Southern Indiana Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.wardrealtyservices.com/blog/Copyright WardRealtyServices.com2024-03-27T09:14:42-07:00tag:wardrealtyservices.com,2012-09-20:22554What Every Homebuyer Should Know About Closing Costs
Before making the decision to buy a home, it's important to plan for all the costs you’ll be responsible for. While you're busy saving for the down payment, don't forget you’ll want to prep for closing costs too.
Here’s some helpful information on what those costs are and how much you should budget for them.
What Are Closing Costs?
A recent article from Bankrate <a href="https://www.bankrate.com/mortgages/understanding-the-closing-process/" rel="noopener noreferrer" target="_blank">explains</a>:
“Closing costs are the fees and expenses you must pay before becoming the legal owner of a house, condo or townhome . . . Closing costs vary depending on the purchase price of the home and how it’s being financed . . .”
Simply put, your closing costs are the additional fees and payments you have to make at closing. According to <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">Freddie Mac</a>, while they can vary by location and situation, closing costs typically include:
Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services
Tax service fees
Survey fees
Attorney fees
Underwriting Fees
How Much Are Closing Costs?
According to the same Freddie Mac <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">article</a> mentioned above, they’re typically between 2% and 5% of the total purchase price of your home. With that in mind, here’s how you can get an idea of what you’ll need to budget.
Let’s say you find a home you want to purchase at today’s <a href="https://www.nar.realtor/newsroom/existing-home-sales-vaulted-9-5-in-february-largest-monthly-increase-in-a-year" rel="noopener noreferrer" target="_blank">median</a> price of $384,500. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $7,690 and $19,225.
But keep in mind, if you’re in the market for a home above or below this price range, your closing costs will be higher or lower.
Make Sure You’re Prepared To Close
Freddie Mac provides great advice for homebuyers, <a href="https://myhome.freddiemac.com/buying/understanding-costs" rel="noopener noreferrer" target="_blank">saying</a>:
“As you start your homebuying journey, take the time to get a sense of all costs involved – from your down payment to closing costs.”
The best way to do that is by partnering with a team of trusted real estate professionals. That gives you a group of experts to help you understand how much you’ll need to save and what you’ll want to be prepped for. It also means you have go-to resources for any questions that pop up along the way.
Planning for the fees and payments you'll need to cover when you're closing on your home is important. Partnering with a local real estate professional can give you the guidance and confidence you need throughout the process.
2024-03-27T09:13:18-07:002024-03-27T09:14:42-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:225453 Helpful Tips for First-Time Homebuyers<img src="https://assets.site-static.com/userfiles/819/image/Screenshot_2024-03-26_at_12.40.12_PM.png" width="562" height="1726" />
Trying to buy your first home? If you’re worried about affordability today or the limited number of homes for sale, these <a href="https://www.mykcm.com/2024/03/01/the-first-step-getting-pre-approved-for-a-mortgage-infographic/" rel="noopener noreferrer" target="_blank">tips</a> can help.
Look into homebuyer programs, expand your search area, and consider a multi-generational home.
<a href="https://www.wardrealtyservices.com/contact/" target="_blank">Let’s connect</a> so you have an expert on your side to help you make your dream a reality.
2024-03-26T09:38:54-07:002024-03-26T09:41:26-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22528Does It Make Sense To Buy a Home Right Now?
Thinking about buying a home? If so, you're probably wondering: should I buy now or wait? Nobody can make that decision for you, but here's some information that can help you decide.
What’s Next for Home Prices?
Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 experts—economists, real estate professionals, and investment and market strategists—what they think will happen with home prices.
In the <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q1-2024-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">latest survey</a>, those experts say home prices are going to keep going up for the next five years (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240319/20240320-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240319/20240320-Estimated-Home-Price-Performance.png" alt="a graph of green bars" /></a>
Here’s what all the green on this chart should tell you. They’re not expecting any price declines. Instead, they’re saying we’ll see a 3-4% rise each year.
And even though home prices aren’t expected to climb by as much in 2025 as they are 2024, keep in mind these increases can really add up over time. It works like this. If these experts are right and your home's value goes up by 3.78% this year, it's set to grow another 3.36% next year. And another 3.87% the year after that.
What Does This Mean for You?
Knowing that prices are forecasted to keep going up should make you feel good about buying a home. That’s because it means your home is an asset that’s projected to grow in value in the years ahead.
If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using expert projections from the <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q1-2024-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">HPES</a>. Check out the graph below:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240319/20240320--83385.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240319/20240320--83385.png" alt="a graph of growth in a chart" /></a>
In this example, imagine you bought a home for $400,000 at the start of this year. Based on these projections, you could end up gaining over $83,000 in household wealth over the next five years as your home grows in value.
Of course, you could also wait – but if you do, buying a home is just going to end up costing you more.
If you're thinking it's time to get your own place, and you’re ready and able to do so, buying now might make sense. Your home is expected to keep getting more valuable as <a href="https://www.mykcm.com/2024/02/15/dont-let-the-latest-home-price-headlines-confuse-you/" rel="noopener noreferrer" target="_blank">prices</a> go up. <a href="https://www.wardrealtyservices.com/contact/">Let’s team up</a> to start looking for your next home today.
2024-03-22T09:19:34-07:002024-03-22T09:21:57-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:225124 Tips To Make Your Strongest Offer on a Home
Are you thinking about buying a home soon? If so, you should know today’s market is competitive in many areas because the number of homes for sale is still low – and that’s leading to multiple-offer scenarios. And moving into the peak homebuying season this spring, this is only expected to ramp up more.
Remember these four tips to make your best offer.
1. Partner with a Real Estate Agent
Rely on a real estate agent who can support your goals. As PODS <a href="https://www.pods.com/blog/making-home-offer" rel="noopener noreferrer" target="_blank">notes</a>:
“Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”
Agents are local market experts. They know what’s worked for other buyers in your area and what sellers may be looking for. That advice can be game changing when you’re deciding what offer to bring to the table.
2. Understand Your Budget
Knowing your numbers is even more important right now. The best way to understand your budget is to work with a lender so you can get pre-approved for a home loan. Doing so helps you be more financially confident and shows sellers you’re serious. That gives you a competitive edge. As Investopedia <a href="https://www.investopedia.com/mortgage-preapproval-4776405" rel="noopener noreferrer" target="_blank">says</a>:
“. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”
3. Make a Strong, but Fair Offer
It’s only natural to want the best deal you can get on a home, especially when affordability is tight. However, submitting an offer that’s too low does have some risks. You don’t want to make an offer that’ll be tossed out as soon as it’s received just to see if it sticks. As Realtor.com <a href="https://www.realtor.com/advice/buy/five-tips-successful-lowball-offer/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
The expertise your agent brings to this part of the process will help you stay competitive and find a price that’s fair to you and the seller.
4. Trust Your Agent During Negotiations
After you submit your offer, the seller may decide to counter it. When negotiating, it's smart to understand what matters to the seller. Once you do, being as flexible as you can on things like moving dates or the condition of the house can make your offer more attractive.
Your real estate agent is your partner in navigating these details. Trust them to lead you through negotiations and help you figure out the best plan. As an article from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-work-with-a-realtor" rel="noopener noreferrer" target="_blank">explains</a>:
“There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs . . .”
In today's competitive market, let’s work together to find you a home you love and craft a strong offer that stands out.
2024-03-19T09:05:52-07:002024-03-19T09:07:39-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22484Your Home Is a Powerful Investment
Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home.
But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, <a href="https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20240227-1470765/1470765_cshomeprice-release-0227.pdf" rel="noopener noreferrer" target="_blank">explains</a>:
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”
To put last year’s growth into context, the graph below uses <a href="https://www.freddiemac.com/research/indices/house-price-index" rel="noopener noreferrer" target="_blank">data</a> from Freddie Mac on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240311/20240313-Percent-of-Annual-Home-Appreciation.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240311/20240313-Percent-of-Annual-Home-Appreciation.png" alt="a graph showing the average of a home appreciation" /></a>
The big takeaway? Home prices almost always go up.
As an article from Forbes <a href="https://www.forbes.com/sites/jimwang/2023/06/21/is-buying-a-home-really-a-good-investment/?sh=68dae57a4aab" rel="noopener noreferrer" target="_blank">says</a>:
“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”
In fact, since 1980, the only time home prices dropped was during the housing market crash (shown in red in the graph above). Fortunately, the market today isn’t like it was in 2008. For starters, there aren’t enough available homes to meet buyer demand right now. On top of that, homeowners have a tremendous amount of equity, so they’re on much stronger footing than they were back then. That means there won’t be a wave of foreclosures that causes prices to fall.
The fact that home values went up every single year except those four in red is why owning a home can be one of the smartest moves you can make. When you’re a homeowner, you own something that typically becomes more valuable over time. And as your home’s value appreciates, your net worth grows.
So, if you’re financially stable and prepared for the costs and expenses of homeownership, buying a home might make a lot of sense for you.
Bottom Line
Home prices almost always go up over time. That makes buying a home a smart move, if you’re ready and able. <a href="https://www.wardrealtyservices.com/contact/">Let’s connect</a> to talk about your goals and what’s available in our area.
2024-03-13T08:30:32-07:002024-03-13T08:32:06-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22477What Mortgage Rate Do You Need To Move?
If you’ve been thinking about <a href="https://www.mykcm.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">buying a home</a>, mortgage rates are probably top of mind for you. They may even be why you’ve put your plans on hold for now. When <a href="https://www.mykcm.com/2024/02/12/whats-really-happening-with-mortgage-rates/" rel="noopener noreferrer" target="_blank">rates</a> climbed <a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">near 8%</a> last year, some buyers found <a href="https://www.mykcm.com/2024/02/23/how-changing-mortgage-rates-impact-you-infographic/" rel="noopener noreferrer" target="_blank">the numbers</a> just didn’t make sense for their <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">budget</a> anymore. That may be the case for you too.
<a href="https://brightmls.com/article/market-survey-winds-of-change-expected-for-2024" rel="noopener noreferrer" target="_blank">Data</a> from Bright MLS shows the top reason buyers delayed their plans to move is due to high mortgage rates (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240304/20240312-Top-3-Reasons-Buyers-Paused-Decision.png" alt="a graph of blue rectangles with text" /></a>
David Childers, CEO at Keeping Current Matters, speaks to this statistic in the recent <a href="https://www.youtube.com/watch?v=wD0su_jp9lk" rel="noopener noreferrer" target="_blank">How’s The Market</a> podcast:
“Three quarters of buyers said ‘we’re out’ due to mortgage rates. Here’s what I know going forward. That will change in 2024.”
That’s because <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have come down off their peak last October. And while there’s still day-to-day volatility in rates, the longer-term projections show rates should continue to drop this year, as long as inflation gets under control. Experts even say we could see rates <a href="https://www.mykcm.com/2024/02/21/some-experts-say-mortgage-rates-may-fall-below-6-later-this-year/" rel="noopener noreferrer" target="_blank">below 6%</a> by the end of 2024. And that threshold would be a gamechanger for a lot of buyers. As a recent article from Realtor.com <a href="https://mediaroom.realtor.com/2024-02-21-Americans-Hold-on-to-the-Dream-of-Homeownership" rel="noopener noreferrer" target="_blank">says</a>:
“Buying a home is still desired and sought after, but many people are looking for mortgage rates to come down in order to achieve it. Four out of 10 Americans looking to buy a home in the next 12 months would consider it possible if rates drop below 6%.”
While mortgage rates are nearly impossible to forecast, the optimism from the experts should give you insight into what’s ahead. If your plans were delayed, there’s light at the end of the tunnel again. That means it may be time to start thinking about your move. The best question you can ask yourself right now, is this:
What number do I want to see rates hit before I’m ready to move?
The exact <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">percentage</a> where you feel comfortable kicking off your search again is personal. Maybe it’s 6.5%. Maybe it’s 6.25%. Or maybe it’s once they drop below 6%.
Once you have that number in mind, here’s what you do. Connect with a local <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">real estate professional</a>. They’ll help you stay informed on what’s happening. And when rates hit your target, they’ll be the first to let you know.
If you’ve put your plans to move on hold because of where mortgage rates are, think about the number you want to see rates hit that would make you ready to re-enter the market.
Once you have that number in mind, let’s connect so you have someone on your side to let you know when we get there.
2024-03-12T12:55:16-07:002024-03-12T12:56:29-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22463Finding Your Perfect Home in a Fixer Upper
If you’re trying to <a href="https://www.mykcm.com/2024/02/26/the-truth-about-down-payments/" rel="noopener noreferrer" target="_blank">buy a home</a> and are having a hard time finding one you can afford, it may be time to consider a fixer-upper. That’s a house that needs a little elbow grease or some updates, but has good bones. Fixer-uppers can be a really great option if you’re looking to <a href="https://www.mykcm.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">break into</a> the housing market or want to stretch your budget further. <a href="https://www.nerdwallet.com/article/mortgages/buying-a-fixer-upper" rel="noopener noreferrer" target="_blank">According</a> to NerdWallet:
“Buying a fixer-upper can provide a path to homeownership for first-time home buyers or a way for repeat buyers to afford a larger home or a better neighborhood. With the relatively low inventory of homes for sale these days, a move-in ready home can be hard to find, especially if you’re on a budget.”
Basically, since the number of homes for sale is still so low, if you’re only willing to tour homes that have all your dream features, you may be cutting down your options too much and making it harder on yourself than necessary. It may be time to cast a wider net.
Sometimes the perfect home is the one you perfect after buying it.
Here’s some information that can help you pinpoint what you truly need so you can be strategic in your <a href="https://www.mykcm.com/2023/12/08/your-homebuying-adventure-infographic/" rel="noopener noreferrer" target="_blank">home search</a>. First, make a list of all the features you want in a home. From there, work to break those features into categories like this:
Must-Haves - If a house doesn’t have these features, it won’t work for you and your lifestyle.
Nice-To-Haves - These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender.
Dream State - This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner.
Once you’ve sorted your list in a way that works for you, share it with your <a href="https://www.mykcm.com/2024/02/28/why-you-want-an-agents-advice-for-your-move/" rel="noopener noreferrer" target="_blank">real estate agent</a>. They’ll help you find homes that deliver on your top needs right now and have the potential to be your dream home with a little bit of sweat equity. Lean on their expertise as you think through what’s possible, what features are easy to change or add, and how to make it happen. <a href="https://www.progressive.com/answers/buying-a-fixer-upper/" rel="noopener noreferrer" target="_blank">According</a> to Progressive:
“Many real estate agents specialize in finding fixer-uppers and have a network of inspectors, contractors, electricians, and the like.”
Your agent can also offer advice on which upgrades and renovations will set you up to get the greatest return on your investment if you ever decide to sell down the line.
If you haven’t found a home you love that’s in your budget, it may be worth thinking through all your options, including fixer-uppers. Sometimes the perfect home for you is the one you perfect after buying it. To see what’s available in our area, let’s connect.
2024-03-11T11:42:00-07:002024-03-11T11:42:52-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22453The Benefits of Downsizing When You Retire
If you’re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by downsizing to a smaller home.
When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com <a href="https://www.realtor.com/advice/move/how-to-downsize-your-home-with-zero-regrets/" rel="noopener noreferrer" target="_blank">shares</a>:
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”
That windfall is thanks to your home equity. If you’ve been in your house for a while, odds are you’ve built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley, <a href="https://www.morganstanley.com/articles/using-home-equity-in-retirement" rel="noopener noreferrer" target="_blank">explains</a>:
“Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth. . . . Retirement planning can be complex, but your home equity shouldn't be overlooked.”
And when you’re ready to use that equity to fuel your <a href="https://www.mykcm.com/2024/02/06/houses-are-still-selling-fast/" rel="noopener noreferrer" target="_blank">next move</a>, your real estate agent will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.
What This Means for You
If you’re thinking about downsizing, ask yourself these questions:
Do the original reasons I bought my current house still stand, or have my needs changed since then?
Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
What are my housing expenses right now, and how much do I want to try to save by downsizing?
Then, meet with a real estate agent to get an answer to this one: What are my options in the market right now? A local real estate agent can walk you through how much equity you have in your house and how it positions you to win when you downsize.
Want to save money in retirement? Consider downsizing – it could really help you out. When you’re ready, <a href="https://www.wardrealtyservices.com/contact/" target="_blank">let’s connect</a> about your goals in the housing market this year.
2024-03-07T16:43:06-07:002024-03-07T16:44:50-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22428What To Know About Credit Scores Before Buying a Home
If you want to <a href="https://www.mykcm.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">buy a home</a>, you should know your credit score is a critical piece of the puzzle when it comes to <a href="https://www.mykcm.com/2024/02/07/why-pre-approval-is-even-more-important-this-year/" rel="noopener noreferrer" target="_blank">qualifying for a mortgage</a>. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.”
That means your credit score may feel even more important to your <a href="https://www.mykcm.com/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/" rel="noopener noreferrer" target="_blank">homebuying plans</a> right now since <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are a key factor in <a href="https://www.mykcm.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/" rel="noopener noreferrer" target="_blank">affordability</a>. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q4" rel="noopener noreferrer" target="_blank">770</a>. But that doesn’t mean your credit score has to be perfect. The same article from US Bank <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html" rel="noopener noreferrer" target="_blank">explains</a>:
“Your credit score (commonly called a FICO Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">says</a>:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian <a href="https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/" rel="noopener noreferrer" target="_blank">highlights</a> some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
Finding ways to make your credit score better could help you get a lower mortgage rate. If you want to learn more, talk to a trusted lender.
2024-03-04T17:32:51-07:002024-03-04T17:33:55-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22414The First Step: Getting Pre-Approved for a Mortgage<img src="https://assets.site-static.com/userfiles/819/image/The-First-Step-Getting-Pre-Approved-for-a-Mortgage-MEM.png" width="1300" height="3388" />
If you’re looking to <a href="https://www.mykcm.com/2024/02/20/strategic-tips-for-buying-your-first-home/" rel="noopener noreferrer" target="_blank">buy a home</a> in 2024, getting <a href="https://www.ftc.gov/sites/default/files/documents/one-stops/real-estate-competition/realestateglossary.pdf" rel="noopener noreferrer" target="_blank">pre-approved</a> is a key piece of the puzzle. <a href="https://www.mykcm.com/2024/02/07/why-pre-approval-is-even-more-important-this-year/" rel="noopener noreferrer" target="_blank">Mortgage pre-approval</a> means a lender checks your finances and decides how much you’re qualified to borrow.
As more buyers re-enter the market, it’ll help you make a <a href="https://www.bankrate.com/mortgages/pre-approval/#faq" rel="noopener noreferrer" target="_blank">strong offer</a> that stands out from the crowd.
Talk to a <a href="https://www.mykcm.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">trusted professional</a> to <a href="https://finance.yahoo.com/personal-finance/mortgage-pre-approval-182545770.html" rel="noopener noreferrer" target="_blank">learn more</a> and begin your <a href="https://www.mykcm.com/2024/02/16/achieve-your-dream-of-homeownership-with-condos-and-townhomes-infographic/" rel="noopener noreferrer" target="_blank">homebuying process</a> today.
2024-03-01T13:10:50-07:002024-03-01T13:14:28-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22405Why You Want an Agent’s Advice for Your Move
No matter how you slice it, <a href="https://www.mykcm.com/2024/02/14/why-so-many-people-fall-in-love-with-homeownership/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2024/01/22/3-must-dos-when-selling-your-house-in-2024/" rel="noopener noreferrer" target="_blank">selling</a> a home is a big decision. And when you’re going through any change in your life and you need some guidance, what do you do? You get advice from people who know what they’re talking about.
Moving is no exception. You need insights from the pros to help you feel confident in your decision. Freddie Mac <a href="https://myhome.freddiemac.com/buying/finding-your-team" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“As you set out to find the right home for your family, be sure to select experienced, trusted professionals who will help you make informed decisions and avoid pitfalls.”
And while perfect advice isn’t possible – not even from the experts, what you can get is the very best advice out there.
The Power of Expert Advice
For example, let’s say you need an attorney. You start off by finding an expert in the type of law required for your case. Once you do, they won’t immediately tell you how the case is going to end, or how the judge or jury will rule. But what a good attorney can do is walk you through the most effective strategies based on their experience and help you put a plan together. They’ll even use their knowledge to adjust that plan as new information becomes available.
The job of a real estate agent is similar. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. That’s because it’s impossible to know everything that’s going to happen throughout your transaction. Their role is to give you the best advice they can.
To do that, an agent will draw on their experience, <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">industry knowledge</a>, and market data. They know the latest trends, the ins and outs of the <a href="https://www.mykcm.com/2024/02/09/winning-plays-for-buying-a-home-in-todays-market-infographic/" rel="noopener noreferrer" target="_blank">homebuying</a> and <a href="https://www.mykcm.com/2024/01/17/2-reasons-why-todays-mortgage-rate-trend-is-good-for-sellers/" rel="noopener noreferrer" target="_blank">selling</a> processes, and what’s worked for other people in the same situation as you.
With that expertise, a real estate advisor can anticipate what could happen next and work with you to put together a <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">solid plan</a>. Then, they’ll guide you through the process, helping you make decisions along the way. That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with a real estate advisor.
If you’re looking to buy or sell a home, you want an expert on your side to help you each step of the way. Let’s connect so you have advice you can count on.
2024-02-28T14:18:51-07:002024-02-28T14:19:46-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22392The Truth About Down Payments
If you’re planning to <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">buy</a> your first home, saving up for all the costs involved can feel daunting, especially when it comes to the <a href="https://www.mykcm.com/2023/12/15/what-you-need-to-know-about-down-payments-infographic/" rel="noopener noreferrer" target="_blank">down payment</a>. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case.
Unless specified by your loan type or lender, it’s typically not required to put 20% down. That means you could be closer to your <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">homebuying dream</a> than you realize.
As The Mortgage Reports <a href="https://themortgagereports.com/18520/20-percent-downpayment-risk-mortgage-interest-rate" rel="noopener noreferrer" target="_blank">says</a>:
“Although putting down 20% to avoid mortgage insurance is wise if affordable, it’s a myth that this is always necessary. In fact, most people opt for a much lower down payment.”
<a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, for all homebuyers today it’s only 15%. And it’s even lower for first-time homebuyers at just 8% (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240222/20240226-Today-s-Median-Down-Payment-Is-Less-Than-20-.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240222/20240226-Today-s-Median-Down-Payment-Is-Less-Than-20-.png" alt="a graph of a number of blue squares" /></a>
The big takeaway? You may not need to save as much as you originally thought.
Learn About Resources That Can Help You Toward Your Goal
<a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">According</a> to Down Payment Resource, there are also over 2,000 homebuyer assistance programs in the U.S., and many of them are intended to help with down payments.
Plus, there are loan options that can help too. For example, <a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank">FHA loans</a> offer down payments as low as <a href="https://www.benefits.gov/benefit/504" rel="noopener noreferrer" target="_blank">3.5%</a>, while <a href="https://www.va.gov/housing-assistance/home-loans/loan-types/" rel="noopener noreferrer" target="_blank">VA</a> and <a href="https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program" rel="noopener noreferrer" target="_blank">USDA loans</a> have no down payment requirements for qualified applicants.
With so many resources available to help with your down payment, the best way to find what you qualify for is by consulting with your loan officer or broker. They know about local grants and loan programs that may help you out.
Don’t let the misconception that you have to have 20% saved up hold you back. If you’re ready to become a homeowner, lean on the professionals to find resources that can help you make your dreams a reality. If you put your plans on hold until you’ve saved up 20%, it may actually cost you in the long run. <a href="https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/down-payment.html" rel="noopener noreferrer" target="_blank">According</a> to U.S. Bank:
“. . . there are plenty of reasons why it might not be possible. For some, waiting to save up 20% for a down payment may “cost” too much time. While you’re saving for your down payment and paying rent, the price of your future home may go up.”
Home prices are expected to <a href="https://www.mykcm.com/2024/01/12/home-prices-forecast-to-climb-over-the-next-5-years-infographic/" rel="noopener noreferrer" target="_blank">keep appreciating</a> over the next 5 years – meaning your future home will likely go up in price the longer you wait. If you’re able to use these resources to buy now, that future price growth will help you build equity, rather than cost you more.
Keep in mind that you don't always need a 20% down payment to buy a <a href="https://www.mykcm.com/2024/02/14/why-so-many-people-fall-in-love-with-homeownership/" rel="noopener noreferrer" target="_blank">home</a>. If you're looking to make a move this year, let’s connect to start the conversation about your homebuying goals.
2024-02-26T17:39:58-07:002024-02-26T17:41:14-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22362Strategic Tips for Buying Your First Home
Buying your first home is a big, exciting step and a major milestone that has the power to improve your life. As a first-time homebuyer, it's a dream you can make come true, but there are some hurdles you'll need to overcome in today’s housing market – specifically the limited supply of <a href="https://www.mykcm.com/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/" rel="noopener noreferrer" target="_blank">homes for sale</a> and ongoing affordability challenges.
So, if you're ready, willing, and able to <a href="https://www.mykcm.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/" rel="noopener noreferrer" target="_blank">buy</a> your first home, here are three tips to help you turn your dream into a reality.
Save Money with First-Time Homebuyer Programs
Paying the initial costs of homeownership, like your down payment and closing costs, can feel a bit daunting. But there are many assistance programs for <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">first-time homebuyers</a> that can help you get a loan with little or no money upfront. <a href="https://www.bankrate.com/mortgages/first-time-homebuyer-loans-and-programs/" rel="noopener noreferrer" target="_blank">According</a> to Bankrate:
“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”
To find out more, talk to your state's housing authority or check out websites like <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>.
Expand Your Options by Looking at Condos and Townhomes
Right now, there aren’t enough homes for sale for everyone who wants to buy one. That’s pushing home prices up and making affordability tight for buyers. One way to deal with that issue and find a home right now is to consider condos and townhomes. Realtor.com <a href="https://www.realtor.com/news/trends/condo-townhome-biggest-savings-in-these-expensive-cities/" rel="noopener noreferrer" target="_blank">explains</a>:
“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”
One reason why they may be more affordable is because they’re often smaller. But they still give you the chance to get your foot in the door and achieve your goal of owning a home and building equity. And that equity can help fuel your move into a larger home later on if you decide you need something bigger in the future. Hannah Jones, Senior Economic Analyst at Realtor.com, <a href="https://www.realtor.com/news/trends/condo-townhome-biggest-savings-in-these-expensive-cities/" rel="noopener noreferrer" target="_blank">says</a>:
“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”
Consider Pooling Your Resources To Buy a Multi-Generational Home
Another way to break into the market is by purchasing a home with friends or loved ones. That way you can split the cost of things like the mortgage and bills, to make it easier to afford a home. <a href="https://money.com/buying-house-with-friends-pros-cons/" rel="noopener noreferrer" target="_blank">According</a> to Money.com:
“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”
By exploring first-time homebuyer assistance, condos, townhomes, and multi-generational living, it can be easier to find and buy your first home. When you’re ready, let’s connect.
2024-02-20T08:21:02-07:002024-02-20T08:23:04-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22299What’s Really Happening with Mortgage Rates?
Are you feeling a bit unsure about what’s really happening with <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">mortgage rates</a>? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.
The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
<a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">Mortgage rates</a> don’t move in a straight line. There are too <a href="https://www.mykcm.com/2024/01/30/2-of-the-factors-that-impact-mortgage-rates/" rel="noopener noreferrer" target="_blank">many factors</a> at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.
Take a look at the graph below. It uses <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" rel="noopener noreferrer" target="_blank">data</a> from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240209/20240212-30-year-fixed-mortgage-rate.png" /></a>
If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.
For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have <a href="https://www.mykcm.com/2024/01/26/why-its-more-affordable-to-buy-a-home-this-year-infographic/" rel="noopener noreferrer" target="_blank">trended down</a>. So, what’s the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point (October) compared to where rates are now, you can see they’ve <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">come down</a> compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">continue this year</a>.
Let’s connect if you have any questions about what you’re reading or hearing about the housing market.
2024-02-12T12:55:46-07:002024-02-12T12:57:26-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22288Why Pre-Approval Is Even More Important This Year
On the road to becoming a <a href="https://www.mykcm.com/2023/12/08/your-homebuying-adventure-infographic/" rel="noopener noreferrer" target="_blank">homeowner</a>? If so, you may have heard the <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">term</a> pre-approval get tossed around. Let’s break down what it is and why it’s important if you’re looking to <a href="https://www.mykcm.com/2024/01/03/thinking-about-buying-a-home-ask-yourself-these-questions/" rel="noopener noreferrer" target="_blank">buy a home</a> in 2024.
What Pre-Approval Is
As part of the <a href="https://www.mykcm.com/2024/01/10/avoid-these-common-mistakes-after-applying-for-a-mortgage/" rel="noopener noreferrer" target="_blank">homebuying process</a>, your lender will look at your finances to figure out what they’re willing to loan you. According to <a href="https://www.investopedia.com/financial-edge/0411/5-things-you-need-to-be-pre-approved-for-a-mortgage.aspx" rel="noopener noreferrer" target="_blank">Investopedia</a>, this includes things like your W-2, tax returns, <a href="https://www.mykcm.com/2023/12/26/get-ready-to-buy-a-home-by-improving-your-credit-score/" rel="noopener noreferrer" target="_blank">credit score</a>, bank statements, and more.
From there, they’ll give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Now, that last piece is especially important. While <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">home affordability</a> is getting better, it’s still tight. So, getting a good idea of what you can borrow can help you really wrap your head around the financial side of things. It doesn’t mean you should borrow the full amount. It just tells you what you can borrow from that lender.
This sets you up to make an informed decision about your numbers. That way you’re able to tailor your <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">home search</a> to what you’re actually comfortable with budget-wise and can act fast when you find a home you love.
Why Pre-Approval Is So Important in 2024
If you want to buy a home this year, there’s another reason you’re going to want to be sure you’re working with a trusted lender to make this a priority.
While <a href="https://www.mykcm.com/2024/01/24/are-more-homeowners-selling-as-mortgage-rates-come-down/" rel="noopener noreferrer" target="_blank">more homes</a> are being listed for sale, the overall number of available homes is still below the norm. At the same time, the recent downward trend in <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage rates</a> compared to last year is bringing more buyers back into the market. That imbalance of more demand than supply creates a bit of a tug-of-war for you.
It means you’ll likely find you have more competition from other buyers as more and more people who were sitting on the sidelines when mortgage rates were higher decide to jump back in. But pre-approval can help with that too.
Pre-approval shows sellers you mean business because you’ve already undergone a credit and financial check. As Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/mortgages/preapproved-vs-prequalified/#preapproval" rel="noopener noreferrer" target="_blank">says</a>:
“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”
Sellers love that because that makes it more likely the sale will move forward without unexpected delays or issues. And if you may be competing with another buyer to land your dream home, why wouldn’t you do this to help stack the deck in your favor?
If you’re looking to buy a home in 2024, know that getting pre-approved is going to be a key piece of the puzzle. With lower mortgage rates bringing more buyers back into the market, this can help you make a strong offer that stands out from the crowd.
2024-02-08T13:52:08-07:002024-02-08T13:53:16-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22272Why Having Your Own Agent Matters When Buying a New Construction Home
Finding the right home is one of the biggest <a href="https://www.mykcm.com/2023/09/29/explaining-todays-low-housing-supply-infographic/" rel="noopener noreferrer" target="_blank">challenges</a> for potential <a href="https://www.mykcm.com/2024/01/01/3-keys-to-hitting-your-homeownership-goals-in-2024/" rel="noopener noreferrer" target="_blank">buyers</a> today. Right now, the supply of homes for sale is still low. But there is a bright spot. <a href="https://www.mykcm.com/2024/01/16/why-you-may-want-to-seriously-consider-a-newly-built-home/" rel="noopener noreferrer" target="_blank">Newly built homes</a> make up a larger percent of the total homes available for sale than normal. That’s why, if you’re craving more options, it makes sense to see if a newly built home is right for you.
But it’s important to remember the process of working with a builder is different than buying from a homeowner. And, while builders typically have sales agents on-site, having your <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">own agent</a> helps make sure you have proper representation throughout your <a href="https://www.mykcm.com/2023/12/08/your-homebuying-adventure-infographic/" rel="noopener noreferrer" target="_blank">homebuying journey</a>. As Realtor.com <a href="https://www.realtor.com/guides/guide-to-buying-new-construction-home/steps-to-buying-a-new-construction-house/" rel="noopener noreferrer" target="_blank">says</a>:
“Keep in mind that the on-site agent you meet at a new-construction office works for the builder. So, as the homebuyer, it’s a smart idea to bring in your own agent, as well, to help you negotiate and stay protected in the transaction.”
Here’s how having your own agent is key when you build or <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy</a> a new construction home.
Agents Know the Local Area and Market
It’s important to consider how the neighborhood and surrounding area may evolve before making your home purchase. Your agent is well-versed in the upcoming communities and developments that could influence your decision. One way a real estate agent can help is by reviewing the builder's site plan. For example, you’ll want to know if there are any plans to construct a highway or add a drainage ditch behind your prospective backyard.
Knowledge of Construction Quality and Builder Reputation
An agent also has expertise in the construction quality and reputation of different builders. They can give you insights into each one's track record, customer satisfaction, and construction practices. Armed with this information, you can choose a builder known for consistently delivering top-notch homes.
Assistance with Customization and Upgrades
The most obvious benefit of opting for new home construction is the opportunity to customize your home. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise helps make sure you focus your budget on areas that will give you the greatest return on your investment later.
Understanding Builder Negotiations and Contracts
When it comes to working with builders, having a skilled negotiator on your side can make all the difference. Builder contracts can be complex. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. Plus, agents are skilled negotiators who can advocate for you, potentially securing better deals, upgrades, or incentives throughout the process. As Realtor.com <a href="https://www.realtor.com/guides/guide-to-buying-new-construction-home/steps-to-buying-a-new-construction-house/" rel="noopener noreferrer" target="_blank">says</a>:
“A good buyer’s agent will be able to review any contracts before you sign on the dotted line, ensuring you aren’t unwittingly agreeing to terms that only benefit the builder.”
Bottom Line
If you are interested in <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">buying</a> or building a new construction home, having a trusted agent by your side can make a big difference. If you'd like to start that conversation, let’s connect.
2024-02-06T09:59:53-07:002024-02-06T10:00:58-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22250Why It’s More Affordable To Buy a Home This Year<img src="https://assets.site-static.com/userfiles/819/image/Why-Its-More-Affordable-To-Buy-A-Home-This-Year-MEM.png" width="1300" height="4863" />
<a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">Home affordability</a> depends on three factors: mortgage rates, home prices, and wages.
<a href="https://www.freddiemac.com/pmms/archive" rel="noopener noreferrer" target="_blank">Mortgage rates</a> are down from their recent peak, <a href="https://www.mykcm.com/2024/01/23/experts-project-home-prices-will-increase-in-2024/" rel="noopener noreferrer" target="_blank">home prices</a> are expected to rise at a slower pace, and <a href="https://fred.stlouisfed.org/series/CES0500000017" rel="noopener noreferrer" target="_blank">wages</a> are increasing faster than usual.
That’s good news if you want to <a href="https://www.mykcm.com/2024/01/19/key-terms-every-homebuyer-should-learn-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a> because it means <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">affordability</a> is getting better.
2024-01-31T08:11:51-07:002024-01-31T08:13:21-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:222462 of the Factors That Impact Mortgage Rates
If you’re looking to <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">buy a home</a>, you’ve probably been paying close attention to <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage rates</a>. Over the last couple of years, they hit record lows, rose dramatically, and are now dropping back down a bit. Ever wonder why?
The answer is complicated because there’s a lot that can influence mortgage rates. Here are just a few of the most impactful factors at play.
Inflation and the Federal Reserve
The Federal Reserve (Fed) doesn’t directly determine mortgage rates. But the Fed does move the Federal Funds Rate up or down in response to what’s happening with inflation, the economy, employment rates, and more. As that happens, mortgage rates tend to respond. Business Insider <a href="https://www.businessinsider.com/personal-finance/how-does-fed-impact-mortgage-rates" rel="noopener noreferrer" target="_blank">explains</a>:
“The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. High inflation and investor expectations of more Fed rate hikes can push mortgage rates up. If investors believe the Fed may cut rates and inflation is decelerating, mortgage rates will typically trend down.”
Over the last couple of years, the Fed raised the Federal Fund Rate to try to fight inflation and, as that happened, mortgage rates jumped up, too. Fortunately, the expert outlook for inflation and mortgage rates is that both should become more favorable over the course of the year. As Danielle Hale, Chief Economist at Realtor.com, <a href="https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/" rel="noopener noreferrer" target="_blank">says</a>:
“[M]ortgage rates will continue to ease in 2024 as inflation improves . . .”
There’s even talk the Fed may actually cut the Fed Funds Rate this year because inflation is cooling, even though it’s not yet back to their ideal target.
The 10-Year Treasury Yield
Additionally, mortgage companies look at the 10-Year Treasury Yield to decide how much interest to charge on home loans. If the <a href="https://www.mykcm.com/2023/07/19/explaining-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">yield goes up</a>, mortgage rates usually go up, too. The opposite is also true. <a href="https://www.investopedia.com/mortgage/mortgage-rates/factors-affect-mortgage-rates/" rel="noopener noreferrer" target="_blank">According</a> to Investopedia:
“One frequently used government bond benchmark to which mortgage lenders often peg their interest rates is the 10-year Treasury bond yield.”
Historically, the spread between the 10-Year Treasury Yield and the 30-year fixed mortgage rate has been fairly consistent, but that’s not the case recently. That means, there’s room for mortgage rates to come down. So, keeping an eye on which way the treasury yield is trending can give experts an idea of where mortgage rates may head next.
With the Fed meeting later this week, experts in the industry will be keeping a close watch to see what they decide and what impact it’ll have on the economy. To navigate any mortgage rate changes and their impact on your <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">moving plans</a>, it’s best to have a team of professionals on your side.
2024-01-30T12:28:27-07:002024-01-30T12:29:35-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22235The Top Benefits of Buying a Multi-Generational Home
Has the idea of sharing a home with loved ones like your grandparents, parents, or other relatives crossed your mind? If so, you’re not alone. More buyers are choosing to go this route and buy a multi-generational home. Here’s a look at some of the top reasons why, to see if a home like this may be right for you too.
Why Buyers Are Opting for Multi-Generational Living
<a href="https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR), two of the top reasons buyers are opting for multi-generational homes today have to do with <a href="https://www.mykcm.com/2024/01/18/3-key-factors-affecting-home-affordability/" rel="noopener noreferrer" target="_blank">affordability</a> (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240124/20230125-Reasons-To-Purchase-A-MultiGeneration-Home.PNG" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240124/20230125-Reasons-To-Purchase-A-MultiGeneration-Home.PNG" /></a>
First-time buyers are focused most on cost savings – with 28% saying this was a key reason for them. By pooling their resources with others, they can share financial responsibilities like mortgage payments, utilities, and more to make homeownership more affordable. This is especially helpful for those first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.
Buyers are also turning to multi-generational homes so they can more easily afford their dream home. Both first-time (28%) and repeat buyers (18%) chose to live with others so they could buy a larger home. When everyone chips in and combines their incomes, that big <a href="https://www.mykcm.com/2024/01/01/3-keys-to-hitting-your-homeownership-goals-in-2024/" rel="noopener noreferrer" target="_blank">dream home</a> with more space could be more within reach.
But multi-generational living isn’t just about the financial side of things. According to the same study from NAR, 23% of repeat buyers chose to buy a multi-generational home to make it easier to care for an aging parent. Many older adults want to age in place and a multi-generational home can help make that possible. For those <a href="https://www.mykcm.com/2023/12/27/retiring-soon-why-moving-might-be-the-perfect-next-step/" rel="noopener noreferrer" target="_blank">older adults</a>, it gives them an opportunity to maintain their quality of life while being surrounded by their loved ones. As Axios <a href="https://www.axios.com/2023/11/05/multigenerational-living-families-data-statistics-map-states" rel="noopener noreferrer" target="_blank">explains</a>:
“Financial concerns and caregiving needs are two of the major reasons people live with their parents (and parents' parents).”
Lean on an Expert
Finding the perfect multi-generational home isn’t as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs to be considered. It's like solving a puzzle, and the pieces need to fit just right.
So if you're interested in the many benefits multi-generational living offers, partner with a local <a href="https://www.mykcm.com/2023/12/07/why-you-need-to-use-a-real-estate-agent-when-you-buy-a-home/" rel="noopener noreferrer" target="_blank">real estate agent</a> who has the expertise to help.
Whether your motives are financial or focused on the people you’ll share your home with, buying a <a href="https://www.mykcm.com/2023/11/03/the-benefits-of-buying-a-multi-generational-home-infographic/" rel="noopener noreferrer" target="_blank">multi-generational home</a> may make sense for you. If you’re interested in learning more, let’s connect.2024-01-29T10:38:58-07:002024-01-29T10:40:19-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22207Experts Project Home Prices Will Increase in 2024
Even though home prices are going up nationally, some people are still worried they might come down. In fact, a recent survey from Fannie Mae found that 24% of people think home prices will actually decline over the next 12 months. That means almost one out of every four people are dealing with that fear, and you might be, too.
To help ease that concern, here's what experts forecast will happen with prices this year.
Experts Project a Modest Increase
Check out the latest home price forecasts from eight different sources (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-2024-Home-Price-Forecasts.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240122/20240123-2024-Home-Price-Forecasts.png" /></a>
The blue bar on the left means, on average, experts think home prices will go up over 2% by the end of this year – not down.
Prices aren’t likely to depreciate in 2024 because inventory is still tight and lower mortgage rates are leading to strong buyer demand. Those two factors will keep pushing prices up as the year goes on. As Selma Hepp, Chief Economist at CoreLogic, <a href="https://www.cnn.com/2023/12/26/business/us-home-prices-record-high-october/index.html" rel="noopener noreferrer" target="_blank">explains</a>:
“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”
What Does This Mean for You?
Experts are saying home prices will go up this year, and that's good news if you're thinking about buying a home. When you become a homeowner, you want the value of your house to go up. That appreciation is what builds equity and makes homeownership such a good investment over time.
Beyond that, expected home price appreciation also means if you’re ready, willing, and able to <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy</a>, waiting just means it will cost more later.
If you're worried home prices will come down, don’t be. Many experts believe they’ll actually go up this year. If you have questions or worries about what’s happening with prices in our area, let’s connect.
2024-01-25T10:54:46-07:002024-01-25T10:59:00-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22199Key Terms Every Homebuyer Should Learn<img src="https://assets.site-static.com/userfiles/819/image/Key-Terms-Every-Homebuyer-Should-Learn-MEM.png" width="1300" height="3720" />
Buying a home is a big deal and can feel especially complicated if you don't know the terms used during the process.
If you want to become a <a href="https://www.mykcm.com/2024/01/03/thinking-about-buying-a-home-ask-yourself-these-questions/" rel="noopener noreferrer" target="_blank">homeowner</a> this year, it's a good idea to learn these key housing terms and understand how they relate to the current housing market. That will help you feel confident when you buy a home.
Let’s <a href="https://www.wardrealtyservices.com/contact/">connect</a> so you can get expert help with any questions you have.
2024-01-23T12:31:06-07:002024-01-23T12:34:41-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22158Why You May Want To Seriously Consider a Newly Built Home
Are you putting off your plans <a href="https://www.mykcm.com/2023/12/29/the-benefits-of-working-with-an-agent-when-you-sell-your-house-infographic/" rel="noopener noreferrer" target="_blank">to sell</a> because you’re worried you won’t be able to find a home you like when you move? If so, it may be time to consider a newly built home and the benefits that come with one. Here’s why.
Near-Record Percentage of New Home Inventory
Newly built homes are becoming an increasingly significant part of today’s housing inventory. According to the most recent report from the <a href="https://www.nahb.org/news-and-economics/press-releases/2023/12/new-home-sales-down-in-november-but-should-improve-moving-forward" rel="noopener noreferrer" target="_blank">National Association of Home Builders</a> (NAHB):
“Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average.”
That means the percentage of the total homes available to buy that are newly built is well over two times higher than the norm. And even more new homes are on the way.
<a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" rel="noopener noreferrer" target="_blank">Recent data</a> from the Census shows there’s been an uptick in both housing starts (where builders break ground on more new homes) and housing completions (homes where construction just wrapped).
And while some people may worry builders are building too many homes, that isn’t a concern – if anything, the recent increase is really good news. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/home-sales-start-to-rise-building-momentum-for-2024" rel="noopener noreferrer" target="_blank">explains</a>:
“Even more home building will be needed with the housing shortage persisting in most markets . . . Another 30% rise in home construction can easily be absorbed in the marketplace . . .”
How This Helps You
Since the supply of existing homes for sale is still low right now, the increase of new-home construction can be a game changer because it gives you more options for your search.
Picture yourself in a home that’s new from the ground up: new appliances, fresh paint, fewer maintenance needs because everything is new, and so much more. Doesn’t that sound nice?
And it may be more within reach than you ever imagined. In addition, some builders are offering things like mortgage rate buy-downs for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. In a recent article, Patrick Duffy, Senior Real Estate Economist at U.S. News, <a href="https://realestate.usnews.com/real-estate/articles/things-to-know-before-building-a-new-home" rel="noopener noreferrer" target="_blank">explains</a>:
“Builders have been using mortgage interest rate buydowns for many years as a sales incentive whenever interest rates are relatively high, . . .Today more builders are offering rate buydowns for the entirety of the loan, allowing buyers to finance more home for the same payment amount.”
Just remember, the process of buying from a builder is different from buying from a home seller, so it’s important to partner with a trusted real estate agent who knows the local market. They’ll be your go-to resource for coordinating with the builder, reviewing contracts, and more.
If you’re trying to sell so you can make a move but you’re having a hard time finding a home you like, <a href="https://www.wardrealtyservices.com/contact/">let’s connect</a>. That way you have a local expert to help you explore all of your options, including the newly built homes in our area.
2024-01-17T09:47:11-07:002024-01-17T09:48:42-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22132Avoid These Common Mistakes After Applying for a Mortgage
If you’re getting ready to <a href="https://www.mykcm.com/2024/01/05/achieving-your-homebuying-dreams-in-2024-infographic/" rel="noopener noreferrer" target="_blank">buy a home</a>, it’s exciting to jump a few steps ahead and think about moving in and making it <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">your own</a>. But before you get too far down the emotional path, there are some key things to keep in mind after you apply for your <a href="https://www.mykcm.com/2024/01/08/what-lower-mortgage-rates-mean-for-your-purchasing-power/" rel="noopener noreferrer" target="_blank">mortgage</a> and before you close. Here’s a list of things to remember when you apply for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, even for furniture or appliances.
Don’t Cosign Loans for Anyone
When you cosign for a loan, you’re making yourself accountable for that loan’s success and repayment. With that obligation comes higher debt-to-income ratios as well. Even if you promise you won’t be the one making the payments, your lender will have to count them against you.
Don’t Switch Bank Accounts
Lenders need to source and track your assets. That task is much easier when there’s consistency among your accounts. Before you transfer any money, speak with your loan officer.
Don’t Apply for New Credit
It doesn’t matter whether it’s a new credit card or a new car. When your credit report is run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), it will have an impact on your FICO® score. Lower <a href="https://www.mykcm.com/2023/12/26/get-ready-to-buy-a-home-by-improving-your-credit-score/" rel="noopener noreferrer" target="_blank">credit scores</a> can determine your interest rate and possibly even your eligibility for approval.
Don’t Close Any Accounts
Many buyers believe having less available credit makes them less risky and more likely to be approved. This isn’t true. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those parts of your score.
Do Discuss Changes with Your Lender
Be upfront about any changes that occur or you’re expecting to occur when talking with your lender. Blips in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. If your job or employment status has changed recently, share that with your lender as well. Ultimately, it’s best to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.
You want your home purchase to go as smoothly as possible. Remember, before you make any large purchases, move your money around, or make major life changes, be sure to consult your lender – someone who’s qualified to explain how your financial decisions may impact your home loan.
2024-01-12T11:22:42-07:002024-01-12T11:25:25-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22121What Lower Mortgage Rates Mean for Your Purchasing Power
If you want to <a href="https://www.mykcm.com/2023/11/23/why-homeowners-are-thankful-they-own/" rel="noopener noreferrer" target="_blank">buy a home</a>, it's important to know how <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">mortgage rates</a> impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under <a href="https://freddiemac.gcs-web.com/node/28216/pdf" rel="noopener noreferrer" target="_blank">7%</a>, according to Freddie Mac (see graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Mortgage-Rates-Fall-Below-Seven-Percent.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Mortgage-Rates-Fall-Below-Seven-Percent.png" /></a>
This recent trend is great news for <a href="https://www.mykcm.com/2023/12/15/what-you-need-to-know-about-down-payments-infographic/" rel="noopener noreferrer" target="_blank">buyers</a>. As a recent article from Bankrate <a href="https://www.bankrate.com/mortgages/analysis/" rel="noopener noreferrer" target="_blank">says</a>:
“The rate cool-off somewhat eases the housing affordability squeeze.”
And <a href="https://www.mba.org/news-and-research/newsroom/news/2023/12/21/mortgage-application-payments-increased-2.0-percent-to-2-199-in-october" rel="noopener noreferrer" target="_blank">according</a> to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association (MBA):
“MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .”
Here’s a bit more context on how this could help with your plans to <a href="https://www.mykcm.com/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/" rel="noopener noreferrer" target="_blank">buy a home</a>.
How Mortgage Rates Affect Your Search for a Home
Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">become a homeowner</a>. The chart below illustrates how your ability to afford a home changes when mortgage rates shift. Imagine your budget allows for a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Buyers-Purchasing-Power.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240104/20240108-Buyers-Purchasing-Power.png" /></a>
As you can see, even small changes in rates can affect your budget and the loan amount you can afford.
Get Help from Reliable Experts To Understand Your Budget and Plan Ahead
When you're looking to <a href="https://www.mykcm.com/2023/11/30/is-owning-a-home-still-the-american-dream-for-younger-buyers/" rel="noopener noreferrer" target="_blank">buy a home</a>, it's important to get guidance from a local real estate agent and a trusted lender. They can help you explore different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you.
By looking at the numbers and the latest data together, then adjusting your strategy based on today's rates, you'll be better prepared and ready to buy a home.
Bottom Line
If you’re looking to buy a home, you should know the recent downward trend in mortgage rates is good news for your move. <a href="https://www.wardrealtyservices.com/contact/">Let’s connect</a> and plan your next steps.
2024-01-10T10:09:39-07:002024-01-10T10:11:06-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22115Why Pre-Approval Is Your Homebuying Game Changer
If you’re thinking about buying a home, pre-approval is a crucial part of the process you definitely don’t want to skip. So, before you start picturing yourself in your new living room or dining on your future all-season patio, be sure you’re working with a trusted lender to prioritize this essential step. Here’s why.
While <a href="https://www.mykcm.com/2023/12/04/experts-project-home-prices-will-rise-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">home price</a> growth is moderating and <a href="https://www.mykcm.com/2023/12/19/expert-quotes-on-the-2024-housing-market-forecast/" rel="noopener noreferrer" target="_blank">mortgage rates</a> have been coming down in recent weeks, <a href="https://www.mykcm.com/2023/11/28/are-the-top-3-housing-market-questions-on-your-mind/" rel="noopener noreferrer" target="_blank">affordability</a> is still tight. At the same time, there’s a <a href="https://www.mykcm.com/2023/12/13/the-surprising-trend-in-the-number-of-homes-coming-onto-the-market/" rel="noopener noreferrer" target="_blank">limited number of homes</a> for sale right now, and that means ongoing competition among hopeful buyers. But, if you’re strategic, there are ways to navigate these waters – and pre-approval is the game changer.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know more about pre-approval. As part of the homebuying process, a lender looks at your finances to determine what they’re willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac <a href="https://myhome.freddiemac.com/blog/homebuying/how-do-i-get-pre-approved-mortgage" rel="noopener noreferrer" target="_blank">explains</a> it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Getting pre-approved starts to put you in the mindset of seeing the bigger financial picture, one step at a time. And the key is actually more than just getting a pre-approval letter from your lender. The combination of pre-approval and strategic budgeting is your golden ticket to understanding what you can actually afford. It saves you from painful heartaches down the road so you don’t fall in love with a house that might be out of reach.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
But that's just the beginning. Let’s face it, there are more people looking to buy than there are homes available for <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">sale</a>, and that creates competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you get ready to make your move. But getting pre-approved for a mortgage can help you stand out from other buyers.
In today's fast-moving housing market, having that pre-approval in your back pocket can be your secret weapon. When sellers see you're pre-approved, it tells them you're a strategic and serious buyer. In a world of multiple offers, that's a big deal. As an article from the Wall Street Journal (WSJ) <a href="https://www.wsj.com/buyside/personal-finance/mortgage-pre-approval-25dd076c" rel="noopener noreferrer" target="_blank">says</a>:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows sellers you’re more than just a window shopper. You’re a buyer who’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or issues. Sellers love that because they see your offer as a reliable one. A win-win, right?
So, before you start mentally arranging furniture in your dream home, work with a trusted lender to get your pre-approval set. It’ll save you time, stress, and a lot of headaches that could come up along the way without it. The reality is, the more prepared you are, the more likely you are to land the home you’re longing for.
2024-01-09T14:10:10-07:002024-01-09T14:11:05-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22106Thinking About Buying a Home? Ask Yourself These Questions
If you’re thinking of buying a home this year, you’re probably paying closer attention than normal to the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot.
Here are the top two questions you need to ask yourself as you make your decision, including the data that helps cut through the noise.
1. Where Do I Think Home Prices Are Heading?
One reliable place you can turn to for information on home price forecasts is the <a href="https://www.fanniemae.com/newsroom/fannie-mae-news/q4-2023-home-price-expectations-survey" rel="noopener noreferrer" target="_blank">Home Price Expectations Survey</a> from Fannie Mae – a survey of over one hundred economists, real estate experts, and investment and market strategists.
According to the most recent release, the experts are projecting home prices will continue to rise at least through 2028 (see the graph below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240102/20240103-Estimated-Home-Price-Performance.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240102/20240103-Estimated-Home-Price-Performance.png" /></a>
So, why does this matter to you? While the percent of appreciation may not be as high as it was in recent years, what’s important to focus on is that this survey says we’ll see prices rise, not fall, for at least the next 5 years.
And home prices rising, even at a more moderate pace, is good news not just for the market, but for you too. It means, by buying now, your home will likely grow in value, and you should gain home equity in the years ahead. But, if you wait, based on these forecasts, the home will only cost you more later on.
2. Where Do I Think Mortgage Rates Are Heading?
Over the past year, mortgage rates spiked up in response to economic uncertainty, inflation, and more. But there’s an encouraging sign for the market and mortgage rates. Inflation is moderating, and here’s why this is such a big deal if you’re looking to <a href="https://www.mykcm.com/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/" rel="noopener noreferrer" target="_blank">buy a home</a>.
When inflation cools, <a href="https://www.mykcm.com/2023/12/20/why-mortgage-rates-could-continue-to-decline/" rel="noopener noreferrer" target="_blank">mortgage rates</a> generally fall in response. That’s exactly what we’ve seen in recent weeks. And, now that the Federal Reserve has signaled they’re pausing their Federal Funds Rate increases and may even cut rates in 2024, experts are even more confident we’ll see mortgage rates come down.
Danielle Hale, Chief Economist at Realtor.com, <a href="https://www.realtor.com/research/federal-reserve-december-2023-meeting/" rel="noopener noreferrer" target="_blank">explains</a>:
“. . . mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer. . . . a key factor in starting to provide affordability relief to homebuyers.”
As an article from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/magazine/real-estate-news/economists-turnaround-in-home-sales-likely-in-2024" rel="noopener noreferrer" target="_blank">says</a>:
“Mortgage rates likely have peaked and are now falling from their recent high of nearly 8%. . . . This likely will improve housing affordability and entice more home buyers to return to the market . . .”
No one can say with absolute certainty where mortgage rates will go from here. But the recent decline and the latest decision from the Federal Reserve to stop their rate increases, signals there’s hope on the horizon. While we may see some volatility here and there, affordability should improve as rates continue to ease.
If you’re thinking about buying a home, you need to know what’s expected with home prices and mortgage rates. While no one can say for certain where they’ll go, making sure you have the latest information can help you make an informed decision. Let’s connect so you can stay up to date on what’s happening and why this is such good news for you.
2024-01-08T15:08:17-07:002024-01-08T15:09:35-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22070What You Need To Know About Saving for a Home in 2024
If you’re planning to buy a home, knowing what to budget for and how to save may sound intimidating – but it doesn’t have to be. One way to ease those concerns is to make sure you understand some of the costs you may encounter up front. And to do that, always turn to trusted real estate professionals. They can help you set a plan and take a strategic look at your budget and your process before you even get started.
Here are just a few things experts say you should be thinking about.
1. Down Payment
Saving for your down payment is likely top of mind as you set out to buy a home. But do you know how much you’ll need? While every buyer’s situation is different, there’s a common misconception that putting 20% of the purchase price down is required. An article from the Mortgage Reports explains why that’s not always the case:
“The idea that you have to put 20% down on a house is a myth. . . . The right amount depends on your current savings and your home buying goals.”
To understand your options, partner with trusted real estate professionals to go over the various loan types, down payment assistance programs, and what each one requires. The more you know ahead of time, the easier the process will be.
2. Closing Costs
Make sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction. Bankrate explains:
“Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage so it’s important to be financially prepared for this expense.”
The best way to understand what you’ll need at the closing table is to work with a trusted lender. They can provide you with answers to the questions you might have.
3. Earnest Money Deposit
If you want to cover all your bases, you can also consider saving for an earnest money deposit (EMD). An EMD is money you pay as a show of good faith when you make an offer on a house. According to Realtor.com, it’s usually between 1% and 2% of the total home price.
This deposit works like a credit. It’s not an added expense – it’s paying a portion of your costs upfront. You’re using some of the money you’ve already saved for your purchase to show the seller you’re committed and serious about buying their house. Realtor.com describes how it works as part of your sale:
“It tells the real estate seller you’re in earnest as a buyer . . . Assuming that all goes well and the buyer’s good-faith offer is accepted by the seller, the earnest money funds go toward the down payment and closing costs. In effect, earnest money is just paying more of the down payment and closing costs upfront.”
Keep in mind, an EMD isn’t required, and it doesn’t guarantee your offer will be accepted. It’s important to work with a real estate advisor to understand what’s best for your situation and any specific requirements in your local area. They’ll advise you on what moves you should make so you can make the best possible decisions throughout the buying process.
When buying a home, being informed about what to save for is key. <a href="https://www.wardrealtyservices.com/contact/">Let’s connect</a> so you’ll have an expert on your side to answer any questions you have along the way.
2024-01-02T11:30:14-07:002024-01-02T11:35:34-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22063Get Ready To Buy a Home by Improving Your Credit Score
As the new year approaches, the idea of buying a home might be on your mind. It’s an exciting goal to set, and it's never too early to start laying the groundwork. One crucial step to prepare for homeownership is building a solid credit score.
Lenders review your credit to assess your ability to make payments on time, pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from CNBC <a href="https://www.cnbc.com/2023/09/23/credit-score-you-need-to-buy-a-home.html" rel="noopener noreferrer" target="_blank">explains</a>:
“When it comes to mortgages, a higher credit score can save you thousands of dollars in the long run. This is because your credit score directly impacts your mortgage rate, which determines the amount of interest you’ll pay over the life of the loan.”
This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability, especially today.
According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2023Q3" rel="noopener noreferrer" target="_blank">770</a>. But that doesn’t mean your credit score has to be perfect. An article from Business Insider <a href="https://www.businessinsider.com/personal-finance/what-credit-score-is-needed-to-buy-a-house" rel="noopener noreferrer" target="_blank">explains</a> generally how your FICO score range can make an impact:
“. . . you don’t need a perfect credit score to buy a house. . . . Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799).”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate. As FICO <a href="https://www.myfico.com/credit-education/credit-scores" rel="noopener noreferrer" target="_blank">says</a>:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:
Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
A lender will help you navigate the process from start to finish, from assessing which range your score falls in to telling you more about the specifics for each loan type.
As you set your sights on buying a home in the upcoming year, a focus on boosting your credit score could help you get a better mortgage rate when the time comes. If you want to learn more, connect with a trusted lender.
2023-12-29T10:55:01-07:002023-12-29T10:56:20-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22038Get Tomorrow’s Interest Rate Today
What if you could get a low interest rate AND a seller that’s willing to work with you…would you be interested in buying a home?
<a href="https://www.wardrealtyservices.com/about/">Call one of our agents</a> today if you’re ready to make a more for the New Year!2023-12-20T11:24:48-07:002023-12-20T11:28:28-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:22024What You Need To Know About Down Payments<img src="https://assets.site-static.com/userfiles/819/image/What-You-Need-To-Know-About-Down-Payments-MEM.png" width="1300" height="3765" />
If you want to <a href="https://www.mykcm.com/2023/12/06/how-to-turn-homeownership-into-a-side-hustle/" rel="noopener noreferrer" target="_blank">buy a home</a>, you may not need as much for your <a href="https://www.mykcm.com/2023/12/12/down-payment-assistance-programs-can-help-pave-the-way-to-homeownership/" rel="noopener noreferrer" target="_blank">down payment</a> as you think.
There are various loan options for qualified buyers with down payments as low as 3.5% or even no down payment requirement. There are also thousands of programs available to help <a href="https://www.mykcm.com/2023/12/11/the-perfect-home-could-be-the-one-you-perfect-after-buying/" rel="noopener noreferrer" target="_blank">homebuyers</a> with their down payments.
With the right resources, your down payment may be more within reach than you realize. To learn more about your options, <a href="https://www.wardrealtyservices.com/contact/">let’s connect</a>.
2023-12-18T10:05:00-07:002023-12-18T10:06:44-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21971The Perfect Home Could Be the One You Perfect After Buying
There’s no denying <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates </a>and <a href="https://www.mykcm.com/2023/11/14/home-prices-keep-climbing-in-most-markets/" rel="noopener noreferrer" target="_blank">home prices</a> are higher now than they were last year and that’s impacting what you can <a href="https://www.mykcm.com/2023/11/16/people-are-still-moving-even-with-todays-affordability-challenges/" rel="noopener noreferrer" target="_blank">afford</a>. At the same time, there are still fewer homes <a href="https://www.mykcm.com/2023/11/21/are-there-actually-more-homes-for-sale-right-now/" rel="noopener noreferrer" target="_blank">available for sale</a> than the norm. These are two of the biggest hurdles buyers are facing today. But there are ways to overcome these things and still make your dream of <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">homeownership</a> a reality.
As you set out to <a href="https://www.mykcm.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">make a purchase</a> this season, you’ll want to be strategic. This includes taking a close look at your wish list and considering what features you really need in your next home versus which ones are nice-to-have. This will help you avoid overextending <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">your budget</a> or limiting your pool of options too much because you’re searching for that perfect home.
Danielle Hale, Chief Economist at Realtor.com, <a href="https://twitter.com/RDC_Economics/status/1590722818639269889" rel="noopener noreferrer" target="_blank">explains</a>:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be . . .”
To help identify what you truly need, make a list of all the features you’ll want to see. From there, work to break those features into categories. Here’s a great way to organize your list:
Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).
Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).
Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).
If you’re only willing to tour homes that have all of your dream features, you may be cutting down your options too much and making it harder on yourself (and your budget) than necessary.
While you’d love to have granite countertops or a pool in the backyard, those are both things you could potentially add after you move. Instead, it may be best to focus on finding the things that you can’t change (like location or a certain number of rooms). Then, you can upgrade or add some of the other features or finishes you want later on.
Sometimes the perfect home is the one you perfect after buying it.
Once you’ve categorized your list in a way that works for you, discuss your top priorities with your real estate agent. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.
With the current affordability challenges and limited housing supply, you’ll want to be strategic so you can find a home that meets your needs while staying within your budget. Let’s connect to make that possible.
2023-12-11T12:50:27-07:002023-12-11T12:51:36-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21916Why Homeowners Are Thankful They Own
Countless people have set out on the exciting journey of homeownership. Ask around and you’ll find the vast majority are thankful they took the leap and bought a home. But why? It’s because of the many emotional and lifestyle benefits that come with being a homeowner.
So, if you’re trying to decide if you want to rent or buy a home, here are just a few of the many benefits you could look forward to if you buy.
It’s a Safe Haven
Owning a home goes beyond just having a roof over your head. It provides a sense of security and safety. In fact, in a survey from Fannie Mae, respondents say “having a sense of privacy and security” is one of the top reasons homeownership is preferred to renting. And in a different Fannie Mae survey, “living in a place where you and your family feels safe” is another one of the top benefits of homeownership.
Your home is a place where you can truly relax and unwind. Knowing that you have a sanctuary to return to at the end of the day is a great source of comfort.
It’s a Canvas for Self-Expression
For many homeowners, their home is a reflection of who they are. The National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-own-a-home" rel="noopener noreferrer" target="_blank">says</a>:
“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”
From the color of the front door to the art hanging on the walls, every detail contributes to a unique expression of personal style. Put simply, owning a home gives you the freedom to make changes and improvements that resonate with your personality.
It Helps You Feel More Connected to the Community
Stability is another cornerstone of homeownership. The longer you stay put, the more emotionally connected you are to your community. For example, if your neighborhood does cook-outs, block parties, or other events, you’ll feel more engaged and probably build meaningful relationships with those around you. As NAR <a href="https://www.nar.realtor/magazine/tools/client-education/handouts-for-buyers/7-reasons-to-own-a-home" rel="noopener noreferrer" target="_blank">states</a>:
“Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community.”
The sense of community where you can make life-long friends helps give you more stability and predictability than you’d have if you move each time a rental lease renews.
Its Where Lifelong Memories Are Made
Not to mention, your home is where you’ll make many memories. It’s a backdrop for the stories of your life. Celebrating milestones, hosting gatherings, and building a treasure trove of special moments within the walls of your home is a heartwarming experience to be thankful for.
Bottom Line
As you start thinking about buying a home, remember why so many people are glad they did. Homeownership isn’t just a financial decision. It’s about having a stable place where you can make lasting memories. If you're thinking of buying a home and want advice, let's chat.
2023-11-28T12:12:59-07:002023-11-28T12:15:08-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21903Home Prices Still Growing – Just at a More Normal Pace
If you’re feeling a bit muddy on what’s happening with <a href="https://www.mykcm.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a>, that’s no surprise. Some people are still saying prices are falling, even though data proves otherwise. Part of that <a href="https://www.mykcm.com/2023/10/27/unmasking-scary-myths-about-todays-housing-market-infographic/" rel="noopener noreferrer" target="_blank">misconception</a> is because people are getting their information from unreliable sources. But it’s also coming from some media coverage misrepresenting what the data really shows.
So, to keep things simple, here’s what you really need to know using real data you can trust.
Normal Home Price Seasonality Explained
In the housing market, there are predictable ebbs and flows that happen each year. It’s called seasonality. Spring is the peak homebuying season when the market is most active. That activity is typically still strong in the summer but begins to wane as the cooler months approach.
<a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">Home prices</a> follow along with seasonality because prices appreciate most when something is in high demand. That’s why there’s a reliable long-term home price trend. The graph below uses data from <a href="https://www.spglobal.com/spdji/en/indices/indicators/sp-corelogic-case-shiller-us-national-home-price-nsa-index/#overview" rel="noopener noreferrer" target="_blank">Case-Shiller</a> to show the typical percent change for monthly home price movement from 1973 through 2022 (not <a href="https://www.census.gov/construction/nrs/faqs/faqs_seas.html#quest2" rel="noopener noreferrer" target="_blank">adjusted</a>, so you can see the seasonality):
<a href="https://www.mykcm.com/content/images/20231114/20231122-49-Year-Average-Monthly-Price-Movement.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231122-49-Year-Average-Monthly-Price-Movement.png" /></a>
As the data shows, at the beginning of the year, home prices grow, but not as much as they do when entering the spring and summer markets. That’s because the market is less active in January and February since fewer people move in the cooler months. As the market transitions into the peak homebuying season in the spring, activity ramps up, and home prices go up a lot more in response. Then, as fall and winter approach, prices still grow, just at a slower pace as activity eases again.
This Year, Seasonality Has Returned
Now, let’s look at how this year compares to that long-term trend (see graph below):
<a href="https://www.mykcm.com/content/images/20231114/20231122-49-Year-Average-vs-2023-Price-Movement.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231114/20231122-49-Year-Average-vs-2023-Price-Movement.png" /></a>
Here’s the latest data for this year from that same source. Just like before, the dark bars are the long-standing trend. The green bars represent what’s happened this year. As you can see, the green bars are beginning to fall in line with what’s normal for the market. That’s a good thing because it’s more sustainable price growth than we’ve seen in recent years.
In a nutshell, nationally prices aren’t falling, it’s just that price growth is <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">beginning to normalize</a>. Moving forward, there’s a chance the media will misrepresent this slowing of home price growth as prices falling. So don’t believe everything you see in the headlines. The data included here gives you the context you need to really understand what’s happening. So, if you see something in the headlines that’s confusing, don’t just take it at face value. Ask a trusted real estate professional for more information.
Remember, it’s normal to see home price growth slow down as the year goes on. And that definitely doesn’t mean home prices are falling. They’re just rising at a more moderate pace.
Home price appreciation is returning to normal seasonality and that’s a good thing. If you have questions about what’s happening with prices in our local area, let’s connect.
2023-11-27T09:56:00-07:002023-11-28T12:16:11-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21876Are There Actually More Homes for Sale Right Now?
If you’re looking to make a move, you want to be sure you have the latest information on the housing market. To help make that possible, here’s an update on the supply of homes for sale today. Whether you’re looking to buy or sell, the number of homes available in your local market matters to you. Take a look below.
What’s the Truth About Today’s Housing Inventory?
While the story for the past few years has been how few homes are on the market, recent national data may leave you feeling a bit confused. That’s because Realtor.com shows inventory is actually growing a bit month-over-month in many parts of the country (see the blue states in the map below):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Change-In-Inventory.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Change-In-Inventory.png" /></a>
As the map shows, nationally, housing supply increased just over 5% last month.
Does That Mean the Days of Limited Inventory Are Over?
That might make you wonder: are the days of tight housing supply behind us? The short answer is no. Context is important. While you may see headlines saying inventory is up, <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">data</a> also shows there are still significantly fewer homes for sale than there would usually be in a more normal market.
The graph below compares the latest active listing counts (homes currently available for sale) with the most recent normal years in the housing market (2017-2019):
<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Active-Listing-Count.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20231115/20231121-Active-Listing-Count.png" /></a>
As Lance Lambert, Founder, ResiClub Analytics, explains:
“Housing market inventory is so far below pre-pandemic levels that October's big jump is still just a drop in the bucket.”
What does that mean for you? Remember, real estate is hyper-local. Partnering with a trusted real estate agent will help you gain a better understanding of the inventory situation in your specific market.
If you’re looking to buy, you may have slightly more options than you did in recent months, but you still need to brace for low inventory. A great agent will be able to share their expertise and key strategies that have helped other buyers navigate today’s ongoing low housing supply.
And, if you’re trying to sell, rest assured you haven’t missed your window of opportunity to potentially get multiple offers or see your house sell quickly. While inventory has ticked up some nationally, overall, it’s still low and may be down even more in your area.
If you’re looking to buy or sell a home, let’s connect so you can make sure you’re up to date on all the latest trends that could impact your move, including today’s housing supply.
2023-11-22T09:09:22-07:002023-11-22T09:10:59-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21861People Are Still Moving, Even with Today’s Affordability ChallengesIf you're thinking about <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">selling</a> a home, you might have heard that it’s tough right now because <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> are higher than they’ve been over the past few years, and <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a> are rising. That much is true. Take a look at the graph below. It breaks down how the current affordability situation stacks up to recent years.
<a href="https://www.mykcm.com/content/images/20231113/20231116-Affordability-Historically-Low.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231113/20231116-Affordability-Historically-Low.png" /></a>
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/housing-affordability-index/methodology" rel="noopener noreferrer" target="_blank">explains</a> how to read the values on the graph:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.”
The black dotted line represents that 100 value on the index. Essentially, the higher the bar, the more affordable homes are. As you can see, the orange bar for today shows higher mortgage rates and home prices have created a clear challenge. But, while affordability is definitely tighter right now, that doesn’t mean the housing market is at a standstill.
<a href="https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount" rel="noopener noreferrer" target="_blank">According</a> to NAR, based on the pace of sales right now, just under 4 million homes will sell this year. With some simple math, let’s break down what that really means for you:
3.96 million homes divided by 365 days in a year = 10,849 houses sell each day
10,849 divided by 24 hours in a day = 452 houses sell per hour
452 divided by 60 minutes in an hour = about 8 houses sell each minute
So, on average, over 10,000 homes sell each day in this country. Whether you're a buyer or a seller, this goes to show there are still ways to make your move possible, even at a time when affordability is tight.
An Agent Can Help You Make Your Move a Reality
You may be wondering how other <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">homebuyers</a> and <a href="https://www.mykcm.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" rel="noopener noreferrer" target="_blank">sellers</a> are making this happen now. One of the biggest game-changers in today’s market is working with a trusted local <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a>. Great agents are helping other people just like you navigate <a href="https://www.mykcm.com/2023/10/20/home-price-growth-is-returning-to-normal-infographic/" rel="noopener noreferrer" target="_blank">today’s market</a> and the current affordability situation, and their insight is invaluable right now.
True professionals will be able to offer advice tailored to your specific wants, needs, budget, and more. Not to mention, they’ll also be able to draw on their experience of what’s working for other buyers and sellers right now. This could mean <a href="https://www.mykcm.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">broadening your search</a>, if needed, to include other housing types like condos, townhouses, or neighborhoods a bit further out to help offset some of the <a href="https://www.mykcm.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">affordability challenges</a> today.
You might think there aren’t many people buying or selling homes right now since affordability is tighter than it’s been in quite some time, but that’s not the case. It’s true that buying a home has become more expensive over the past couple of years, but people are still moving.
If you’re hoping to buy or sell a home today, know that other people are still making their goals a reality – and that’s happening in large part because of the help and advice of skilled local real estate agents. Want to talk to a trusted professional about your own move? Let’s connect. 2023-11-20T09:17:20-07:002023-11-20T09:18:53-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21846Life-Changing Events That Move the Housing Market
Life is a journey filled with unexpected twists and turns, like the excitement of welcoming a new addition, retiring and starting a new adventure, or the bittersweet feeling of an empty nest. If something like this is changing in your own life, you may be considering <a href="https://www.mykcm.com/2023/11/03/the-benefits-of-buying-a-multi-generational-home-infographic/" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.mykcm.com/2023/11/06/reasons-to-sell-your-house-before-the-new-year/" rel="noopener noreferrer" target="_blank">selling</a> a house. That’s because through all these life-altering events, there is one common thread—the <a href="https://www.mykcm.com/2023/10/18/what-are-the-real-reasons-you-want-to-move-right-now/" rel="noopener noreferrer" target="_blank">need to move</a>.
Reasons People Still Need To Move Today
<a href="https://www.realtormagdigital.com/realtor/library/item/fall_2023/4139952/" rel="noopener noreferrer" target="_blank">According</a> to the National Association of Realtors (NAR) there have been a lot of this type of milestone or life change over the last two years (see graph below):
<a href="https://www.mykcm.com/content/images/20231108/20231113-Life-Changing-Events-That-Took-Place-Over-the-Last-2-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231108/20231113-Life-Changing-Events-That-Took-Place-Over-the-Last-2-Years.png" /></a>
And, these big life changes are going to continue to impact people moving forward, even with the current affordability challenges brought on by higher <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and rising <a href="https://www.mykcm.com/2023/10/23/why-home-prices-keep-going-up/" rel="noopener noreferrer" target="_blank">home prices</a>.
As Claire Trapasso, Executive News Editor at Realtor.com, <a href="https://www.prnewswire.com/news-releases/realtorcom-october-housing-report-home-prices-stable-amid-inventory-drought-and-rising-rates-301975362.html" rel="noopener noreferrer" target="_blank">says</a>:
"Because high mortgage rates, elevated home prices, and stubbornly low inventory make today's housing market particularly challenging, many of today's buyers are motivated by life changes, such as growing families, supporting elderly parents or grown children, or accommodating professional needs. . .”
Lean On a Real Estate Professional for Help
Whether you're beginning <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">your search</a> for a home or preparing to sell your current house, you don't have to go it alone. With their expertise, a <a href="https://www.mykcm.com/2023/10/30/a-real-estate-agent-helps-take-the-fear-out-of-the-market/" rel="noopener noreferrer" target="_blank">real estate agent</a> is an invaluable partner who can help you smoothly transition through these big moments in your life. Here are just a few examples.
When Buying a Home
If you’re welcoming a new addition and want more space, the need for a <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">new home</a> may be a top priority. While higher <a href="https://www.mykcm.com/2023/11/02/dont-believe-everything-you-read-about-home-prices/" rel="noopener noreferrer" target="_blank">home prices</a> and mortgage rates are creating challenges for buyers, you may have to find a way to meet your changing needs, even with today’s mortgage rates.
A skilled real estate agent can help. Their expertise and knowledge of the local housing market can save you a considerable amount of time and stress. An agent will take the time to understand your specific needs, budget, and preferences, allowing them to narrow down your search and present you with suitable options.
When Selling a House
If you’re retiring or going through a separation or divorce, your main focus may be to make the most out of your investment when <a href="https://www.mykcm.com/2023/10/24/the-perks-of-selling-your-house-when-inventory-is-low/" rel="noopener noreferrer" target="_blank">selling your house</a>, so you can find one that works better for you moving forward.
This is another place where a real estate agent's expertise truly shines. They can accurately assess your home's market value, suggest improvements to enhance its appeal, and craft a strategic marketing plan. Their negotiation skills are a big asset when it comes to making sure you get a fair price for your house, allowing you to move on to the next chapter of your life with confidence and peace of mind.
No matter your situation, lean on a trusted professional for help as you buy or sell a home.
If recent life-changing events have you wanting or needing to move, let’s connect.
2023-11-15T14:51:10-07:002023-11-15T14:52:34-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21830Thinking About Using Your 401(k) To Buy a Home?
Are you dreaming of <a href="https://www.mykcm.com/2023/10/26/affordable-homeownership-strategies-for-gen-z/" rel="noopener noreferrer" target="_blank">buying</a> your <a href="https://www.mykcm.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/" rel="noopener noreferrer" target="_blank">own home</a> and wondering about how you’ll save for a down payment? You're not alone. Some people think about tapping into their 401(k) savings to make it happen. But before you decide to dip into your retirement to <a href="https://www.mykcm.com/2023/10/25/invest-in-yourself-by-owning-a-home/" rel="noopener noreferrer" target="_blank">buy a home</a>, be sure to consider all possible alternatives and talk with a financial expert. Here’s why.
The Numbers May Make It Tempting
The <a href="https://www.cnbc.com/2023/06/03/fidelity-how-much-americans-have-in-their-401ks-at-every-age.html" rel="noopener noreferrer" target="_blank">data</a> shows many Americans have saved a considerable amount for retirement (see chart below):
<a href="https://files.keepingcurrentmatters.com/content/images/20231107/20231108-Average-401-balance-by-age.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231107/20231108-Average-401-balance-by-age.png" /></a>
It can be really tempting when you have a lot of money saved up in your 401(k) and you see your dream <a href="https://www.mykcm.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/" rel="noopener noreferrer" target="_blank">home</a> on the horizon. But remember, dipping into your retirement savings for a home could cost you a penalty and affect your finances later on. That's why it's important to explore all your options when it comes to saving for a down payment and buying a home. As Experian <a href="https://www.experian.com/blogs/ask-experian/use-401k-to-buy-house/" rel="noopener noreferrer" target="_blank">says</a>:
“It’s possible to use funds from your 401(k) to buy a house, but whether you should depends on several factors, including taxes and penalties, how much you’ve already saved and your unique financial circumstances.”
Alternative Ways To Buy a Home
Using your 401(k) is one way to finance a <a href="https://www.mykcm.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/" rel="noopener noreferrer" target="_blank">home</a>, but it's not the only option. Before you decide, consider a couple of other methods, courtesy of <a href="https://www.experian.com/blogs/ask-experian/use-401k-to-buy-house/" rel="noopener noreferrer" target="_blank">Experian</a>:
<a href="https://www.hud.gov/buying/loans" rel="noopener noreferrer" target="_blank">FHA Loan</a>: FHA loans allow qualified buyers to put down as little as 3.5% of the home's price, depending on their credit scores.
<a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Assistance Programs</a>: There are many national and local programs that can help first-time and repeat homebuyers come up with the necessary down payment.
Above All Else, Have a Plan
No matter what route you take to purchase a home, be sure to talk with a financial expert before you do anything. Working with a team of experts to develop a concrete plan prior to starting your journey to <a href="https://www.mykcm.com/2023/10/12/growing-your-net-worth-with-homeownership/" rel="noopener noreferrer" target="_blank">homeownership</a> is the key to success. Kelly Palmer, Founder of The Wealthy Parent, <a href="https://www.investmentnews.com/think-twice-before-borrowing-from-401k-for-a-home-down-payment-advisors-say-241461" rel="noopener noreferrer" target="_blank">says</a>:
“I have seen parents pausing contributions to their retirement plans in favor of affording a larger home often with the hope they can refinance in the future… As long as there is a tangible plan in place to get back to saving for their retirement goals, I encourage families to consider all their options.”
If you’re still thinking about using your 401(k)-retirement savings for a home down payment, consider all your options and work with a financial professional before you make any decisions.
2023-11-13T10:35:09-07:002023-11-13T10:36:12-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21812Do You Have to Have 20% Down to Buy a Home?
Think you have to have a 20% down payment to purchse a home?
Think again!
Chris Squires sits down with Jeremy Ward and talks mortgage rates, down payments, and the market.
If you're ready to make a move, call us today. We'd love to guide you home!2023-11-09T13:53:52-07:002023-11-09T13:56:32-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21793Why Pre-Approval Is So Important When Buying a Home
Make this your first step before house hunting! It's so crucial, but some buyers skip this step, don't be one of them.
<a href="https://www.wardrealtyservices.com/about/jeremy-ward-team/">Call us today</a> if you have any questions about the home buying process, we'd love to help!2023-11-06T10:22:44-07:002023-11-06T10:29:04-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21776Affordable Homeownership Strategies for Gen Z
The idea of owning a home has always been a big part of the American Dream. It's a symbol of stability, independence, and having a place to truly call your own. But for Gen Z, the "Zoomers" born between 1997 and 2012, making that dream a reality can feel like quite the challenge today with higher <a href="https://www.mykcm.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and rising <a href="https://www.mykcm.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/" rel="noopener noreferrer" target="_blank">home prices</a>.
But achieving that goal of owning your first home can still be attainable, even today, with some strategic planning and resourcefulness.
Explore Down Payment Assistance Options
With prices rising all around you, it can be hard to save up for a home. If you've been struggling to stash away enough cash for that down payment, it’s worth it to look into the various <a href="https://www.mykcm.com/2023/06/19/saving-for-a-down-payment-heres-what-you-need-to-know/" rel="noopener noreferrer" target="_blank">down payment</a> assistance programs available. These programs can really help you save big on the upfront costs of buying a home.
There are a lot more options out there than you may realize. According to <a href="https://downpaymentresource.com/" rel="noopener noreferrer" target="_blank">Down Payment Resource</a>, there are over 2,000 programs designed to help hopeful homebuyers with down payments and closing costs.
If you qualify for one of these programs, you may not need to save up as much money for your down payment. A local real estate agent can help you explore these programs in your area, making it much easier to turn your homeownership dream into a reality.
Consider Living with Relatives To Save
If you still need a bit more time to save, even with the down payment assistance programs out there, there are ways you can make that happen. Many savvy Zoomers have made a strategic choice to live with relatives so they can get to their savings goals even faster.
According to the <a href="https://www.nar.realtor/newsroom/baby-boomers-overtake-millennials-as-largest-generation-of-home-buyers" rel="noopener noreferrer" target="_blank">National Association of Realtors</a> (NAR), around 30% of Gen Z homebuyers transition directly from their relative’s home to a home of their own.
By sharing living costs, such as mortgage payments, utility bills, and even grocery expenses, you can substantially reduce your monthly expenses. This frees up more of your income to tackle any outstanding debt, boost your credit score, and reach your down payment target in less time. And, all of this can bring <a href="https://www.mykcm.com/2023/10/04/understanding-the-benefits-of-owning-your-first-home/" rel="noopener noreferrer" target="_blank">homeownership</a> one step closer to becoming a reality. Clare Trapasso, Executive News Editor at Realtor.com, <a href="https://mediaroom.realtor.com/2023-10-10-Hopeful-Homebuyers-Turn-Relatives-Into-Roommates-to-Save-Money-and-Share-Childcare" rel="noopener noreferrer" target="_blank">explains</a>:
“Faced with ongoing housing affordability issues . . . we're seeing parents and children becoming roommates again in later years as the 'kids' save up to purchase their own place . . ."
The Road to Homeownership
When you're on the path to becoming a homeowner, it's a good idea to get some help along the way. And one of your best resources on this journey as a young homebuyer is a trusted <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">real estate agent</a>. They'll steer you through the process of buying a home and help you find one you can afford.
For Gen Z, the path to homeownership may not be straightforward, but it's still within reach. With the right strategies, you can turn your dream of owning a home into a reality.
2023-11-02T14:48:53-07:002023-11-02T14:51:36-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21760Why Home Prices Keep Going Up
If you've ever dreamed of buying your own place, or selling your current house to upgrade, you're no stranger to the rollercoaster of emotions changing home prices can stir up. It's a tale of financial goals, doubts, and a dash of anxiety that many have been through.
But if you put off moving because you’re worried home prices might drop, make no mistake, they’re not going down. In fact, it's just the opposite. National <a href="https://www.blackknightinc.com/data-reports/" rel="noopener noreferrer" target="_blank">data</a> from several <a href="https://www.zillow.com/research/data/" rel="noopener noreferrer" target="_blank">sources</a> says they’ve been going up consistently this year (see graph below):
<a href="https://www.mykcm.com/content/images/20231018/20231023-Percent-Change-In-Home-Values.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231018/20231023-Percent-Change-In-Home-Values.png" /></a>
Here’s what this graph shows. In the first half of 2022, home prices rose significantly (the green bars on the left side of the graphs above). Those increases were dramatic and unsustainable.
So, in the second half of the year, prices went through a correction and started dipping a bit (shown in red). But those slight declines were shallow and short-lived. Still, the media really focused on those drops in their headlines – and that created a lot of fear and uncertainty among consumers.
But here’s what hasn’t been covered fully. So far in 2023, prices are going up once more, but this time at a more normal pace (the green bars on the right side of the graphs above). And after price gains that were too high and then the corrections that followed in 2022, the fact that all three reports show more normal or typical price appreciation this year is good news for the housing market.
Orphe Divounguy, Senior Economist at Zillow, explains changing home prices over the past 12 months this way:
“The U.S. housing market has surged over the past year after a temporary hiccup from July 2022-January 2023. . . . That downturn has proven to be short lived as housing has rebounded impressively so far in 2023. . .”
Looking ahead, home price appreciation typically starts to ease up this time of year. As that happens, there’s some risk the media will confuse slowing price growth (deceleration of appreciation) with home prices falling (depreciation). Don’t be fooled. Slower price growth is still growth.
Why Are Home Prices Increasing Now?
One reason why home prices are going back up is because there still aren't enough homes for sale for all the people who want to buy them.
Even though higher mortgage rates cause buyer demand to moderate, they also cause the supply of available homes to go down. That’s because of the mortgage rate lock-in effect. When rates rise, some homeowners are reluctant to sell and lose their current low mortgage rate just to take on a higher one for their next home.
So, with higher mortgage rates impacting both buyers and sellers, the supply and demand equation of the housing market has been affected. But since there are still more people who want to purchase homes than there are homes available to buy, prices continue to rise. As Freddie Mac states:
“While rising interest rates have reduced affordability—and therefore demand—they have also reduced supply through the mortgage rate lock-in effect. Overall, it appears the reduction in supply has outweighed the decrease in demand, thus house prices have started to increase . . .”
Here’s How This Impacts You
Buyers: If you've been waiting to buy a home because you were afraid its value might drop, knowing that home prices have gone back up should make you feel better. Buying a home gives you a chance to own something that usually becomes more valuable over time.
Sellers: If you've been holding off on selling your house because you were worried about how changing home prices would impact its value, it could be a smart move to work with a real estate agent and put your house on the market. You don't have to wait any longer because the most recent data indicates home prices have turned in your favor.
If you put off moving because you were worried that home prices might go down, data shows they’re increasing across the country. Let’s connect so you can understand how home prices are changing in our local area.
2023-10-30T08:51:13-07:002023-10-30T08:54:34-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21744What Are the Real Reasons You Want To Move Right Now?
If you're considering selling your house right now, it's likely because something in your life has changed. And while things like mortgage rates play a big role in your decision, you don’t want that to overshadow why you thought about making a move in the first place.
It’s true mortgage rates are higher right now, and that has an impact on affordability. As a result, some homeowners are deciding they’ll wait to sell because they don’t want to move and have a higher mortgage rate on their next home.
But your lifestyle and your changing needs matter, too. As a recent article from Realtor.com <a href="https://www.realtor.com/advice/sell/should-i-sell-my-house-now-reasons-to-list-times-to-wait/" rel="noopener noreferrer" target="_blank">says</a>:
“No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change.”
Here are a few of the most common reasons people choose to sell today. You may find any one of these resonates with you and may be reason enough to move, even today.
Relocation
Some of the things that can motivate a move to a new area include changing jobs, a desire to be closer to friends and loved ones, wanting to live in your ideal location, or just looking for a change in scenery.
For example, if you just landed your dream job in another state, you may be thinking about selling your current home and moving for work.
Upgrading
Many homeowners decide to sell to move into a larger home. This is especially common when there’s a need for more room to entertain, a home office or gym, or additional bedrooms to accommodate a growing number of loved ones.
For example, if you’re living in a condo and your household is growing, it may be time to find a home that better fits those needs.
Downsizing
Homeowners may also decide to sell because someone’s moved out of the home recently and there’s now more space than needed. It could also be that they’ve recently retired or are ready for a change.
For example, you’ve just kicked off your retirement and you want to move somewhere warmer with less house to maintain. A different home may be better suited for your new lifestyle.
Change in Relationship Status
Divorce, separation, or marriage are other common reasons individuals sell.
For example, if you’ve recently separated, it may be difficult to still live under one roof. Selling and getting a place of your own may be a better option.
Health Concerns
If a homeowner faces mobility challenges or health issues that require specific living arrangements or modifications, they might sell their house to find one that works better for them.
For example, you may be looking to sell your house and use the proceeds to help pay for a unit in an assisted-living facility.
With higher mortgage rates and rising prices, there are some affordability challenges right now – but your needs and your lifestyle matter too. As a recent article from Bankrate says:
“Deciding whether it’s the right time to sell your home is a very personal choice. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”
If you want to sell your house and find a new one that better fits your needs, let’s connect. That way, you’ll have someone to guide you through the process and help you find a home that works for you.
2023-10-26T13:30:03-07:002023-10-26T13:31:55-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21736How Buying a Multi-Generational Home Helps with Affordability Today
In today's world of rising housing costs, many buyers are looking for ways to still be able to buy a home. Some of them have found a solution in multi-generational living.
Multi-generational living is when two or more adult generations live together under one roof. This includes siblings, parents, or even grandparents. Here’s an in-depth look at why more buyers are choosing this option today, so you can see if it may be right for you too.
Reasons To Buy a Multi-Generational Home
According to a <a href="https://www.nar.realtor/blogs/economists-outlook/all-in-the-family-multi-generational-home-buying" rel="noopener noreferrer" target="_blank">recent study</a> by the National Association of Realtors (NAR), the top two reasons people are opting for multi-generational homes today have to do with affordability (see graph below):
<a href="https://www.mykcm.com/content/images/20231013/20231017-Reasons-to-Purchase-a-MultiGen-Home.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231013/20231017-Reasons-to-Purchase-a-MultiGen-Home.png" /></a>
Cost Savings: About 28% of first-time buyers and 11% of repeat buyers are deciding on a multi-generational home to save on costs. By pooling their resources, households can share the financial responsibilities like mortgage payments, utilities, property taxes, and maintenance, to make homeownership more affordable. This is especially helpful for first-time homebuyers who may be finding it tough to afford a home on their own in today's market.
More Space: Another 28% of first-time buyers and 18% of repeat buyers are doing it because they want a larger home they couldn’t afford on their own. For some of the repeat buyers who listed this as a main motivator, it could be because they find themselves taking care of older parents while also welcoming back young adults who've returned to the nest. With everyone chipping in and combining their incomes, suddenly, that big dream home with more space is within reach. As the Triangle Business Journal explains:
“Choosing multi-gen living allows people to purchase a home much larger than they could afford on their own by leveraging the combined income, credit and a down payment of those that they will be occupying the home with.”
Lean on an Expert
If you’re interested in this too, partner with a local real estate agent. Finding the perfect multi-generational home isn't as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs that should be considered.
You've got to make sure everyone has their own space, find room for shared household time, and possibly even create adaptable areas for older relatives. It's a puzzle, and the pieces need to fit just right. Your real estate agent has the expertise and local knowledge to help you find that home where everyone can be comfortable without breaking the bank. As MoneyGeek.com puts it:
"Having a good multigenerational property can improve the prospects of success when living with loved ones. A multigenerational home should fit the specific needs of most family members regardless of age or health. Speaking to a real-estate agent can help you gain clarity and locate a fit."
Buying a multi-generational home can be a smart way to tackle some of today’s affordability challenges. When you team up to share expenses, you can make your dream of homeownership more attainable. If this sounds like an option for you and your loved ones, let’s connect to help you find a home that’s the perfect fit.
2023-10-25T10:09:39-07:002023-10-25T10:10:58-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21725Are Higher Mortgage Rates Here To Stay?
Mortgage rates have been back on the rise recently and that’s getting a lot of attention from the press. If you’ve been following the headlines, you may have even seen rates recently reached their highest level in over two decades (see graph below):
<a href="https://www.mykcm.com/content/images/20231012/20231016-Mortgage-Rates-Reach-Highest-Level-In-Almost-23-Years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231012/20231016-Mortgage-Rates-Reach-Highest-Level-In-Almost-23-Years.png" /></a>
That can feel like a little bit of a gut punch if you’re thinking about <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">making a move</a>. If you’re wondering whether or not you should delay your plans, here’s what you really need to know.
How Higher Mortgage Rates Impact You
There’s no denying mortgage rates are higher right now than they were in recent years. And, when rates are up, that affects overall home affordability. It works like this. The higher the rate, the more expensive it is to borrow money when you buy a home. That’s because, as rates trend up, your monthly mortgage payment for your future home loan also increases.
Urban Institute explains how this is impacting buyers and sellers right now:
“When mortgage rates go up, monthly housing payments on new purchases also increase. For potential buyers, increased monthly payments can reduce the share of available affordable homes . . . Additionally, higher interest rates mean fewer homes on the market, as existing homeowners have an incentive to hold on to their home to keep their low interest rate.”
Basically, some people are deciding to put their plans on hold because of where mortgage rates are right now. But what you want to know is: is that a good strategy?
Where Will Mortgage Rates Go from Here?
If you’re eager for mortgage rates to drop, you’re not alone. A lot of people are waiting for that to happen. But here’s the thing. No one knows when it will. Even the experts can’t say with certainty what’s going to happen next.
Forecasts project rates will fall in the months ahead, but what the latest <a href="https://www.freddiemac.com/pmms" rel="noopener noreferrer" target="_blank">data</a> says is that rates have been climbing lately. This disconnect shows just how tricky mortgage rates are to project.
The best advice for your move is this: don’t try to control what you can’t control. This includes trying to time the market or guess what the future holds for mortgage rates. As CBS News <a href="https://www.cbsnews.com/news/dont-wait-for-mortgage-rates-to-drop-do-this-instead/" rel="noopener noreferrer" target="_blank">states</a>:
“If you're in the market for a new home, experts typically recommend focusing your search on the right home purchase — not the interest rate environment.”
Instead, work on building a team of skilled professionals, including a trusted lender and real estate agent, who can explain what’s happening in the market and what it means for you. If you need to move because you’re changing jobs, want to be closer to family, or are in the middle of another big life change, the right team can help you achieve your goal, even now.
The best advice for your move is: don’t try to control what you can’t control – especially mortgage rates. Even the experts can’t say for certain where they’ll go from here. Instead, focus on building a team of trusted professionals who can keep you informed. When you’re ready to get the process started, let’s connect.
2023-10-23T18:03:09-07:002023-10-23T18:06:02-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21695Are You a Homebuyer Worried About Climate Risks?
The increasing effects of natural disasters are leading to new obstacles in residential real estate. As a recent article from CoreLogic explains:
“As the specter of climate change looms large, the world braces for unprecedented challenges. In the world of real estate, one of those challenges will be the effects of natural catastrophes on property portfolios, homeowners, and communities.”
That may be why, according to Zillow, more and more Americans now consider how climate risks and natural disasters can impact their homeownership plans (see below):
<a href="https://www.mykcm.com/content/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231003/20231005-4-out-of-5-prospective-homebuyers.png" /></a>
This study goes on to explain that climate risks affect where many people look for a home. That’s because homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.
If you’re in the same situation and are thinking about what to do next, here’s some important information to consider as you start looking for a home.
Expert Advice for Homebuyers To Reduce Climate Risks
The <a href="https://www.mykcm.com/2023/09/25/beginning-with-pre-approval/" rel="noopener noreferrer" target="_blank">first thing</a> to do is understand how to go about buying a home while thinking about climate risks. With the right help and resources, you can simplify the process.
The Mortgage Reports provides these <a href="https://themortgagereports.com/99491/climate-change-global-warming-home-buying-impact" rel="noopener noreferrer" target="_blank">tips</a> for buying your next home:
Evaluate climate risks: Before buying a home, it's important to check if it's in a flood-prone area using the <a href="https://msc.fema.gov/portal/home" rel="noopener noreferrer" target="_blank">FEMA website</a>, review the seller's property disclosure for any past damage, and get an inspection for issues like cracks and mold to make sure it's a safe investment.
Consider future preventative maintenance costs: For areas that get tropical storms, you may need to purchase hurricane shutters and sandbags to protect the home. In wildfire-prone areas, you may want to clear plants five feet from the house, consider rooftop sprinklers, or possibly buy gutter guards to prevent fire hazards. Factor these future expenses in when touring homes that may need them.
Take steps to avoid losing your assets: Getting the right insurance for a home in a high-risk climate area is crucial. You should shop around and talk to multiple insurance agents to compare prices and options before deciding to bid on a home.
Above all else, your most valuable resource during this process is a trusted real estate expert. They'll always focus on your goals while keeping your concerns top of mind. Even if they don't have all the answers about how your home can handle natural disasters, they can connect you with the right experts and information.
If you want to buy a home, but you're also thinking about climate risks, you're not alone. Your home is a big investment, and if anything can impact that, you want to know. Let’s connect so you have someone you can trust to guide you as you find your next home.
2023-10-16T16:52:05-07:002023-10-16T16:54:40-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21625Beginning with Pre-Approval
If you’re looking to buy a home this fall, there are a few things you need to know. Affordability is tight with today’s mortgage rates and rising home prices. At the same time, there’s a limited number of homes on the market right now and that’s creating some competition among buyers. But, if you’re strategic, there are ways to navigate these waters. The first thing you’ll want to do is get pre-approved for a mortgage. That way you’ll know your numbers and can set yourself up for success from the start of your home search.
What Pre-Approval Does for You
To understand why it’s such an important step, you need to know what pre-approval is. As part of the homebuying process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you know how much money you can borrow. Freddie Mac explains it like this:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”
Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow. Why does this help you, especially today? With higher mortgage rates and home prices impacting affordability for many buyers right now, a solid understanding of your numbers is even more important so you can truly wrap your head around your options.
Pre-Approval Helps Show Sellers You’re a Serious Buyer
Let’s face it, there are more buyers looking to buy than there are homes available for sale and that imbalance is creating some competition among homebuyers. That means you could see yourself in a multiple-offer scenario when you make an offer on a home. But getting pre-approved for a mortgage can help you stand out from other hopeful buyers.
As an article from Wall Street Journal (WSJ) says:
“If you plan to use a mortgage for your home purchase, preapproval should be among the first steps in your search process. Not only can getting preapproved help you zero in on the right price range, but it can give you a leg up on other buyers, too.”
Pre-approval shows the seller you’re a serious buyer that’s already undergone a credit and financial check, making it more likely that the sale will move forward without unexpected delays or financial issues.
Getting pre-approved is an important first step when you’re buying a home. The more prepared you are, the better chance you have of getting the home you want. Connect with a trusted lender so you have the tools you need to purchase a home in today’s market.2023-10-03T11:37:22-07:002023-10-03T11:39:16-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21611The Many Non-Financial Benefits of Homeownership
Buying and owning your own home can have a big impact on your life. While there are <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">financial reasons</a> to become a homeowner, it's essential to think about the non-financial benefits that make a home more than just a place to live.
Here are some of the top non-financial reasons to buy a home.
According to <a href="https://www.fanniemae.com/media/47726/display" rel="noopener noreferrer" target="_blank">Fannie Mae</a>, 94% of survey respondents say “Having Control Over What You Do with Your Living Space” is a top reason to own.
Your home is truly your own space. If you own a home, unless there are specific homeowner association requirements, you can decorate and change it the way you like. That means you can make small changes or even do big renovations to make your home perfect for you. Your home is uniquely yours and by buying, you give yourself the freedom to tailor it to your individual style. Investopedia <a href="https://www.investopedia.com/articles/mortgages-real-estate/08/home-ownership.asp" rel="noopener noreferrer" target="_blank">explains</a>:
“One often-cited benefit of homeownership is the knowledge that you own your little corner of the world. You can customize your house, remodel, paint, and decorate without the need to get permission from a landlord.”
When you rent, you might not be able to make your place really feel like it’s yours. And if you do make any modifications, you might have to change them back before you leave. But if you own your home, you can make it just the way you want it. That level of customization can give you a sense of pride in where you live and make you feel more connected to it.
Fannie Mae also finds 90% say “Having a Good Place for Your Family To Raise Your Children” tops their list of why it’s better to buy a home.
Another important factor to think about is what stage of life you’re in. U.S. News <a href="https://realestate.usnews.com/real-estate/articles/should-you-rent-or-buy-a-home" rel="noopener noreferrer" target="_blank">breaks it down</a>:
“For those with young children, buying a home and putting down roots is a major driver. . . . You don’t want the upheaval of a massive rent increase or a non-renewed lease to impact your sense of stability.”
No matter which of life’s milestones you’re in, stability and predictability are important. That’s because the one constant in life is that things will change. And, as life changes around you, having a familiar home and not worrying about moving regularly helps you and those who matter most feel more secure and more comfortable.
Lastly, Fannie Mae says 82% list “Feeling Engaged in Your Community” as another key motivator to own.
Owning your home also helps you feel even more connected to your neighborhood. People who own homes usually live in them for an average of nine years, according to the National Association of Realtors (NAR). As that time passes, it’s natural to make friends and build strong ties in the community. As Gary Acosta, CEO and Co-Founder at the National Association of Hispanic Real Estate Professionals (NAHREP), points out:
“Homeowners also tend to be more active in their local communities . . .”
When you care deeply about the people you live near, you’ll do what you can to contribute to your local area.
Owning your home can make your life better by giving you a sense of accomplishment, pride, stability, and connectedness. If you're thinking about becoming a homeowner and want to learn more, let’s connect.
2023-09-29T11:30:55-07:002023-09-29T11:33:23-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21606Remote Work Is Changing How Some Buyers Search for Their Dream Homes
The way Americans work has changed in recent years, and remote work is at the forefront of this shift. Experts say it’ll continue to be popular for years to come and <a href="https://www.zippia.com/advice/remote-work-statistics/" rel="noopener noreferrer" target="_blank">project</a> that 36.2 million Americans will be working remotely by 2025. To give you some perspective, that's a <a href="https://www.zippia.com/advice/remote-work-statistics/" rel="noopener noreferrer" target="_blank">417%</a> increase compared to the pre-pandemic years when there were just 7 million remote workers.
If you’re in the market to <a href="https://www.mykcm.com/2023/09/07/get-ready-for-smaller-more-affordable-homes/" rel="noopener noreferrer" target="_blank">buy a home</a> and you work remotely either full or part-time, this trend is a game-changer. It can help you overcome some of today’s <a href="https://www.mykcm.com/2023/09/06/mortgage-rates-past-present-and-possible-future/" rel="noopener noreferrer" target="_blank">affordability</a> and housing <a href="https://www.mykcm.com/2023/08/25/todays-housing-market-has-only-half-the-usual-inventory-infographic/" rel="noopener noreferrer" target="_blank">inventory challenges</a>.
How Remote Work Helps with Affordability
Remote or hybrid work allows you to change how you approach your home search. Since you’re no longer commuting every day, you may not feel it’s as essential to live near your office. If you’re willing to move a bit further out in the suburbs instead of the city, you could open up your pool of affordable options. In a recent study, Fannie Mae <a href="https://www.fanniemae.com/research-and-insights/perspectives/workplace-flexibility-may-help-address-affordability-concerns" rel="noopener noreferrer" target="_blank">explains</a>:
“Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace . . .”
If you're thinking about moving, having this kind of location flexibility can boost your chances of finding a home that fits your budget. Work with your agent to cast a wider net that includes additional areas with a lower cost of living.
More Work Flexibility Means More Home Options
And as you broaden your search to include more affordable options, you may also find you have the chance to get more features for your money too. Given the low supply of <a href="https://www.mykcm.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/" rel="noopener noreferrer" target="_blank">homes for sale</a>, finding a home that fits all your wants and needs can be challenging.
By opening up your search, you’ll give yourself a bigger pool of options to choose from, and that makes it easier to find a home that truly fits your lifestyle. This could include homes with more square footage, diverse home styles, and a wider range of neighborhood amenities that were previously out of reach.
Historically, living close to work was a sought-after perk, often coming with a hefty price tag. But now, the dynamics have changed. If you work from home, you have the freedom to choose where you want to live without the burden of long daily commutes. This shift allows you to focus more on finding a home that is affordable and delivers on your dream home features.
Remote work goes beyond job flexibility. It's a chance to broaden your horizons in your home search. Without being bound to a fixed location, you have the freedom to explore all of your options. Let’s connect to find out how this freedom can lead you to your ideal home.
2023-09-28T11:23:32-07:002023-09-28T11:24:35-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21559Planning to Retire? Your Equity Can Help You Make a Move
Reaching retirement is a significant milestone in life, bringing with it a lot of change and new opportunities. As the door to this exciting chapter opens, one thing you may be considering is <a href="https://www.mykcm.com/2023/09/04/why-its-still-a-sellers-market-today/" rel="noopener noreferrer" target="_blank">selling your house</a> and finding a home better suited for your <a href="https://www.mykcm.com/2023/08/29/why-you-may-still-want-to-sell-your-house-after-all/" rel="noopener noreferrer" target="_blank">evolving needs</a>.
Fortunately, you may be in a better position to make a move than you realize. Here are a few reasons why.
Consider How Long You’ve Been in Your Home
From 1985 to 2009, the average length of time homeowners stayed in their homes was roughly six years. But <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" rel="noopener noreferrer" target="_blank">according</a> to the National Association of Realtors (NAR), that number is higher today. Since 2010, the average home tenure is just over nine years (see graph below):
<a href="https://www.mykcm.com/content/images/20230907/20230911-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-9-years.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230907/20230911-Todays-homeowners-are-staying-in-their-houses-for-an-average-of-9-years.png" /></a>This means many homeowners have been living in their houses even longer in recent years. When you live in a home for such a significant amount of time, it’s natural for you to experience changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.
Consider the Equity You’ve Gained
And, if you’ve been in your home for more than a few years, you’ve likely built-up substantial <a href="https://www.mykcm.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/" rel="noopener noreferrer" target="_blank">equity</a> that can fuel your next move. That’s because you gain <a href="https://www.mykcm.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/" rel="noopener noreferrer" target="_blank">equity</a> as you pay down your loan and as home prices <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">appreciate</a>. And, the longer you’ve been in your home, the more you may have <a href="https://www.mykcm.com/2023/06/27/why-homeownership-wins-in-the-long-run/" rel="noopener noreferrer" target="_blank">gained</a>. <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" rel="noopener noreferrer" target="_blank">Data</a> from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):
<a href="https://www.mykcm.com/content/images/20230907/20230911-How-home-prices-have-grown-over-time.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230907/20230911-How-home-prices-have-grown-over-time.png" /></a>While <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> vary by area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.
Whether you’re looking to <a href="https://www.mykcm.com/2023/07/07/the-benefits-of-downsizing-for-homeowners-infographic/" rel="noopener noreferrer" target="_blank">downsize</a>, relocate to a <a href="https://www.mykcm.com/2023/08/14/where-are-people-moving-today-and-why/" rel="noopener noreferrer" target="_blank">dream destination</a>, or move so you live closer to friends or loved ones, that equity can help. Whatever your home goals are, a trusted <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">real estate agent</a> can work with you to find the best option. They’ll help you sell your current house and guide you as you buy the home that’s right for you and your lifestyle today.
Bottom Line
As you plan for your retirement, let’s connect so we can find out how much equity you’ve built up over the years and plan how you can use it toward the purchase of a home that fits your changing needs.
2023-09-19T11:00:28-07:002023-09-19T11:01:48-07:00Jeremy Wardtag:wardrealtyservices.com,2012-09-20:21556Get Ready for Smaller, More Affordable Homes
Have you been trying to <a href="https://www.mykcm.com/2023/08/02/how-to-know-if-youre-ready-to-buy-a-home/" rel="noopener noreferrer" target="_blank">buy a home</a>, but higher <a href="https://www.mykcm.com/2023/08/03/how-inflation-affects-mortgage-rates/" rel="noopener noreferrer" target="_blank">mortgage rates</a> and <a href="https://www.mykcm.com/2023/08/11/home-prices-are-back-on-the-rise-infographic/" rel="noopener noreferrer" target="_blank">home prices</a> are limiting your options? If so, here’s some good news – based on what Ali Wolf, Chief Economist at Zonda, has to <a href="https://www.realtor.com/news/trends/first-time-buyers-rejoice-builders-are-finally-putting-up-more-affordably-priced-starter-homes/" rel="noopener noreferrer" target="_blank">say</a> – smaller, more affordable homes are on the way:
“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.”
In some ways, <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">smaller homes</a> are already here. When the pandemic hit, the meaning of home changed. People needed the space their home provided not only as a place to live, but as a place to work, go to school, exercise, and more. Those who had that space were more likely to keep it. And those that didn’t were in a position where they were trying to sell their smaller house to move up to a larger one. That meant the homes coming to the market during the pandemic were smaller than those on the market before the pandemic – and that trend continues today (see graph below):<a href="https://www.mykcm.com/content/images/20230905/20230907-Home-Size-Smaller-than-Pre-Pandemic.png" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230905/20230907-Home-Size-Smaller-than-Pre-Pandemic.png" /></a>This graph also <a href="https://www.realtor.com/research/data/" rel="noopener noreferrer" target="_blank">shows</a> how the size of homes on the market changes seasonally. Larger homes tend to come on the market during the summer months when households with children who are out of school are looking to move.
That seasonality means, based on historical trends and the fact that fall is now approaching, we can expect smaller, more affordable homes to come to the market throughout the rest of the year.
That’s great news because, as Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="https://eyeonhousing.org/2023/08/single-family-home-size-moves-lower-to-more-than-a-decade-low/" rel="noopener noreferrer" target="_blank">states</a>, the need for these types of homes has gone up recently:
“. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”
What Does This Mean for You?
The seasonal trend of smaller homes coming to the market in the later months of the year, coupled with builders <a href="https://www.mykcm.com/2023/08/17/people-want-less-expensive-homes-and-builders-are-responding/" rel="noopener noreferrer" target="_blank">bringing</a> smaller, more affordable newly built homes to the market right now, is good news – especially if you’re finding it difficult to afford a home. Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, <a href="https://www.marketwatch.com/story/the-shrinking-american-home-as-demand-rises-builders-go-smaller-ed2a327c" rel="noopener noreferrer" target="_blank">says</a> this about a potential increase in the availability of smaller homes:
“It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”
Bottom Line
If a smaller, more affordable home sounds appealing to you, good news – they’re coming. To keep up with what’s available in our area, let’s <a href="https://www.mykcm.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">connect</a>.
2023-09-18T15:44:50-07:002023-09-18T15:46:05-07:00Jeremy Ward