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How to Get Your Home Ready for Holiday Guests

Key Facts

  • Tidying and organizing guest areas creates a welcoming space for all visitors.
  • Stocking up on necessities ensures guests have everything they need for a comfortable stay.
  • Adding simple, welcoming touches can transform your home into a warm holiday haven.

As we approach the festive season, preparing your home for holiday guests becomes a priority for many homeowners. Whether you’re hosting a cozy family dinner or a large holiday gathering, ensuring your home is welcoming and organized can make all the difference. Let’s explore some essential tips to help you prepare your home for guests.

White miniature homes with holiday trees

Cleaning and Organizing Guest Rooms

Start by decluttering and cleaning the guest rooms. Remove any unnecessary items and ensure there’s ample space in the closet and drawers for guests to store their belongings. Freshen up the bedding and consider adding extra blankets and pillows to cater to different comfort preferences. Adding thoughtful touches, such as placing a reading light by the bed or a small basket of books and magazines, can significantly enhance your guest’s experience.

White and green guest bedroom prepared for holiday guests

Stocking Up on Necessary Supplies

Ensure your home is well-stocked with essentials such as toiletries, towels, and toilet paper. Think about the small necessities that might be overlooked, like hypoallergenic pillows for guests with allergies or a nightlight for the bathroom. In the kitchen, stock up on a variety of snacks, tea, coffee, and basic breakfast items. Having these items readily available helps create a welcoming atmosphere and allows your guests to feel more at home.

Organized kitchen pantry, stocked with items for holiday guests

Adding Welcoming Touches 

Adding small, welcoming touches can make a big difference. Consider setting up a welcome tray with small snacks, bottled water, and a note with your WiFi password and any other useful information. Simple holiday decorations can make the space feel festive; think subtle string lights, scented candles, and a bouquet of fresh flowers to brighten up the room.

Tray with scented candles, green garland and pine cones

Wrapping Up: Make Your Home Guest-Ready 

Preparing your home for holiday guests doesn’t have to be a source of stress. With a little planning and these easy-to-follow tips, you can create a warm and inviting space that is perfect for making wonderful holiday memories. If you’re considering selling your home or looking for one that better suits your entertaining needs, contact us today. Our team is here to help you find the perfect space that meets all your holiday hosting and everyday living needs!

The post How to Get Your Home Ready for Holiday Guests appeared first on Dakno Blog.

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What To Look For From This Week’s Fed Meeting

You may be hearing a lot of talk about the Federal Reserve (the Fed) and how their actions will impact the housing market right now. Here’s why.

The Fed meets again this week to decide the next step with the Federal Funds Rate. That’s how much it costs banks to borrow from each other. Now, that’s not the same thing as setting mortgage rates, but mortgage rates can be influenced through this process. And if you’re thinking about buying or selling a home, you may be wondering about the downstream impact and when mortgage rates will come down.

Here’s a quick rundown of what you need to know to help you anticipate what’ll happen next. The Fed’s decisions are guided by these three key economic indicators:

  1. The Direction of Inflation
  2. How Many Jobs the Economy Is Adding
  3. The Unemployment Rate

Let’s take a look at each one.

1. The Direction of Inflation

You’ve likely noticed prices for everyday goods and services seem to be higher each time you make a purchase at the store. That’s because of inflation – and the Fed wants to see that number come back down so it’s closer to their 2% target.

Right now, it’s still higher than that. But despite a little volatility, inflation has generally been moving in the right direction. It gradually came down over the past two years, and is holding fairly steady right now (see graph below):

The path of inflation – though still not at their target rate – is a big part of the reason why the Fed will likely lower the Fed Funds Rate again this week to make borrowing less expensive, while still ensuring the economy continues to grow.

2. How Many Jobs the Economy Is Adding

The Fed is also keeping an eye on how many new jobs are added to the economy each month. They want job growth to slow down a bit before they cut the Federal Funds Rate further. When fewer jobs are created, it shows the economy is still doing well, but gradually cooling off—exactly what they’re aiming for. And that’s what’s happening right now. Reuters says:

“Any doubts the Federal Reserve will go ahead with an interest-rate cut . . . fell away on Friday after a government report showed U.S. employers added fewer workers in October than in any month since December 2020.”

Employers are still hiring, but just not as many positions right now. This shows the job market is starting to slow down after running hot for a while, which is what the Fed wants to see.

3. The Unemployment Rate

The unemployment rate shows the percentage of people who want jobs but can’t find them. A low unemployment rate means most people are working, which is great. However, it can push inflation higher because more people working means more spending—and that makes prices go up.

Many economists consider any unemployment rate below 5% to be as close to full employment as is realistically possible. In the most recent report, unemployment is sitting at 4.1% (see graph below):

Unemployment this low shows the labor market is still strong even as fewer jobs were added to the economy. That’s the balance the Fed is looking for.

What Does This Mean Going Forward?

Overall, the economy is headed in the direction the Fed wants to see – and that’s why experts say they will likely cut the Federal Funds Rate by a quarter of a percentage point this week, according to the CME FedWatch Tool.

If that expectation ends up being correct, that could pave the way for mortgage rates to come down too. But that doesn’t mean they’ll fall immediately. It will take some time. Remember, the Fed doesn’t determine mortgage rates. Forecasts show mortgage rates will ease more gradually over the course of the next year as long as these economic indicators continue to move in the right direction and the Fed can continue their Federal Funds rate cuts through 2025.

But a change in any one of the factors mentioned here could cause a shift in the market and in the Fed’s actions in the days and months ahead. So, brace for some volatility, and for mortgage rates to respond along the way. As Ralph McLaughlin, Senior Economist at Realtor.com, notes:

“The trajectory of rates over the coming months will be largely dependent on three key factors: (1) the performance of the labor market, (2) the outcome of the presidential election, and (3) any possible reemergence of inflationary pressure. While volatility has been the theme of mortgage rates over the past several months, we expect stability to reemerge towards the end of November and into early December.”

Bottom Line

While the Fed’s actions play a part, economic data and market conditions are what really drive mortgage rates. As we move through the rest of 2024 and 2025, expect rates to stabilize or decline gradually, offering more certainty in what has been a volatile market. 

See more in our post about the impact of Falling Mortgage Rates

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Features Today’s Homebuyers Are Looking For

In today’s ever-changing real estate market, understanding what features homebuyers are looking for can significantly impact the sale of your property.

Key Facts:

  • Home offices are a top priority for buyers needing productive, quiet workspaces.
  • Energy-efficient appliances attract eco-conscious buyers with cost and environmental benefits.
  • Outdoor spaces, from gardens to balconies, are valued for their versatility.

Whether you’re a seller aiming to make your home more attractive or a buyer searching for your dream home, knowing these key features can guide your decisions. Let’s explore the top home features that are currently in demand.

Home feature: stylish home office

Home Offices

Having a dedicated home office space is highly desirable. Buyers are looking for homes that offer a quiet, organized area that enhances productivity. If you’re selling, consider staging a room or a nook as a home office to appeal to this growing need. Think about incorporating built-in shelves, adequate lighting, and technology-friendly setups to make the space truly functional and appealing.

Closeup of a smart thermostat with happy family on couch

Eco-Friendly Appliances

Homebuyers are increasingly looking for homes equipped with eco-friendly appliances that help reduce utility bills. Sellers should highlight features like solar panels or high-efficiency washers and dryers in their listings. Discussing the long-term cost benefits and the environmental impact of these upgrades can make your listing stand out.

Home patio with wicker furniture

Outdoor Living Spaces

Outdoor living spaces are highly prized. These can range from expansive backyards with room for gardening to cozy balconies with space for a small table and chairs. These features offer a private escape or an additional entertaining space, making them appealing to many buyers. Enhance these spaces with outdoor kitchens, fire pits, or comfortable seating areas to increase attractiveness.

Home feature: modern white kitchen with updated appliances

Modern Kitchens and Bathrooms

Today’s homebuyers are also focusing on modern, well-equipped kitchens and bathrooms. A kitchen with updated appliances, ample storage, and stylish countertops can be a major selling point. Similarly, bathrooms with modern fixtures, good lighting, and efficient layouts are highly sought after. Consider including photos of these spaces with descriptions of recent updates in your listings.

Close up of home alarm system with kitchen in background

Smart Home Technology

Integration of smart home technology is another feature that’s becoming increasingly popular. Systems for controlling lighting, temperature, security, and even blinds remotely are convenient and cost-effective. Highlighting these features in your listing can attract tech-savvy buyers looking for modern conveniences.

Dining room doubling as a home office

Multipurpose Spaces

With the changing dynamics of home use, areas that can serve multiple purposes—like a basement that doubles as a media room, a garage that can be a workshop or a dining room that can also host business meetings—are extremely valuable. Highlighting a property’s versatility can appeal to a broader range of buyers.

Living room and kitchen with open floorplan

Moving Forward with Confidence

Understanding what buyers are looking for helps sellers showcase their homes effectively and assists buyers in identifying their must-have features. If you’re ready to buy or sell or need advice on how to highlight these desirable features in your home, don’t hesitate to contact us. Our expertise ensures you can confidently navigate the market, whether upgrading to a newer home or finding one that meets all your modern living needs.

The post Features Today’s Homebuyers Are Looking For appeared first on Dakno Blog.

Read more in our blog entry on the Most Popular Features in Multimillion Dollar Properties.

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The Benefits of Decluttering Before a Home Sale

Getting your home ready for a sale involves more than just cleaning—it’s about creating a space that appeals to potential buyers. Decluttering before a home sale makes your home feel more spacious and appealing to buyers.

Key Facts

  • Organized closets and storage areas highlight the space your home offers.
  • Donating or recycling unused items can refresh your home while benefiting your community

One of the most effective ways to make your home stand out is by decluttering. Whether you’re preparing to sell or simply want to refresh your living environment, removing items that take away from the overall impression of the design offers a wide range of benefits that can transform your space. Let’s explore some simple, practical steps, making it more attractive and easier to maintain.

Living room with vaulted ceilings and fireplace

Organize Closets and Storage Areas

One of the first places to start is your closets and storage areas. Buyers often want to see how much space a home offers, so stuffed or disorganized closets can make it appear as if the home lacks storage. Begin by removing items you no longer use or need, and then neatly organize what’s left. Consider investing in storage bins or organizers to keep everything tidy. A well-organized closet helps buyers envision the available space and can make your home seem more functional and spacious.

Organized walk-in kitchen pantry

Declutter Common Areas

The next area to focus on is the common spaces in your home. Living rooms, kitchens, and entryways should be free of unnecessary items that can distract buyers. Keep countertops clear, and store away any personal belongings, such as family photos or knick-knacks. This helps buyers picture themselves living in the home, making it feel more inviting and open. When you reduce visual clutter, your home will feel more spacious and comfortable for potential buyers.

Modern white kitchen with large island and wood floors

Donate or Recycle Unused Items

Decluttering doesn’t mean you have to throw everything away—donating or recycling unused items is a great way to reduce clutter while giving back to your community. If you have clothing, furniture, or household items that you no longer need, consider donating them to a local charity or recycling center. This not only clears space in your home but also provides a fresh start for your living environment. Plus, many buyers appreciate a home that feels clean and purposeful, making it easier for them to imagine moving in.

Woman decluttering before a home sale by packing up kitchen items

Conclusion: Ready to Sell or Simply Refresh?

Decluttering before a home sale can help your property appeal to more buyers, but it’s also a great way to refresh your living space, even if you’re not planning to move anytime soon. By organizing closets, clearing common areas, and donating or recycling unused items, you can create a home that feels open, inviting, and ready for its next chapter. If you’re thinking about selling or just want to make your home more appealing, contact us today for expert guidance on how to get started.

See our post on Preparing Your Home for Changing Seasons for more information on why to declutter!

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Preparing Your Home for the Changing Seasons

As the seasons change, it’s important to make sure your home is ready to handle the shifts in temperature and weather.

Key Facts

  • Regular home maintenance helps prepare for seasonal changes.
  • Simple tasks like checking HVAC systems and sealing drafts can improve comfort and efficiency.
  • Preventative care, like cleaning gutters and pruning trees, protects your home from potential damage.

Taking the time to maintain your home can save you from costly repairs and ensure your home stays comfortable. Whether you’re a new homeowner or have been living in your home for years, these home maintenance tips for preparing your home for the changing seasons are simple, effective, and easy to follow.

Closeup of front door with plant and pumpkin

Inspect Your HVAC System

One of the first things to check as the seasons change is your HVAC system. Ensuring your heating and cooling system is working efficiently is crucial for maintaining a comfortable indoor temperature, no matter the weather outside. Schedule regular maintenance, and don’t forget to replace the air filters. Dirty filters can reduce airflow, cause your system to work harder, and lead to higher energy bills.

Home exterior with HVAC unit and leaves on ground

Check Windows and Doors for Drafts

Drafty windows and doors can let conditioned air escape, making it harder to regulate your home’s temperature. Inspect the seals around windows and doors to ensure they’re airtight. If you feel a draft, applying weather stripping or caulking can help seal gaps and improve energy efficiency. This small step can have a big impact on your comfort and energy costs as the seasons change.

Living room with green couch, fireplace and large window

Clean Your Gutters

Gutters play an important role in directing water away from your home’s foundation, but they can easily become clogged with leaves, debris, or dirt. Cleaning your gutters is an essential task for preparing your home for the changing seasons. Regularly clear them out to prevent water damage, especially during rainy months. Well-maintained gutters protect your roof, siding, and foundation from potential damage.

A close up of a rain gutter filled with fall leaves

Prune Trees and Shrubs

Overgrown trees and shrubs can cause damage to your home if they’re left unchecked. As part of your seasonal preparation, take time to prune back branches that are too close to your home or power lines. This is particularly important before stormy weather, as strong winds can cause branches to break and damage your property. Plus, pruning helps promote healthy plant growth and keeps your landscaping looking its best.

Multiple garden planters with colorful flowers on home patio

Change Air Filters

Air filters in your HVAC system or other air purifiers should be changed regularly, especially during times of seasonal transition. Clean air filters improve indoor air quality and help your system run efficiently. Set a reminder to change your air filters every 1-3 months, depending on your system and household needs. This simple step can extend the life of your HVAC system and ensure that the air in your home stays fresh and clean.

Man adjusting home's thermostat

Take the Next Step

Preparing your home for the changing seasons doesn’t have to be complicated, but it does require regular attention. By following these simple tips, you can keep your home in great shape, no matter what the weather brings. If you have any questions about maintaining your home or are thinking about making updates to increase its value, don’t hesitate to contact us today. We’re here to help with expert advice and guidance for all your home-related needs.

Read about specific seasonal updates in our blog post Winter Staging Secrets.

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Falling Mortgage Rates Are Bringing Buyers Back

If you’ve been hesitant to list your house because you’re worried no one’s buying, here’s your sign it may be time to talk with an agent.

Buyers have stayed on the sidelines for a number of months, but yesterday the Federal Reserve cut the Federal Funds Rate for the first time since March 2022. While they don’t control mortgage rates, this sets the stage for mortgage rates to fall even further than they already have – especially since the market expects more cuts from the Fed into next year. Lower mortgage rates bring more buyers back into the market.

Lisa Sturtevant, Chief Economist at Bright MLS, says:

“A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.”

The best part? You can take advantage of that renewed buyer interest.

As Rates Fall, Buyer Activity Goes Up

The graph below illustrates the relationship between falling mortgage rates and rising buyer activity. The orange line represents the average 30-year fixed mortgage rate. The blue line shows the Mortgage Bankers Association (MBA) Mortgage Application Index, which tracks the number of mortgage applications.

As you can see, as mortgage rates (orange) come down, the Mortgage Application Index (blue) rises. This shows more people starting to re-engage in the process (see graph below):

What This Means for You

According to the National Association of Realtors (NAR), home sales increased in July. This is a welcome shift after four straight months of declines. If you’re a homeowner thinking about selling, this uptick in buyer activity works in your favor.

More buyers means more competition, which leads to higher offers and shorter time on the market for your house. And, according to Edward Seiler, AVP of Housing Economics at the Mortgage Bankers Association (MBA), he expects this trend to continue:

“MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”

All in all, as the market becomes more accessible to a wider range of buyers, it could result in even more people looking for a house like yours.

Bottom Line

The recent decline in mortgage rates drives more buyers into the market, and experts project this trend will continue. Let’s work together to take advantage of this increased buyer demand and get your house ready to sell.

If you’re ready to make that move, it may be time to brush up on How to Choose the Right Home Loan.

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The Fall Real Estate Market Might Be the Best Time to Buy

Key Facts

  • Discover fewer competitors and more opportunities to secure the right home in the fall.
  • Explore properties comfortably thanks to mild weather and seasonal curb appeal.
  • Accelerate transactions with year-end motivations, gaining tax benefits and easier moves.

As the busy summer season winds down, the fall real estate market presents unique opportunities that are often overlooked. While spring and summer are traditionally seen as the best times to buy or sell, fall comes with its own set of advantages that can be ideal for navigating the real estate landscape. Let’s discuss these essential tips to find and secure your dream home this fall season.

Staging for the fall real estate market

Less Competition, More Opportunities

The fall real estate market typically sees fewer buyers, which means you have more chances to find the right home without the frenzy of spring bids. For sellers, this season brings serious buyers who are ready to move quickly, potentially making negotiations smoother and faster.

Ideal Weather for House Hunting

Fall often brings milder weather, which makes visiting homes more comfortable and allows you to spend more time evaluating each property without the summer heat or winter chill.

Front porch with fall decor

Seasonal Curb Appeal

Even without vibrant leaves, fall has a charm that can enhance a home’s appeal. Simple decorations and a tidy exterior can make a big difference in how inviting your home feels to potential buyers.

Motivated Transactions

With the year-end approaching, both buyers and sellers are motivated to close transactions quickly. This urgency can lead to more straightforward negotiations and faster closings, benefiting everyone involved.

Couple house hunting in the fall real estate market

Year-End Tax Benefits

Buying a home in the fall can also offer financial advantages. Closing your home purchase before the year’s end may allow you to claim valuable tax deductions, such as mortgage interest and property taxes.

Convenient Moving Schedules

Purchasing a home in the fall allows you to move in before the hectic holiday season, giving you time to settle in and enjoy your new home when the holidays arrive.

Couple moving boxes

Optimal Time for Home Inspections

Inspecting a home in the fall is practical for ensuring that everything is in order, especially the heating system before the colder months set in.

Navigating Fall’s Unique Real Estate Benefits

The fall real estate market is an excellent time for buyers and sellers to make their move. Undeniably, with less competition, pleasant weather, and significant financial benefits, it’s a season filled with opportunity. Contact us today to navigate this market and successfully find or sell your home this fall.

Get tips for staging fall home sales. Read our post on Halloween staging tips!

The post Why Fall Might Be the Best Time to Buy a Home appeared first on Dakno Blog.

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What Every Homeowner Should Know About Homeowners Insurance

Navigating homeowners insurance is essential for new and existing homeowners alike. Understanding the basics of what your policy covers helps you protect your investment and meet lender requirements. Let’s dive into the key aspects of homeowners insurance to ensure you are well-equipped to make informed decisions about your coverage.

Key Facts

  • Discover the differences between Named Peril and Open Peril coverage options.
  • Learn about common policy exclusions and claim limits for specific items.
  • Understand how Replacement Cost and Actual Cash Value impact your financial protection.
Couple looking up homeowners insurance on laptop

1. Types of Coverage

Named Peril Coverage: This policy covers damages only if they occur from risks specifically named in the policy, such as fire or wind.

Open Peril Coverage: This coverage is more extensive, protecting against all damages except those explicitly excluded. This is commonly used for structural damage to your home.

Happy family in new home

2. Coverage Exclusions

A vital part of homeowners insurance is knowing what’s not covered. Standard policies typically exclude natural disasters like floods and earthquakes. If you live in a high-risk area, especially for floods, additional coverage may be necessary to comply with lender requirements.

Home exterior

3. Dollar Limitations on Claims

Understanding the limits of your policy is essential. Many insurance policies set caps on the amount they will pay for certain items, such as jewelry, unless you opt for additional coverage.

Happy family having fun times at home together

4. Replacement Cost vs. Actual Cash Value

Replacement Cost: This coverage pays to rebuild your home without deducting for depreciation. It ensures that you can restore your property to its previous condition.

Actual Cash Value: This pays out considering depreciation and is often used for personal property. It may result in a lower payout if a disaster destroys your home and you choose not to rebuild.

Young woman on tablet

5. Liability Coverage

Your policy’s liability coverage protects you against incidents that occur on your property, which might include injuries to guests or damage to your neighbor’s property. It covers medical expenses, legal fees, and court awards, up to your policy’s liability limit.

Young couple using a laptop while working on their home finances

Securing Your Home with the Right Insurance Policy

This guide provides a solid foundation for understanding homeowners insurance, crucial for protecting your home and peace of mind. It’s important to ensure that your insurance policy adapts to your changing needs. It should provide adequate coverage against unexpected events. Don’t navigate these decisions alone—contact us today for personalized advice and to explore additional coverage options that keep your home and investments secure.

The post What Every Homeowner Should Know About Homeowners Insurance appeared first on Dakno Blog.

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Tips for Effective House Hunting in a Competitive Market

The housing market is always changing, which can make buying a home competitive. Despite this, with the right strategies and support, you can navigate the market successfully. We’ll guide you with five essential tips to find and secure your dream home in any challenging environment.

Key Facts

  • Learn the importance of obtaining mortgage pre-approval and how it signals your serious intent to sellers.
  • Discover how partnering with experienced real estate professionals can streamline your home-buying process.
  • Understand the necessity of flexibility and quick decision-making in today’s fast-paced real estate market.

The housing market is always changing, which can make buying a home challenging. Despite this, with the right strategies and support, you can navigate the market successfully. We’ll guide you with five essential tips to find and secure your dream home in any competitive environment.

Modern kitchen and living room interior

Start with Mortgage Pre-Approval

Before you even begin house hunting, getting pre-approved for a mortgage is important. This process involves a thorough check of your financial background, including credit history review and employment verification. Unlike simple pre-qualification, a pre-approval signifies that you are a serious buyer, equipped with the financial backing to close the deal. Choose a reputable lender to enhance your credibility with potential sellers.

Work with a Professional Real Estate Advisor

In a competitive market, having an experienced real estate agent can make a significant difference. These professionals understand the local market dynamics and can provide invaluable advice on making compelling offers. They also have early access to listings and can easily navigate the transaction process, helping you make strategic decisions that align with your financial capabilities.

Real estate professional with senior couple

Be Flexible and Act Quickly

Properties in hot markets may sell quickly. Being flexible and prepared to make quick decisions is essential. Ensure your real estate agent is proactive and available to show homes at your convenience. Similarly, working with a responsive lender can keep you a step ahead in the buying process.

Make Your Offer Stand Out

Consider various financing strategies to strengthen your position. Making a larger down payment or opting for a cash purchase can be very appealing to sellers. These options not only demonstrate your seriousness but can also simplify and speed up the buying process, giving you a competitive edge in the market.

New homeowner signing paperwork for new home

Look into Different Financing Options

Consider adjusting your financing strategies to strengthen your buying position. Making a larger down payment can significantly enhance your appeal to sellers by demonstrating your financial readiness and commitment. This approach can help streamline the purchasing process and give you a competitive edge in a bustling market.

Successfully Navigate a Competitive Market

House hunting in a competitive market can be daunting, but with the right approach and support, it’s entirely achievable. By securing a reliable pre-approval, working with our seasoned professionals, and being ready to act swiftly and decisively, you can significantly enhance your chances of success. Contact us today to start your journey toward securing your dream home.

The post Tips for Effective House Hunting in a Competitive Market appeared first on Dakno Blog.

To read more about house hunting and how to avoid common pitfalls, see our article on the 9 Mistakes Every First Time Homebuyer Should Avoid.

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The Great Wealth Transfer: A New Era of Opportunity

Recent years show a significant shift in wealth distribution among generations: the Great Wealth Transfer.

Historically, the transfer of wealth from one generation to the next was a more gradual process, limited to smaller amounts of inheritance or family savings. But today, the scale has increased in a big way. As a recent article from Bankrate says:

“The biggest wave of wealth in history is about to pass from Baby Boomers over the next 20 years, and it’s going to have major impacts on many facets of life. Called The Great Wealth Transfer, $84 trillion is poised to move from older Americans to Gen X and millennials. If it’s managed smartly, Americans will be able to grow their wealth and ensure their financial security.”

Basically, as more Baby Boomers retire, sell businesses, or downsize their homes, more substantial assets are being passed down to younger generations. And this creates a powerful ripple effect that’ll continue over the next few decades. The graph below uses data from Merrill and Cerulli Associates to give you an idea of how much inherited money will change hands through 2045:

Impact on the Housing Market

One of the most immediate effects of this wealth transfer is on the housing market. Home affordability has been a concern for many aspiring buyers, especially in high-demand areas. The increase in generational wealth will ease some of these challenges by providing future homeowners with greater financial resources. As assets pass down through generations, buyers may find themselves in a better position to afford homes. Merrill talks about that benefit in a recent article:

“While millennials face steep barriers . . . to buying a first home in many markets, ‘that’s a for-now story, not a forever story’ . . . The Great Wealth Transfer should enable more of them to become homeowners — or trade up or add a second home — either through inherited property or the funds for a down payment.”

Impact on the Economy

But the Great Wealth Transfer doesn’t just impact housing. It’s also going to provide a new avenue for entrepreneurial spirits to fuel economic growth. If someone wants to start a business and receive funds like this, that money can serve as the necessary capital to start a new company. This helps the next generation of innovators and business owners bring their ideas to life.

Bottom Line

While affordability remains a challenge in today’s housing market, the ongoing Great Wealth Transfer will unlock new opportunities. As wealth is passed down and put to use, it’s expected to ease some of the barriers to homeownership and fuel other entrepreneurial endeavors. 

To read more about generation differences in the real estate market, read our article “From Boomers to Zoomers: Home Buying Tips For Every Generation.“