Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Nov. 9, 2022

3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008

With all the headlines and talk in the media about the shift in the housing market, you might be thinking this is a housing bubble. It’s only natural for those thoughts to creep in that make you think it could be a repeat of what took place in 2008. But the good news is, there’s concrete data to show why this is nothing like the last time.

There’s Still a Shortage of Homes on the Market Today, Not a Surplus

For historical context, there were too many homes for sale during the housing crisis (many of which were short sales and foreclosures), and that caused prices to fall dramatically. Supply has increased since the start of this year, but there’s still a shortage of inventory available overall, primarily due to almost 15 years of underbuilding homes.

The graph below uses data from the National Association of Realtors (NAR) to show how the months’ supply of homes available now compares to the crash. Today, unsold inventory sits at just a 3.2-months’ supply at the current sales pace, which is significantly lower than the last time. There just isn’t enough inventory on the market for home prices to come crashing down like they did last time, even though some overheated markets may experience slight declines.

3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | Keeping Current Matters

Mortgage Standards Were Much More Relaxed Back Then

During the lead-up to the housing crisis, it was much easier to get a home loan than it is today. Running up to 2006, banks were creating artificial demand by lowering lending standards and making it easy for just about anyone to qualify for a home loan or refinance their current home.

Back then, lending institutions took on much greater risk in both the person and the mortgage products offered. That led to mass defaults, foreclosures, and falling prices. Today, things are different, and purchasers face much higher standards from mortgage companies.

The graph below uses Mortgage Credit Availability Index (MCAI) data from the Mortgage Bankers Association (MBA) to help tell this story. In that index, the higher the number, the easier it is to get a mortgage. The lower the number, the harder it is. In the latest report, the index fell by 5.4%, indicating standards are tightening.

3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | Keeping Current Matters

This graph also shows just how different things are today compared to the spike in credit availability leading up to the crash. Tighter lending standards over the past 14 years have helped prevent a scenario that would lead to a wave of foreclosures like the last time.

The Foreclosure Volume Is Nothing Like It Was During the Crash

Another difference is the number of homeowners that were facing foreclosure after the housing bubble burst. Foreclosure activity has been lower since the crash, largely because buyers today are more qualified and less likely to default on their loans. The graph below uses data from ATTOM Data Solutions to help paint the picture of how different things are this time:

3 Graphs Showing Why Today’s Housing Market Isn’t Like 2008 | Keeping Current Matters

Not to mention, homeowners today have options they just didn’t have in the housing crisis when so many people owed more on their mortgages than their homes were worth. Today, many homeowners are equity rich. That equity comes, in large part, from the way home prices have appreciated over time. According to CoreLogic:

“The total average equity per borrower has now reached almost $300,000, the highest in the data series.”

Rick Sharga, Executive VP of Market Intelligence at ATTOM Dataexplains the impact this has:

“Very few of the properties entering the foreclosure process have reverted to the lender at the end of the foreclosure. . . . We believe that this may be an indication that borrowers are leveraging their equity and selling their homes rather than risking the loss of their equity in a foreclosure auction.”

 This goes to show homeowners are in a completely different position this time. For those facing challenges today, many have the option to use their equity to sell their house and avoid the foreclosure process.

Bottom Line

If you’re concerned we’re making the same mistakes that led to the housing crash, the graphs above should help alleviate your fears. Concrete data and expert insights clearly show why this is nothing like the last time.

Posted in Market Information
Nov. 7, 2022

Sell Your House Before The Holidays

 


Sell Your House Before the Holidays

As you look ahead to the winter season, you’re likely making plans and thinking about what you want to achieve before the year ends. One of those key decision points could be whether or not you want to move this year. If the location or size of your current home no longer meets your needs, finding a house that better suits your lifestyle may be a top priority for you. But with today’s cooling housing market, is it really a good time to sell your house, or should you wait?

If you’re ready to make your decision, here are three reasons you may want to consider selling before the holidays.

1. Get One Step Ahead of Other Sellers

Typically, in the residential real estate market, homeowners are less likely to list their houses toward the end of the year. That’s because people get busy around the holidays and deprioritize selling their house until the start of the new year when their schedules and social calendars calm down.

Selling now, while other homeowners may hold off until after the holidays, can help your house stand out. Start the process with a real estate professional today so you can get your house on the market and get ahead of your competition.

2. Get in Front of Serious Buyers This Season

Even though housing supply has increased this year as buyer demand has moderated, it’s still low overall. That means there aren’t enough homes on the market today, especially as the millennial generation reaches their peak homebuying years. As Mark Fleming, Chief Economist at First Americansays:

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.”

Serious buyers will still be looking this winter and your house may be exactly what they’re searching for. If you work with an agent to list your house now, you’ll be able to get in front of the eager buyers who are hoping to make a move before the year ends.

3. Seize a Great Chance To Move Up

Don’t forget, today’s homeowners have record amounts of equity. According to CoreLogic, the average amount of equity per mortgage holder has climbed to almost $300,000. That’s an all-time high. That means the equity you have in your house right now could cover some, if not all, of a down payment on the home of your dreams.

And as you weigh the reasons to sell before winter, don’t lose sight of why you’re thinking about moving in the first place. Maybe it’s time to buy a house that’s in a better location for you, has the space you and your loved ones have been craving, or simply gives you that sense of home. A trusted real estate advisor can help you determine how much home equity you have and how you can use it to achieve your goal of making a move.

Bottom Line

If you’re thinking about selling your house so you can find a home that better suits your needs, don’t delay your plans. Work with a local real estate professional to accomplish your goals before winter.

Posted in Market Information
Nov. 4, 2022

Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be.

Do You Believe Homeownership Is Out of Reach? Maybe It Doesn’t Have To Be.

It turns out, millennials aren’t the renter generation after all. The 2022 Consumer Insights Report from Mynd says there’s a portion of millennial and Gen Z buyers who are pursuing homeownership as a way to build their wealth, but it may not be exactly the way previous generations have done it. The study explains how they’re breaking into the market:

“. . . younger generations of Americans are not buying into that dream in the same way that older generations have. A growing number of Americans are choosing to make their first real estate purchase as an investment property.”

Instead of buying a home and moving into it themselves, some young buyers are purchasing a home so they can use it as a rental. This tactic may be gaining popularity, at least in part, because of the affordability challenges brought about by today’s higher mortgage rates. The report above mentions how many people in this group are considering this approach. It says:

“Almost half of Millennials and Gen Z (43%) are considering buying an investment property compared to only 9% of Baby Boomers and 27% of Gen X.”

Why Younger Buyers Are Buying a Home To Use as a Rental

This strategy allows buyers to continue living in their current location, like the bustle of a city apartment or a neighborhood that they know and love, where they couldn’t afford to buy. But instead of giving up on the idea of owning a home, they buy a home in a more affordable area with the intention of renting it out.

In a way, they’re getting the best of both worlds. They live where they want, and they still own a home where they can afford it.

Their goal is to generate passive income and diversify their assets. It works like this: in addition to having a rental stream of income, the equity they build in their house will also help grow their net worth over time.

Bottom Line

If you’re thinking about buying a home as an investment strategy to build your wealth, connect with a real estate professional to explore your options and nearby areas that may have homes that fit what you’re looking for.

Posted in Market Information
Nov. 4, 2022

Weekly Wrap Up 2022-10-29

Your life changes all the time–so shouldn’t you expect your home to change, too? 

Your home should support you and your family through every stage of your life. If your home isn’t quite meeting that requirement, it’s time to change!

Maybe that means that you need to renovate your kitchen and living space to make family time even easier. 

Maybe it’s time to downsize into something cozier for empty nesters. 

Or maybe your family has outgrown your space and it’s time for an addition or a new home entirely!

Whatever your life has evolved into, let’s make sure your home evolves with you. 

I’m happy to help you get into a home that will fit your lifestyle now and in the future. Just send me a DM and let’s talk about what you need your home to do for you!

It’s real estate emoji time! What’s your homeowner relationship status? 

Are you committed (aka already own a home)? 

Or is the situation a little complicated and you can’t quite decide if you’re ready to buy?

Let me know what your status is by dropping an emoji in the comments!

 

Anyone can find you a house to put a roof over your head. 

But I’m dedicated to finding you a home. 

To me, a home is a place that perfectly fits your lifestyle and makes living your best life easy! A home is where you feel like yourself, are able to live your life, and can make it 100% your own.

Your happiness in your new home is my main priority as your agent. That means that I’m here to find you a home–not sell you a house. 

Whether you’re a first-time buyer looking to find a home for this new phase of your life or you’re currently someone who owns a house but is wanting a home, I can help you through the real estate process. 

Ready to get started finding your home? Send me a DM and let’s get started!

Have a burning question about the real estate market? Then drop it in the comments and I’ll answer it!

Maybe you’re wondering if it’s still a good time to sell–and if it is a good time to sell, you’ll want to know how to get the most profit for your home. 

Or maybe you’ve been watching the market close and want to know if now is finally a good time to buy.

Maybe you have questions about our local real estate market and what’s happening in specific zip codes. 

Whatever you want to know about the market, I have the data and knowledge to give you the answers you need.

So drop your questions in the comments and let’s get them answered!

Posted in Social Media
Nov. 2, 2022

Millennials Are Still a Driving Force of Today's Buyer Demand

If you're thinking about selling your house but wondering if buyers are still out there, know that there are still people who are searching for a home to buy today. And your house may be exactly what they're looking for.

While the millennial generation has been dubbed the renter generation, that namesake may not be appropriate anymore. Millennials, the largest generation, are actually a significant driving force for buyer demand in the housing market today. Here's why.

Millennial Homebuying Power

While there's no denying higher mortgage rates are making it more challenging to afford a home today, many millennials are still eager and able to buy homes – whether it's their first or they're moving up. That's in large part because of the value they place on education.

recent article from First American says millennials may be the most educated generation in our nation's history. Because of that, they tend to earn higher wages, and that translates to greater homebuying power. Odeta Kushi, Deputy Chief Economist at First American, explains:

In 2020, millennials with a bachelor's degree had a median household income of over $100,000, while those with at least a graduate degree had a median household income of over $120,000. Compare those income levels with the median household income of millennials with just a high school degree (or some college) of $60,000 and the earning power benefits of higher education are undeniable. . . . Millennials' pursuit of higher education is good news for the housing market. . . because education is the key to unlock both greater earning power and, in turn, homeownership.

And since wages are one of the key things that factor into affordability when it comes to buying a home, these higher earnings can help millennials achieve their homeownership goals.

Millennials Continue To Be a Driving Force of Demand

A number of studies have looked into how the millennial generation views homeownership and how they're uniquely positioned to define the housing market moving forward. As the largest generation, the volume of potential millennial homebuyers will have an impact on the market for years to come. As an article in Forbes explains:

At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the homebuying process. Once known as the ‘rent generation,' millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don't think it's a stretch to say they are the key to the overall health and stability of the current housing industry.

If you're thinking of selling your house but are hesitant because you're worried that buyer demand has disappeared in the face of higher mortgage rates, know that isn't the case for everyone. While demand has eased this year, millennials are still looking for homes. As Mark Fleming, Chief Economist at First American, says in an article:

“While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.

Bottom Line

Millennials are interested in and well-positioned to achieve their homeownership dreams. If you're ready to sell your house, know that it may be just what they're looking for.

Posted in Market Information
Oct. 31, 2022

Applying for a Mortgage Doesn’t Have To Be Scary

Applying for a Mortgage Doesn’t Have To Be Scary [INFOGRAPHIC] | MyKCM

  • Even with higher mortgage rates, the mortgage process doesn’t need to be something you fear. Here are some steps to help as you set out to buy a home.
  • Know your credit score and work to build strong credit. When you’re ready, lean on the pros and connect with a lender so you can get pre-approved and begin your home search.
  • Any major life change can be scary, and buying a home is no different. Let’s connect so you have an advisor by your side to take fear out of the equation.
Posted in Market Information
Oct. 24, 2022

Weekly Wrap Up 2022-10-22

Friendly reminder: you’re the one living your life. 

This is both good news and bad news. It’s bad news because no one else can do it for you.

But it’s also great news because you get to make your life exactly what you want it to be!

So if you want to 

-travel Europe

-renovate your kitchen

-or buy your first home

I know that you can do it. You can get to where you want and need to be in your life. 

Consider this your nudge to follow your dreams. 

What’s one thing you can do to get closer to your dreams today? Let me know in the comments for accountability!

If you’ve been hearing about the rising interest rates and are wondering if now is still a good time to buy, stick around for this video. 

First things first: don’t let high interest rates keep you from your dreams. If your dream is to become a homebuyer, then let’s make that happen! 

Interest rates are important in real estate, but they’re far from the end-all be-all that they’re often made out to be. 

Let’s put interest rates in perspective. The interest rate you get today will be higher by a percentage point or two compared to this time last year. But today’s interest rates are still very low compared to interest rates in the 1970s to the 1990s, so you can get an interest rate lower than your parents did! 

You can also refinance your mortgage down the road. If you’re not happy with your interest rate and interest rates are lower at some point in your mortgage term, you can refinance to take advantage of the new, lower interest rates. This is a great option for many buyers because it means that they don’t have to worry about being locked into an interest rate forever with refinancing. 

With all of this in mind, it’s still a good time to buy–even though interest rates are rising. What buyers can do is make sure that they get the lowest interest rate possible. You can do this in a few ways. 

First, make sure your credit score is happy and healthy. This means paying your bills on time, not carrying over balances on your credit cards, and regularly paying down debt. Check your credit score regularly to ensure that there aren't any errors, and if there are, get them corrected ASAP. When your credit score is high, you’re more likely to qualify for a lower interest rate because you’re not as much of a risk to lenders. 

You’ll also want to work on lowering your debt-to-income ratio. The higher your debt-to-income ratio, the higher your interest rate will be. Your debt-to-income ratio is exactly what it sounds like: how much debt you pay monthly compared to your monthly income. If your ratio is high–aka you pay a high amount in debt payments each month, then the more of a risk you pose to a lender. Paying down debt will not only lower your ratio, but it will help your credit score as well. 

If it’s your dream to become a homeowner, don’t let the interest rates get you down. Instead, focus on getting the best interest rate possible by boosting your credit score and lowering your down payment. Plus, keep in mind that you can always refinance in the future for a lower rate!

Have any questions about interest rates and getting approved for a mortgage? Send me a DM and I’ll put you in touch with some amazing, knowledgeable lenders!

Which home loan type is right for you? When it comes to mortgages, it can be easy to get overwhelmed with all the different options and requirements. Here’s a handy cheat sheet for you! Make sure to save it for later so you’ll have it when you need it. These 4 home loans are the ones that you’ll probably consider, so let’s break them down! VA: If you or your spouse is a veteran, this can be a great option with a low down payment and competitive interest rates. FHA: First-time buyers, check this one out! The FHA loan has lower credit requirements and a low down payment, which can make getting into a home easier than you ever imagined. USDA: If you’re buying in a rural area, this is a great option with a low down payment and flexible qualifying parameters. Conventional: This is the 30-year mortgage that your parents probably have. It’s the most popular choice, and if you don’t qualify for the other loan types, you’ll probably end up with this loan. If you’re ready to learn more about mortgages, let me connect you with an amazing lender who can help you make the right choice for your financial future. Just send me a DM and I’ll get you their contact info.

 

Reminder: buying or selling a home isn’t a done deal when the purchase contract is signed and the closing process begins. Yes, even though the real estate contract is a binding agreement, it can be terminated. Until both the buyer and the seller have signed off that final piece of paper on closing day, the deal is up in the air. Swipe to see 5 reasons why purchase agreements can be terminated! Note that a lot of these reasons have to do with the contingencies baked into the purchase agreement–and those contingencies can always be negotiated. Your agent will help you ensure that the proper contingencies are in place during the negotiation process so that you don’t get stuck in a bad situation for both the buyer and the seller. Have questions about real estate contracts or contingencies? Send me a DM, and I’ll get you the info you need!

Posted in Social Media
Oct. 20, 2022

Should You Still Buy a Home with the Latest News About Inflation?

While the Federal Reserve is working hard to bring down inflation, the latest data shows the inflation rate is still high, remaining around 8%. This news impacted the stock market and added fuel to the fire for conversations about a recession.

You're likely feeling the impact in your day-to-day life as you watch the cost of goods and services climb. The pinch it's creating on your wallet and the looming economic uncertainty may leave you wondering: should I still buy a home right now? If that question is top of mind for you, here's what you need to know.

Homeownership Is Historically a Great Hedge Against Inflation

In an inflationary economy, prices rise across the board. Historically, homeownership is a great hedge against those rising costs because you can lock in what's likely your largest monthly payment (your mortgage) for the duration of your loan. That helps stabilize some of your monthly expenses. James Royal, Senior Wealth Management Reporter at Bankrateexplains:

A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.

And with rents being as high as they are, the ability to stabilize your monthly payments and protect yourself from future rent hikes may be even more important. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains what happened to rents in the latest inflation report:

Inflation refuses to budge. In September, consumer prices rose by 8.2%. Rents rose by 7.2%, the highest pace in 40 years.

When you rent, your monthly payment is determined by your lease, which typically renews on an annual basis. With inflation high, your landlord may be more likely to increase your payments to offset the impact of inflation. That may be part of the reason why a survey from realtor.com shows 72% of landlords said they plan to raise the rent on one or more of their properties in the next year.

Becoming a homeowner, if you're ready and able to do so, can provide lasting stability and a reliable shelter in times of economic uncertainty.

Bottom Line

The best hedge against inflation is a fixed housing cost. If you're ready to learn more and start your journey to homeownership, let's connect.

Posted in Market Information
Oct. 18, 2022

Saving for a Down Payment? Here's What You Should Know

As you set out to buy a home, saving for a down payment is likely top of mind. But you may still have questions about the process, including how much to save and where to start.

If that sounds like you, your down payment could be more in reach than you originally thought. Here's why.

The 20% Down Payment Myth

If you believe you have to put 20% down on a home, you may have based your goal on a common misconception. Freddie Mac explains:

. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.

Unless it's specified by your loan type or lender, it's typically not required to put 20% down. According to the latest Profile of Home Buyers and Sellers from the National Association of Realtors (NAR), the median down payment hasn't been over 20% since 2005. There are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

This is good news for you because it means you could be closer to your homebuying dream than you realize. For more information, turn to a trusted lender.

Down Payment Assistance Programs Can Be a Game Changer

A professional will be able to show you other options that could help you get closer to your down payment goal. According to the latest Homeownership Program Index from downpaymentresource.com, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

A recent article explains why programs like these are helpful:

These resources can immediately build your home buying power and help you take action sooner than you thought possible.

And if you're wondering if you have to be a first-time buyer to qualify for these programs, that's not always the case. According to an article from downpaymentresource.com:

It is a common misconception that homebuyer assistance is only available to first-time homebuyers, however, 38% of homebuyer assistance programs in Q1 2022 did not have a first-time homebuyer requirement.

There are also location and profession-based programs you could qualify for as well.

Bottom Line

Saving for your down payment is an important first step on your homebuying journey. Let's connect today and make sure you have a trusted lender to help explore your options.

Posted in Market Information
Oct. 18, 2022

Weekly Wrap Up 2022-10-15

If you need a little inspiration today, this post is for you!

You are the architect of your life, and that means that you can design the life you’ve always wanted and you can build the future you’ve been dreaming of!

Whatever your dreams are, you can make them happen.

If one of your big dreams is to own a home, I have a guide that can help you make that dream into reality.

My Buyer Guide will walk you through everything you need to know when it comes to buying a home. You’ll find out exactly what you need to do to get prepped to buy, how to find the perfect home for you, and everything in between.

 

If you want to grow your wealth and set yourself up for financial success in the future, then you’ll want to listen to this! 

Today, we’re talking all about real estate investing–and why you might want to invest in real estate yourself. 

So first off, you might have some preconceived notions about real estate. You may think that it’s difficult to get into real estate investing or that it’s only for the super-wealthy who already own 2 homes plus. 

I’m happy to say that those ideas are false. Real estate investing has tons of benefits that make it a smart investment option for someone looking to grow their wealth. Let’s go over a few of those benefits now. 

The first benefit of real estate investing is that you can earn passive income. Passive income is income that you don’t really have to work for, it just comes into your wallet without having to do any “active” work. When you invest in a rental property, you can get a nice paycheck every month with very little input from you! 

Next, investing in real estate diversifies your investment portfolio. By having several kinds of assets like stocks, a 401k, and real estate for example, your wealth will be better protected in the case of an economic downturn. Take right now: although the stock market has taken a steep dive over the past couple of years, real estate has appreciated greatly, which balances out those declines. 

Additionally, your real estate assets will appreciate over time. This means that they will increase in value and increase your return on investment. When you go to sell your home or your real estate investment, the chances are very good that you’ll make a pretty penny in profit. This is what makes real estate such a great investment! 

Finally, investing in real estate comes with tax benefits. You can write off expenses associated with the property, depreciate the asset over time, and take advantage of the capital gains tax

deference. Your real estate agent will be able to guide you through the best tax benefits for your situation. 

As I always say, there’s a reason the millionaires out there start out investing in real estate. It’s a great investment with relatively low risk and high returns, which makes it great for beginners and experienced investors alike! 

Like any investment though, it’s always a good idea to go into it with a strategic mindset and with an open mind. Plus, it’s always helpful to have an expert on your side to walk you through the ins and outs of investing in real estate–that’s where a real estate agent can come in! 

 

If you have any questions about real estate investments and whether they’re right for you, then just send me a DM and I’ll get you the info you need!

After hearing about how homes are flying off the market, you might feel like something is wrong with your home if you don’t get immediate interest after you list it.
Patience is the name of the game in real estate right now–whether you’re a buyer or a seller.
My advice? Give your home a little time once it hits the market. It can take time for a listing to generate interest. But with patience, the perfect buyer will find your home.
That said, if your home has been on the market for a few weeks and you’re still not seeing a lot of interest, it might be time to take a second look at your listing strategy with your agent. See what you can tweak about the listing or the showings to make sure your home gets in front of the right buyers

 

If you have questions about selling your home and how long you can expect it to be on the market for, just send me a DM!
What does homeownership mean to you?
For so many people, owning a home is a huge life goal. It’s the embodiment of the American Dream, the goal post by which people measure “making it.”
But on top of that, owning a home is full of financial benefits and can seriously build your wealth. When you own a home, you get to build equity rather than throwing money away on rent.
Owning a home may be more achievable than you think. There are so many great programs out there to make owning a home possible for first-timers, even if you don’t have a large down payment or great credit.
Overall, owning a home is totally worth it from the financial to the emotional perspective.
Want to learn more about what a home can do for your life and what it takes to buy one?
Posted in Social Media