Home Buyers Archives - Page 2 of 7

June 1, 2023

Discover the Joys of Downsizing: Your Path to a Simplified and Fulfilling Lifestyle

Key Takeaways:

Financial freedom: Reduce expenses, maximize savings, and invest in your future by downsizing your home.
Streamlined living: Embrace a clutter-free environment and enjoy more time for activities that bring you joy and fulfillment.
Expert guidance: Our real estate agents provide personalized support, extensive market knowledge, and a trusted network of professionals to ensure a seamless downsizing experience.

Are you seeking a more streamlined and rewarding lifestyle? Downsizing your home could be the transformative step you’ve been waiting for. Our dedicated real estate agent team is here to guide you through the downsizing process, ensuring a seamless transition while maximizing the benefits of this exciting change. In this blog post, we will explore the reasons to downsize, the remarkable benefits it brings, and how our team can assist you every step of the way.

Why Downsize? 5 Compelling Reasons to Embrace a Smaller Space

Financial Freedom: Unlock new financial possibilities by reducing your housing expenses, mortgage payments, property taxes, and utility bills.
Simplify Your Life: Say goodbye to the burden of excess possessions and embrace a clutter-free living environment, fostering peace of mind and enhanced organization.
Rightsize Your Space: When your current home feels too large or no longer suits your lifestyle, downsizing allows you to find the perfect-sized space that meets your needs and preferences.
Embrace Accessibility: Transition to a home that offers better mobility and accessibility features, ensuring comfort and convenience for years to come.
Embrace a Greener Lifestyle: Reduce your environmental impact by living in a smaller, more energy-efficient home, minimizing your carbon footprint and promoting sustainability.

The Wonderful Benefits of Downsizing: Discover a Life of Freedom and Fulfillment

Enhanced Financial Security: Downsizing frees up valuable resources, allowing you to invest, save for retirement, pursue passions, or enjoy new experiences.
More Time for What Matters: With reduced maintenance and upkeep, you’ll have more time and energy to focus on activities and relationships that bring you joy and fulfillment.
Closer Community Connections: Embrace a stronger sense of community by downsizing to a neighborhood or community that fosters social interaction and enriching relationships.
Streamlined Living: Experience the freedom of a simpler and more organized lifestyle, as downsizing encourages you to prioritize what truly matters and let go of unnecessary belongings.
Embrace New Opportunities: Downsizing opens doors to exciting possibilities like travel, hobbies, and personal growth, allowing you to embrace a more fulfilling and enriching life.

Our Expert Team: Guiding You Through a Seamless Downsizing Journey

happy clients shaking hands with real estate agent

Personalized Consultation: Our experienced real estate agents will conduct a thorough assessment of your needs and goals, guiding you towards the ideal downsizing solution.
Extensive Market Knowledge: Rely on our expertise and knowledge of the local housing market to find the perfect smaller home that aligns with your preferences and budget.
Skilled Negotiation: Count on our negotiating prowess to secure the best possible terms and pricing for your downsized property, ensuring a smooth and advantageous transition.
Comprehensive Support: From home staging and marketing to coordinating moving services, we’ll provide comprehensive support throughout the entire downsizing process, minimizing stress and hassle.
Trusted Network: Tap into our extensive network of professionals, including movers, organizers, and downsizing specialists, to access a range of resources that will make your downsizing journey seamless.

Downsizing your home is an empowering decision that can lead to a more fulfilling and simplified lifestyle. With our dedicated real estate agent team by your side, you can embark on this exciting journey with confidence, knowing that we will guide you through each step of the process. Embrace the joys of downsizing and unlock a world of newfound freedom, financial security, and meaningful experiences. Contact us today to start your downsizing adventure!

May 15, 2023

How to Stop Renting and Become a First-Time Homebuyer

Key Takeaways:

Renting doesn’t help build a future
Homeownership can be accessible
Contact your trusted local agents for more on being a first-time homebuyer

Many renters discover a universal truth—renting can often feel like it lacks long-term benefits. However, each monthly rent payment potentially reduces a landlord’s mortgage while increasing their home equity. This revelation may inspire some to transition from renters to first-time homebuyers. If you’re contemplating this life-changing decision, now is an opportune time to consider buying a home.

Home purchase rates are currently favorable, and the appeal of escaping ever-increasing rental rates motivates many first-time buyers. Ready to join this progressive march towards homeownership? We are here to guide you through each step of the process. Here’s a simple guide to get you started on your homeownership journey.

Identify Your Ideal Location

Do you enjoy your current neighborhood? If you do, don’t assume that you can’t afford to buy in the same area simply because rental rates may be rising. In many cases, owning a home can be more affordable than renting, potentially allowing you to consider areas previously thought to be beyond your reach.

Once you’ve identified your preferred locales, let us know your chosen zip codes and specific preferences. We’ll compile a list of suitable properties for your personal viewing.

Examine Your Finances

Before embarking on your homeownership journey, take a comprehensive look at your financial situation. Here are some key steps:

Review your credit report and report any inaccuracies
Calculate your debts
Evaluate your savings and future saving capacity

Lenders consider your financial health when deciding on mortgage approval. Can you afford the mortgage payment and additional costs comfortably? Keeping a debt-to-income ratio of less than 40% is generally advisable, as it widens your opportunities.

Assemble Necessary Documents

While reviewing your finances, gather these important documents for potential lenders:

W-2 and 1099 forms
Monthly bank statements
Asset statements
401(k), 403(b), mutual funds, stocks, bonds, and IRAs
Last two tax returns
Landlord reference

Choose the Right Lender

Securing a lender is a crucial step that should be undertaken early in the process. A lender can accurately determine what you can afford and offer valuable advice on improving your financial profile and selecting the best mortgage plan. Some lenders also offer specific incentives for first-time homebuyers.

If you need recommendations for lenders, we can provide you with a list. Give us a call, and we’ll provide you with a list of lenders that may suit your needs.

Time Your Purchase Perfectly

Even when transitioning to homeownership, remember to fulfill the terms of your current lease. If it requires a 30-day notice of non-renewal, try to time your purchase so that your lease ends around the time you close on your new home. If the timing doesn’t align, consider discussing a month-to-month rental option with your landlord.

Embrace the Excitement of Homeownership

Stepping into the role of a first-time homebuyer is a thrilling milestone, and we’re delighted to be part of your journey. If you’ve considered buying a home, now is the time to act. Follow this guide and reach out to us for expert assistance in navigating the rewarding adventure of homeownership.

April 15, 2023

Everything You Need to Know About Closing Costs

Key Takeaway:

Closing costs are a part of every real estate sale
There are many variables that determine the price of closing costs
Ask your local real estate expert for specifics about closing costs

When you’re buying or selling a home, it’s important to understand what closing costs entail. Closing costs are expenses and fees that need to be reconciled before the sale can be finalized. These costs typically include appraisal fees, survey fees, title costs, credit report fees, loan origination fees, underwriting costs, recording fees, and taxes. However, the specific costs may vary depending on your region and the terms of your contract. As your real estate professionals, we can provide you with a detailed breakdown of what will be included in your closing costs based on your specific situation.

How Much Are Closing Costs?

The amount you’ll pay in closing costs can vary depending on factors such as the price of the home and the type of loan you’re using. On average, you can expect to pay around 2% to 5% of the purchase price of your new home. However, it’s important to note that there are options for assistance. You may be eligible for homebuyer assistance programs or closing costs and down payment assistance from the U.S. Department of Housing and Urban Development (HUD). These programs can provide grants that do not need to be repaid or loans with manageable repayment plans. We can provide you with information about these programs and help you explore your options.

Who Pays Closing Costs?

It’s important to note that closing costs are not solely the responsibility of buyers. Sellers may also have their own costs to cover, such as broker’s commissions, outstanding HOA fees, and property taxes. However, these costs can be negotiated, and we can guide you through the process of determining who pays what in the final contract.

Learn More About Closing Costs

As your real estate professionals, we’re here to make the home buying or selling process as smooth as possible. We’re available to answer your questions, provide expert guidance, and ensure that you understand all aspects of the closing costs. If you’re ready to buy or sell a home, or if you have any questions about closing costs, please don’t hesitate to reach out to us. We’re here to help you achieve your real estate goals!

April 1, 2023

Should You Buy a New Home Before Selling Your Current One?

Key Takeaways:

There’s no wrong answer when it comes to the order of buying and selling
Keep in mind the pros and cons of each option before making a decision
Contact us when you know how you’re handling the purchase or sale of your home

Whether you buy your new home before selling your old is the real estate industry’s equivalent of “Which came first, the chicken or the egg?” At first thought, you believe there’s an obvious answer. And then you start to really break things down. Thankfully, we don’t have to deal with any science, and a good list of pros and cons can guide you to the answer that fits your scenario.

What you’ll find is that it may come down to personal preference, but there are a few things you should take into consideration. If you’re in the market for a new home and need to list your current one, here are some pros and cons of both buying first, then selling and selling first, then buying.

Pros of Selling Before Buying Your Home

This may seem like the most logical option. You don’t have to carry two mortgages or pay utilities on two homes, and you can access the equity of your old home for the downpayment on the new one. But there are more benefits to selling your home first, in case neither of those perks apply.

You Can Better Stage Your Home

If you’re still living in the home you’re listing, you can use your furniture and some of your decor for staging. If you’ve ever walked into an empty home, it can feel cold and uninviting. But don’t crowd the space with furniture, and leave only minimal decor behind to make the space homey and warm.

Increase Your Purchase Offer

The word “contingent” isn’t a wonderful one in the real estate industry. If you’re trying to sell your home and the purchase of your new space is contingent on the property being sold, your offer may be less appealing. When you sell first, you have the money in hand and nothing holding up the deal.

Take Your Time

When you sell first, you can take your time. There’s no other home waiting for you and no contingencies on the sale. Being able to take it slow means you can be a little pickier with your offers.

No Question of Final Profit

When you sell and buy at the same time, there’s always a concern that you won’t walk away with what you expect from the sale. What if there’s a last-minute repair? What if you just don’t get what you were looking for? These things can really hinder your purchase, so it’s a perk to not have to think about it.

Cons of Selling Before Buying Your Home

Alternatively, selling before buying has some disadvantages. Chief among them are these three issues that can complicate matters a little.

You Will Need Temporary Housing…

When you sell your home, where will you live? With no new home to move into, you need to secure temporary lodging. Do you need a short-term rental or will you move in with a family member? Neither is ideal for any decent amount of time.

…But How Temporary Will It Be?

What if the purchase of your new home takes longer than expected? You can burn through some of your profits or strain relationships if things don’t go as planned. Month-to-month rentals aren’t secure as you can be asked to leave at any time and they are costly, so you have to time everything just right and hope it goes smoothly.

You’ll Be Adding an Additional Move

No matter how you organize things, you’re going to be moving twice. Even if most of your belongings go into storage and you keep only the necessities, you’re still unpacking and repacking your everyday items and transporting your stored effects to your new home. Moving can be a costly and tiresome endeavor, especially if you have to do it twice.

Pros of Buying Before Selling

If you have the option to purchase your new home before selling your old one, it may seem like the route to go. There are a few reasons why this is an ideal scenario, such as the following pros.

More Time to Find Your Dream Home

With a secure space to call home, you have more time to locate your new dream home. There’s no one pressuring you or chipping away at your bank account, and you don’t have to completely rearrange your schedule to make showings work.

You’re In Complete Control

As previously mentioned, you have nothing pushing you out of your home. This gives you complete control over your moving timeline. You can take your time to ensure everything is properly organized and safely packed.

Selling an Occupied Home Can Be a Hassle

When you’re trying to live in your home, it can be a nuisance to have to schedule showings and stage it properly. Larger families may find staging to be the biggest obstacle, especially if things have accumulated over the years. Some showings can also be scheduled last minute, meaning you’re having to rush out of the house. If you buy first, you’re already out of the house.

Only One Move

Since you won’t need temporary housing, your first and only move from the house you’re putting up for sale is to the house you purchased.

Cons of Buying Before Selling

Should you jump into buying your new home before you even list your current abode? We’ve covered the pros, but don’t forget to consider some of these reasons why you should maybe hold off.

It’s an Added Financial Strain

When you own two homes, chances are you have two mortgages. You’ll also need to keep utilities running in the home you’re selling. Then there are taxes, insurance, and any upkeep you may have to do while you still own the house you’re leaving.

You Have to Watch Over Two Homes

You don’t want to leave the home you’re selling unoccupied for long. It should be kept clean so prospective buyers are seeing a comfortable space and not something that’s been sitting for some time. The added work of performing upkeep and watching over two homes can take some time out of your week.

No Matter the Order, Call Us Today

It doesn’t matter to us whether you buy or sell first, so long as you end up with the resolution you were seeking. Give us a call today so we can help you decide which best suits your situation and needs. Once we know what’s best for you, we’ll either find your new home or set a valuation for the home you’re selling.

March 1, 2023

Homebuying Tips for the Spring Real Estate Market

Key Takeaways:

Get your best mortgage rate with a better credit score
When you find a property you love, make an offer
Don’t wait—contact us and start planning your move today!

The spring real estate market looks different for homebuyers in 2023 than in previous years. With recent changes to interest rates, available inventory, home prices, and a lot more, it’s essential to work with your trusted local real estate team to get prepared! The spring real estate market is full of opportunity and potential, making it the ideal time to purchase a home. If you’re looking to buy a home this season, here are some tips on what steps to take during the spring real estate market.

Improve your credit score for a better mortgage rate

Photo of cheerful loving young couple using laptop and analyzing their finances with documents.

The first step in buying a home is getting pre-approved for a mortgage loan. This involves submitting information like credit score and payment history to potential lenders so they can determine whether or not you’re eligible for a loan. In order to get the best mortgage rate possible, it’s important that your credit scores are up-to-date. Improving your credit scores may involve paying off any existing debts or disputing any errors that may be present on your credit report. It may also help to keep your debt-to-income ratio low by avoiding taking on new debts while trying to get pre-approved.

Utilize our online tools to find the right home for you

Happy mature older family couple laughing, bonding sitting at home table with laptop.

Technology has made it easier for potential buyers to find their new dream homes without stepping outside their current homes! Our free and easy-to-use tools (such as our advanced property search, instant listing alerts, virtual tours, and mortgage calculators) allow you to view properties from all angles and calculate estimated monthly payments to plan before making an offer. Our tools save you time by giving you an idea of what to expect when viewing a property in person or speaking with lenders about loan options.

Work with the right agent—starting today!

Real estate agent near door inviting young couple to enter house for visit

Finding the right professional help is key when it comes to navigating through the homebuying process. Work with our knowledgeable team because we know both the local market and the national trends. We’re here to help make finding your dream home much easier, as well as helping you avoid common pitfalls associated with purchasing property. Finding a reliable lender offering competitive rates will ensure you get the best deal possible on your mortgage loan, so make sure to speak with our team as you start the pre-approval process to get our insights into the best lenders for your goals. Start searching homes for sale now, so you have plenty of time before closing day rolls around!

Pounce on desired properties immediately

Happy father with daughter standing near open balcony and smiling. Blonde mother holding girl hand and talking with her. Enjoying family watching new house or flat. Relocation and mortgage concept

Once you find your dream home, don’t hesitate—act quickly! Finding the exact home you’re looking for doesn’t happen every day, so make sure that you take advantage of this opportunity by putting in an offer as soon as possible after viewing it in person or online via virtual tours. Before you contact the home seller, contact our team first! We’ll get you access to the latest neighborhood sold reports and other market data to help you determine the best offer for that dream property. And, our team brings expert negotiation tactics to the table, plus smart advice to avoid common pitfalls like overbidding or offering too little money initially.

Don’t Wait Until Summer—Start Buying Now!

Ready to buy your next home during the spring real estate season? Start by improving your credit score, using our online tools and market data, and building a strategy we can execute quickly when the right home comes up for sale. With these tips, you can maximize your chances of success during this season’s real estate market. So if you’re ready to start looking for your dream home, contact us today to get started!

December 15, 2022

Why the Holidays Are an Excellent Time to Sell Your House

Key Takeaways:

Less competition and holiday decor make your home stand out.
Serious buyers and fast closings make for a merry sale.
With the year coming to a close, contact us today to get started!

Believe it or not, the holidays are a wonderful time to sell your home! People are in warm spirits, and there is typically less competition from other sellers during the holidays, so your house is more likely to stand out. So if you’re considering selling your house, the holidays may be the perfect time to do it!

Holiday cheer extends to homebuyers

Home with a bow in front of a holiday tree.

During the holidays, people are out shopping—for homes! Yes, homebuyers take advantage of the festive atmosphere to research options and kickstart their house-hunting journey. With offers of holiday cheer in the air, many buyers feel more confident taking the plunge and seriously making offers on potential homes. Beyond being a season of merriment, the holidays have become a time for serious house hunters to jump into the market.

With less competition, your home shines bright

During the holidays, sellers can enjoy a unique advantage over their competition. With fewer houses listed on the market, those for sale tend to see busy open houses bustling with would-be buyers. That’s why when you list your home during the holiday season, your house has a better chance of standing out to potential buyers and moving off the market as quickly as possible.

Offers made during the holidays are serious

Buyers during this time of year tend to be more serious about making an offer, so you’re more likely to get an offer – and close the deal! By taking advantage of the housing market at this time of year, you’re capturing demand during the seasonal rush. The holidays could be the perfect opportunity to sell your home quickly and for top dollar.

Holiday decorations are perfect for staging your home

Decorating for the holidays can give your house that extra bit of charm and make it more appealing to potential buyers. Decorating with subtlety is key: hanging up bold red and green decorations or festively-themed banners might be a little too much for some viewers. Instead, go for tasteful touches like wreaths, string lights, and pine garlands in doorways and window ledges to bring alive the holiday spirit while not overwhelming buyers. This way, you’ll create an inviting atmosphere in your home that will make it stand out from competitors in the market.

Get the Gift You Want

The holidays are the perfect time to sell your home and get top dollar. With less competition and serious buyers, plus some cheer thrown in for good measure, now is the time to move quickly. Selling during the holidays can be a great way to start the new year in your new home. Our experienced real estate team can help, so contact us today to get started!

October 15, 2022

Top 3 Staging Tips To Sell Your Home Faster

Key Takeaways:

Staging showcases a home’s best assets, and helps sell it for top dollar.
You’ll be at an advantage if you take the extra step of staging your property.
This is a great time to plan for the future of your home, so contact us today!

First impressions matter, so when you finally put your house on the market, you’ll want to pay special attention to how you stage your property.

Staging is a real estate term that means how a house looks, and good staging helps buyers imagine themselves in the home. It shows off the property’s good features, hides its flaws, turns unconventional spaces into usable spaces, creates a mood, and makes the house look significantly better in photos.

So, let’s look at why staging is necessary and some of the easiest and most recommended staging steps to ensure you get top dollar for your home!

Why staging your home matters

Potential buyers aren’t just looking for a structure to inhabit – they’re also looking for a way to fulfill their dreams and improve their quality of life. If done well, staging allows buyers to imagine themselves already living in the property and can create a more emotional sale for the buyer, generating more money for the seller.

Potential buyers don’t want to see too much work they will have to do upon moving into the home. For every problem they see, they will want to deduct its cost from the offering price. If too many issues get noticed, they may even pass on buying the home entirely.

Before they step foot into a home, prospective buyers spend countless hours looking at pictures of their potential new homes on the internet.

How your home looks, inside and out, is arguably the most crucial feature of your home because if it doesn’t look good, potential buyers will continue their search and keep clicking. Proper staging gets them to stop and envision how the house might look once they move into it, making it look more move-in ready.

Essential home staging according to the experts

Painting your home to sell for higher price.

According to the 2021 Profile of Home Staging, a National Association of Realtors (NAR) report, 82% of buyer’s agents said that staging makes it easier for buyers to visualize a property as their future home, which can help the home get top dollar and sell faster. The report also found that staging the living room was very important to 46% of buyers, followed by the primary bedroom at 43% and the kitchen at 35%.

Before you give in to the temptation to think that staging your home will cost you thousands of dollars, let’s take a quick look at a few of the most cost-effective and simplest staging steps to help your home sell for top dollar more quickly.

Keep it clean

A clean home shows potential buyers that you’ve taken good care of the property. Ideally, you should clean every part of the house, from the floors to the ceilings and everything in between.

If you don’t have new appliances in the kitchen, there’s no need to worry. Just make sure the existing ones are spotless. Likewise, ensure your bathrooms sparkle, from the corners of the tub to the sink drain to that spot behind the toilet you don’t think anyone can see. Your goal should be to make everything look new and hospital clean.

Take care of your clutter

Buyers need to be able to envision themselves in your home, so remove all the family photos, keepsakes, and refrigerator art. Yes, the velvet paintings must come down. Likewise, keep clothes hidden away as much as possible, and make sure the bathroom counters are empty (except for hand soap, of course). Similarly, put away all the toys and anything else that is highly personal to the home’s current inhabitants.

Plants and paint go a long way

A few potted plants can do wonders to make your home feel fresh and inviting to potential buyers. But conversely, if you’ve got a lot of indoor plants, this could create a cluttered feeling, so you’ll want to remove some of them. Additionally, a new coat of paint is a relatively inexpensive and quick home staging step you can take that will pay big returns on closing day.

Work With the Best

If you’re ready to move, work with your local team that knows the micro-housing market trends in your area. Our real estate agents have decades of experience and understand how to help you best navigate today’s market. So don’t hesitate to reach out and say Hello! to figure out your best options for buying or selling your next home!

August 26, 2022

This Is The Key To Your Dream Home

Key Takeaways:

Understanding why a property organizer is your secret weapon
Learning how to use a property organizer
Discovering how property organizers will benefit you

Why Use a Property Organizer

Have you ever been overwhelmed in the buying and selling process? With so many options out there and the market constantly changing, it can be challenging to stay organized during your search. Luckily, there’s a user-friendly tool that has your back, and it’s called the property organizer. The property organizer is an overlooked yet extremely beneficial tool that stimulates and simplifies your home search. It’s important for buyers to utilize the property search organizer, as it offers advantageous qualities for each.

How Will the Property Organizer Help Me?

This handy tool provides an easy way for you to save your favorite listings and property search settings so that properties within your search settings are delivered directly to your inbox. Property organizer benefits include:

Allows you to see listings that match your criteria
Speeds the process of home searching
Lists properties as soon as they hit the market
Allows you to save and organize your favorite listings
Provides a wider range of listings for as many options possible

Property Organizer and Email Alerts

First, you need to know how to use the property organizer to your advantage. Create a search for the area, price point and any additional criteria that fits within your home search. Once you create your search, save that search to receive email notifications directly in your inbox. Email alerts are widely beneficial, as they ensure that properties in your criteria aren’t missed. You can adjust your settings to expand the area, price range, and how often you receive alerts.

For Buyers

As a buyer, using the property organizer feature is vital to your home search journey. You have an advantage by using the property organizer, even if you aren’t ready to buy. No matter what stage you’re at in the buying process, creating a saved search in your property organizer is essential as far as monitoring trends, seeing what type of properties are available in your price range, and being aware of what features are common in the area. Overall, the property organizer helps you to become more active and engaged, so your next dream home won’t be missed!

For Sellers

The property organizer helps to facilitate the selling process, as it allows buyers to see what’s out there with no limitation. When you list with an agent who has a property organizer on their site, you can be assured that your property is marketed directly into buyers’ inboxes as soon as it hits the market.

So, how is this beneficial to a seller versus a buyer? Well, the property organizer may help your home sell faster by increasing the chances of your property being seen, and maximizing its reach. As a seller, you’ll be notified anytime a home is listed in your market, along with its price, size, and other specific features, which promotes awareness and strategy behind your listings. The property organizer is also advantageous to sellers in the sense that it allows them to monitor aspects such as market trends and pricing strategies.

Ready To Use The Property Organizer?

If you’re not sure how to set up a property organizer don’t worry, our team is here to help you! If you are thinking about buying, just let us know your price point, area, and any details you would like us to include in your search. If you are selling, provide us with your address and you will be notified when properties sell in your area.

June 1, 2022

Now Could Be the Best Time to Sell Your Home

Key Takeaways:

Shifting buyer demand creates lucrative opportunities for decisive sellers
Higher mortgage rates have set fire to this already hot housing market
Don’t delay—now is the time to contact us and get your home on the market!

The current housing market

With a sudden jump in home listings recently, today’s hot housing market has many homeowners wondering if now is the best time to sell. Of course, trying to time the market perfectly is challenging, though if there ever was a time to sell, this is absolutely a great one.

Everyone’s situation is different, but if you’ve been thinking about selling your home lately, contact us today to begin the process and maximize your success.

The supply of homes for sale, explained

Saleswoman giving home keys to new property owner.

Compared with last year, the supply of homes for sale jumped 9% in May, which is striking considering the historically low supply of home inventory that has defined the US housing market this year.

As sellers rushed to put their properties onto the market and cash in their equity gains, new home listings rose nearly twice as fast as a year ago in May, while pending home sales fell by almost 4% in April. And with sales of newly built homes dropping by a much broader 16% compared with March, this marked the sixth straight month of sales declines.

To fully appreciate this drop-off, consider that this softening in demand for housing marks the greatest slowdown on record in nearly a decade.

Home sales are slowing because mortgage rates have risen sharply since the start of the year, with the most significant gains coming in April and early May. The average rate on the 30-year fixed mortgage started the year close to 3% and is now well over 5%, causing new home buyers to slow down a bit.

The reality of rising mortgage rates

Businessperson's Hand Protecting Balance Between Percentage Red Cubic Block And House Model On Wooden Seesaw

While homeowners and homebuyers certainly enjoyed locking in 30-year fixed mortgages at the historic low of 2.68% in December 2020, this is far from the norm. It was only a few years ago, during the decade of the 2010’s, that mortgage rates averaged between 3.45% to 4.87%—not that far off from today’s average of just over 5%.

If you step back even further in time, the absolute highest mortgage rate was a whopping 18.45% in 1981! Like today, that was due to the Federal Reserve raising the federal funds rate to combat inflation, causing mortgage rates to spike. But unlike potential homebuyers in 1981, we have good news on the horizon, as we’re seeing mortgage and refinance rates start to decline for the first time in weeks and the economy showing signs of stabilizing.

An overdue housing market correction

Chart showing home values changing over time.

If you’re still worried about the housing market, you don’t need to. The good news in these reports is that homes are still selling, and in many cases, they’re still selling above their asking price. The housing market is cooling down due to a lull in buyer demand. However, this cooldown is a much-needed correction to what has been a short-term housing market fueled by the pandemic.

The critical difference in the market now is that with fewer buyers competing with one another over available housing, home prices rose another 21% in May, meaning equity gains are still there for homeowners. And if you’re looking to sell to downsize and lower your monthly expenses, you’ll be perfectly positioned to find your ideal home with fewer buyers competing with you in the market.

Sell Now for Your Best Return

If you’re considering selling your home, this may be the best possible time to list. With a trusted, experienced real estate team behind you, you can rest easy knowing that we’ve seen the ups and downs of the market over the years. You can always make a smart move, so contact us today to discuss your options!

May 15, 2022

Inflation – and Home Values – Are Up. Should You Sell?

Key Takeaways:

Home values are rising faster than inflation, making homes a prized asset
This housing market offers unique opportunities for buyers and sellers
Contact us today to secure your assets and safeguard your future!

The state of real estate and inflation

As inflation soars to near 40-year highs and raises the cost of everything, many are looking for innovative ways to secure their assets against inflationary losses. Additionally, given the housing market’s recent volatility (primarily driven by historic low levels of housing inventory that have caused an imbalance between supply and demand), it’s understandable that many might consider real estate to be a wrong or risky move right now. But the great news is that nothing could be further from the truth. Let’s explore how and why buying or selling a home can safeguard you against inflation.

The housing market can protect you from inflation

Image of homes and a graph representing housing market and inflation.

Real estate remains a stable area for investment and profit realization because a home’s value does not increase in relation to currency; it increases based on demand. So if you’ve been holding back from buying because of today’s market pressures, consider that inflation is up even more than mortgage interest rates, making it a smart move. Similarly, if you’re considering selling, the demand for housing has never been greater, which is terrific news for anyone looking to cash out their equity to hedge against inflation.

Buying a home: by the numbers

Let’s take a look at some numbers. Experts estimate that Americans face an annualized inflation rate of around 15%. Considering that, the current 5% mortgage rate is a bargain for homebuyers in the short term. Moreover, you’re securing an asset that, over time, will increase. And, as you pay down your mortgage, even at 5%, your equity will continue to grow.

Selling a home: by the numbers

Senior Adult Couple in Front of Sold Home For Sale Real Estate Sign and Beautiful House.

It’s no secret to homeowners that their home equity values have grown over the last couple of years. According to research firm Black Knight, at the end of 2021, Americans were sitting on record-high home equity levels of approximately $9.9 million. So if you’ve noticed homes in your neighborhood selling above their listing price and you’ve been on the fence about selling yourself, now may be a good time to cash in on this opportunity.

Both buyers and sellers can make tremendous gains

Happy family with children moving with boxes in a new house.

In a hot housing market where home inventory is low, competition is fierce, and home equity values are at all-time highs, buyers and sellers can start to feel overwhelmed. But don’t despair: an increase in mortgage rates isn’t stopping homes from selling quickly, nor is it preventing home equities from appreciating. For example, according to the National Association of Realtors (NAR), properties remained on the market for just 17 days in March, with many going for over the asking price!

With more buyers than sellers today, current homeowners looking to sell to fight inflation have the advantage of likely bidding wars, resulting in greater profits and fast-moving homes that don’t stay on the market for very long. For those looking towards homeownership to protect their assets against inflation, reassurance comes from knowing that demand is expected to outpace supply for the foreseeable future, meaning that home equities will continue to rise. And if inflation continues, fixed-rate interest rates will drop again, creating the perfect opportunity to refinance your loan.

Get Ready to Make Your Move

The first step to buying and selling is crunching the numbers. Our team will help you find the real, up-to-the-minute value of your home using the latest microdata and neighborhood trends. Then, we’ll work with you to figure out the best strategy to shelter your investments and assets from inflation. Contact us today!