find helpful on why and where your peers are buying.
The Reasons Gen Z Want To Become Homeowners
A recent survey by Rocket Mortgage <a href="https://www.rocketmortgage.com/learn/gen-z-home-buying#:~:text=Of%20those%20surveyed%2C%2034%25%20said,eager%20to%20establish%20a%20household." rel="noopener noreferrer" target="_blank">identifies</a> some of the top <a href="https://www.mykcm.com/2023/06/02/reasons-to-own-your-home-infographic/" rel="noopener noreferrer" target="_blank">motivators</a> driving Gen Z buyers to purchase a home:
“Of those surveyed, 34% said that starting or growing their family was their main motivation to buy a home. . . . Along with growing a family comes establishing a home base.”
Another key reason the survey says Gen Z wants to buy is because <a href="https://www.mykcm.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank">homeownership</a> can give them more stability (20.8%). That’s because buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost.
When you have a fixed-rate mortgage on your home, you can lock in your monthly payment for the duration of your loan, often 15 to 30 years. If you keep renting, you don’t have that same benefit, and you won’t be protected from rising housing costs.
So, if you’re ready to start a new chapter in your life or if you’re craving more <a href="https://www.mykcm.com/2023/07/21/real-estate-continues-to-be-the-best-investment-infographic/" rel="noopener noreferrer" target="_blank">stability</a>, know that your peers feel the same way, and those motivators are why they’re turning to <a href="https://www.mykcm.com/2023/07/20/owning-your-home-helps-you-build-wealth/" rel="noopener noreferrer" target="_blank">homeownership</a>.
Gen Z's Next Stop: Where Are They Making Their Moves?
If those reasons have you feeling ready to buy, here’s some information on <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">where</a> your peers are finding their homes that could help you with <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">your search</a>. According to a recent Lending Tree <a href="https://www.lendingtree.com/home/mortgage/the-most-popular-us-cities-for-gen-z-homebuyers-ranked/" rel="noopener noreferrer" target="_blank">survey</a>, Gen Z buyers are focusing on more affordable areas to help boost their buying power and offset the challenges that come with today’s <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>.
Many Gen Z buyers still want the convenience and excitement of city life, but also value the affordability, open air, and space more suburban areas offer. Jacob Channel, Senior Economist at LendingTree, <a href="https://www.nytimes.com/2023/06/15/realestate/gen-z-home-buying.html" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . they want to live in a city, but they also want to be close to nature.”
Locating a home that offers both of those things requires expertise. Working with a trusted <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">real estate professional</a> can help you find a home in your budget and desired area. Your agent will know the most affordable neighborhoods to search in. They can also highlight the amenities and features that location offers and how those are aligned with <a href="https://www.mykcm.com/2023/07/03/evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today/" rel="noopener noreferrer" target="_blank">your goals</a>. They’ll also be able to walk you through how things like <a href="https://www.mykcm.com/2023/07/13/how-remote-work-expands-your-homebuying-horizons/" rel="noopener noreferrer" target="_blank">remote work</a> can help you cast a broader net for <a href="https://www.mykcm.com/2023/07/26/tips-for-making-your-best-offer-on-a-home/" rel="noopener noreferrer" target="_blank">your search</a>.
Bottom Line
If you’re a member of Gen Z and are just getting started on your homebuying journey, or if you want to learn more about the process, let’s connect. That way, you have a guide to help you find a home that fits both your lifestyle and your budget.
2023-08-28T10:45:54-07:002023-08-28T10:50:15-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5926Homebuyers Are Still More Active Than Usual
<img src="https://assets.site-static.com/userfiles/1161/image/20230727-homebuyers-are-still-more-active-than-usual.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Even though the housing market is no longer experiencing the frenzy that was so characteristic of the last couple of years, it doesn’t mean today’s market is at a standstill. In actuality, buyer traffic is still strong today.
The ShowingTime <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">Showing Index</a> is a measure of how much buyers are touring homes. The graph below uses that index to illustrate buyer activity trends over time to help put today into the proper perspective.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Buyer-Traffic-Returning-to-Seasonality.png" /></a>
It shows there’s <a href="https://www.mykcm.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/" rel="noopener noreferrer" target="_blank">seasonality</a> in real estate. If you look at the last normal years in the market (shown in gray), there was a consistent pattern as buyer activity peaked in the first half of each year (during the peak homebuying season in the spring) and slowed as each year came to a close.
When the pandemic hit in March of 2020, that trend was disrupted as the market responded to the resulting uncertainty (shown in blue in the middle). From there, we entered the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> of housing (shown in pink). This is when mortgage rates were record-low and buyer demand was sky high. Similar seasonal trends still existed even during that time, just at much higher levels.
Now, let’s look at 2023. Traffic is down from the previous month and it’s also lower than the peaks we saw in the <a href="https://www.mykcm.com/2023/06/09/why-you-cant-compare-now-to-the-unicorn-years-of-the-housing-market-infographic/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a>. But what’s happening isn’t a steep drop off in demand – it’s a slow return toward more normal seasonality. As the ShowingTime report <a href="https://www.showingtime.com/blog/may-2023-showing-index-results/" rel="noopener noreferrer" target="_blank">explains</a>:
“Showing traffic declined about 10% in May . . . This follows a typical seasonal pattern – disrupted by the pandemic but now beginning to return . . .”
And, to highlight this isn’t a drastic decline, let’s zoom in. Here’s a graph using just the May data for the last five years. It shows just how strong buyer demand still is.
<a href="https://www.mykcm.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230726/20230727-Traffic-Remains-Above-Pre-Pandemic-Levels.png" /></a>
What Does That Mean for You?
Buyers are still out there touring homes. They’re more active than they were in May 2022 (when sticker shock over higher <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> started to set in) and certainly more than they were in the last normal years. So, remember, buyer activity is still strong. And it could actually be even stronger if it wasn’t constrained by the <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">limited supply</a> of homes for sale. According to <a href="https://realestate.usnews.com/real-estate/articles/when-will-the-housing-market-crash" rel="noopener noreferrer" target="_blank">U.S. News</a>:
“Housing markets have cooled slightly, but demand hasn’t disappeared, and in many places remains strong largely due to the shortage of homes on the market.”
Bottom Line
Don’t lose sight of just how active the market still is today. If your house isn’t on the market, it’s not getting in front of all those buyers who are looking to make a purchase right now. Let’s connect to start the process
2023-08-03T07:01:47-07:002023-08-03T07:02:58-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5868Don’t Fall for the Next Shocking Headlines About Home Prices
<img src="https://assets.site-static.com/userfiles/1161/image/20230725-Don-t-Fall-for-the-Next-Shocking-Headlines-About-Home-Prices.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re thinking of <a href="https://www.mykcm.com/2023/07/13/how-remote-work-expands-your-homebuying-horizons/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/07/14/low-housing-inventory-is-a-sweet-spot-for-sellers-infographic/" rel="noopener noreferrer" target="_blank">selling a home</a>, one of the biggest questions you have right now is probably: what’s happening with home prices? And it’s no surprise you don’t have the clarity you need on that topic. Part of the issue is how <a href="https://www.mykcm.com/2023/06/20/why-the-median-home-price-is-meaningless-in-todays-market/" rel="noopener noreferrer" target="_blank">headlines</a> are talking about prices.
They’re basing their negative news by <a href="https://www.mykcm.com/2023/06/12/are-home-prices-going-up-or-down-that-depends/" rel="noopener noreferrer" target="_blank">comparing</a> current stats to the last few years. But you can’t compare this year to the <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ years</a> (when home prices reached record highs that were unsustainable). And as prices begin to normalize now, they’re talking about it like it’s a bad thing and making people fear what’s next. But the worst <a href="https://www.mykcm.com/2023/07/17/home-prices-are-rebounding/" rel="noopener noreferrer" target="_blank">home price declines</a> are already behind us. What we’re starting to see now is the return to more normal <a href="https://www.mykcm.com/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/" rel="noopener noreferrer" target="_blank">home price appreciation</a>.
To help make home price trends easier to understand, let’s focus on what’s typical for the market and omit the last few years since they were anomalies.
Let’s start by talking about seasonality in real estate. In the housing market, there are predictable ebbs and flows that happen each year. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach. Home prices follow along with seasonality because prices appreciate most when something is in high demand.
That’s why, before the abnormal years we just experienced, there was a reliable long-term home price trend. The graph below uses data from <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#overview" rel="noopener noreferrer" target="_blank">Case-Shiller</a> to show typical monthly home price movement from 1973 through 2021 (not <a href="https://www.census.gov/construction/nrs/faqs/faqs_seas.html#quest2" rel="noopener noreferrer" target="_blank">adjusted</a>, so you can see the seasonality):
<a href="https://www.mykcm.com/content/images/20230724/20230725-48-year-average-monthly-home-price-movement.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230724/20230725-48-year-average-monthly-home-price-movement.png" /></a>
As the data from the last 48 years shows, at the beginning of the year, home prices grow, but not as much as they do entering the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, activity eases again. Price growth slows, but still typically appreciates.
Why This Is So Important to Understand
In the coming months, as the housing market moves further into a more predictable seasonal rhythm, you’re going to see even more headlines that either get what’s happening with home prices wrong or, at the very least, are misleading. Those headlines might use a number of price terms, like:
Appreciation: when prices increase.
Deceleration of appreciation: when prices continue to appreciate, but at a slower or more moderate pace.
Depreciation: when prices decrease.
They’re going to mistake the slowing home price growth (deceleration of appreciation) that’s typical of market seasonality in the fall and winter and think prices are falling (depreciation). Don’t let those headlines confuse you or spark fear. Instead, remember it’s normal to see a deceleration of appreciation, slowing home price growth, as the months go by.
Bottom Line
If you have questions about what’s happening with home prices in our local area, let’s connect.
2023-07-25T08:35:31-07:002023-07-25T08:36:32-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5849Home Prices Are Rebounding
<img src="https://assets.site-static.com/userfiles/1161/image/20230717-home-prices-are-rebounding.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re following the news today, you may feel a bit unsure about what’s happening with <a href="https://www.mykcm.com/2023/04/17/think-twice-before-waiting-for-lower-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a> and fear whether or not the worst is yet to come. That’s because today’s headlines are painting an <a href="https://www.mykcm.com/2023/05/09/why-todays-housing-market-is-not-about-to-crash/" rel="noopener noreferrer" target="_blank">unnecessarily negative</a> picture. If we take a year-over-year view, home prices did <a href="https://spglobal.com/spdji/en/index-announcements/article/sp-corelogic-case-shiller-index-continued-gains-in-april/" rel="noopener noreferrer" target="_blank">drop</a> some, but that’s because we’re comparing to a <a href="https://www.mykcm.com/2023/05/30/todays-real-estate-market-the-unicorns-have-galloped-off/" rel="noopener noreferrer" target="_blank">‘unicorn’ year</a> when prices peaked well beyond the norm.
To avoid an unfair comparison to that previous peak, we need to look at monthly data. And that tells a very different and much more positive story. While local home price trends still vary by market, here’s what the national data tells us.
The <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#news-research" rel="noopener noreferrer" target="_blank">graphs</a> below use recent monthly <a href="https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index.aspx" rel="noopener noreferrer" target="_blank">reports</a> from three <a href="https://www.corelogic.com/category/intelligence/reports/home-price-insights/" rel="noopener noreferrer" target="_blank">sources</a> to show the worst home price declines are already behind us, and prices are appreciating nationally.
<a href="https://www.mykcm.com/content/images/20230712/20230717-Percent-change-in-home-values.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230712/20230717-Percent-change-in-home-values.png" /></a>
Looking at this monthly view, we can see the past year in the housing market can be divided into two parts. In the first half of 2022, home prices were going up, and fast. However, starting in July, prices began to go down (shown in red in the graphs above). By around August or September, the trend started to stabilize. But, looking at the most recent data for early 2023, these graphs also show that prices are going up again.
The fact that all three reports show prices have been going up for three or more straight months is an encouraging sign for the housing market. The month-over-month data indicates a national shift is happening – home prices are rising again.
Craig J. Lazzara, Managing Director at S&P Dow Jones Indices, <a href="https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20230627-1464869/1464869_cshomeprice-release-0627.pdf" rel="noopener noreferrer" target="_blank">says</a> this about home price trends:
“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument.”
Experts believe one of the reasons prices didn’t crash like some expected is because there aren’t enough available <a href="https://www.mykcm.com/2023/07/06/todays-housing-inventory-is-a-sweet-spot-for-sellers/" rel="noopener noreferrer" target="_blank">homes</a> for the number of people who want to buy them. Even with today’s <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a>, there are more people looking to buy than there are homes available for sale.
Mark Fleming, Chief Economist at First American, <a href="https://blog.firstam.com/economics/why-higher-mortgage-rates-dont-always-lead-to-declining-house-prices" rel="noopener noreferrer" target="_blank">explains</a> how more demand than supply keeps upward pressure on prices:
“History has shown that higher rates may take the steam out of rising prices, but it doesn’t cause them to collapse entirely. This is especially true in today’s housing market, where the demand for homes continues to outpace supply, keeping the pressure on house prices."
Doug Duncan, Senior VP and Chief Economist at Fannie Mae, <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/mixed-data-complicates-economic-forecast-though-recession-remains-likely" rel="noopener noreferrer" target="_blank">states</a> home price growth is exceeding expectations thanks to that high demand:
“. . . housing prices continue to show stronger growth than what was previously expected . . . Housing’s performance is a testimony to the strength of demographic-related demand . . .”
Here’s How This Affects You
Buyers: If you've been holding off on <a href="https://www.mykcm.com/2023/07/05/two-questions-to-ask-yourself-if-youre-considering-buying-a-home/" rel="noopener noreferrer" target="_blank">buying</a> because you were worried the value of your home would go down, knowing home prices have bounced back should bring you some relief. It also gives you the opportunity to <a href="https://www.mykcm.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank">own</a> something that usually becomes more <a href="https://www.mykcm.com/2023/06/27/why-homeownership-wins-in-the-long-run/" rel="noopener noreferrer" target="_blank">valuable</a> as time goes on.
Sellers: If you've been waiting to <a href="https://www.mykcm.com/2023/06/29/where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer/" rel="noopener noreferrer" target="_blank">sell</a> your house because you were concerned about how changing home prices would affect its value, it might be a good idea to team up with a <a href="https://www.mykcm.com/2023/06/30/key-reasons-to-use-a-real-estate-agent-when-you-sell-infographic/" rel="noopener noreferrer" target="_blank">real estate agent</a> to list your house. You don't have to wait any longer because the latest data suggests things are turning in your favor.
Bottom Line
If you delayed your moving plans because you were concerned about home prices dropping, the latest data reveals the worst is already over, and <a href="https://www.mykcm.com/2023/06/20/why-the-median-home-price-is-meaningless-in-todays-market/" rel="noopener noreferrer" target="_blank">prices</a> are appreciating nationally. Let's get in touch so you know what's happening with home prices in our area.
2023-07-18T13:04:40-07:002023-07-18T13:06:46-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5821Evaluating Your Wants and Needs as a Homebuyer Matters More Today
<img src="https://assets.site-static.com/userfiles/1161/image/20230703-evaluating-your-wants-and-needs-as-a-homebuyer-matters-more-today.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
When it comes to <a href="https://www.mykcm.com/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/" rel="noopener noreferrer" target="_blank">buying a home</a>, especially with today’s <a href="https://www.mykcm.com/2023/04/26/the-three-factors-affecting-home-affordability-today/" rel="noopener noreferrer" target="_blank">affordability</a> challenges, you’ll want to be strategic. <a href="https://www.mykcm.com/2023/06/07/the-main-reason-mortgage-rates-are-so-high/" rel="noopener noreferrer" target="_blank">Mortgage rates</a> impact how much it <a href="https://www.mykcm.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/" rel="noopener noreferrer" target="_blank">costs</a> to borrow money for your home loan. And, to help offset the higher borrowing costs today, some homebuyers are taking a close look at their wish list and re-evaluating what features they really need in their next home to avoid overextending. As a recent NerdWallet article <a href="https://www.nerdwallet.com/ca/mortgages/ways-to-prepare-for-a-tight-summer-housing-market" rel="noopener noreferrer" target="_blank">says</a>:
“A pool, for example, may be nice to have, but it may not provide as much day-to-day value as a garage or a space for a home office . . .”
While that pool may be appealing, think twice on whether or not it’s really something you must have to be happy in your next home. Is getting that pool the main reason you’re moving? Probably not. It’s more likely a need for more space, a home office, or proximity to loved ones, friends, or work that’s motivating you to make a change.
So, if you’re looking to <a href="https://www.mykcm.com/2023/06/22/what-homebuyers-need-to-know-about-credit-scores/" rel="noopener noreferrer" target="_blank">buy a home</a>, take some time to consider what’s truly essential for you in your next house. Make a list of all the features you’ll want to see, and from there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
Once you’ve categorized it in a way that works for you, discuss your top priorities with your <a href="https://www.mykcm.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/" rel="noopener noreferrer" target="_blank">real estate agent</a>. Remember to think carefully about what’s a non-negotiable for your lifestyle and what’s a nice-to-have that’s more of an added bonus. Be sure to discuss where each feature falls with your agent. They’ll be able to help you refine the list further, <a href="https://www.mykcm.com/2023/05/31/keys-to-success-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank">coach</a> you through the best way to stick to it, and find a home in your area that meets your top needs.
Bottom Line
Putting together your list of necessary features for your next home might seem like a small task, but it’s a crucial planning step on your homebuying journey today. If you’re ready to find a home that fits your needs, let’s connect.
2023-07-11T08:11:24-07:002023-07-11T08:12:17-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5783Where Will You Go If You Sell? Newly Built Homes Might Be the Answer.
<img src="https://assets.site-static.com/userfiles/1281/image/20230629-where-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Do you want to <a href="https://www.mykcm.com/2023/06/15/why-buying-or-selling-a-home-helps-the-economy-and-your-community/" rel="noopener noreferrer" target="_blank">sell</a> your house, but hesitate because you’re worried you won’t be able to find your next home in today’s market? You're not alone, but there’s some good news that may ease your worries. New home construction is up and is becoming an increasingly significant part of the housing inventory.
That means when you go to put your <a href="https://www.mykcm.com/2023/06/21/eco-friendly-energy-efficient-homes-attract-buyers/" rel="noopener noreferrer" target="_blank">house</a> on the market this <a href="https://www.mykcm.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/" rel="noopener noreferrer" target="_blank">summer</a>, considering newly built homes is crucial for expanding the options you’ll have for your next move.
Near-Record Percentage of New Home Inventory
Newly built homes today make up a near-record percentage of the total number of homes available for sale (see graph below):
<a href="https://www.mykcm.com/content/images/20230627/20230629-newly-built-homes-make-up-31-percent-of-total-inventory.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230627/20230629-newly-built-homes-make-up-31-percent-of-total-inventory.png" /></a>
In fact, as the data shows, newly built homes now make up <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">31%</a> of the total for-sale inventory. Over the past couple of decades, newly built homes made up an average of only around <a href="https://www.census.gov/housing/hvs/data/histtabs.html" rel="noopener noreferrer" target="_blank">13%</a> of total housing inventory from 1983 to 2019.
That means the percentage of the total available homes that are newly built is over two times higher than the norm.
Why This Matters to You
Overall, the supply of homes for sale is still low. And when there’s limited supply, it’s crucial to explore all of your available choices. New-home construction has emerged as a game changer with increasing inventory. Not to mention, recent <a href="https://www.census.gov/construction/nrc/current/index.html" rel="noopener noreferrer" target="_blank">data</a> shows it’s gaining even more momentum as more newly built homes are underway and will be coming to the market in the months ahead.
Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), highlights the importance of newly built homes for those looking to buy in today’s housing market. Dietz <a href="https://www.usatoday.com/story/money/2023/05/16/new-home-construction-silver-lining/70222917007/" rel="noopener noreferrer" target="_blank">states</a>:
"With limited available housing inventory, new construction will continue to be a significant part of prospective buyers' search in the quarters ahead."
Don’t overlook this growing market segment and risk missing out on great opportunities to find your ideal home. Since new home construction accounts for roughly 31% of total for sale inventory, you could be cutting nearly one in three options from your search if you don’t consider newly built homes.
If you’re looking to make a move, a local real estate agent can help you <a href="https://www.mykcm.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/" rel="noopener noreferrer" target="_blank">sell</a> your current house and explore newly built options in your area. They have the expertise you need to handle both sides of the process so you can move out of your current house and into your brand-new dream home.
Bottom Line
Now’s the time to <a href="https://www.mykcm.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">sell</a> your house and take advantage of the momentum that’s building in new home construction. Let’s connect so you have a guide throughout the selling and buying process. Together, we can make your transition to a newly built home a reality.
2023-06-30T11:59:23-07:002023-06-30T12:00:34-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5761Homeownership Helps Protect You from Inflation
<img src="https://assets.site-static.com/userfiles/1281/image/Homeownership-Helps-Protect-You-From-Inflation-MEM.jpg" width="1300" height="3246" />
Some Highlights
Wondering if it makes sense to <a href="https://www.mykcm.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/" rel="noopener noreferrer" target="_blank">buy</a> a home today even when <a href="https://www.mykcm.com/2023/05/24/owning-a-home-helps-protect-against-inflation/" rel="noopener noreferrer" target="_blank">inflation</a> is high? When other costs go up due to inflation, buying a home helps you keep your monthly housing expense <a href="https://myhome.freddiemac.com/blog/homebuying/should-inflation-change-your-homebuying-plans" rel="noopener noreferrer" target="_blank">steady</a>.
Rents typically <a href="https://fred.stlouisfed.org/series/CUUR0000SEHA#0" rel="noopener noreferrer" target="_blank">increase</a> with <a href="https://www.usinflationcalculator.com/inflation/united-states-core-inflation-rates/" rel="noopener noreferrer" target="_blank">inflation</a>. Maybe that’s why, according to a recent survey, <a href="https://www.avail.co/blog/avail-rental-report-landlords-aim-to-keep-rentals-occupied-while-renters-grapple-with-financial-challenges" rel="noopener noreferrer" target="_blank">65.1%</a> of landlords say they plan to raise the rent of at least one of their properties within the next 12 months.
Especially when inflation is up, having a stable housing payment can be helpful. Let’s connect so you can <a href="https://www.mykcm.com/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/" rel="noopener noreferrer" target="_blank">learn</a> more and start your journey to <a href="https://www.mykcm.com/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/" rel="noopener noreferrer" target="_blank">owning</a> a home today.
2023-06-26T12:14:32-07:002023-06-26T12:17:57-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5694This Real Estate Market Is the Strongest of Our Lifetime
<img src="https://assets.site-static.com/userfiles/1161/image/20230608-this-real-estate-market-is-the-strongest-of-our-lifetime.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
When you look at the numbers today, the one thing that stands out is the strength of this housing market. We can see this is one of the most foundationally strong housing markets of our lifetime – if not the strongest housing market of our lifetime. Here are two fundamentals that prove this point.
1. The Current Mortgage Rate on Existing Mortgages
First, let’s look at the current rate on existing mortgages. According to the Federal Housing Finance Agency (<a href="https://www.fhfa.gov/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx" rel="noopener noreferrer" target="_blank">FHFA</a>), as of the fourth quarter of last year, over 80% of existing mortgages have a rate below 5%. That’s significant. And, to take that one step further, over 50% of mortgages have a rate below 4% (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-current-rate-on-existing-mortgages.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-current-rate-on-existing-mortgages.png" /></a>
Now, there’s a lot of talk in the media about a potential <a href="https://www.mykcm.com/2023/04/27/why-todays-foreclosure-numbers-are-nothing-like-2008/" rel="noopener noreferrer" target="_blank">foreclosure</a> crisis or a rise of homeowners defaulting on their loans, but consider this. Homeowners with such good mortgage rates are going to work as hard as they can to keep that mortgage and stay in their homes. That’s because they can't go out and buy another house, or even rent an apartment, and pay what they do today. Their current mortgage payment is more affordable. Even if they <a href="https://www.mykcm.com/2023/05/04/how-homeowners-win-when-they-downsize/" rel="noopener noreferrer" target="_blank">downsize</a>, with today’s higher mortgage rates, it could cost more.
Here's why this gives the housing market such a solid foundation today. Having so many homeowners with such low mortgage rates helps us avoid a crisis with a flood of foreclosures coming to market like there was back in 2008.
2. The Amount of Homeowner Equity
Second, Americans are sitting on tremendous equity right now. According to the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank">Census</a> and <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q1-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a>, roughly two-thirds (around 68%) of homeowners have either paid off their mortgage or have at least 50% equity (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230608/20250608-americans-sitting-on-tremendous-equity.png" /></a>
In the industry, the term for this is <a href="https://www.mykcm.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/" rel="noopener noreferrer" target="_blank">equity</a> rich. This is significant because if you think back to 2008, some people had to make the difficult decision to walk away from their homes because they owed more on the home than it was worth.
But this time, things are different because homeowners have built up so much equity over the past few years alone. And, when homeowners have that much equity, it helps us avoid another wave of distressed properties coming onto the market like we saw during the crash. It also creates an extremely strong foundation for today’s housing market.
Bottom Line
We are in one of the most foundationally strong housing markets of our lifetime because homeowners are going to fight to keep their current mortgage rate and they have a tremendous amount of equity. This is yet another reason things are fundamentally different than in 2008.
2023-06-09T09:40:25-07:002023-06-09T09:41:35-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5648The Benefits of Selling Now, According to Experts
<img src="https://assets.site-static.com/userfiles/1281/image/20230525-the-benefits-of-selling-now-according-to-experts.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re trying to decide if now’s the time to <a href="https://www.mykcm.com/2023/05/05/reasons-to-sell-your-house-today-infographic/" rel="noopener noreferrer" target="_blank">sell your house</a>, here’s what you should know. The limited number of homes available right now gives you a <a href="https://www.mykcm.com/2023/04/11/the-big-advantage-if-you-sell-this-spring/" rel="noopener noreferrer" target="_blank">big advantage</a>. That’s because there are <a href="https://www.mykcm.com/2023/05/18/powerful-job-market-fuels-homebuyer-demand/" rel="noopener noreferrer" target="_blank">more buyers</a> out there than there are homes for sale. And, with so <a href="https://www.mykcm.com/2023/05/11/the-best-time-to-sell-your-house-is-when-others-arent-selling/" rel="noopener noreferrer" target="_blank">few homes</a> on the market, buyers will have fewer options, so you set yourself up to get the <a href="https://www.mykcm.com/2023/05/03/buyer-activity-is-up-despite-higher-mortgage-rates/" rel="noopener noreferrer" target="_blank">most eyes possible</a> on your house.
Here’s what industry experts are saying about why selling now has its benefits:
<a href="https://themreport.com/news/data/03-21-2023/existing-home-sales" rel="noopener noreferrer" target="_blank">Lawrence Yun</a>, Chief Economist at the National Association of Realtors (NAR):
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
<a href="https://www.bankrate.com/real-estate/housing-market-predictions/#predictions" rel="noopener noreferrer" target="_blank">Selma Hepp</a>, Chief Economist at CoreLogic:
“We have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”
<a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">Clare Trapasso</a>, Executive News Editor at Realtor.com:
“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”
<a href="https://www.marketwatch.com/picks/after-seven-straight-months-of-home-price-declines-heres-what-6-economists-and-real-estate-pros-say-to-expect-from-the-housing-market-this-spring-df79d2c3" rel="noopener noreferrer" target="_blank">Jeff Tucker</a>, Senior Economist at Zillow:
“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”
Bottom Line
If you’re thinking about selling your house, let’s connect so you have the expert insights you need to make the best possible move today.
2023-05-26T10:14:29-07:002023-05-26T10:17:15-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5575It May Be Time To Consider a Newly Built Home
<img src="https://assets.site-static.com/userfiles/1161/image/20230508-it-may-be-time-to-consider-a-newly-built-home.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
If you’re looking to <a href="https://www.mykcm.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank">buy a house</a>, you may find today’s limited supply of homes available for sale challenging. When housing inventory is as low as it is right now, it can feel like a bit of an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you need to open up your pool of options, it may be time to consider a newly built home.
According to the <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" rel="noopener noreferrer" target="_blank">latest data</a> from the U.S. Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find:
More new homes were completed and are ready to sell. This gives you more move-in-ready options for your search.
Builders broke ground and started construction on more single-family homes. This means there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking.
The number of permits for building new single-family homes ticked up. This shows builders are ramping up to start on even more home construction soon.
And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.
Customization
When you buy a new home under construction, you can tailor it to your unique needs and taste. Bankrate <a href="https://www.bankrate.com/mortgages/build-or-buy-a-house/#building" rel="noopener noreferrer" target="_blank">says</a>:
“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.”
Brand New Everything
Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one.
Minimal Repairs
And, because everything is new, you’ll likely find there are fewer maintenance and repair needs up front. As Realtor.com <a href="https://www.realtor.com/advice/buy/purchasing-new-construction-for-first-time-homebuyers/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . if something does go wrong with your new home, not only are there likely some manufacturer warranties in place, but many builders also include additional home warranties . . .”
Energy Efficiency
Lastly, building a home gives you the opportunity to incorporate more <a href="https://www.mykcm.com/2023/04/21/why-you-may-want-an-energy-efficient-home-infographic/" rel="noopener noreferrer" target="_blank">energy-efficient</a> options that can help lower your costs over time – which can feel especially important when inflation’s raising many of the costs around you.
Bottom Line
If you’re having trouble finding your dream home in today’s market, it may be time to consider newly built homes as an option. Let’s connect so you have an expert on your side to help you explore what’s available in our local area.
2023-05-08T12:47:16-07:002023-05-08T12:48:27-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5484Think Twice Before Waiting for Lower Home Prices
<img src="https://assets.site-static.com/userfiles/1161/image/20230417-think-twice-before-waiting-for-lower-home-prices-KCM.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on <a href="https://www.mykcm.com/2023/04/06/trying-to-buy-a-home-hang-in-there/" rel="noopener noreferrer" target="_blank">buying a home</a> until prices drop significantly. But that’s not the best strategy.
A recent <a href="https://www.builderonline.com/data-analysis/what-is-the-millennial-mindset-on-owning-vs-renting_o" rel="noopener noreferrer" target="_blank">survey</a> from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.corelogic.com/intelligence/us-home-price-insights-april-2023/" rel="noopener noreferrer" target="_blank">reports</a>:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below <a href="https://www.blackknightinc.com/wp-content/uploads/2023/04/BKI_MM_FEB2023_Report.pdf" rel="noopener noreferrer" target="_blank">compares</a> home price trends in November to those in February:
<a href="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230414/20230417-home-prices-up-in-majority-of-country-KCM.png" /></a>
So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">data</a> shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
Bottom Line
If you’re waiting to buy a home until prices come down, you may want to reconsider. Let’s connect to make sure you understand what’s happening in our local housing market.
2023-04-17T07:26:39-07:002023-04-17T07:27:38-07:00Tianna Sanabriatag:searchrhodeislandhouses.com,2012-09-20:5478The Big Advantage If You Sell This Spring
<img src="https://assets.site-static.com/userfiles/1161/image/20230411-the-big-advantage-if-you-sell-this-spring-KCM.jpg" width="750" height="410" style="display: block; margin-left: auto; margin-right: auto;" />
Thinking about selling your house? If you’ve been waiting for the <a href="https://www.mykcm.com/2023/04/10/homebuyer-activity-shows-signs-of-warming-up-for-spring/" rel="noopener noreferrer" target="_blank">right time</a>, it could be now while the supply of homes for sale is so low. HousingWire <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">shares</a>:
“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/newsroom/existing-home-sales-surged-14-5-in-february-ending-12-month-streak-of-declines" rel="noopener noreferrer" target="_blank">confirms</a> today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:
“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”
Why Does Low Inventory Make It a Good Time To Sell?
The less inventory there is on the market when you <a href="https://www.mykcm.com/2023/04/04/two-reasons-you-should-sell-your-house/" rel="noopener noreferrer" target="_blank">sell</a>, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-02-realtors-confidence-index-03-21-2023.pdf" rel="noopener noreferrer" target="_blank">Multiple offers</a> are on the rise again (see graph below):
<a href="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-average-number-of-offers-received-on-the-most-recent-closed-sale-MEM.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230410/20230411-average-number-of-offers-received-on-the-most-recent-closed-sale-MEM.png" /></a>
If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still in a strong <a href="https://www.mykcm.com/2023/03/30/were-in-a-sellers-market-what-does-that-mean/" rel="noopener noreferrer" target="_blank">sellers’ market</a>, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal. Clare Trapasso, Executive News Editor at Realtor.com, <a href="https://news.move.com/2023-03-30-Realtor-com-R-March-Housing-Report-Spring-Thaw-Lures-Buyers-Back-into-the-Housing-Market" rel="noopener noreferrer" target="_blank">explains</a>:
"Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So, this spring, it's especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible.”
Bottom Line
If you’ve been waiting for the right time to sell your house, low inventory this spring sets you up with a big advantage. Let’s connect today to make sure your house is ready to sell.
<a href="https://www.mykcm.com/blog" class="router-link-active">GO TO BLOG POSTS</a>2023-04-14T06:45:05-07:002023-04-14T06:46:23-07:00Tianna Sanabria