Real Estate Market Update February 27, 2024

Why Today’s Housing Supply Is a Sweet Spot for Sellers

Wondering if it still makes sense to sell your house right now? The short answer is, yes. And if you look at the current number of homes for sale, you’ll see two reasons why.

 

An article from Calculated Risk shows there are 15.6% more homes for sale now compared to the same week last year. That tells us inventory has grown. But going back to 2019, the last normal year in the housing market, there are nearly 40% fewer homes available now:

 

a graph with red and blue squares

 

Here’s a breakdown of how this benefits you when you sell.

 

1. You Have More Options for Your Move

Are you thinking about selling because your current house is too big, too small, or because your needs have changed? If so, the year-over-year growth gives you more options for your home search. That means it may be less of a challenge to find what you’re looking for.

 

So, if you were holding off on selling because you were worried you weren’t going to find a home you like, this may be just the good news you needed. Partnering with a local real estate professional can help you make sure you’re up to date on the homes available in your area.

 

2. You Still Won’t Have Much Competition When You Sell

But to put that into perspective, even though there are more homes for sale now, there still aren’t as many as there’d be in a normal year. Remember, the data from Calculated Risk shows we’re down nearly 40% compared to 2019. And that large a deficit won’t be solved overnight. As a recent article from Realtor.com explains:

 

“. . . the number of homes for sale and new listing activity continues to improve compared to last year. However the inventory of homes for sale still has a long journey back to pre-pandemic levels.”

 

For you, that means if you work with an agent to price your house right, it should still get a lot of attention from eager buyers and could sell fast.

 

Bottom Line

If you’re a homeowner looking to sell, now’s a good time. You’ll have more options when buying your next home, and there’s still not a ton of competition from other sellers. If you’re ready to move, let’s connect to get the ball rolling.

Real Estate Market Update February 19, 2024

It’s Time To Prepare Your House for a Spring Listing

If you’re thinking of selling your house this spring, now is the perfect time to start getting it ready. With the market gearing up for its busiest time of year, it’ll be important to make sure your house shines bright among the competition.

 

Here are some valuable tips you can use to get your house market-ready.

 

Declutter and Organize

First impressions matter, and if your house is a mess, that can easily turn off potential buyers. Before listing, take the time to declutter and organize each room. Decluttering is about more than just tidying up – it’s about creating a sense of space and openness that allows potential buyers to envision themselves living in your home. According to Moving.com:

 

Decluttering and organizing your space will go a long way in appealing to potential buyers. . . .decluttering will help the buyers see themselves living in your home. Less clutter inside a home also helps a place appear larger and cleaner, which should attract more buyers.”

 

Deep Clean Your Kitchen and Bathrooms

The kitchen and bathrooms are focal points for many buyers, and often influence their overall opinion of the house. Ensure these spaces dazzle by giving them a thorough deep cleaning. Pay attention to details like scrubbing grout lines, polishing fixtures, and decluttering countertops. A sparkling kitchen and bathroom can leave a lasting positive impression on potential buyers.

 

Maintain Your Yard

Your home’s exterior is the first thing potential buyers see, so it’s important to make a good impression from the moment they arrive. A well-maintained yard not only enhances curb appeal, but also shows buyers the home has been well taken care of.

Take the time to spruce up your yard by mowing the lawn, trimming bushes, and clearing away any debris or dead plants. Remember, the goal is to create a welcoming environment that entices buyers to step inside and imagine themselves living there. U.S. News says:

 

“A beautifully landscaped front yard can elevate an ordinary house into a charming home and will help homes sell faster and for more money.”

 

Find a Listing Agent

A skilled listing agent is your partner in minimizing stress when selling your home. Lean on your agent for advice on decluttering, staging, and enhancing your home’s appeal to potential buyers. Their insights into market trends and recommendations for reliable contractors and stagers are invaluable. As Realtor.com says:

 

“A good listing agent will help you price your home . . . recommend a photographer and stager to make it look its best, and put your home on the multiple listing service.”

 

Bottom Line

By decluttering, deep cleaning, and tidying up your house, you can create a welcoming environment that resonates with buyers and increases your chances of a successful sale. Let’s connect on what you need to do to get your house ready to sell this spring.

Real Estate Market Update February 13, 2024

Home Equity Can Be a Game Changer When You Sell

Are you on the fence about selling your house? While affordability is improving this year, it’s still tight. And that may be on your mind. But understanding your home equity could be the key to making your decision easier. An article from Bankrate explains:

 

Home equity is the difference between your home’s value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.

You’ll start off with a certain level of equity when you make your down payment to buy the home, then continue to build equity as you pay down your mortgage. You’ll also build equity over time as your home’s value increases.”

 

Think of equity as a simple math equation. It’s the value of your home now minus what you owe on your mortgage. And guess what? Recently, your equity has probably grown more than you think.

 

In the past few years, home prices skyrocketed, which means your home’s value – and your equity – likely shot up, too. So, you may have more equity than you realize.

 

How To Make the Most of Your Home Equity Right Now

 

If you’re thinking about moving, the equity you have in your home could be a big help. According to CoreLogic:

“. . . the average U.S. homeowner with a mortgage still has more than $300,000 in equity . . .”

 

Clearly, homeowners have a lot of equity right now. And the latest data from the Census and ATTOM shows over two-thirds of homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity (shown in blue in the chart below):

 

 

That means roughly 70% have a tremendous amount of equity right now.

 

After you sell your house, you can use your equity to help you buy your next home. Here’s how:

 

  • Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage ratesInvestopedia states:

 

“You may want to pay cash for your home if you’re shopping in a competitive housing market, or if you’d like to save money on mortgage interest. It could help you close a deal and beat out other buyers.

 

  • Make a larger down payment: Your equity could also be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much money. The Mortgage Reports explains:

 

Borrowers who put down more money typically receive better interest rates from lenders. This is due to the fact that a larger down payment lowers the lender’s risk because the borrower has more equity in the home from the beginning.”

 

The Easy Way To Find Out How Much Equity You Have

To find out how much equity you have in your home, ask a real estate agent you trust for a Professional Equity Assessment Report (PEAR).

 

Bottom Line

Planning a move? Your home equity can really help you out. Let’s connect to see how much equity you have and how it can help with your next home.

Real Estate Market Update February 12, 2024

Winning Plays for Buying a Home in Today’s Market

Build Your Team
Make sure you have trusted professionals on your side, including your local real estate agent and lender. The pros have the skills you need to move quickly and efficiently.

 

Make Strategic Plays
Careful budgeting and planning for your down payment are key. Think about your wish list and prioritize what you need.

 

Consider What’s In and Out of Bounds
Figure out if you want to stay in the same area or branch out to new communities. Make a list of neighborhoods you’d like to live in.

 

Stand Out from the Crowd
Get pre-approved to show you’re a serious and qualified buyer.
Lean on your team’s expert advice to draft your strongest offer.

 

In today’s housing market, you can still be the champion if you have the right team and strategy. Let’s connect today to make your game-winning play.

 

Real Estate Market Update February 5, 2024

Will a Silver Tsunami Change the 2024 Housing Market?

Have you ever heard the term “Silver Tsunami” and wondered what it’s all about? If so, that might be because there’s been lot of talk about it online recently. Let’s dive into what it is and why it won’t drastically impact the housing market.

 

What Does Silver Tsunami Mean?

A recent article from HousingWire calls it:

“. . . a colloquialism referring to aging Americans changing their housing arrangements to accommodate aging . . .”

The thought is that as baby boomers grow older, a significant number will start downsizing their homes. Considering how large that generation is, if these moves happened in a big wave, it would affect the housing market by causing a significant uptick in the number of larger homes for sale. That influx of homes coming onto the market would impact the balance of supply and demand and more.

The concept makes sense in theory, but will it happen? And if so, when?

 

Why It Won’t Have a Huge Impact on the Housing Market in 2024

Experts say, so far, a silver tsunami hasn’t happened – and it probably won’t anytime soon. According to that same article from HousingWire:

“. . . the silver tsunami’s transformative potential for the U.S. housing market has not yet materialized in any meaningful way, and few expect it to anytime soon.”

 

Here’s just one reason why. Many baby boomers don’t want to move.Data from the AARP shows over half of the surveyed adults ages 65 and up plan to stay put and age in place in their current home rather than move (see chart below):

 

 

Clearly, not every baby boomer is planning to sell or move – and even those who do won’t do it all at once. Instead, it will be more gradual, happening slowly over time. As Mark Fleming, Chief Economist at First Americansays:

Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.”

 

Bottom Line

If you’re worried about a Silver Tsunami shaking up the housing market, don’t be. Any impact from baby boomers moving will be gradual over many years. Fleming sums it up best:

“Demographic trends, they don’t tsunami. They trickle.”

Real Estate Market Update January 30, 2024

Why It’s More Affordable To Buy a Home This Year

Home affordability depends on three factors: mortgage rates, home prices, and wages.
The good news is affordability is getting better if you want to buy a home.

 

  • Mortgage Rates Are Down from Their Recent Peak
  • Home Prices Are Expected To Rise at a Slower Pace
  • Wages Are Increasing Faster Than Usual

 

Real Estate Market Update January 22, 2024

2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

If you’ve been holding off on selling your house to make a move because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been below 7% for over a month now (see graph below):

And while they’re not going back to the 3% we saw during the ‘unicorn’ years, they are expected to continue to go down from where they are now in the near future. As Dean Baker, Senior Economist at the Center for Economic Researchexplains:

“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”

Here are two reasons why this recent trend, and the expectation it’ll continue, is such good news for you.

 

You May Not Feel as Locked-In to Your Current Mortgage Rate

With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, moving to a new home meant possibly trading in a low rate for one up near 8%.

However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes moving more affordable than it was just a few months ago. As Lance Lambert, Founder of ResiClubexplains:

We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”

More Buyers Will Be Coming to the Market

According to data from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (see graph below):

 

Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.

Bottom Line

If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to move. When you’re ready, let’s connect.

Real Estate Market Update January 15, 2024

Homeownership Is Still at the Heart of the American Dream

 

Buying a home is a powerful decision, and it remains at the heart of the American Dream. Unlike renting, owning a home means more than just having a place to live – it offers a sense of belonging, stability, and freedom. According to Nicole Bachaud, Senior Economist at Zillow:

The American Dream is still owning a home. There’s a lot of pent-up demand for ownership; that isn’t going to go away.”

Let’s explore just a few of the reasons why so many Americans continue to value homeownership.

 

The Financial Benefits of Owning a Home

One possible reason homeownership is viewed so highly is because owning a home is a significant wealth-building tool. That may be why Jessica Lautz, Deputy Chief and VP of Research at the National Association of Realtors (NAR), says:

“Homeownership is the number one way to build wealth in America.”

Over time, owning a home not only helps boost your own net worth, but it also sets future generations up for success as you pass that wealth down. Habitat for Humanity explains:

“Overall, homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Homeowners make monthly payments that increase their equity in their homes by paying down the principal balance of their mortgage. . . . In addition, owning a home promotes intergenerational homeownership and wealth building. Children of homeowners transition to homeownership earlier — lengthening the period over which they can accumulate wealth . . .”

It can also provide meaningful financial stability compared to renting. When you buy with a fixed-rate mortgage, you can lock in your monthly housing payments for the length of your home loan.

 

The Non-Financial Benefits of Homeownership

But, owning a home offers more than just financial benefits—it benefits you socially and emotionally too. Your home provides feelings of achievement, responsibility, and more. In a recent survey, Fannie Mae outlines just a few of these more emotionally-driven benefits, including:

“The top three were having control over what you do with your living space (94%) to having a sense of privacy and security (91%) and having a good place for your family or to raise your children (90%) . . .”

 

What Does That Mean for You?

If your idea of the American Dream involves greater freedom, security, and prosperity, homeownership could be a key player in bringing that dream to life. And with mortgage rates now on a downward trend, it might be a good time for you to consider making a move.

If you’re ready and able to buy, know that there are incredible benefits waiting at the end of your journey. You’ll gain more than just a home – it’s a place to grow your wealth and call your very own. Like Ksenia Potapov, Economist at First American says:

“…homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”

 

Bottom Line

Buying a home is a powerful decision and the cornerstone of the American Dream. If finding a place to call your own is part of your dream for this year, let’s connect to start the process today.

Real Estate Market Update January 11, 2024

Winter Weather Safety

Texas homeowners and renters should be prepared to protect their homes when temperatures drop below the freezing mark for more than 24 hours.

 

 

Frozen pipes are an annual issue for many Texans

A hard freeze could result in frozen water pipes, which can lead to pipes bursting and leaking. A prolonged cold spell can freeze unprotected water lines due to water freezing and expanding in the line, which will cause small cracks in the pipes. Water leaks then occur when the temperature warms up and the frozen pipes thaw out.

ICT recommends taking these following steps to avoid frozen water pipes.
• Unhook any outdoor water hoses to your faucets.
• Wrap outdoor pipes and faucets with insulating material and secure as needed.
• Check hardware stores for insulation products that fit over outside water faucets.
• Open doors under your sinks to provide warm air circulation to pipes along exterior walls.
• Circulate the water in your home by dripping at least one sink.
• Keep the thermostat set to 55 degrees or warmer in your home.
• If a leak is detected inside the home, shut off the water to the house immediately to prevent further damage, and contact a plumber.
• Document any leaks and repairs and keep receipts of all expenses.

 

Texas homeowner policies provide differing levels of coverage for water damage. Check your policy or contact your agent or insurance company to determine if you have coverage for freezing pipes and if so, how much coverage. Also check the deductible on your insurance policy, a minor pipe break and repair may not exceed the deductible amount.

 

 

Cold Weather Driving Tips
• Keep a bundle of cold-weather gear in your car, such as extra food and water, warm clothing, a flashlight, a glass scraper, blankets, medications, and more.
• Make certain your tires are properly inflated and have plenty of tread.
• Keep at least half a tank of fuel in your vehicle at all times.
• Never warm up a vehicle in an enclosed area, such as a garage.
• Do not use cruise control when driving on any slippery surface, such as ice and snow.
• Drive slowly. Always adjust your speed down to account for lower traction when driving on snow or ice.
• Accelerate and decelerate slowly. Apply the gas slowly to regain traction and avoid skids. Don’t try to get moving in a hurry and take time to slow down for a stoplight. Remember: It takes longer to slow down on icy roads.
• Increase your following distance to five to six seconds. This increased margin of safety will provide the longer distance needed if you have to stop.

 

Winter Fire Prevention
Fireplaces can be a danger if not properly attended, but many Texans also use small, portable heaters to warm up cold areas of the home. While many modern heaters have safety features to prevent accidental fires, not all do, and older heaters can be especially dangerous. Half of all heating fires occur in December, January and February.

• Heating equipment is involved in 1 in every 7 reported home fires and 1 in every 5 home fire deaths.
• Keep anything that can burn at least three feet from any heat source.
• Plug only one heat producing appliance into an electrical outlet at a time.
• Store cooled fireplace ashes in a tightly covered metal container outside the home and at least ten feet from any building.
• Have a qualified professional clean and inspect your chimney every year. Even if you don’t use your fireplace frequently, birds or other animals can block the chimney and cause problems when you use it the first time.

 

 

Additional Resources:
https://www.insurancecouncil.org/winter-weather-safety/
https://www.insurancecouncil.org/driving-in-severe-weather-calls-for-patience/

Note – Please register on your municipality’s website for additional local emergency updates.

Real Estate Market Update January 8, 2024

Achieving Your Homebuying Dreams in 2024

Planning to buy a home this year? Here’s what to focus on:

  • Improve Your Credit
    Your credit score impacts your mortgage rate and future home loan. Monitor your credit and work on improving it by paying off debts.
  • Plan for Your Down Payment
    Save some money from every paycheck for your home fund and get help from a professional to explore down payment assistance options.
  • Get Pre-Approved
    Pre-approval from a lender helps you know how much money you can borrow for your home loan. That way, you can start figuring out your budget.
  • Decide What’s Most Important to You
    Make a list of things you want in a home and decide if they’re Must-Haves or just Nice-To-Haves. Then, talk to your agent about it before starting your search.


Let’s connect so you have expert advice on how to achieve your homebuying goals this year.