Philadelphia Real Estate BlogRecently posted or modified blog posts by tag - homevalueshttps://www.reidrosenthalgroup.com/blog/Copyright ReidRosenthalGroup.com2023-02-07T11:08:34-07:00tag:reidrosenthalgroup.com,2012-09-20:11767The Top Reasons for Selling Your HouseThe Top Reasons for Selling Your House
<img width="750" height="410" src="https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm.jpg" class="attachment-entry size-entry wp-post-image" alt="The Top Reasons for Selling Your House | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm.jpg 750w, https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm-600x328.jpg 600w, https://files.mykcm.com/2023/02/02171326/the-top-reasons-for-selling-your-house-kcm-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.
Today, <a href="https://blog.firstam.com/economics/why-housing-market-potential-increased-for-the-second-straight-month" title="93%" target="_blank" rel="noopener noreferrer">93%</a> of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of <a href="https://www.simplifyingthemarket.com/2023/01/12/is-it-time-to-sell-your-second-home/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="reasons" target="_blank" rel="noopener noreferrer">reasons</a> you may still need or want to move. <a href="https://www.realtrends.com/articles/15-predictions-to-help-you-plan-your-real-estate-business/?utm_campaign=Newsletter%20-%20RealTrends%20Daily%20Update&utm_medium=email&_hsmi=242803681&_hsenc=p2ANqtz--cgeSndq-bGP9pHDdzMaLYQzDYmTRBNTPj4HTxWlZvvqwyFWbY3LjDS8Un0xv50kKZdWj23iAj0m5-1VvPh2A9IFNzTwEjkv82QTcDm5ZDdRvaWE0&utm_content=242803681&utm_source=hs_email" title="RealTrends" target="_blank" rel="noopener noreferrer">RealTrends</a> explains:
“Sellers who don’t have to move won’t be moving. The most common sellers will be: Homeowners downsizing . . . people moving to get more space, [households] looking for better schools…etc.”
So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="breaks down" target="_blank" rel="noopener noreferrer">breaks down</a> why homeowners have decided to sell over the past year:
<a href="https://files.mykcm.com/2023/02/02171323/homeowners-top-reasons-to-sell-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107234" src="https://files.mykcm.com/2023/02/02171323/homeowners-top-reasons-to-sell-MEM.png" alt="The Top Reasons for Selling Your House | MyKCM" width="600" height="450" /></a>
As the visual shows, the most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure.
If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell.
What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer <a href="https://www.simplifyingthemarket.com/2023/01/05/3-best-practices-for-selling-your-house-this-year/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="advice" target="_blank" rel="noopener noreferrer">advice</a> and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.
Bottom Line
When deciding whether or not to move, you have a lot to <a href="https://www.simplifyingthemarket.com/2023/01/10/the-truth-about-negative-home-equity-headlines/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="consider" target="_blank" rel="noopener noreferrer">consider</a>. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.
2023-02-06T06:00:00-07:002023-02-07T11:08:34-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:11320Confused About What’s Going on in the Housing Market? Lean on a Professional.Confused About What’s Going on in the Housing Market? Lean on a Professional.
<img width="750" height="410" src="https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Confused About What’s Going on in the Housing Market? Lean on a Professional. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM.jpg 750w, https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/20121440/confused-about-whats-going-on-in-the-housing-market-lean-on-a-professional-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="buying" target="_blank" rel="noopener noreferrer">buying</a> or <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="selling" target="_blank" rel="noopener noreferrer">selling</a> a home, you probably want to know what’s really happening with home prices, mortgage rates, housing supply, and more. That’s not an easy task considering how sensationalized headlines are today. Jay Thompson, Real Estate Industry Consultant, <a href="https://www.realestatenews.com/2022/11/18/agents-decoded-making-sense-of-the-headlines" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Housing market headlines are everywhere. Many are quite sensational, ending with exclamation points or predicting impending doom for the industry. Clickbait, the sensationalizing of headlines and content, has been an issue since the dawn of the internet, and housing news is not immune to it.”
Unfortunately, when information in the media isn’t clear, it can generate a lot of fear and uncertainty in the market. As Jason Lewris, Cofounder and Chief Data Officer at Parcl, <a href="https://www.parcllabs.com/articles/q3-real-estate" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
But it doesn’t have to be that way. Buying or selling a home is a big decision, and it should be one you feel confident making. To help you separate fact from fiction and get the answers you need, lean on a local <a href="https://www.simplifyingthemarket.com/2022/08/29/a-trusted-real-estate-advisor-provides-expert-advice/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a>.
A trusted expert is your best resource to understand what’s happening at the national and local levels. They’ll be able to debunk the headlines using data you can trust. And using their in-depth knowledge of the industry, they’ll provide context so you know how current trends compare to the normal ebbs and flows in the industry, historical data and more.
Then, to make sure you have the full picture, they’ll tell you if your local area is following the national trend or if they’re seeing something different in your market. Together, you’ll use all of that information to make the best possible decision for you.
After all, making a move is a potentially life-changing milestone. It should be something you feel ready for and excited about. And that’s where an agent comes in.
Bottom Line
If you have questions about the headlines or what’s happening in the housing market today, let’s connect so you have expert insights and advice on your side.
2022-12-27T06:30:00-07:002022-12-27T07:53:52-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:11296Homeowners Still Have Positive Equity Gains over the Past 12 MonthsHomeowners Still Have Positive Equity Gains over the Past 12 Months
<img width="750" height="410" src="https://files.mykcm.com/2022/12/15174938/homeowners-still-have-positive-equity-gains-over-the-past-12-months-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Homeowners Still Have Positive Equity Gains over the Past 12 Months | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/15174938/homeowners-still-have-positive-equity-gains-over-the-past-12-months-KCM.jpg 750w, https://files.mykcm.com/2022/12/15174938/homeowners-still-have-positive-equity-gains-over-the-past-12-months-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/15174938/homeowners-still-have-positive-equity-gains-over-the-past-12-months-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re a homeowner, your net worth got a big boost over the past few years thanks to rapidly rising home prices. Here’s how it happened and what it means for you, even as the market moderates.
Equity is the current value of your home minus what you owe on the loan.
Because there was a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase over the past few years, home prices appreciated substantially.
And while <a href="https://www.simplifyingthemarket.com/2022/12/12/what-every-seller-should-know-about-home-prices/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="home price appreciation" target="_blank" rel="noopener noreferrer">home price appreciation</a> has moderated this year, and even depreciated slightly in some overheated markets, that doesn’t mean you’ve lost all the equity you gained during the pandemic frenzy.
To prove you still have equity you can use, the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2022/" title="Homeowner Equity Insights" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights</a> from CoreLogic finds the average homeowner equity has actually grown by $34,300 over the past 12 months.
That’s right, despite the headlines, the average homeowner still gained positive <a href="https://www.simplifyingthemarket.com/2022/11/14/home-equity-a-source-of-strength-for-homeowners-today/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="equity" target="_blank" rel="noopener noreferrer">equity</a> over the last year in just about every market. While the gains aren’t as dramatic as they were in the previous quarter due to home price moderation, they’re still significant. And if you’ve been in your home for longer than a year, chances are you have even more equity than you realize.
While that’s the national number, if you want to know what happened over the past year in your area, look at the map below from CoreLogic:
<a href="https://files.mykcm.com/2022/12/15174936/homeowner-equity-gains-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106392" src="https://files.mykcm.com/2022/12/15174936/homeowner-equity-gains-MEM.png" alt="Homeowners Still Have Positive Equity Gains over the Past 12 Months | MyKCM" width="600" height="450" /></a>
Why This Is So Important Right Now
While <a href="https://www.simplifyingthemarket.com/2022/11/29/3-ways-you-can-use-your-home-equity/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="equity" target="_blank" rel="noopener noreferrer">equity</a> helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="sell your current house" target="_blank" rel="noopener noreferrer">sell your current house</a>, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.
So, if you’ve been holding off on selling because you weren’t sure what the headlines meant for your bottom line, rest assured you’ve still gained equity in recent years, and it can help fuel your move.
Bottom Line
If you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.
2022-12-20T06:30:00-07:002022-12-22T10:59:57-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:11212Planning to Retire? It Could Be Time To Make a Move.Planning to Retire? It Could Be Time To Make a Move.
<img width="750" height="410" src="https://files.mykcm.com/2022/12/14120040/planning-to-retire-it-could-be-time-to-make-a-move-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Planning to Retire? It Could Be Time To Make a Move. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/14120040/planning-to-retire-it-could-be-time-to-make-a-move-KCM.jpg 750w, https://files.mykcm.com/2022/12/14120040/planning-to-retire-it-could-be-time-to-make-a-move-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/12/14120040/planning-to-retire-it-could-be-time-to-make-a-move-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about retirement or have already retired this year, you may be planning your next steps. One of your goals could be <a href="https://www.simplifyingthemarket.com/2022/12/02/winter-home-selling-checklist-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="selling your house" target="_blank" rel="noopener noreferrer">selling your house</a> and finding a home that more closely <a href="https://www.simplifyingthemarket.com/2022/12/05/prioritizing-your-wants-and-needs-as-a-homebuyer-in-todays-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="fits your needs" target="_blank" rel="noopener noreferrer">fits your needs</a>.
Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about when making that decision.
Consider How Long You’ve Been in Your Home
From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="rising today" target="_blank" rel="noopener noreferrer">rising today</a>, meaning many homeowners are living in their houses even longer (see graph below):
<a href="https://files.mykcm.com/2022/12/14120042/homeowners-are-living-in-their-homes-longer-in-recent-years-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106368" src="https://files.mykcm.com/2022/12/14120042/homeowners-are-living-in-their-homes-longer-in-recent-years-MEM.png" alt="Planning to Retire? It Could Be Time To Make a Move. | MyKCM" width="600" height="450" /></a>
When you live in a home for a significant period of time, it’s natural for you to experience a number of 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
Additionally, if you’ve been in your home for more than a few years, you’ve likely built up <a href="https://www.simplifyingthemarket.com/2022/11/29/3-ways-you-can-use-your-home-equity/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="significant equity" target="_blank" rel="noopener noreferrer">significant equity</a> that can fuel your next move. That’s because the longer you’ve been in your home, the more likely it’s <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="grown in value" target="_blank" rel="noopener noreferrer">grown in value</a> due to home price appreciation. <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" title="Data" target="_blank" rel="noopener noreferrer">Data</a> from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):
<a href="https://files.mykcm.com/2022/12/14121808/how-home-prices-have-grown-over-time-1-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106373" src="https://files.mykcm.com/2022/12/14121808/how-home-prices-have-grown-over-time-1-MEM.png" alt="Planning to Retire? It Could Be Time To Make a Move. | MyKCM" width="600" height="450" /></a>
While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by over 50%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value over that time.
Consider Your Retirement Goals
Whether you’re looking to downsize, relocate to a dream destination, or move so you live closer to loved ones, that equity can help you achieve your homeownership goals. NAR <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="shares" target="_blank" rel="noopener noreferrer">shares</a> that for recent home sellers, the primary reason to move was to be closer to loved ones. Plus, retirement played a large role for those moving greater distances.
Whatever your home goals are, a trusted real estate advisor can work with you to find the best option. They’ll help you <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="sell" target="_blank" rel="noopener noreferrer">sell</a> your current house and guide you as you <a href="https://www.simplifyingthemarket.com/2022/10/17/the-emotional-and-non-financial-benefits-of-homeownership/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="buy" target="_blank" rel="noopener noreferrer">buy</a> the home that’s right for you and your lifestyle today.
Bottom Line
Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore your opportunities in our local market.
2022-12-15T06:22:41-07:002022-12-15T06:25:20-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:11135Reasons To Sell Your House This Season [INFOGRAPHIC]Reasons To Sell Your House This Season [INFOGRAPHIC]
<img width="1046" height="2601" src="https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-1046x2601.png" class="attachment-entry size-entry wp-post-image" alt="Reasons To Sell Your House This Season [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-1046x2601.png 1046w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-241x600.png 241w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-412x1024.png 412w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-768x1910.png 768w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-618x1536.png 618w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-824x2048.png 824w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM-100x249.png 100w, https://files.mykcm.com/2022/12/08121045/Reasons-To-Sell-Your-House-This-Season-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re planning to make a move but aren’t sure if now’s the right time, here are a few reasons why you shouldn’t wait to <a href="https://www.simplifyingthemarket.com/2022/11/22/what-homeowners-want-to-know-about-selling-in-todays-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="sell your house" target="_blank" rel="noopener noreferrer">sell your house</a>.
The supply of homes for sale, while <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="growing" target="_blank" rel="noopener noreferrer">growing</a>, is still low today. Plus, <a href="https://blog.firstam.com/economics/whats-the-outlook-for-housing-market-potential-for-the-rest-of-2022" title="serious buyers" target="_blank" rel="noopener noreferrer">serious buyers</a> are out looking right now, and many are hoping to avoid falling into the <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" title="rental trap" target="_blank" rel="noopener noreferrer">rental trap</a> for another year.
Let’s connect to determine if selling your house <a href="https://www.simplifyingthemarket.com/2022/11/16/top-questions-about-selling-your-home-this-winter/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="before the new year" target="_blank" rel="noopener noreferrer">before the new year</a> is the right move for you.
2022-12-09T06:27:49-07:002022-12-09T07:05:49-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:11043Why There Won’t Be a Flood of Foreclosures Coming to the Housing MarketWhy There Won’t Be a Flood of Foreclosures Coming to the Housing Market
<img width="750" height="410" src="https://files.mykcm.com/2022/11/29111238/why-there-wont-be-a-flood-of-foreclosures-coming-to-the-housing-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Why There Won’t Be a Flood of Foreclosures Coming to the Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/29111238/why-there-wont-be-a-flood-of-foreclosures-coming-to-the-housing-market-KCM.jpg 750w, https://files.mykcm.com/2022/11/29111238/why-there-wont-be-a-flood-of-foreclosures-coming-to-the-housing-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/29111238/why-there-wont-be-a-flood-of-foreclosures-coming-to-the-housing-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
With the rapid shift that’s happened in the housing market this year, some people are raising concerns that we’re destined for a repeat of <a href="https://www.simplifyingthemarket.com/2022/10/26/3-graphs-showing-why-todays-housing-market-isnt-like-2008/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="the crash" target="_blank" rel="noopener noreferrer">the crash</a> we saw in 2008. But in truth, there are many key differences between what’s happening today and the bubble in the early 2000s.
One of the reasons this isn’t like the last time is the number of foreclosures in the market is much lower now. Here’s a look at why there won’t be a wave of foreclosures flooding the market.
Not as Many Homeowners Are in Trouble This Time
After the last housing crash, <a href="https://economics.cmail20.com/t/ViewEmail/d/6DD5AA0E9F6529292540EF23F30FEDED/5323CD85A2087AFD22947492D9797BBC" title="over nine million" target="_blank" rel="noopener noreferrer">over nine million</a> households lost their homes due to a foreclosure, short sale, or because they gave it back to the bank. This was, in large part, because of more relaxed lending standards where people could take out mortgages they ultimately couldn’t afford. Those lending practices led to a wave of distressed properties which made their way into the market and caused home values to plummet.
But today, revised lending standards have led to more qualified buyers. As a result, there are fewer homeowners who are behind on their mortgages. As Marina Walsh, Vice President of Industry Analysis at the Mortgage Bankers Association (MBA), <a href="https://www.mba.org/news-and-research/newsroom/news/2022/11/10/mortgage-delinquencies-decrease-to-new-survey-low-in-the-third-quarter-of-2022" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“For the second quarter in a row, the mortgage delinquency rate fell to its lowest level since MBA’s survey began in 1979 – declining to 3.45%. Foreclosure starts and loans in the process of foreclosure also dropped in the third quarter to levels further below their historical averages.”
There Have Been Fewer Foreclosures over the Last Two Years
While you may have seen recent stories about the number of foreclosures rising today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the <a href="https://www.simplifyingthemarket.com/2022/08/08/why-the-forbearance-program-changed-the-housing-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="forbearance program" target="_blank" rel="noopener noreferrer">forbearance program</a>. The program gave homeowners facing difficulties extra time to get their finances in order and, in many cases, work out a plan with their lender.
With that program, many were concerned it would result in a wave of foreclosures coming to the market. That fear didn’t materialize. <a href="https://www.newyorkfed.org/microeconomics/hhdc" title="Data" target="_blank" rel="noopener noreferrer">Data</a> from the New York Fed shows there are still fewer foreclosures happening today than before the pandemic (see graph below):
<a href="https://files.mykcm.com/2022/11/29111239/foreclosures-up-but-near-record-lows-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-106062" src="https://files.mykcm.com/2022/11/29111239/foreclosures-up-but-near-record-lows-MEM.png" alt="Why There Won’t Be a Flood of Foreclosures Coming to the Housing Market | MyKCM" width="600" height="450" /></a>
That means, while there are more foreclosures now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019.
And most importantly, the number we’re seeing now is still far below the number we saw during the market crash (shown in the red bars in the graph). The big takeaway? Don’t let a headline in the news mislead you. While foreclosures are up year-over-year, historical context is essential to understanding the full picture.
Most Homeowners Have More Than Enough Equity To Sell Their Homes
Many homeowners today have enough equity to <a href="https://www.simplifyingthemarket.com/2022/11/14/home-equity-a-source-of-strength-for-homeowners-today/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="sell their homes" target="_blank" rel="noopener noreferrer">sell their homes</a> instead of facing foreclosure. Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home. And if they’ve stayed in their homes even longer, they may have even <a href="https://www.simplifyingthemarket.com/2022/11/04/homeownership-wins-over-time-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="more equity" target="_blank" rel="noopener noreferrer">more equity</a>than they realize. As Ksenia Potapov, Economist at First American, <a href="https://blog.firstam.com/economics/will-foreclosures-rise-as-the-housing-and-labor-markets-cool" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Homeowners have very high levels of tappable home equity today, providing a cushion to withstand potential price declines, but also preventing housing distress from turning into a foreclosure. . . the result will likely be more of a foreclosure ‘trickle’ than a ‘tsunami.’”
A recent report from ATTOM Data <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2022-u-s-home-equity-and-underwater-report/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it by going even deeper into the numbers:
“Only about 214,800 homeowners were facing possible foreclosure in the second quarter of 2022, or just four-tenths of one percent of the 58.2 million outstanding mortgages in the U.S. Of those facing foreclosure, about 195,400, or 91 percent, had at least some equity built up in their homes.”
Bottom Line
If you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years. If you have questions, let’s connect.
2022-11-30T06:31:50-07:002022-11-30T06:37:08-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:10981What Homeowners Want To Know About Selling in Today’s MarketWhat Homeowners Want To Know About Selling in Today’s Market
<img width="750" height="410" src="https://files.mykcm.com/2022/11/17102503/what-homeowners-want-to-know-about-selling-in-todays-market-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="What Homeowners Want To Know About Selling in Today’s Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/11/17102503/what-homeowners-want-to-know-about-selling-in-todays-market-KCM.jpg 750w, https://files.mykcm.com/2022/11/17102503/what-homeowners-want-to-know-about-selling-in-todays-market-KCM-600x328.jpg 600w, https://files.mykcm.com/2022/11/17102503/what-homeowners-want-to-know-about-selling-in-todays-market-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/11/02/sell-your-house-before-the-holidays/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="selling your house" target="_blank" rel="noopener noreferrer">selling your house</a>, you’re likely hearing about the cooling housing market and wondering what that means for you. While it's not the peak intensity we saw during the pandemic, we’re still in a sellers’ market. That means you haven’t missed your window. Realtor.com <a href="https://www.realtor.com/advice/sell/home-selling-rules-youve-heard-lately-that-you-might-want-to-break/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . while prospective home sellers may lament that they missed their prime window, in reality, this is still a terrific time to sell. In fact, according to a recent Realtor.com® home seller survey, 95% of sellers who sold their home in the past year got more than they paid for it.
Nonetheless, some of the more prominent pandemic trends have changed, so sellers might wish to adjust accordingly to get the best deal possible.”
The key to success today is being realistic and working with a trusted real estate advisor who can help you set your expectations based on where the market is now, not where it was over the past few years.
Here are a few things experts say today’s sellers need to consider.
Be Willing To Negotiate
At the peak of the pandemic frenzy, sellers held all the leverage because inventory was at record lows and buyers were willing to enter bidding wars over homes that were available. This year, the <a href="https://www.simplifyingthemarket.com/2022/10/18/the-latest-on-supply-and-demand-in-housing/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="supply of homes" target="_blank" rel="noopener noreferrer">supply of homes</a> for sale has increased as the market cooled. Even though inventory is still low overall, buyers today have more options, and with that comes more <a href="https://www.simplifyingthemarket.com/2022/09/15/buyers-are-regaining-some-of-their-negotiation-power-in-todays-housing-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="negotiation power" target="_blank" rel="noopener noreferrer">negotiation power</a>.
As a seller, that means you may see more buyers getting an inspection, requesting repairs, or asking for help with closing costs today. You need to be prepared to have those conversations. As Ali Wolf, Chief Economist at Zonda, <a href="https://www.realtor.com/advice/sell/reasons-home-sales-fall-through/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“Today’s market is different than it was just six months ago. . . Sellers that want the contract to move forward should be willing to work with the buyer. . . Consider helping with the closing costs or addressing many of the items on the home inspection list.”
Price Your Home at Market Value
It’s not just that the number of homes for sale has grown this year. <a href="https://www.simplifyingthemarket.com/2022/10/27/millennials-are-still-a-driving-force-of-todays-buyer-demand/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="Buyer demand" target="_blank" rel="noopener noreferrer">Buyer demand</a> has also pulled back in light of higher <a href="https://www.simplifyingthemarket.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a>. As a result, pricing your house appropriately so you can catch the eyes of serious buyers is important. Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-trends/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
You don’t want to overreach with your price and deter buyers. At the same time, you don’t want to undervalue your home and leave money on the table. This is another area where an <a href="https://www.simplifyingthemarket.com/2022/06/24/why-an-agent-is-essential-when-pricing-your-house-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="agent’s expertise" target="_blank" rel="noopener noreferrer">agent’s expertise</a> comes in handy.
Think About Your First Impression on Buyers
Buyers have more options and are more particular about their investment since it costs more to buy a home given today’s mortgage rates. As a result, you need to make sure your house shows well. As an article from realtor.com <a href="https://www.realtor.com/advice/sell/how-home-sellers-can-prepare-for-a-recession-and-still-sell-their-home/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“To stand out in the market, sellers should make their home attractive to buyers, which usually means some selective updates.”
This could include everything from staging the home, to making small <a href="https://www.simplifyingthemarket.com/2022/09/12/getting-your-house-ready-to-sell-work-with-an-agent-for-expert-advice/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="cosmetic updates" target="_blank" rel="noopener noreferrer">cosmetic updates</a>, tackling repairs, or undergoing renovations. A trusted real estate professional will help you assess what may be worthwhile to do compared to other recently sold homes in your area.
Bottom Line
To sum it all up, your house should still sell today and move quickly if you’re realistic about today’s market. As a <a href="https://zillow.mediaroom.com/2022-10-31-Pressure-is-back-on-sellers-to-attract-buyers-as-demand-softens" title="press release" target="_blank" rel="noopener noreferrer">press release</a> from Zillow puts it:
“. . . sellers need to do things right to attract the attention of these buyers — pricing their home competitively and making their listing attractive to online home shoppers.”
For expert advice on how to quickly sell your house in a shifting market, let’s connect.
2022-11-22T06:29:03-07:002022-11-22T06:31:02-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:10365What Experts Say Will Happen with Home Prices Next YearWhat Experts Say Will Happen with Home Prices Next Year
<img width="750" height="410" src="https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1.jpg" class="attachment-entry size-entry wp-post-image" alt="What Experts Say Will Happen with Home Prices Next Year | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1.jpg 750w, https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1-600x328.jpg 600w, https://files.mykcm.com/2022/09/21134211/20220919-KCM-Share-1-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Experts are starting to make their 2023 home price forecasts. As they do, most agree homes will continue to gain value, just at a slower pace. Over the past couple of years, <a href="https://www.simplifyingthemarket.com/2022/08/30/whats-actually-happening-with-home-prices-today/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> have risen at an unsustainable rate, leaving many to wonder how long it would last. If you’re asking yourself: what’s ahead for the price of my home,know that experts are now answering this question, and its welcome news for homeowners who may have been led by the media to believe their home would lose value.
Historically, home prices have appreciated at a rate near <a href="https://www.forbes.com/sites/qai/2022/08/30/housing-prices-are-dropping---yes-a-house-is-still-a-good-investment/?sh=54fdefd17372" title="4%" target="_blank" rel="noopener noreferrer">4%</a>. For 2023, the average of six major forecasters noted below is 2.5%. While one, <a href="https://www.zelmanassociates.com/" title="Zelman &amp; Associates" target="_blank" rel="noopener noreferrer">Zelman & Associates</a>, is calling for depreciation, the other five are calling for appreciation. The graph below outlines each expert forecast to show where they project home prices are going in the coming year.
<a href="https://files.mykcm.com/2022/09/21134209/20220922-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-104843" src="https://files.mykcm.com/2022/09/21134209/20220922-MEM-Eng-1.png" alt="What Experts Say Will Happen with Home Prices Next Year | MyKCM" width="600" height="450" /></a>
To understand why experts are calling for appreciation next year, look to the economics of supply and demand. Dave Ramsey, Financial Expert, <a href="https://www.youtube.com/watch?v=NDDwGqTVAdU" title="says" target="_blank" rel="noopener noreferrer">says</a> this:
“The root issue of what drives house prices almost always is supply and demand . . .”
Two things are driving home prices upward. First, the <a href="https://www.simplifyingthemarket.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="undersupply" target="_blank" rel="noopener noreferrer">undersupply</a> of homes on the market is an issue we continue to face in this country. We still don’t have <a href="https://www.simplifyingthemarket.com/2022/09/08/should-i-sell-my-house-this-year/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="enough homes" target="_blank" rel="noopener noreferrer">enough homes</a> on the market for the <a href="https://www.simplifyingthemarket.com/2022/09/19/will-my-house-still-sell-in-todays-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="number of people" target="_blank" rel="noopener noreferrer">number of people</a> that want to buy them. To further that point, we’re still in a <a href="https://www.simplifyingthemarket.com/2022/09/02/heres-why-its-still-a-sellers-market-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="sellers’ market" target="_blank" rel="noopener noreferrer">sellers’ market</a> nationally, and in that scenario, home prices tend to appreciate.
Second, millennials are moving through their peak homebuying years. Since they’re the largest demographic behind the baby boomers, demand isn’t going away any time soon.
Bottom Line
Experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple. The dynamics of supply and demand are playing out in real estate and will continue for many years to come.
2022-09-22T05:28:00-07:002022-09-22T10:06:28-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:10174How Owning a Home Builds Your Net WorthHow Owning a Home Builds Your Net Worth
<img width="750" height="410" src="https://files.mykcm.com/2022/09/01094139/20220906-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Owning a Home Builds Your Net Worth | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/09/01094139/20220906-KCM-Share.jpg 750w, https://files.mykcm.com/2022/09/01094139/20220906-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/09/01094139/20220906-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
<a href="https://www.simplifyingthemarket.com/2022/08/15/the-u-s-homeownership-rate-is-growing/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="Owning a home" target="_blank" rel="noopener noreferrer">Owning a home</a> is a major financial milestone and an achievement to take pride in. One major reason: the <a href="https://www.simplifyingthemarket.com/2022/07/06/how-your-equity-can-grow-over-time/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="equity" target="_blank" rel="noopener noreferrer">equity</a> you build as a homeowner gives your net worth a big boost. And with high <a href="https://www.simplifyingthemarket.com/2022/07/20/should-you-buy-a-home-with-inflation-this-high/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="inflation" target="_blank" rel="noopener noreferrer">inflation</a> right now, the link between owning your home and building your wealth is especially important.
If you’re looking to increase your financial security, here’s why now could be a good time to start on your journey toward <a href="https://www.simplifyingthemarket.com/2022/08/25/why-you-may-want-to-start-your-home-search-today/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="homeownership" target="_blank" rel="noopener noreferrer">homeownership</a>.
Owning a Home Is a Key Ingredient for Financial Success
A <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-snapshot-of-race-and-home-buying-in-the-us-report-02-23-2022_0.pdf" title="report" target="_blank" rel="noopener noreferrer">report</a> from the National Association of Realtors (NAR) details several homeownership trends, including a significant gap in net worth between homeowners and renters. It finds:
“. . . the net worth of a homeowner was about $300,000 while that of a renter’s was $8,000 in 2021.”
To put that into perspective, the average homeowner’s net worth is roughly 40 times that of a renter’s. This difference shows owning a home is a key step in achieving financial success.
Equity Gains Can Substantially Boost a Homeowner’s Net Worth
The net worth gap between owners and renters exists in large part because homeowners build equity. When you own a home, your equity grows as your home <a href="https://www.simplifyingthemarket.com/2022/08/30/whats-actually-happening-with-home-prices-today/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="appreciates in value" target="_blank" rel="noopener noreferrer">appreciates in value</a> and you make your mortgage payments each month. As a <a href="https://www.simplifyingthemarket.com/2022/08/03/buying-a-home-may-make-more-financial-sense-than-renting-one/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="renter" target="_blank" rel="noopener noreferrer">renter</a>, you don’t have that same opportunity. A recent article from CNET <a href="https://www.cnet.com/personal-finance/mortgages/should-you-buy-a-home-in-2022-heres-what-you-need-to-know/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Homeownership is still considered one of the most reliable ways to build wealth. When you make monthly mortgage payments, you're building equity in your home . . . When you rent, you aren't investing in your financial future the same way you are when you're paying off a mortgage.”
But on top of that, your home equity grows even more as your home <a href="https://www.simplifyingthemarket.com/2022/08/11/what-does-the-rest-of-the-year-hold-for-home-prices/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="appreciates" target="_blank" rel="noopener noreferrer">appreciates</a> in value over time. That has a major impact on the wealth you build, as a recent article from Bankrate <a href="https://www.bankrate.com/home-equity/how-to-build-equity-in-your-home/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Building home equity can help you increase your wealth over time, . . . A home is one of the only assets that have the potential to appreciate in value as you pay it down.”
In other words, when you own your home, you have the advantage of your mortgage payment acting as a contribution to a forced savings account that <a href="https://www.simplifyingthemarket.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="grows in value" target="_blank" rel="noopener noreferrer">grows in value</a> as your home does. And when you sell, any <a href="https://www.simplifyingthemarket.com/2022/07/08/why-growing-home-equity-is-great-news-if-you-plan-to-move-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="equity" target="_blank" rel="noopener noreferrer">equity</a> you’ve built up comes back to you. As a renter, you’ll never see a return on the money you pay out in rent every month.
Bottom Line
Owning a home is an important part of building your net worth. If you’re ready to start on your journey to homeownership, let’s connect today.
2022-09-06T03:11:00-07:002022-09-06T11:12:22-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9739Want To Buy a Home? Now May Be the Time.Want To Buy a Home? Now May Be the Time.
<img width="750" height="410" src="https://files.mykcm.com/2022/07/26140447/20220727-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Want To Buy a Home? Now May Be the Time. | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/07/26140447/20220727-KCM-Share.jpg 750w, https://files.mykcm.com/2022/07/26140447/20220727-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/07/26140447/20220727-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
There are <a href="https://www.simplifyingthemarket.com/2022/07/22/great-news-about-housing-inventory-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="more homes for sale" target="_blank" rel="noopener noreferrer">more homes for sale</a> today than at any time last year. So, if you tried to <a href="https://www.simplifyingthemarket.com/2022/07/13/should-i-buy-a-home-right-now/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="buy a home" target="_blank" rel="noopener noreferrer">buy a home</a> last year and were outbid or out priced, now may be your opportunity. The number of homes for sale in the U.S. has been growing over the past four months as rising <a href="https://www.simplifyingthemarket.com/2022/07/26/a-window-of-opportunity-for-homebuyers/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> help slow the frenzy the <a href="https://www.simplifyingthemarket.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> saw during the pandemic.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.bloomberg.com/news/articles/2022-07-08/should-i-buy-a-house-with-rates-lower-experts-say-prices-may-fall-more" title="explains" target="_blank" rel="noopener noreferrer">explains</a> why the shifting market creates a window of opportunity for you:
“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession. . . They’ll have fewer buyers to compete with.”
Two Reasons There Are More Homes for Sale
The first reason the market is seeing more homes available for sale is the number of sales happening each month has decreased. This slowdown has been caused by rising mortgage rates and rising <a href="https://www.simplifyingthemarket.com/2022/07/25/whats-causing-ongoing-home-price-appreciation/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a>, leading many to postpone or put off buying. The graph below uses data from realtor.com to show how <a href="https://www.realtor.com/research/data/" title="active real estate listings" target="_blank" rel="noopener noreferrer">active real estate listings</a> have risen over the past four months as a result.
<a href="https://files.mykcm.com/2022/07/26140440/20220727-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103610" src="https://files.mykcm.com/2022/07/26140440/20220727-MEM-Eng-1.png" alt="Want To Buy a Home? Now May Be the Time. | MyKCM" width="600" height="450" /></a>
The second reason the market is seeing <a href="https://www.simplifyingthemarket.com/2022/06/28/a-key-opportunity-for-homebuyers/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="more homes available" target="_blank" rel="noopener noreferrer">more homes available</a> for sale is because the number of people selling their homes is also rising. The graph below outlines <a href="https://www.realtor.com/research/data/" title="new monthly listings" target="_blank" rel="noopener noreferrer">new monthly listings</a> coming onto the market compared to last year. As the graph shows, for the past three months, more people have put their homes on the market than the previous year.
<a href="https://files.mykcm.com/2022/07/26140443/20220727-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103611" src="https://files.mykcm.com/2022/07/26140443/20220727-MEM-Eng-2.png" alt="Want To Buy a Home? Now May Be the Time. | MyKCM" width="600" height="450" /></a>
Bottom Line
The number of homes for sale across the country is growing, and that means more options for those thinking about buying a home. This is the opportunity many have been waiting for who were outbid or out priced last year.
2022-07-27T05:14:00-07:002022-07-27T08:16:22-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9723A Window of Opportunity for HomebuyersA Window of Opportunity for Homebuyers
<img width="750" height="410" src="https://files.mykcm.com/2022/07/22141933/20220726-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="A Window of Opportunity for Homebuyers | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/07/22141933/20220726-KCM-Share.jpg 750w, https://files.mykcm.com/2022/07/22141933/20220726-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/07/22141933/20220726-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Mortgage rates are much higher today than they were at the beginning of the year, and that’s had a clear impact on the <a href="https://www.simplifyingthemarket.com/2022/07/12/expert-housing-market-forecasts-for-the-second-half-of-the-year/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a>. As a result, the market is seeing a shift back toward the range of pre-pandemic levels for buyer demand and home sales.
But the transition back toward pre-pandemic levels isn’t a bad thing. In fact, the years leading up to the pandemic were some of the best the housing market has seen. That’s why, as the market undergoes this shift, it’s important to compare today not to the abnormal pandemic years, but to the most recent normal years to show how the current <a href="https://www.simplifyingthemarket.com/2022/07/14/housing-experts-say-this-isnt-a-bubble/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> is still strong.
Higher Mortgage Rates Are Moderating the Housing Market
The <a href="https://www.showingtime.com/showingtime-showing-index/" title="ShowingTime Showing Index" target="_blank" rel="noopener noreferrer">ShowingTime Showing Index</a> tracks the traffic of home showings according to agents and brokers. It’s also a good indication of buyer demand over time. Here’s a look at their <a href="https://www.showingtime.com/blog/may-2022-showing-index-results/" title="data" target="_blank" rel="noopener noreferrer">data</a> going back to 2017 (see graph below):
<a href="https://files.mykcm.com/2022/07/22141930/20220726-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103565" src="https://files.mykcm.com/2022/07/22141930/20220726-MEM-Eng-1.png" alt="A Window of Opportunity for Homebuyers | MyKCM" width="600" height="450" /></a>
Here’s a breakdown of the story this data tells:
The 2017 through early 2020 numbers (shown in gray) give a good baseline of pre-pandemic demand. The steady up and down trends seen in each of these years show typical seasonality in the market.
The blue on the graph represents the pandemic years. The height of those blue bars indicates home showings skyrocketed during the pandemic.
The most recent data (shown in green), indicates buyer demand is moderating back toward more pre-pandemic levels.
This shows that buyer demand is coming down from levels seen over the past two years, and the frenzy in real estate is easing because of higher mortgage rates. For you, that means buying your next home should be <a href="https://www.simplifyingthemarket.com/2022/06/28/a-key-opportunity-for-homebuyers/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="less challenging" target="_blank" rel="noopener noreferrer">less challenging</a> than it would’ve been during the pandemic because there is more inventory available.
Higher Mortgage Rates Slow the Once Frenzied Pace of Home Sales
As mortgage rates started to rise this year, other shifts began to occur too. One additional example is the slowing pace of home sales. Using <a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-5-4-in-june" title="data" target="_blank" rel="noopener noreferrer">data</a> from the National Association of Realtors (NAR), here’s a look at <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="existing home sales" target="_blank" rel="noopener noreferrer">existing home sales</a> going all the way back to 2017. Much like the previous graph, a similar trend emerges (see graph below):
<a href="https://files.mykcm.com/2022/07/22141936/20220726-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-103567" src="https://files.mykcm.com/2022/07/22141936/20220726-MEM-Eng-2.png" alt="A Window of Opportunity for Homebuyers | MyKCM" width="600" height="450" /></a>
Again, the data paints a picture of the shift:
The pre-pandemic years (shown in gray) establish a baseline of the number of existing home sales in more typical years.
The pandemic years (shown in blue) exceeded the level of sales seen in previous years. That’s largely because low mortgage rates during that time spurred buyer demand and home sales to new heights.
This year (shown in green), the market is feeling the impact of higher mortgage rates and that’s moderating buyer demand (and by extension home sales). That’s why the expectation for home sales this year is closer to what the market saw in 2018-2019.
Why Is All of This Good News for You?
Both of those factors have opened up a window of opportunity for homeowners <a href="https://www.simplifyingthemarket.com/2022/07/18/wondering-where-youll-move-if-you-sell-your-house-today/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="looking to move" target="_blank" rel="noopener noreferrer">looking to move</a> and for <a href="https://www.simplifyingthemarket.com/2022/07/13/should-i-buy-a-home-right-now/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> looking to purchase a home. As demand moderates and the pace of home sales slows, housing inventory is able to grow – and that gives you <a href="https://www.simplifyingthemarket.com/2022/06/17/more-listings-are-coming-onto-the-market-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="more options" target="_blank" rel="noopener noreferrer">more options</a> for your home search.
So don’t let the headlines about the market cooling or moderating scare you. The housing market is still strong; it’s just easing off from the unsustainable frenzy it saw during the height of the pandemic – and that’s a good thing. It opens up new opportunities for you to find a home that meets your needs.
Bottom Line
The housing market is undergoing a shift because of higher mortgage rates, but the market is still strong. If you’ve been looking to buy a home over the last couple of years and it felt impossible to do, now may be your opportunity. Buying a home right now isn’t easy, but there is more opportunity for those who are looking.
2022-07-26T06:54:00-07:002022-07-26T06:59:39-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9370A Majority of Consumers Say It’s a Good Time To Sell Your HouseA Majority of Consumers Say It’s a Good Time To Sell Your House
<img width="750" height="410" src="https://files.mykcm.com/2022/06/14132203/20220615-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="A Majority of Consumers Say It’s a Good Time To Sell Your House | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/06/14132203/20220615-KCM-Share.jpg 750w, https://files.mykcm.com/2022/06/14132203/20220615-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/06/14132203/20220615-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re a homeowner thinking about selling your house, you’re probably looking for the best time to make your move. That means you’re likely balancing a number of factors, like your <a href="https://www.simplifyingthemarket.com/2022/05/27/bright-days-are-ahead-when-you-move-up-this-summer-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="changing needs" target="_blank" rel="noopener noreferrer">changing needs</a>, where you’ll go when you sell, and today’s <a href="https://www.simplifyingthemarket.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> in order to time it just right.
According to recent data, that sweet spot could already be here. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae finds that 76% of consumers believe now is a <a href="https://www.fanniemae.com/research-and-insights/surveys/national-housing-survey" title="good time to sell" target="_blank" rel="noopener noreferrer">good time to sell</a>.
The graph below shows the percentage of survey respondents who say it’s a good time to sell a house. The big dip in March and April of 2020 reflects how consumer sentiment dropped at the beginning of the pandemic as uncertainty about the health crisis grew. Since then, the percentage has grown consistently as more people feel confident it’s a good time to sell.
In fact, survey respondents think it’s an even better time to sell a house today than they did in 2019, which was a strong year for the housing market. The latest survey results indicate one of the strongest peaks in seller sentiment in nearly three years (see graph below):
<a href="https://files.mykcm.com/2022/06/14132206/20220615-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-102900" src="https://files.mykcm.com/2022/06/14132206/20220615-MEM-Eng-1.png" alt="A Majority of Consumers Say It’s a Good Time To Sell Your House | MyKCM" width="600" height="450" /></a>
What Makes Today a Good Time To Sell?
One reason so many people think it’s a good time to sell is because there are still more buyers in today’s market than there are homes for sale. That’s driving <a href="https://www.simplifyingthemarket.com/2022/05/24/sellers-have-an-opportunity-with-todays-home-prices/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> up, making it a good time to sell your house.
And if you’re on the fence about whether or not to sell because you don’t know where you’ll go once you do, know that you might have more options today than in previous months. That’s because the <a href="https://www.simplifyingthemarket.com/2022/06/07/why-the-growing-number-of-homes-for-sale-is-good-for-your-move-up/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="number of homes" target="_blank" rel="noopener noreferrer">number of homes</a> coming onto the market has grown each month since the start of the year. When more homes come onto the market, it gives you more opportunities to find one that meets your changing needs.
Bottom Line
While the number of homes available for sale is growing and giving you more options for your move, inventory is still low overall. That could mean it’s a great time for you to sell. If you’re ready to address your changing needs and take advantage of today’s favorable conditions, let’s connect.
2022-06-15T04:52:00-07:002022-06-15T05:57:24-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9358Is the Housing Market Correcting?Is the Housing Market Correcting?
<img width="750" height="410" src="https://files.mykcm.com/2022/06/13124515/20220614-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Is the Housing Market Correcting? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/06/13124515/20220614-KCM-Share.jpg 750w, https://files.mykcm.com/2022/06/13124515/20220614-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/06/13124515/20220614-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you're following the news, all of the headlines about conditions in the current <a href="https://www.simplifyingthemarket.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="housing market" target="_blank" rel="noopener noreferrer">housing market</a> may leave you with more questions than answers. Is the boom over? Is the market crashing or correcting? Here’s what you need to know.
The housing market is moderating compared to the last two years, but what everyone needs to remember is that the past two years were record-breaking in nearly every way. Record-low <a href="https://www.simplifyingthemarket.com/2022/05/17/why-rising-mortgage-rates-push-buyers-off-the-fence/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> and <a href="https://www.realtor.com/news/trends/housing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know/" title="millennials" target="_blank" rel="noopener noreferrer">millennials</a> reaching peak homebuying years led to an influx of buyer demand. At the same time, there weren’t enough homes available to purchase thanks to many years of underbuilding and sellers who held off on listing their homes due to the health crisis.
This combination led to record-high demand and record-low supply, and that wasn’t going to be sustainable for the long term. The latest data shows early signs of a shift back to the market pace seen in the years leading up to the pandemic – not a crash nor a correction. As realtor.com <a href="https://www.realtor.com/news/trends/housing-market-showing-signs-of-correction-what-buyers-sellers-need-to-know/" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The housing market is at a turning point. . . . We’re starting to see signs of a new direction, . . .”
Home Showings Then and Now
The <a href="https://showingindex.stats.showingtime.com/docs/lmu/x/UnitedStates?src=page" title="ShowingTime Showing Index" target="_blank" rel="noopener noreferrer">ShowingTime Showing Index</a> tracks the traffic of home showings according to agents and brokers. It’s a good indication of buyer demand. Here’s a look at that data going back to 2019 (see graph below):
<a href="https://files.mykcm.com/2022/06/13124518/20220614-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-102895" src="https://files.mykcm.com/2022/06/13124518/20220614-MEM-Eng-1.png" alt="Is the Housing Market Correcting? | MyKCM" width="600" height="450" /></a>
The 2019 numbers give a good baseline of pre-pandemic demand (shown in gray). As the graph indicates, home showings skyrocketed during the pandemic (shown in blue). And while current buyer demand has begun to moderate slightly based on the latest data (shown in green), showings are still above 2019 levels.
And since 2019 was such a strong year for the housing market, this helps show that the market <a href="https://www.simplifyingthemarket.com/2022/04/21/why-this-housing-market-is-not-a-bubble-ready-to-pop/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="isn’t crashing" target="_blank" rel="noopener noreferrer">isn’t crashing</a> – it’s just at a turning point that’s moving back toward more pre-pandemic levels.
Existing Home Sales Then and Now
Headlines are also talking about how existing home sales are declining, but perspective matters. Here’s a look at <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="existing home sales" target="_blank" rel="noopener noreferrer">existing home sales</a> going all the way back to 2019 using data from the National Association of Realtors (NAR) (see graph below):
<a href="https://files.mykcm.com/2022/06/13124521/20220614-MEM-Eng-2.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-102896" src="https://files.mykcm.com/2022/06/13124521/20220614-MEM-Eng-2.png" alt="Is the Housing Market Correcting? | MyKCM" width="600" height="450" /></a>
Again, a similar story emerges. The pandemic numbers (shown in blue) beat the more typical year of 2019 home sales (shown in gray). And according to the latest projections for 2022 (shown in green), the market is on pace to close this year with more home sales than 2019 as well.
It’s important to compare today not to the abnormal pandemic years, but to the most recent normal year to show the current housing market is still strong. First American <a href="https://blog.firstam.com/economics/the-reconomy-podcast-breaking-down-the-recency-bias-in-housing-market-data" title="sums it up" target="_blank" rel="noopener noreferrer">sums it up</a> like this:
“. . . today’s housing market looks a lot like the 2019 housing market, which was the strongest housing market in a decade at the time.”
Bottom Line
If recent headlines are generating any concerns, look at a more typical year for perspective. The current market is not a crash or correction. It’s just a turning point toward more typical, pre-pandemic levels. Let’s connect if you have any questions about our local market and what it means for you when you buy or sell this year.
2022-06-14T05:13:00-07:002022-06-14T06:27:51-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9288Why You Need an Expert To Determine the Right Price for Your HouseWhy You Need an Expert To Determine the Right Price for Your House
<img width="750" height="410" src="https://files.mykcm.com/2022/06/03144518/20220606-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why You Need an Expert To Determine the Right Price for Your House | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/06/03144518/20220606-KCM-Share.jpg 750w, https://files.mykcm.com/2022/06/03144518/20220606-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/06/03144518/20220606-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If your lifestyle has changed recently and you’re ready to make a move, taking advantage of today’s <a href="https://www.simplifyingthemarket.com/2022/04/28/what-you-need-to-know-about-selling-in-a-sellers-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="sellers’ market" target="_blank" rel="noopener noreferrer">sellers’ market</a> might be just the answer for your <a href="https://www.simplifyingthemarket.com/2022/05/27/bright-days-are-ahead-when-you-move-up-this-summer-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="summer plans" target="_blank" rel="noopener noreferrer">summer plans</a>. With homes continuing to get <a href="https://cdn.nar.realtor/sites/default/files/documents/2022-04-realtors-confidence-index-05-19-2022.pdf" title="multiple offers" target="_blank" rel="noopener noreferrer">multiple offers</a>, this could be your moment to get the contract you’re looking for on your house if you’re ready to sell.
And here’s the thing – you need an expert on your side to ensure you make all the right moves when you do, especially when it comes to pricing your house. Even in this <a href="https://www.simplifyingthemarket.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="competitive market" target="_blank" rel="noopener noreferrer">competitive market</a>, you can’t stick just any price tag on your home and get the deal you want. A key piece of the puzzle is setting the right asking price so you can help buyers notice your home (and get excited about it) from the very first time they view the listing. That’s where a real estate professional comes in.
Why Pricing Your House Right Is Important
The price you set for your house sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. Not to mention, if you undervalue your house, you could leave money on the table which decreases your future buying power.
On the other hand, price it too high, and you run the risk of deterring buyers. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.
In other words, think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value. Pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see multiple offers, too. And if a bidding war happens, you’ll likely get an even higher final sale price. Plus, when homes are priced right, they tend to sell quickly.
To get a look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:
<a href="https://files.mykcm.com/2022/06/03144515/2020606-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-102786" src="https://files.mykcm.com/2022/06/03144515/2020606-MEM-Eng-1.png" alt="Why You Need an Expert To Determine the Right Price for Your House | MyKCM" width="600" height="450" /></a>
Lean on a Professional’s Expertise
There are several factors that go into pricing your house, and balancing them is the key. That’s why it’s important to lean on an expert <a href="https://www.simplifyingthemarket.com/2022/05/23/work-with-a-real-estate-professional-if-you-want-the-best-advice/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="real estate advisor" target="_blank" rel="noopener noreferrer">real estate advisor</a> when you’re ready to move. A local real estate advisor is knowledgeable about:
The value of homes in your neighborhood
The current demand for houses in today’s market
The condition of your house and how it affects the value
A real estate professional will balance these factors to make sure the price of your house makes the best first impression and gives you the greatest return on your investment in the end.
Bottom Line
If you’re thinking about selling, pricing your house appropriately is key. Let’s connect to make sure your house is priced right for the local market, for your home’s condition, and to stand out from the competition.
2022-06-06T05:10:00-07:002022-06-06T06:15:10-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9159Don’t Let Rising Inflation Delay Your Homeownership Plans [INFOGRAPHIC]Don’t Let Rising Inflation Delay Your Homeownership Plans [INFOGRAPHIC]
<img width="1046" height="2334" src="https://files.mykcm.com/2022/05/18153723/20220520-MEM-1046x2334.png" class="attachment-entry size-entry wp-post-image" alt="Don’t Let Rising Inflation Delay Your Homeownership Plans INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/05/18153723/20220520-MEM-1046x2334.png 1046w, https://files.mykcm.com/2022/05/18153723/20220520-MEM-269x600.png 269w, https://files.mykcm.com/2022/05/18153723/20220520-MEM-459x1024.png 459w, https://files.mykcm.com/2022/05/18153723/20220520-MEM-768x1714.png 768w, https://files.mykcm.com/2022/05/18153723/20220520-MEM-688x1536.png 688w, https://files.mykcm.com/2022/05/18153723/20220520-MEM-918x2048.png 918w, https://files.mykcm.com/2022/05/18153723/20220520-MEM-100x223.png 100w, https://files.mykcm.com/2022/05/18153723/20220520-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If recent headlines about rising inflation are making you wonder if it’s still a good time to buy, here’s what experts have to say.
Housing is an <a href="https://www.simplifyingthemarket.com/2022/03/28/a-key-to-building-wealth-is-homeownership/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="asset" target="_blank" rel="noopener noreferrer">asset</a> that typically <a href="https://www.forbes.com/advisor/mortgages/homebuying-can-hedge-against-inflation/" title="grows in value" target="_blank" rel="noopener noreferrer">grows in value</a>. Plus, your mortgage helps <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="stabilize" target="_blank" rel="noopener noreferrer">stabilize</a> your monthly <a href="https://www.simplifyingthemarket.com/2022/03/22/the-many-benefits-of-homeownership/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="housing costs" target="_blank" rel="noopener noreferrer">housing costs</a>, and buying protects you from rising rents.
Experts say owning a home is historically a good hedge against <a href="https://www.simplifyingthemarket.com/2022/04/26/how-homeownership-can-help-shield-you-from-inflation/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="inflation" target="_blank" rel="noopener noreferrer">inflation</a>. Let’s connect if you’re ready to start the homebuying process today.
2022-05-20T05:47:00-07:002022-05-20T06:56:28-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:9004 Your House Could Be Closer to List-Ready Than You ThinkYour House Could Be Closer to List-Ready Than You Think
<img width="750" height="410" src="https://files.mykcm.com/2022/05/02122631/20220504-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Your House Could Be Closer to List-Ready Than You Think | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/05/02122631/20220504-KCM-Share.jpg 750w, https://files.mykcm.com/2022/05/02122631/20220504-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/05/02122631/20220504-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
One of the biggest concerns for a homeowner looking to sell is the time they’ll have to put in before listing their house. If that’s the case for you, you should know – your home might be closer to list-ready than you think in today’s housing market. A <a href="https://www.realtor.com/research/2022-spring-home-sellers/" title="survey" target="_blank" rel="noopener noreferrer">survey</a> of recent sellers from realtor.com finds that many were able to get their house ready in less than a month. It says:
“With many homeowners expecting a quick sale, and in many cases a lack of contingencies, the preparation process took less than a month for over 50% of home sellers this past year, with 20% completing it in less than two weeks.”
Those sellers expecting to sell quickly are following recent <a href="https://www.simplifyingthemarket.com/2022/04/28/what-you-need-to-know-about-selling-in-a-sellers-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="buyer trends" target="_blank" rel="noopener noreferrer">buyer trends</a>. With <a href="https://www.simplifyingthemarket.com/2022/04/13/where-are-mortgage-rates-headed/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> and <a href="https://www.simplifyingthemarket.com/2022/03/24/what-you-can-expect-from-the-spring-housing-market/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="home prices" target="_blank" rel="noopener noreferrer">home prices</a> rising, buyers in today’s market are serious about finding a home quickly. But with the limited number of homes for sale, there are very few <a href="https://www.simplifyingthemarket.com/2022/04/01/its-still-a-sellers-market-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="options" target="_blank" rel="noopener noreferrer">options</a> for those buyers to choose from. That means many may be willing to take on projects after they purchase.
Because of this, you may be able to focus on less time-consuming tasks before putting your house on the market. According to the survey mentioned above, some of the top things recent sellers completed before listing over the past year include <a href="https://www.simplifyingthemarket.com/2022/04/29/give-your-curb-appeal-a-boost-before-you-sell-infographic/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="landscaping" target="_blank" rel="noopener noreferrer">landscaping</a>, making minor cosmetic updates, and touching-up paint (see image below):
<a href="https://files.mykcm.com/2022/05/02122634/20220504-MEM-Eng-1.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-102020" src="https://files.mykcm.com/2022/05/02122634/20220504-MEM-Eng-1.png" alt="Your House Could Be Closer to List-Ready Than You Think | MyKCM" width="600" height="450" /></a>
A Real Estate Advisor Will Help Streamline the Process and Keep You Focused
Of course, each situation is different, and knowing what repairs or updates your house needs to stand out in your local area is critical. That’s where a trusted <a href="https://www.simplifyingthemarket.com/2022/04/12/why-a-real-estate-professional-is-key-when-selling-your-house/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="real estate professional" target="_blank" rel="noopener noreferrer">real estate professional</a> comes in. In a recent article, <a href="https://time.com/nextadvisor/mortgages/mortgage-news/sping-2022-housing-market-predictions/" title="NextAdvisor" target="_blank" rel="noopener noreferrer">NextAdvisor</a> explains:
“. . . Real estate can be hyper-local, and demand can vary from one neighborhood to the next. It’s a good idea to work with a local real estate professional to determine an ideal listing price and if any improvements or repairs need to be completed before putting your home on the market.”
Your trusted real estate advisor knows the ins and outs of the market in your specific area. They’ll help you identify the places where you should and shouldn’t spend your time and money – and that can enable you to list quickly.
Bottom Line
If you’re ready to take advantage of the incredible conditions for sellers in today’s real estate market but are worried about the time it’ll take to get your home ready, you might be closer than you think. Let’s connect so you can see what you need to do before listing your house today.
2022-05-04T05:08:00-07:002022-05-04T06:13:18-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8978Give Your Curb Appeal a Boost Before You Sell [INFOGRAPHIC]Give Your Curb Appeal a Boost Before You Sell [INFOGRAPHIC]
<img width="1046" height="2160" src="https://files.mykcm.com/2022/04/26113243/20220429-MEM-1046x2160.png" class="attachment-entry size-entry wp-post-image" alt="Give Your Curb Appeal a Boost Before You Sell [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/04/26113243/20220429-MEM-1046x2160.png 1046w, https://files.mykcm.com/2022/04/26113243/20220429-MEM-291x600.png 291w, https://files.mykcm.com/2022/04/26113243/20220429-MEM-496x1024.png 496w, https://files.mykcm.com/2022/04/26113243/20220429-MEM-768x1586.png 768w, https://files.mykcm.com/2022/04/26113243/20220429-MEM-744x1536.png 744w, https://files.mykcm.com/2022/04/26113243/20220429-MEM-992x2048.png 992w, https://files.mykcm.com/2022/04/26113243/20220429-MEM-100x206.png 100w, https://files.mykcm.com/2022/04/26113243/20220429-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
If you’re <a href="https://www.simplifyingthemarket.com/2022/04/14/on-the-fence-of-whether-or-not-to-move-this-spring-consider-this/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="thinking about selling" target="_blank" rel="noopener noreferrer">thinking about selling</a> your house this season, focusing on a few quick and easy updates outside can help your home look its best.
78% of real estate agents <a href="https://www.trees.com/poor-landscaping-can-decrease-property-value-by-as-much-as-30" title="polled" target="_blank" rel="noopener noreferrer">polled</a> say poor landscaping affects property values. As a seller, that means your yard could <a href="https://www.realtor.com/advice/sell/before-you-sell-curb-appeal-improvements/" title="impact" target="_blank" rel="noopener noreferrer">impact</a> your bottom line.
When getting your house ready to sell, let’s <a href="https://www.simplifyingthemarket.com/2022/04/12/why-a-real-estate-professional-is-key-when-selling-your-house/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="connect" target="_blank" rel="noopener noreferrer">connect</a> to discuss what you should do to make sure your house shows well and catches the eyes of more potential buyers.
2022-04-29T05:55:00-07:002022-04-29T06:00:07-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8971The Dream of Homeownership Is Worth the Effort<img width="750" height="410" src="https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Dream of Homeownership Is Worth the Effort | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share.jpg 750w, https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/04/25135235/20220427-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
If you’re in the market to buy a home this season, stick with it. Homebuyers face challenges in any market, and today’s is no exception. But if you persevere, your decision to purchase a home will be worth the effort in the end. In fact, a <a href="https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/#homeownership" title="recent survey" target="_blank" rel="noopener noreferrer">recent survey</a> from Bankrate shows homeownership is so powerful that:
“Nearly three in four homeowners say they would still buy their current home if they had it to do [sic] all over again.”
That means the results – owning a home and the <a href="https://www.simplifyingthemarket.com/2022/03/22/the-many-benefits-of-homeownership/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="benefits" target="_blank" rel="noopener noreferrer">benefits</a> that come with it – outweigh the effort needed to achieve their goal. If you’re a homebuyer, let that provide you with the confidence to know the work you’re putting in today will pay off for years to come. Here are a few reasons to stick with your search and focus on the outcome.
Homeownership Contributes Significantly to Your Financial Well-Being
The <a href="https://magazine.realtor/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-to-own-a-home" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR) lists several motivations to consider if you’re thinking about <a href="https://www.simplifyingthemarket.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="buying a home" target="_blank" rel="noopener noreferrer">buying a home</a>. One of the top financial reasons is the <a href="https://www.simplifyingthemarket.com/2022/03/21/the-average-homeowner-gained-more-than-55k-in-equity-over-the-past-year/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="equity" target="_blank" rel="noopener noreferrer">equity</a> you build. As NAR says:
“Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity . . . Building equity in your home is a ready-made savings plan.”
Your equity is a powerful tool you can <a href="https://www.simplifyingthemarket.com/2021/11/22/4-ways-homeowners-can-use-their-equity/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="leverage" target="_blank" rel="noopener noreferrer">leverage</a> in a number of ways. And with recent home <a href="https://www.simplifyingthemarket.com/2022/04/07/the-future-of-home-price-appreciation-and-what-it-means-for-you/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="price appreciation" target="_blank" rel="noopener noreferrer">price appreciation</a>, homeowners are seeing record levels of equity today. That may be one reason why so many people view owning a home as a <a href="https://www.simplifyingthemarket.com/2022/02/21/real-estate-voted-the-best-investment-eight-years-in-a-row/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="great investment" target="_blank" rel="noopener noreferrer">great investment</a> and a top indicator of <a href="https://www.simplifyingthemarket.com/2022/03/28/a-key-to-building-wealth-is-homeownership/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="financial well-being" target="_blank" rel="noopener noreferrer">financial well-being</a>. As the survey from Bankrate mentioned above shows:
“. . . Americans place a higher value on homeownership than on any other indicator of economic stability, . . .”
Owning a home ranks above other major accomplishments like retirement, having a successful career, and getting a college degree. That indicates just how impactful the financial benefits of homeownership truly are.
The Emotional Benefits of Owning a Home Are Powerful
Of course, <a href="https://www.simplifyingthemarket.com/2022/02/14/are-you-ready-to-fall-in-love-with-homeownership/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="homeownership" target="_blank" rel="noopener noreferrer">homeownership</a> is more than an investment. In their list of top reasons to buy a home, NAR also highlights some of the powerful, <a href="https://www.simplifyingthemarket.com/2022/02/01/why-a-move-could-bring-you-more-happiness-this-year/?a=587890-c6f39386e5c0b35edc66223c4d17abc9" title="non-financial" target="_blank" rel="noopener noreferrer">non-financial</a> aspects of homeownership. Among them is the opportunity to customize your home to reflect your personality and needs. As they say:
“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.”
Another benefit homeowners enjoy is the stability it provides. Homeowners typically stay put longer than renters. According to NAR, when you remain in one place longer than a few years, you can grow closer to your community. And that can enhance your sense of pride and lead to better relationships.
What Does That Mean for You?
The benefits of homeownership are powerful, as Leslie Rouda Smith, President of NAR, <a href="https://www.nar.realtor/newsroom/nar-report-shows-share-of-millennial-home-buyers-continues-to-rise" title="says" target="_blank" rel="noopener noreferrer">says</a>:
"From building personal wealth and fostering communities, to strengthening social stability and driving the national economy, the value of homeownership is indisputable.”
Even if you face challenges in today’s market, the payoff when you succeed and purchase a home will be worth it.
Bottom Line
If you’re planning to buy a home this year, there are incredible benefits waiting for you at the end of your journey. Let’s connect to discuss everything homeownership has to offer.
2022-04-27T05:06:00-07:002022-04-28T08:09:35-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8687What You Can Expect from the Spring Housing Market
<img width="750" height="410" src="https://files.mykcm.com/2022/03/23151933/20220324-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What You Can Expect from the Spring Housing Market | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/03/23151933/20220324-KCM-Share.jpg 750w, https://files.mykcm.com/2022/03/23151933/20220324-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/03/23151933/20220324-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
As the spring housing market kicks off, you likely want to know what you can expect this season when it comes to <a href="https://www.mykcm.com/2022/03/16/are-you-wondering-if-this-is-the-year-to-buy-a-home/" title="buying">buying</a> or <a href="https://www.mykcm.com/2022/03/14/this-spring-presents-sellers-with-a-golden-opportunity/" title="selling">selling</a> a house. While there are multiple factors causing some uncertainty, including the conflict overseas, rising <a href="https://www.mykcm.com/2022/01/11/why-inflation-shouldnt-stop-you-from-buying-a-home-in-2022/" title="inflation">inflation</a>, and the first rate increase from the Federal Reserve in <a href="https://www.wsj.com/livecoverage/federal-reserve-meeting-inflation-march-2022" title="over three years" target="_blank" rel="noopener noreferrer">over three years</a> — the housing market seems to be relatively immune.
Here’s a look at what experts say you can expect this spring.
1. Mortgage Rates Will Climb
Freddie Mac <a href="https://freddiemac.gcs-web.com/node/24936/pdf" title="reports" target="_blank" rel="noopener noreferrer">reports</a> the 30-year fixed mortgage rate has increased by more than a full point in the past six months. And despite some mild <a href="https://www.mykcm.com/2022/03/08/how-global-uncertainty-is-impacting-mortgage-rates/" title="fluctuation">fluctuation</a> in recent weeks, experts believe rates will continue to edge up over the next 90 days. As Freddie Mac<a href="https://freddiemac.gcs-web.com/node/25001/pdf" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year.”
If you’re a first-time buyer or a seller thinking of moving to a home that better fits your needs, realize that waiting will likely mean you’ll pay a higher mortgage rate on your purchase. And that higher rate drives up your monthly payment and can really add up over the life of your loan.
2. Housing Inventory Will Increase
There may be some relief coming for buyers searching for a home to purchase. <a href="https://www.realtor.com/research/data/" title="Realtor.com" target="_blank" rel="noopener noreferrer">Realtor.com</a> recently reported that the number of <a href="https://www.mykcm.com/2022/03/17/did-your-dream-home-just-come-on-the-market/" title="newly listed homes">newly listed homes</a> has grown for each of the last two months. Also, the National Association of Realtors (NAR) just announced the <a href="https://www.nar.realtor/newsroom/existing-home-sales-fade-7-2-in-february" title="months’ supply" target="_blank" rel="noopener noreferrer">months’ supply</a> of inventory increased for the first time in <a href="https://cdn.nar.realtor/sites/default/files/documents/ehs-02-2022-overview-2022-03-18.pdf" title="eight months" target="_blank" rel="noopener noreferrer">eight months</a>. The inventory of existing homes usually grows every spring, and it seems, based on recent activity, the next 90 days could bring more listings to the market.
If you’re a buyer who has been frustrated with the limited supply of homes available for sale, it looks like you could find some relief this spring. However, be prepared to act quickly if you find the right home.
If you’re a seller, listing now instead of waiting for this additional competition to hit the market makes sense. Your leverage in any negotiation during the sale will be impacted as additional homes come to market.
3. Home Prices Will Rise
Prices are always determined by supply and demand. Though the number of homes entering the market is increasing, <a href="https://www.showingtime.com/blog/january-2022-showing-index-results" title="buyer demand" target="_blank" rel="noopener noreferrer">buyer demand</a> remains very strong. As realtor.com explains in their most recent <a href="https://news.move.com/2022-03-03-Realtor-com-R-February-Housing-Report-Home-Prices-Hit-All-Time-High-Ahead-of-Spring-Buying-Season" title="Housing Report" target="_blank" rel="noopener noreferrer">Housing Report</a>:
“During the final two weeks of the month, more new sellers entered the market than during the same time last year. . . . However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand.”
What does that mean for you? With the demand for housing still outpacing supply, <a href="https://www.mykcm.com/2022/03/03/are-home-prices-continuing-to-rise/" title="home prices">home prices</a> will continue to appreciate. Many experts believe the level of appreciation will decelerate from the high double-digit levels we’ve seen over the last two years. That means prices will continue to climb, just at a more moderate pace. Most experts are predicting home prices will not depreciate.
Won’t Increasing Mortgage Rates Cause Home Prices To Fall?
While some people may believe a 1% increase in mortgage rates will impact demand so dramatically that home prices will have to fall, experts say otherwise. Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, <a href="https://themreport.com/daily-dose/03-09-2022/expert-insights-inventory-levels-fed-rates-more" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“What I will caution against is making the inference that interest rates have a direct impact on house prices. That is not true.”
Freddie Mac studied the impact that mortgage rates increasing by at least 1% has had on home prices in the past. Here are the results of <a href="http://www.freddiemac.com/research/insight/20180223_increasing_mortgage_rates.page" title="that study" target="_blank" rel="noopener noreferrer">that study</a>:
<a href="https://files.mykcm.com/2022/03/23152013/20220324-MEM-Eng-1a.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101616" src="https://files.mykcm.com/2022/03/23152013/20220324-MEM-Eng-1a.png" alt="What You Can Expect from the Spring Housing Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/03/23152013/20220324-MEM-Eng-1a.png 1000w, https://files.mykcm.com/2022/03/23152013/20220324-MEM-Eng-1a-600x450.png 600w, https://files.mykcm.com/2022/03/23152013/20220324-MEM-Eng-1a-768x576.png 768w, https://files.mykcm.com/2022/03/23152013/20220324-MEM-Eng-1a-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
As the chart shows, mortgage rates jumped by at least 1% six times in the last thirty years. In each case, home values increased.
So again, if you’re a first-time buyer or a repeat buyer, waiting to buy likely means you’ll pay more for a home later in the year (as compared to its current value).
Bottom Line
There are three things that seem certain going into the spring housing market:
Mortgage rates will continue to rise
The selection of homes available for sale will modestly improve
Home prices will continue to appreciate, just at a slightly slower pace
If you’re thinking of buying, act now before mortgage rates and home prices increase further. If you’re thinking of selling, your best bet may be to sell soon so you can beat the increase in competition that’s about to come to market.
2022-03-24T05:31:00-07:002022-03-24T06:34:52-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8580Another Stunner Sold In Rittenhouse Square <img src="https://assets.site-static.com/userfiles/2363/image/2000delanceycover.jpg" width="1080" height="1080" alt="Just Sold On Delancey Street" title="Philadelphia Real Estate" />
#SOLD in Rittenhouse Square by @sammilane & @reidrosenthal1
Congratulations to our buyers on the purchase of 2000 Delancey Place #2, it is situated on one of Rittenhouse Square's most desirable blocks and is a rare first offering of a breathtaking and magnificently proportioned residence. Buyers were a pleasure to work with, best of luck!
2 Bedroom
2 Bathroom
1,885 Square Feet
Ideal Location Filled with Character & Charm
Beautifully Detailed Over-Sized Windows
Ultra-High Ceilings
1 Year Left on Tax Abatement
Deeded One-Car Garage Space, Bike Storage, & a Beautiful Common Roof Deck
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#BHHSPlacetobe2022-03-13T07:51:00-07:002022-03-13T07:57:47-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8415Real Estate Voted the Best Investment Eight Years in a Row
<img width="750" height="410" src="https://files.mykcm.com/2022/02/18105859/20220221-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Real Estate Voted the Best Investment Eight Years in a Row | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/02/18105859/20220221-KCM-Share.jpg 750w, https://files.mykcm.com/2022/02/18105859/20220221-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/02/18105859/20220221-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
In an annual <a href="https://news.gallup.com/poll/349607/americans-expect-home-prices-rise-divided-buying.aspx" title="Gallup" target="_blank" rel="noopener noreferrer">Gallup</a> poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best <a href="https://www.mykcm.com/2022/01/21/americans-choose-real-estate-as-the-best-investment-infographic/" title="long-term investment">long-term investment</a> (see graph below):
<a href="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-101232" src="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png" alt="Real Estate Voted the Best Investment Eight Years in a Row | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG.png 960w, https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG-600x450.png 600w, https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG-768x576.png 768w, https://files.mykcm.com/2022/02/18105653/20220221-MEM-ENG-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>If you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.
Why Is Real Estate a Great Investment During Times of High Inflation?
With inflation reaching its highest level in <a href="https://www.cbsnews.com/news/consumer-prices-inflation-highest-rate-in-40-years/" title="40 years" target="_blank" rel="noopener noreferrer">40 years</a>, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrate, <a href="https://www.bankrate.com/investing/inflation-hedges-to-protect-against-rising-prices/" title="explains" target="_blank" rel="noopener noreferrer">explains</a> it like this:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
If you’re a <a href="https://www.mykcm.com/2022/01/04/avoid-the-rental-trap-in-2022/" title="renter">renter</a>, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.
History Shows During Inflationary Periods, Home Prices Rise as Well
As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes <a href="https://www.mykcm.com/2022/01/12/two-ways-homebuyers-can-win-in-todays-market/" title="buying a home">buying a home</a> a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbes, <a href="https://www.forbes.com/advisor/mortgages/homebuying-can-hedge-against-inflation/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”
Bottom Line
Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time. If you want to better understand how buying a home could be a great investment for you, let’s connect today.
2022-02-21T07:58:00-07:002022-02-22T08:11:56-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8131Americans Choose Real Estate as the Best Investment [INFOGRAPHIC]
<img width="1046" height="2199" src="https://files.mykcm.com/2022/01/20142632/20220121-MEM-1046x2199.png" class="attachment-entry size-entry wp-post-image" alt="Americans Choose Real Estate as the Best Investment [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/01/20142632/20220121-MEM-1046x2199.png 1046w, https://files.mykcm.com/2022/01/20142632/20220121-MEM-285x600.png 285w, https://files.mykcm.com/2022/01/20142632/20220121-MEM-487x1024.png 487w, https://files.mykcm.com/2022/01/20142632/20220121-MEM-768x1615.png 768w, https://files.mykcm.com/2022/01/20142632/20220121-MEM-731x1536.png 731w, https://files.mykcm.com/2022/01/20142632/20220121-MEM-974x2048.png 974w, https://files.mykcm.com/2022/01/20142632/20220121-MEM-100x210.png 100w, https://files.mykcm.com/2022/01/20142632/20220121-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
According to a <a href="https://news.gallup.com/poll/349607/americans-expect-home-prices-rise-divided-buying.aspx" title="Gallup" target="_blank" rel="noopener noreferrer">Gallup</a> poll, real estate has been rated the best long-term investment for eight years in a row.
Real estate tops the list because you’re not just buying a place to call <a href="https://www.mykcm.com/2021/12/23/when-a-house-becomes-a-home/" title="home">home</a> – you’re investing in your future. Real estate is typically considered a stable and secure asset that can <a href="https://www.mykcm.com/2021/12/21/the-average-homeowner-gained-56700-in-equity-over-the-past-year/" title="grow">grow</a> in value over time.
Let’s connect today if you’re ready to make real estate your best investment this year.
2022-01-21T06:58:00-07:002022-01-21T10:14:37-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:8039Real Estate Professionals Are Experts at Keeping You Safe When You Sell<br />
<article id="post-100515" class="post-100515 post type-post status-publish format-standard has-post-thumbnail hentry category-sellers category-selling-myths">
<img width="750" height="410" src="https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Real Estate Professionals Are Experts at Keeping You Safe When You Sell | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share.jpg 750w, https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2022/01/07140913/20220110-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’re on the fence about whether or not you want to sell your house this year, there’s good news. For nearly two years, real estate professionals have worked tirelessly to ensure the safety of <a href="https://www.mykcm.com/2021/12/20/homebuyers-be-ready-to-act-this-winter/" title="buyers">buyers</a> and <a href="https://www.mykcm.com/2021/12/13/if-you-think-the-housing-market-will-slow-this-winter-think-again/" title="sellers">sellers</a> during the pandemic.
Today, they’re seasoned experts, not just in the art of buying and selling homes, but also in how to keep you safe throughout the process. <a href="https://www.mykcm.com/2021/12/30/why-selling-your-house-with-a-real-estate-professional-is-essential/" title="Real estate professionals">Real estate professionals</a> have learned new technologies plus safety and sanitation measures. As new variants emerge, those lessons continue to be key ways agents add value.
Real Estate Advisors Stay Current on Guidance for In-Person Showings
Agents don’t leave your health up to chance. They follow guidance from the <a href="https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/disinfecting-your-home.html" title="Centers for Disease Control" target="_blank" rel="noopener noreferrer">Centers for Disease Control</a> (CDC) and the <a href="https://www.nar.realtor/coronavirus/guide-for-realtors" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR) to ensure in-person showings are safe. NAR maintains industry-specific resources to ensure agents are informed on the latest recommendations and best practices.
Guidance from the CDC also equips real estate professionals with the know-how to employ sanitization and disinfectant measures during the health crisis, so they’re safe for you and your potential buyers.
Digital Tools Can Enhance Your Home Sale
In addition, agents are also well versed in using technology and digital tools to sell your home efficiently. In their guidance for realtors, NAR <a href="https://www.nar.realtor/coronavirus/guide-for-realtors" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“The COVID-19 pandemic is impacting members in unprecedented ways, and raises numerous unique and novel issues for the real estate industry.”
Real estate advisors have responded by reimagining the tech and tools they use. For instance, serving clients at a distance and limiting exposure to others is more important now than ever. That’s because restricting the number of people you need to interact with during the sales process is one of the best ways to keep everyone safe.
To accomplish this, agents now use a variety of <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-technology-survey-08-03-2021.pdf" title="methods" target="_blank" rel="noopener noreferrer">methods</a> to serve their clients, including:
Virtual Open Houses, Tours, and Listing Appointments
High-Quality Photos for Websites and Social Media
eSignature
Video Conferencing
Bottom Line
The health challenges we face today have fundamentally changed the way real estate professionals conduct business for the better. Let’s connect today so you have the latest tools on your side to feel safe and confident when you sell your house this year.
</article>
2022-01-10T06:17:00-07:002022-01-11T10:21:34-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7678Reasons To Hire a Real Estate Professional [INFOGRAPHIC]
<img width="1046" height="1941" src="https://files.mykcm.com/2021/11/23100643/20211126-MEM-1046x1941.png" class="attachment-entry size-entry wp-post-image" alt="Reasons To Hire a Real Estate Professional [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/23100643/20211126-MEM-1046x1941.png 1046w, https://files.mykcm.com/2021/11/23100643/20211126-MEM-323x600.png 323w, https://files.mykcm.com/2021/11/23100643/20211126-MEM-552x1024.png 552w, https://files.mykcm.com/2021/11/23100643/20211126-MEM-768x1425.png 768w, https://files.mykcm.com/2021/11/23100643/20211126-MEM-828x1536.png 828w, https://files.mykcm.com/2021/11/23100643/20211126-MEM-1104x2048.png 1104w, https://files.mykcm.com/2021/11/23100643/20211126-MEM-100x186.png 100w, https://files.mykcm.com/2021/11/23100643/20211126-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
Whether you’re <a href="https://www.mykcm.com/2021/10/15/homebuyer-tips-for-finding-the-one-infographic/" title="buying">buying</a> or <a href="https://www.mykcm.com/2021/11/16/sellers-youll-likely-get-multiple-strong-offers-this-season/" title="selling">selling</a>, there are many perks that come from working with a real estate advisor.
Real estate professionals are <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" title="experts">experts</a> at navigating all aspects of the buying and selling process, including negotiating on your behalf. We can also explain today’s market and break down what it means for you.
Don’t go at it alone. Let’s connect today so you have advice and an expert to count on each step of the way.
2021-11-26T06:29:00-07:002021-11-29T14:31:05-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7676How Smart Buyers Are Approaching Rising Mortgage Rates
<img width="750" height="410" src="https://files.mykcm.com/2021/11/19101526/20211124-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Smart Buyers Are Approaching Rising Mortgage Rates | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/19101526/20211124-KCM-Share.jpg 750w, https://files.mykcm.com/2021/11/19101526/20211124-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/11/19101526/20211124-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Last week, the average 30-year fixed mortgage rate from <a href="http://www.freddiemac.com/pmms/" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a> inched up to 3.1%, and <a href="https://www.mykcm.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/" title="experts project">experts project</a> rates will continue rising through 2022:
“The 30-year fixed-rate mortgage was 2.9% in the third quarter of 2021. We forecast mortgage rates to increase slightly through the remainder of the year and reach 3.0%, rising to 3.5% for full year 2022.”
If you’re thinking of buying a home, here are a few things to keep in mind so you can succeed even as mortgage <a href="https://www.mykcm.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/" title="rates rise">rates rise</a>.
Taking Time Off Can Be Costly
Mortgage rates play a significant role in your home search. As rates go up, your monthly mortgage payment increases if you’re buying a home, directly affecting how much you can afford. And even the smallest increase can have a large impact on your <a href="https://www.mortgagecalculator.net/" title="monthly payment" target="_blank" rel="noopener noreferrer">monthly payment</a> (see chart below):<a href="https://files.mykcm.com/2021/11/19101528/20211124-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99986" src="https://files.mykcm.com/2021/11/19101528/20211124-MEM-Eng-1.png" alt="How Smart Buyers Are Approaching Rising Mortgage Rates | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/19101528/20211124-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/11/19101528/20211124-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/11/19101528/20211124-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/11/19101528/20211124-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>With mortgage rates on the rise, you’ve likely seen your purchasing power impacted already. Instead of waiting and hoping rates will fall, today’s rates should motivate you to purchase now before rates increase more.
Smart Buyers Can Succeed by Planning Ahead
You can use your newfound motivation to energize your search and plan your next steps accordingly so you’re prepared to act no matter what happens with mortgage rates. One way to do that: take rising rates into consideration as part of your budget.
Danielle Hale, Chief Economist at realtor.com, puts it best, <a href="https://www.realtor.com/news/real-estate-news/mortgage-rates-jump-above-3-creating-pressure-for-home-buyers/" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Smart buyers should consider calculating a monthly payment not only at today’s rates, but also at rates that are a bit higher so that they won’t be derailed by a sudden upward move. . . .”
You should also be ready to act when you find the home that meets your needs. That means getting <a href="https://www.mykcm.com/2021/10/29/the-mortgage-process-doesnt-have-to-be-scary-infographic/" title="pre-approved">pre-approved</a> with a lender so there won’t be any delays when the time arrives.
The best way to prepare is to work with a trusted real estate advisor now. An agent can connect you with a lender, help you adjust your search based on your budget, and be ready to act quickly when it’s time to <a href="https://www.mykcm.com/2021/09/15/5-tips-for-making-your-best-offer/" title="make an offer">make an offer</a>.
Bottom Line
Serious buyers should approach rising rates as a motivating factor to buy sooner, not a reason to wait. Waiting will cost you more in the long run. Let’s connect today so you can better understand your budget and be prepared to buy your home even before rates climb higher.
2021-11-24T06:25:00-07:002021-11-29T14:26:37-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7616Your Journey to Homeownership [INFOGRAPHIC]
<img width="1046" height="2358" src="https://files.mykcm.com/2021/11/18120549/20211119-MEM-1046x2358.png" class="attachment-entry size-entry wp-post-image" alt="Your Journey to Homeownership [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/18120549/20211119-MEM-1046x2358.png 1046w, https://files.mykcm.com/2021/11/18120549/20211119-MEM-266x600.png 266w, https://files.mykcm.com/2021/11/18120549/20211119-MEM-454x1024.png 454w, https://files.mykcm.com/2021/11/18120549/20211119-MEM-768x1731.png 768w, https://files.mykcm.com/2021/11/18120549/20211119-MEM-682x1536.png 682w, https://files.mykcm.com/2021/11/18120549/20211119-MEM-909x2048.png 909w, https://files.mykcm.com/2021/11/18120549/20211119-MEM-100x225.png 100w, https://files.mykcm.com/2021/11/18120549/20211119-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
When it comes to buying a <a href="https://www.mykcm.com/2021/10/07/111285-reasons-you-should-buy-a-home-this-year/" title="home">home</a>, there are a number of key milestones along the way.
The process includes everything from building your team and understanding your finances to going <a href="https://www.mykcm.com/2021/10/15/homebuyer-tips-for-finding-the-one-infographic/" title="house hunting">house hunting</a>, <a href="https://www.mykcm.com/2021/09/15/5-tips-for-making-your-best-offer/" title="making an offer">making an offer</a>, and more.
When you’re ready to start your <a href="https://www.mykcm.com/2021/10/11/experts-agree-homeownership-provides-a-path-to-long-term-wealth/" title="journey">journey</a>, let’s connect so you have trusted guidance at every milestone in the process.
2021-11-19T08:37:00-07:002021-11-19T08:44:26-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:75724 Things Every Renter Needs To Consider
<img width="750" height="410" src="https://files.mykcm.com/2021/11/09165307/20211115-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="4 Things Every Renter Needs To Consider | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/09165307/20211115-KCM-Share.jpg 750w, https://files.mykcm.com/2021/11/09165307/20211115-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/11/09165307/20211115-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
As a renter, you’re constantly faced with the same dilemma: keep renting for another year or purchase a home? Your answer depends on your current situation and future plans, but there are a number of <a href="https://www.mykcm.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/" title="benefits to homeownership">benefits to homeownership</a> every renter needs to consider.
Here are a few things you should think about before you settle on <a href="https://www.mykcm.com/2021/10/01/reasons-renters-buy-infographic/" title="renting">renting</a> for another year.
1. Rents Are Rising Quickly
Rent increasing each year isn’t new. Looking back at <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" title="Census" target="_blank" rel="noopener noreferrer">Census</a> data confirms rental prices have gone up consistently for decades (see graph below):<a href="https://files.mykcm.com/2021/11/09165309/20211115-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99903" src="https://files.mykcm.com/2021/11/09165309/20211115-MEM-Eng-1.png" alt="4 Things Every Renter Needs To Consider | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/09165309/20211115-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/11/09165309/20211115-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/11/09165309/20211115-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/11/09165309/20211115-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>If you’re a renter, you’re faced with payments that continue to climb each year. Realtor.com recently shared the <a href="https://news.move.com/2021-10-28-Realtor-com-R-September-Rental-Report-Big-Tech-City-Rents-Are-Back" title="September Rental Report" target="_blank" rel="noopener noreferrer">September Rental Report</a>, and it shows price increases accelerating from August to September (see graph below):<a href="https://files.mykcm.com/2021/11/09165312/20211115-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99904" src="https://files.mykcm.com/2021/11/09165312/20211115-MEM-Eng-2.png" alt="4 Things Every Renter Needs To Consider | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/09165312/20211115-MEM-Eng-2.png 1000w, https://files.mykcm.com/2021/11/09165312/20211115-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/11/09165312/20211115-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/11/09165312/20211115-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the graph shows, rents are still on the rise. It’s important to keep this in mind when the time comes for you to sign a new lease, as your monthly rental payment may increase substantially when you do.
2. Renters Miss Out on Equity Gains
One of the most significant advantages of buying a home is the wealth you build through equity. This year alone, homeowners gained a substantial amount of equity, which, in turn, grew their <a href="https://www.mykcm.com/2021/08/30/the-difference-in-net-worth-between-homeowners-and-renters-is-widening/" title="net worth">net worth</a>. As a renter, you <a href="https://www.mykcm.com/2021/11/01/renters-missed-out-on-51500-this-past-year/" title="miss out">miss out</a> on this wealth-building tool that can be used to fund your retirement, buy a bigger home, downsize, or even achieve personal goals like paying for an education or starting a new business.
3. Homeowners Can Customize to Their Heart’s Content
This is a big decision-making point if you want to be able to paint, renovate, and make home upgrades. In many cases, your property owner determines these selections and prefers you don’t alter them as a renter. As a homeowner, you have the freedom to decorate and personalize your home to truly make it your own.
4. Owning a Home May Provide Greater Mobility than You Think
You may choose to rent because you feel it provides greater flexibility if you need to move for any reason. While it’s true that selling a home may take more time than finding a new rental, it’s important to note how quickly houses are selling in today’s market. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR), the average home is only on the market for 17 days. That means you may have more flexibility than you think if you need to relocate as a homeowner.
Bottom Line
Deciding if it’s the right time for you to buy is a personal decision, and the timing is different for everyone. However, if you’d like to learn more about the benefits of homeownership, let’s connect so you can make a confident, informed decision and have a trusted advisor along the way.
2021-11-15T06:25:00-07:002021-11-15T10:33:22-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7533What’s Happening with Home Prices?
<img width="750" height="410" src="https://files.mykcm.com/2021/11/05135352/20211110-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What’s Happening with Home Prices? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/11/05135352/20211110-KCM-Share.jpg 750w, https://files.mykcm.com/2021/11/05135352/20211110-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/11/05135352/20211110-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Many people have questions about home prices right now. How much have prices risen over the past 12 months? What’s happening with home values right now? What’s projected for next year? Here’s a look at the answers to all three of these questions.
How much have home values appreciated over the last 12 months?
According to the latest <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights/" title="Home Price Index" target="_blank" rel="noopener noreferrer">Home Price Index</a> from CoreLogic, home values have increased by 18.1% compared to this time last year. Additionally, prices have gone up at an accelerated pace for each of the last eight months (see graph below):<a href="https://files.mykcm.com/2021/11/05135354/20211110-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99865" src="https://files.mykcm.com/2021/11/05135354/20211110-MEM-Eng-1.png" alt="What’s Happening with Home Prices? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/05135354/20211110-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/11/05135354/20211110-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/11/05135354/20211110-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/11/05135354/20211110-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>The increase in the rate of appreciation that’s shown by CoreLogic coincides with data from the other two main home price indices: the <a href="https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-HPI-Monthly-10262021.pdf" title="FHFA Home Price Index" target="_blank" rel="noopener noreferrer">FHFA Home Price Index</a> and the <a href="https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20211026-1444567/1444567_cshomeprice-release-1026.pdf" title="S&amp;P Case Shiller Index" target="_blank" rel="noopener noreferrer">S&P Case Shiller Index</a>.
The last year has shown tremendous home price appreciation, which is resulting in a major gain in wealth for homeowners through rising <a href="https://www.mykcm.com/2021/10/22/your-home-equity-is-growing-infographic/" title="equity">equity</a>.
What’s happening with home prices right now?
All three indices mentioned above also show that while appreciation is in the high double digits right now, that price acceleration is beginning to level off (see graph below):<a href="https://files.mykcm.com/2021/11/05135358/20211110-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99866" src="https://files.mykcm.com/2021/11/05135358/20211110-MEM-Eng-2.png" alt="What’s Happening with Home Prices? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/05135358/20211110-MEM-Eng-2.png 1000w, https://files.mykcm.com/2021/11/05135358/20211110-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/11/05135358/20211110-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/11/05135358/20211110-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Year-over-year appreciation is still close to 20%, but it’s clearly plateauing at that rate. Many experts believe it will drop below 15% by the end of the year.
Keep in mind, that doesn’t mean home values will depreciate. It means the rate of appreciation will slow, yet stay well above the 25-year average of 5.1%.
What about next year?
The recent surge in prices is the result of heavy buyer demand and a <a href="https://www.mykcm.com/2021/10/26/there-are-more-homes-available-now-than-there-were-this-spring/" title="shortage">shortage</a> of homes available for sale. Most experts believe that as more housing inventory comes to market (both new construction and existing homes), the supply and demand for housing will come more into balance. That balance will bring a lower rate of appreciation in 2022. Here’s a look at home price forecasts from six major entities, and they all project future appreciation:
<a href="https://www.fanniemae.com/research-and-insights/forecast" title="Fannie Mae" target="_blank" rel="noopener noreferrer">Fannie Mae</a>
<a href="http://www.freddiemac.com/research/forecast/index.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>
<a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary" title="Mortgage Bankers Association" target="_blank" rel="noopener noreferrer">Mortgage Bankers Association</a>
<a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Home Price Expectation Survey" target="_blank" rel="noopener noreferrer">Home Price Expectation Survey</a>
<a href="https://www.zelmanassociates.com/" title="Zelman &amp; Associates" target="_blank" rel="noopener noreferrer">Zelman & Associates</a>
<a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-Q4-2021-us-economic-outlook-10-28-2021.pdf" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a>
<a href="https://files.mykcm.com/2021/11/05135401/20211110-MEM-Eng-3.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99867" src="https://files.mykcm.com/2021/11/05135401/20211110-MEM-Eng-3.png" alt="What’s Happening with Home Prices? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/11/05135401/20211110-MEM-Eng-3.png 1000w, https://files.mykcm.com/2021/11/05135401/20211110-MEM-Eng-3-600x450.png 600w, https://files.mykcm.com/2021/11/05135401/20211110-MEM-Eng-3-768x576.png 768w, https://files.mykcm.com/2021/11/05135401/20211110-MEM-Eng-3-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>While the projected rate of appreciation varies among the experts, due to things like supply chain challenges, virus variants, and more, it’s clear that home values will continue to appreciate next year.
Bottom Line
There have been historic levels of home price appreciation over the last year. That pace will slow as we finish 2021 and enter into 2022. Prices will still rise in value, just at a much more moderate pace, which is good news for the housing market.
2021-11-10T06:48:00-07:002021-11-10T07:50:36-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7369There Are More Homes Available Now than There Were This Spring
<img width="750" height="410" src="https://files.mykcm.com/2021/10/22102848/20211026-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="There Are More Homes Available Now than There Were This Spring | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/22102848/20211026-KCM-Share.jpg 750w, https://files.mykcm.com/2021/10/22102848/20211026-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/10/22102848/20211026-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
There’s a lot of talk lately about how challenging it can be to find a home to buy. While housing inventory is still low, there are a few important things to understand about the <a href="https://www.mykcm.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/" title="supply">supply</a> of homes for sale as we move into the end of the year.
The Number of Homes for Sale Usually Peaks in the Fall
In the residential real estate market, trends generally follow a predictable and seasonal pattern. Typically, the number of homes available for sale (or active monthly listings) peaks in the fall. But in a chapter where so little feels normal, the question becomes: should we expect a fall peak this year?
If we look at the active monthly listings for 2021 (shown in the chart below), we’ll see that the number of homes on the market has increased fairly steadily since spring this year. The realtor.com <a href="https://www.realtor.com/research/data/" title="data" target="_blank" rel="noopener noreferrer">data</a> shows we’re still seeing an increase in active inventory month-over-month. While that gain is a bit smaller month-to-month (see August to September in the chart), September numbers are still up from the month prior.<a href="https://files.mykcm.com/2021/10/22102850/20211026-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99671" src="https://files.mykcm.com/2021/10/22102850/20211026-MEM-Eng-1.png" alt="There Are More Homes Available Now than There Were This Spring | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/10/22102850/20211026-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/10/22102850/20211026-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/10/22102850/20211026-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/10/22102850/20211026-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>The important takeaway here is the latest monthly numbers show growth. At the end of September, buyers had more options to pick from than they did this spring. That’s encouraging for buyers who may have paused their search months ago because they had trouble finding a home. Danielle Hale, Chief Economist at <a href="https://news.move.com/2021-09-30-Realtor-com-R-September-Housing-Report-Inventory-Just-Hit-a-2021-High,-Which-Means-More-Choices-for-Fall-Buyers" title="realtor.com" target="_blank" rel="noopener noreferrer">realtor.com</a>, sums this up nicely:
“Put simply, this September buyers had more options than they’ve had all year and while that’s typical of early fall, that’s not what happened in 2020. Still, it’s important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year.”
As Hale says, a fall peak in inventory is in line with typical seasonal trends. While it’s impossible to say for certain what the future holds for housing inventory, we do know both buyers and sellers have opportunities this season based on the latest data.
What Does That Mean for You?
If you’re thinking of buying a home, rest assured you do have more options now than you did earlier this year – and that’s a welcome relief. That said, today’s market is still highly competitive. This isn’t the time to slow your search. It’s actually the season when the number of homes available for sale tends to peak. Focus on the additional options with renewed energy this season and be prepared for <a href="https://www.mykcm.com/2021/09/15/5-tips-for-making-your-best-offer/" title="ongoing competition">ongoing competition</a> from other buyers.
If you’re considering selling your house, realize that while growing, <a href="https://www.mykcm.com/2021/10/18/sellers-your-house-could-be-an-oasis-for-buyers-seeking-more-options/" title="inventory">inventory</a> is still low. <a href="https://www.mykcm.com/2021/09/24/its-still-a-sellers-market-infographic/" title="Selling now">Selling now</a> means you’ll be in a great position to negotiate with buyers – and competition among buyers is good news for your bottom line. Eager buyers will likely be motivated to act before the holidays, giving you the benefit of a fast sale.
Bottom Line
Whether you’re buying or selling, there’s still a chance to make your goals a reality this season. Let’s connect so we can discuss what’s going on with the local market and current trends and what they mean for you.
2021-10-26T05:36:00-07:002021-10-26T09:16:47-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7336Your Home Equity Is Growing [INFOGRAPHIC]
<img width="1046" height="2053" src="https://files.mykcm.com/2021/10/18091034/20211022-MEM-1046x2053.png" class="attachment-entry size-entry wp-post-image" alt="Your Home Equity Is Growing [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/18091034/20211022-MEM-1046x2053.png 1046w, https://files.mykcm.com/2021/10/18091034/20211022-MEM-306x600.png 306w, https://files.mykcm.com/2021/10/18091034/20211022-MEM-522x1024.png 522w, https://files.mykcm.com/2021/10/18091034/20211022-MEM-768x1507.png 768w, https://files.mykcm.com/2021/10/18091034/20211022-MEM-783x1536.png 783w, https://files.mykcm.com/2021/10/18091034/20211022-MEM-1044x2048.png 1044w, https://files.mykcm.com/2021/10/18091034/20211022-MEM-100x196.png 100w, https://files.mykcm.com/2021/10/18091034/20211022-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
If you’re a homeowner, today’s <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="rising equity" target="_blank" rel="noopener noreferrer">rising equity</a> is great news. On average, homeowners have gained $51,500 in <a href="https://www.mykcm.com/2021/10/07/111285-reasons-you-should-buy-a-home-this-year/" title="equity">equity</a> since this time last year.
Whether it’s funding an education, fueling your next move, or starting a business, your home equity is a <a href="https://www.mykcm.com/2021/02/17/3-ways-home-equity-can-have-a-major-impact-on-your-life/" title="great tool">great tool</a> you can use to power your dreams.
Ready to <a href="https://www.mykcm.com/2021/10/04/4-tips-to-prep-for-your-home-sale-this-fall/" title="sell">sell</a>? Let’s connect to talk about how you can take advantage of your rising equity to reach your goals.
2021-10-22T05:29:00-07:002021-10-22T07:31:06-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7306What Does the Future Hold for Home Prices?
<img width="750" height="410" src="https://files.mykcm.com/2021/10/13150342/20211019-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What Does the Future Hold for Home Prices? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/13150342/20211019-KCM-Share.jpg 750w, https://files.mykcm.com/2021/10/13150342/20211019-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/10/13150342/20211019-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’re looking to buy or sell a house, chances are you’ve heard talk about today’s <a href="https://www.mykcm.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/" title="rising home prices">rising home prices</a>. And while this increase in home values is great news for sellers, you may be wondering what the future holds. Will prices continue to rise with time, or should you expect them to fall?
To answer that question, let’s first understand a few terms you may be hearing right now.
<a href="https://www.merriam-webster.com/dictionary/appreciation" title="Appreciation" target="_blank" rel="noopener noreferrer">Appreciation</a> is an increase in the value of an asset.
<a href="https://www.merriam-webster.com/dictionary/depreciation" title="Depreciation" target="_blank" rel="noopener noreferrer">Depreciation</a> is a decrease in the value of an asset.
<a href="https://www.merriam-webster.com/dictionary/deceleration" title="Deceleration" target="_blank" rel="noopener noreferrer">Deceleration</a> is when something happens at a slower pace.
It’s important to note home prices have increased, or appreciated, for <a href="https://www.nar.realtor/newsroom/existing-home-sales-recede-2-0-in-august" title="114" target="_blank" rel="noopener noreferrer">114</a> straight months. To find out if that trend may continue, look to the experts. <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Pulsenomics" target="_blank" rel="noopener noreferrer">Pulsenomics</a> surveyed over 100 economists, investment strategists, and housing market analysts asking for their five-year projections. In terms of what lies ahead, experts say the market may see some slight deceleration, but not depreciation.
Here’s the forecast for the next few years:<a href="https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99581" src="https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1.png" alt="What Does the Future Hold for Home Prices? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/10/13150344/20211019-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the graph above shows, prices are expected to <a href="https://www.mykcm.com/2021/09/09/home-price-appreciation-is-skyrocketing-in-2021-what-about-2022/" title="continue to rise">continue to rise</a>, just not at the same pace we’ve seen over the last year. Over 100 experts agree, there is no expectation for price depreciation. As the arrows indicate, each number is an increase, which means prices will rise each year.
Bill McBride, author of the blog <a href="https://www.calculatedriskblog.com/" title="Calculated Risk" target="_blank" rel="noopener noreferrer">Calculated Risk</a>, also expects deceleration, but not depreciation:
“My sense is the Case-Shiller National annual growth rate of 19.7% is probably close to a peak, and that year-over-year price increases will slow later this year.”
Ivy Zelman of <a href="https://www.zelmanassociates.com/" title="Zelman &amp; Associates" target="_blank" rel="noopener noreferrer">Zelman & Associates</a> agrees, saying:
“. . . home price appreciation is on the cusp of flipping to a decelerating trend.”
A <a href="https://www.realtor.com/news/trends/is-housing-market-frenzy-going-to-cool-off-this-fall/" title="recent article" target="_blank" rel="noopener noreferrer">recent article</a> from realtor.com indicates you should expect:
“. . . annual price increases will slow to a more normal level, . . .”
What Does This Deceleration Mean for You?
What experts are projecting for the years ahead is more in line with the historical norm for appreciation. According to data from <a href="https://cdn.blackknightinc.com/wp-content/uploads/2021/04/BKI_MM_Feb2021_Report.pdf" title="Black Knight" target="_blank" rel="noopener noreferrer">Black Knight</a>, the average annual appreciation from 1995-2020 is 4.1%. As you can see from the chart above, the expert forecasts are closer to that pace, which means you should see appreciation at a level that’s aligned with a more normal year.
If you’re a buyer, don’t expect a sudden or drastic drop in home prices – experts say it won’t happen. Instead, think about your homeownership goals and consider purchasing a home before prices rise further.
If you’re a seller, the continued home price appreciation is good news for the value of your house. Work with an agent to list your house for the <a href="https://www.mykcm.com/2021/09/03/your-agent-is-key-when-pricing-your-house-infographic/" title="right price">right price</a> based on market conditions.
Bottom Line
Experts expect price deceleration, not price depreciation over the coming years. Let’s connect to talk through what’s happening in the housing market today, where things are headed, and what it means for you.
2021-10-19T05:55:00-07:002021-10-19T06:59:38-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7248Experts Agree: Homeownership Provides a Path to Long-Term Wealth
<img width="750" height="410" src="https://files.mykcm.com/2021/10/06105145/20211011-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Experts Agree: Homeownership Provides a Path to Long-Term Wealth | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/06105145/20211011-KCM-Share.jpg 750w, https://files.mykcm.com/2021/10/06105145/20211011-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/10/06105145/20211011-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
A recent survey from <a href="https://www.lendingtree.com/home/mortgage/homeownership-renting-survey/" title="LendingTree.com" target="_blank" rel="noopener noreferrer">LendingTree.com</a> found there are multiple reasons why Americans would choose to purchase a home instead of <a href="https://www.mykcm.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/" title="renting">renting</a>. Some of the most popular <a href="https://www.mykcm.com/2021/05/03/americans-find-the-nonfinancial-benefits-of-homeownership-most-valuable/" title="non-financial">non-financial</a> reasons given include:
The flexibility to make the space your own
The pride homeownership offers
The sense of stability
In the same survey, 41% of respondents say they’d rather own a home than rent because of the unique way homeownership <a href="https://www.mykcm.com/2021/09/30/as-home-equity-rises-so-does-your-wealth/" title="builds wealth">builds wealth</a> over time.
And experts agree – the home you own is an important tool for building your net worth. Here’s what many of those experts have to say about building long-term financial stability through homeownership.
According to the <a href="https://www.nar.realtor/blogs/economists-outlook/metro-area-wealth-gains-as-of-2021-q2-typical-gain-of-349000-over-30-years" title="National Association of Realtors" target="_blank" rel="noopener noreferrer">National Association of Realtors</a> (NAR):
“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258, . . .”
Mark Fleming, Chief Economist at <a href="https://blog.firstam.com/economics/reconomy-podcast-should-you-rent-or-buy" title="First American" target="_blank" rel="noopener noreferrer">First American</a>, points out that a home is truly a one-of-a-kind asset. It’s the only asset that’s both an investment and a place for you to call your own.
“The major financial advantage of homeownership is the accumulation of equity in the form of house price appreciation. . . . We won’t always have 17% house price appreciation, but we have to take into account the fact that the shelter that you’re owning is an equity-generating or wealth-generating asset.”
Homeowners can leverage the wealth they generate in several ways throughout their life. Tapping into accumulated equity has long been used to pay for the cost of an education, to start a business, or to fund various other expenses. The <a href="https://www.jchs.harvard.edu/blog/learning-history-homeownership-rate" title="Joint Center of Housing Studies" target="_blank" rel="noopener noreferrer">Joint Center of Housing Studies</a> at Harvard points out:
“. . . by paying down mortgage principal each month and participating in the long-term appreciation of home values, a family can build wealth that can be used for retirement or other needs, including helping the next generation.”
Bottom Line
With home prices expected to continue to appreciate in coming years, homebuyers have an opportunity to start the long-term wealth-building process right now. Let’s connect today if you’re ready to begin your journey on the path to becoming a homeowner.
2021-10-11T05:34:00-07:002021-10-11T07:36:32-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7227111,285 Reasons You Should Buy a Home This Year
<img width="750" height="410" src="https://files.mykcm.com/2021/09/30145438/20211005-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="111,285 Reasons You Should Buy a Home This Year | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/30145438/20211005-KCM-Share.jpg 750w, https://files.mykcm.com/2021/09/30145438/20211005-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/09/30145438/20211005-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
The financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.
According to the <a href="https://www.nar.realtor/blogs/economists-outlook/metro-area-wealth-gains-as-of-2021-q2-typical-gain-of-349000-over-30-years" title="latest research" target="_blank" rel="noopener noreferrer">latest research</a> from the National Association of Realtors (NAR):
“Homeownership is a key pathway to building wealthand narrowing the racial income and wealth inequality gap. Housing wealth (equity) accumulation takes time and is built up by price appreciation and paying off the mortgage.”
An increase in <a href="https://www.mykcm.com/2021/09/30/as-home-equity-rises-so-does-your-wealth/" title="equity">equity</a> builds the wealth of the individual that owns it. This wealth can be passed down to future generations. The Federal Reserve in an addendum to their <a href="https://www.federalreserve.gov/publications/files/scf20.pdf" title="Survey of Consumer Finances" target="_blank" rel="noopener noreferrer">Survey of Consumer Finances</a> explains:
“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”
The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:
“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”
Here’s a look at how equity can build your wealth over time when you own a home.
Equity over the Last 30 Years
The NAR research reveals that the average gain for homeowners over the last five years was $139,134 and over the last 10 years was $218,505. Looking even further back in time, the article says:
“Homeowners who purchased a typical single-family existing-home 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in 2021 Q2 accumulated housing wealth of $349,258.”
Homeownership builds household wealth which also enables households to more easily move to the home of their dreams. As Mark Fleming, the Chief Economist at First American, <a href="https://blog.firstam.com/economics/housing-market-potential-reaches-highest-level-since-2007" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”
If you missed out on the equity gains over the last 30 years, don’t fret. Experts are still calling for substantial growth in equity over the next five years.
Looking Forward at the Equity To Come
The most recent <a href="https://pulsenomics.com/surveys/#home-price-expectations" title="Home Price Expectation Survey" target="_blank" rel="noopener noreferrer">Home Price Expectation Survey</a>, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home values (and therefore equity) to increase as follows:
2021: 11.74%
2022: 5.82%
2023: 3.94%
2024: 3.56%
2025: 3.55%
The survey estimates a 31.8% cumulative appreciation over the next five years. Using their annual projections, the graph below shows the equity build-up a purchaser could earn, using a $350,000 home as an example:<a href="https://files.mykcm.com/2021/09/30145353/20210930-MEM-ENG.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99448" src="https://files.mykcm.com/2021/09/30145353/20210930-MEM-ENG.png" alt="111,285 Reasons You Should Buy a Home This Year | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/09/30145353/20210930-MEM-ENG.png 960w, https://files.mykcm.com/2021/09/30145353/20210930-MEM-ENG-600x450.png 600w, https://files.mykcm.com/2021/09/30145353/20210930-MEM-ENG-768x576.png 768w, https://files.mykcm.com/2021/09/30145353/20210930-MEM-ENG-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>That’s a potential increase in household wealth of $111,285 over five years.
Bottom Line
Owning a home is one of the best ways to grow your wealth over time. House wealth can impact generations. In many cases, the largest single investment a household has is their home. As that investment appreciates in value, the financial options also increase.
2021-10-07T05:26:00-07:002021-10-07T08:28:50-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7174As Home Equity Rises, So Does Your Wealth
<img width="750" height="410" src="https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="As Home Equity Rises, So Does Your Wealth | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share.jpg 750w, https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Homeownership is still a crucial part of the American dream. For those people who <a href="https://www.mykcm.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/" title="own a home">own a home</a> (and those looking to buy one), it’s clear that being a homeowner has considerable benefits both <a href="https://www.mykcm.com/2021/05/03/americans-find-the-nonfinancial-benefits-of-homeownership-most-valuable/" title="emotionally">emotionally</a> and <a href="https://www.mykcm.com/2021/04/08/homeownership-is-full-of-financial-benefits/" title="financially">financially</a>. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your <a href="https://www.mykcm.com/2021/06/17/housing-wealth-the-missing-piece-of-the-affordability-equation/" title="wealth">wealth</a> comes in the form of equity.
<a href="https://www.mykcm.com/2021/07/23/pop-quiz-can-you-define-these-key-terms-in-todays-housing-market-infographic/" title="Equity">Equity</a> is the difference between what you owe on the home and its market value based on factors like price appreciation.
The best thing about equity is that it often grows without you even realizing it, especially in a <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a> like we’re in now. In today’s real estate market, the combination of <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" title="low housing supply">low housing supply</a> and high buyer demand is driving <a href="https://www.mykcm.com/2021/08/16/a-look-at-home-price-appreciation-and-what-it-means-for-sellers/" title="home values">home values</a> up. This is giving homeowners a significant equity boost.
According to the latest data from CoreLogic, the amount of equity homeowners have has continued to grow as home values appreciate. Here are some key takeaways from the <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights Report</a>:
The average homeowner gained $51,500 in equity over the past year
There was a 29.3% increase in national homeowner equity year over year
To give you an idea of what that looks like in your area, the map below shows the average equity gains by state.<a href="https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99434" src="https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1.png" alt="As Home Equity Rises, So Does Your Wealth | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What does all of that mean for you?
If you’re already a homeowner, you likely have more equity in your house than you realize. The numbers in the map above reflect year-over-year growth. If you’ve been in your home for longer than a year, you’ll likely have even more equity than that. That equity can take you places. You can use the equity you’ve gained to fuel your next move, achieve other life goals, and more.
On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Homeowners across the nation gained an average of over $50,000 in equity this year. Don’t miss out on this chance to grow your net worth.
Bottom Line
If you want to learn more, let’s connect. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowner’s net worth, and the impact equity can have when you own a home.
2021-09-30T05:31:00-07:002021-10-01T08:32:14-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7118It’s Still a Sellers’ Market [INFOGRAPHIC]
<img width="1046" height="2173" src="https://files.mykcm.com/2021/09/22165444/20210924-MEM-1046x2173.png" class="attachment-entry size-entry wp-post-image" alt="It’s Still a Sellers’ Market [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/22165444/20210924-MEM-1046x2173.png 1046w, https://files.mykcm.com/2021/09/22165444/20210924-MEM-289x600.png 289w, https://files.mykcm.com/2021/09/22165444/20210924-MEM-493x1024.png 493w, https://files.mykcm.com/2021/09/22165444/20210924-MEM-768x1596.png 768w, https://files.mykcm.com/2021/09/22165444/20210924-MEM-739x1536.png 739w, https://files.mykcm.com/2021/09/22165444/20210924-MEM-986x2048.png 986w, https://files.mykcm.com/2021/09/22165444/20210924-MEM-100x208.png 100w, https://files.mykcm.com/2021/09/22165444/20210924-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
Due to <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="low supply" target="_blank" rel="noopener noreferrer">low supply</a> and <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" title="high demand">high demand</a>, today is one of the strongest <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ markets">sellers’ markets</a> we’ve seen.
Sellers can benefit from more <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-08-realtors-conference-index-09-22-2021_0.pdf" title="offers" target="_blank" rel="noopener noreferrer">offers</a> to pick from, higher home <a href="https://www.corelogic.com/intelligence/u-s-home-price-insights/" title="values" target="_blank" rel="noopener noreferrer">values</a>, and a faster sales process. That might be why 73% of people believe it’s a <a href="https://www.fanniemae.com/media/40891/display" title="good time to sell" target="_blank" rel="noopener noreferrer">good time to sell</a>.
Sellers, don’t miss out on this <a href="https://www.mykcm.com/2021/08/13/sellers-are-in-a-sweet-spot-infographic/" title="unique opportunity">unique opportunity</a>. Let’s connect so you can take advantage of this hot sellers’ market.
2021-09-24T05:38:00-07:002021-09-24T05:40:31-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7107Two Reasons Why Waiting a Year To Buy Could Cost You
<img width="750" height="410" src="https://files.mykcm.com/2021/09/22131421/20210922-KCM-Share-1.jpg" class="attachment-entry size-entry wp-post-image" alt="Two Reasons Why Waiting a Year To Buy Could Cost You | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/22131421/20210922-KCM-Share-1.jpg 750w, https://files.mykcm.com/2021/09/22131421/20210922-KCM-Share-1-600x328.jpg 600w, https://files.mykcm.com/2021/09/22131421/20210922-KCM-Share-1-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’re a renter with a desire to become a homeowner, or a homeowner who’s decided your current house no longer fits your needs, you may be hoping that waiting a year might mean better market conditions to purchase a home.
To determine if you should buy now or wait, you need to ask yourself two simple questions:
What will home prices be like in 2022?
Where will mortgage rates be by the end of 2022?
Let’s shed some light on the answers to both of these questions.
What will home prices be like in 2022?
Three major housing industry entities project continued home price appreciation for 2022. Here are their forecasts:
<a href="http://www.freddiemac.com/research/forecast/20210715_quarterly_economic_forecast.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>: 5.3%
<a href="https://www.fanniemae.com/research-and-insights/forecast" title="Fannie Mae" target="_blank" rel="noopener noreferrer">Fannie Mae</a>: 5.1%
<a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary" title="Mortgage Bankers Association" target="_blank" rel="noopener noreferrer">Mortgage Bankers Association</a>: 8.4%
Using the average of the three projections (6.27%), a home that sells for $350,000 today would be valued at $371,945 by the end of next year. That means, if you delay, it could cost you more. As a prospective buyer, you could pay an additional $21,945 if you wait.
Where will mortgage rates be by the end of 2022?
Today, the 30-year fixed mortgage rate is hovering near historic lows. However, most experts believe rates will rise as the economy continues to recover. Here are the forecasts for the fourth quarter of 2022 by the three major entities mentioned above:
<a href="http://www.freddiemac.com/research/forecast/20210715_quarterly_economic_forecast.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>: 3.8%
<a href="https://www.fanniemae.com/research-and-insights/forecast" title="Fannie Mae" target="_blank" rel="noopener noreferrer">Fannie Mae</a>: 3.2%
<a href="https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary" title="Mortgage Bankers Association" target="_blank" rel="noopener noreferrer">Mortgage Bankers Association</a>: 4.2%
That averages out to 3.7% if you include all three forecasts, and it’s nearly a full percentage point higher than today’s rates. Any increase in mortgage rates will increase your cost.
What does it mean for you if both home values and mortgage rates rise?
You’ll pay more in mortgage payments each month if both variables increase. Let’s assume you purchase a $350,000 home this year with a 30-year fixed-rate loan at 2.86% after making a 10% down payment. According to the mortgage calculator from <a href="https://smartasset.com/mortgage/mortgage-calculator#tsc4HcSJb9" title="Smart Asset" target="_blank" rel="noopener noreferrer">Smart Asset</a>, your monthly mortgage payment (including principal and interest payments, and estimated home insurance, taxes in your area, and other fees) would be approximately $1,899.
That same home could cost $371,945 by the end of 2022, and the mortgage rate could be 3.7% (based on the industry forecasts mentioned above). Your monthly mortgage payment, after putting down 10%, would increase to $2,166.<a href="https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99373" src="https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1.png" alt="Two Reasons Why Waiting a Year To Buy Could Cost You | MyKCM" width="600" height="338" srcset="https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1.png 1280w, https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1-600x338.png 600w, https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1-1024x576.png 1024w, https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1-768x432.png 768w, https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1-100x56.png 100w, https://files.mykcm.com/2021/09/22131323/20210923_MEM_ENG_1-1046x588.png 1046w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The difference in your monthly mortgage payment would be $267. That’s $3,204 more per year and $96,120 over the life of the loan.
If you consider that purchasing now will also let you take advantage of the equity you’ll build up over the next calendar year, which is approximately $22,000 for a house with a similar value, then the total net worth increase you could gain from buying this year is over $118,000.
Bottom Line
When asking if you should buy a home, you probably think of the <a href="https://www.mykcm.com/2021/05/03/americans-find-the-nonfinancial-benefits-of-homeownership-most-valuable/" title="non-financial benefits">non-financial benefits</a> of owning a home as a driving motivator. When asking when to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.
2021-09-23T06:09:00-07:002021-09-23T06:12:01-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7093Is a 20% Down Payment Really Necessary To Purchase a Home?
<img width="750" height="410" src="https://files.mykcm.com/2021/09/17143501/20210922-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Is a 20% Down Payment Really Necessary To Purchase a Home? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/17143501/20210922-KCM-Share.jpg 750w, https://files.mykcm.com/2021/09/17143501/20210922-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/09/17143501/20210922-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
There’s a common misconception that, as a <a href="https://www.mykcm.com/2021/09/10/fact-or-fiction-homebuyer-edition-infographic/" title="homebuyer">homebuyer</a>, you need to come up with 20% of the total sale price for your down payment. In fact, a recent survey by <a href="https://www.lendingtree.com/home/mortgage/homeownership-renting-survey/" title="Lending Tree" target="_blank" rel="noopener noreferrer">Lending Tree</a> asks what is keeping consumers from purchasing a home. For over half of those surveyed, the ability to afford a down payment is the biggest hurdle.
That may be because those individuals assume a 20% down payment is necessary. While putting more money down if you’re able can <a href="https://www.mykcm.com/2021/03/01/what-are-the-benefits-of-a-20-down-payment/" title="benefit">benefit</a> buyers, putting 20% down is not mandatory. As <a href="https://sf.freddiemac.com/articles/insights/down-payments-helping-future-borrowers-bridge-the-awareness-gap" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a> puts it:
“The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.”
If saving that much money sounds overwhelming, you might be ready to give up on the dream of homeownership before you even begin – but you don’t have to. According to the <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" title="Profile of Home Buyers and Sellers" target="_blank" rel="noopener noreferrer">Profile of Home Buyers and Sellers</a> from the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today’s average down payment is only 12%. That number is even lower for <a href="https://www.mykcm.com/2021/08/20/options-for-first-time-homebuyers-infographic/" title="first-time homebuyers">first-time homebuyers</a>, whose average down payment is only 7%.
Based on the <a href="https://www.nar.realtor/sites/default/files/documents/2021-home-buyers-and-sellers-generational-trends-03-16-2021.pdf" title="Home Buyers and Sellers Generational Trends Report" target="_blank" rel="noopener noreferrer">Home Buyers and Sellers Generational Trends Report</a> from NAR, the graph below shows an even closer look at the down payment percentage various age groups pay:<a href="https://files.mykcm.com/2021/09/17143504/20210922-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99349" src="https://files.mykcm.com/2021/09/17143504/20210922-MEM-Eng-1.png" alt="Is a 20% Down Payment Really Necessary To Purchase a Home? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/09/17143504/20210922-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/09/17143504/20210922-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/09/17143504/20210922-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/09/17143504/20210922-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the graph shows, the only groups who put 20% or more down on average are older homebuyers who likely can use the sale of an existing home to fuel a larger down payment on their next home.
What does this mean for you?
If you’re a prospective homebuyer, it’s important to know you don’t have to put the full 20% down. And while <a href="https://www.mykcm.com/2021/04/19/how-much-time-do-you-need-to-save-for-a-down-payment/" title="saving">saving</a> for any down payment amount may feel like a challenge, keep in mind there are programs for qualified buyers that allow them to purchase a home with a down payment as low as 3.5%. There are also options like VA loans and USDA loans with no down payment requirements for qualified applicants.
To understand your options, you do need to do your homework. If you’re interested in learning more about <a href="https://www.mykcm.com/2020/10/27/how-down-payment-assistance-opens-the-door-to-homeownership/" title="down payment assistance">down payment assistance</a> programs, information is available through sites like <a href="https://downpaymentresource.com/" title="downpaymentresource.com" target="_blank" rel="noopener noreferrer">downpaymentresource.com</a>. Be sure to also work with a real estate advisor from the start to learn what you may qualify for in the homebuying process.
Bottom Line
Don’t let the myth of the 20% down payment halt your homebuying process before it begins. If you want to purchase a home this year, let’s connect to start the conversation and explore your options.
2021-09-22T05:19:00-07:002021-09-22T06:34:25-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7072Is It Time To Move on to a New Home?
<img width="750" height="410" src="https://files.mykcm.com/2021/09/17121645/20210920-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Is It Time To Move on to a New Home? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/17121645/20210920-KCM-Share.jpg 750w, https://files.mykcm.com/2021/09/17121645/20210920-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/09/17121645/20210920-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’ve been in your home for longer than five years, you’re not alone. According to recent data from <a href="https://blog.firstam.com/economics/why-homebodies-versus-pandemic-fueled-demand-will-determine-the-outlook-for-housing-market-potential" title="First American" target="_blank" rel="noopener noreferrer">First American</a>, homeowners are staying put much longer than historical averages (see graph below):<a href="https://files.mykcm.com/2021/09/17121647/20210920-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99341" src="https://files.mykcm.com/2021/09/17121647/20210920-MEM-Eng-1.png" alt="Is It Time To Move on to a New Home? | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/09/17121647/20210920-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/09/17121647/20210920-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/09/17121647/20210920-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/09/17121647/20210920-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the graph shows, before 2008, homeowners <a href="https://www.mykcm.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/" title="sold">sold</a> their houses after an average of just five years. Today, that number has more than doubled to over 10 years. The housing industry refers to this as your tenure.
To really explore tenure, it’s important to understand what drives people to make a move. An article from <a href="https://www.thebalance.com/why-home-owners-sell-1799021" title="The Balance" target="_blank" rel="noopener noreferrer">The Balance</a> explores some of the primary reasons individuals choose to <a href="https://www.mykcm.com/2021/09/07/reasons-you-should-consider-selling-this-fall/" title="sell">sell</a> their houses. It says:
“People who move for home-related reasons might need a larger home or a house that better fits their needs, . . . Financial reasons for moving include wanting a nicer home, moving to a newer home to avoid making repairs on the old one, or cashing in on existing equity.”
If you’ve been in your home for longer than the norm, chances are you’re putting off addressing one, if not several, of the reasons other individuals choose to move. If this sounds like you, here are a few things to consider:
If your needs have changed, it may be time to re-evaluate your home.
As the past year has shown, our <a href="https://www.mykcm.com/2021/06/02/whats-motivating-people-to-move-right-now/" title="needs can change">needs can change</a> rapidly. That means the longer you’ve been in your home, the more likely it is your needs have evolved. The Balance notes several personal factors that could lead to your home no longer meeting your needs, including relationship and job changes.
For example, many workers recently found out they’ll be working remotely indefinitely. If that’s the case for you, you may need more space for a dedicated home office. Other homeowners choose to sell because the number of people living under their roof changes. Now more than ever, we’re spending more and more time at home. As you do, consider if your home really delivers on what you need moving forward.
It’s often financially beneficial to sell your house and move.
One of the biggest benefits of homeownership is the equity your home builds over time. If you’ve been in your house for several years, you may not realize how much <a href="https://www.mykcm.com/2021/08/16/a-look-at-home-price-appreciation-and-what-it-means-for-sellers/" title="equity">equity</a> you have. According to the latest <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Report</a> from CoreLogic, homeowners gained an average of $33,400 in equity over the past year.
That equity, plus today’s <a href="https://www.mykcm.com/2021/08/23/what-do-experts-say-about-todays-mortgage-rates/" title="low mortgage rates">low mortgage rates</a>, can fuel a major upgrade when you sell your home and <a href="https://www.mykcm.com/2021/08/13/sellers-are-in-a-sweet-spot-infographic/" title="purchase a new one">purchase a new one</a>. Or, if you’re looking to downsize, your equity can help provide a larger down payment and lower your monthly payments over the life of your next loan. No matter what, there are significant financial benefits to selling in <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="today’s market">today’s market</a>.
Bottom Line
If you’ve been in your home for 5-10 years or more, now might be the time to explore your options. Today’s low rates and your built-up equity could provide you with the opportunity to address your evolving needs. If you feel it’s time to sell, let’s connect.
2021-09-20T05:18:00-07:002021-09-20T07:21:02-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7056Have You Ever Seen a Housing Market Like This? [INFOGRAPHIC]
<img width="1046" height="2047" src="https://files.mykcm.com/2021/09/16133349/20210917-MEM-1046x2047.png" class="attachment-entry size-entry wp-post-image" alt="Have You Ever Seen a Housing Market Like This? [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/16133349/20210917-MEM-1046x2047.png 1046w, https://files.mykcm.com/2021/09/16133349/20210917-MEM-307x600.png 307w, https://files.mykcm.com/2021/09/16133349/20210917-MEM-523x1024.png 523w, https://files.mykcm.com/2021/09/16133349/20210917-MEM-768x1503.png 768w, https://files.mykcm.com/2021/09/16133349/20210917-MEM-785x1536.png 785w, https://files.mykcm.com/2021/09/16133349/20210917-MEM-1047x2048.png 1047w, https://files.mykcm.com/2021/09/16133349/20210917-MEM-100x196.png 100w, https://files.mykcm.com/2021/09/16133349/20210917-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
Whether you’re <a href="https://www.mykcm.com/2021/09/10/fact-or-fiction-homebuyer-edition-infographic/" title="buying">buying</a> or <a href="https://www.mykcm.com/2021/09/07/reasons-you-should-consider-selling-this-fall/" title="selling">selling</a> – today’s housing market has plenty of good news to go around.
Buyers can take advantage of today’s mortgage <a href="http://www.freddiemac.com/pmms/pmms30.html" title="rates" target="_blank" rel="noopener noreferrer">rates</a> to escape rising <a href="https://news.move.com/2021-08-26-Realtor-com-R-July-Rental-Report-Buying-a-Starter-Home-is-More-Affordable-than-Renting-in-Nearly-Half-of-the-Biggest-U-S-Metros" title="rents" target="_blank" rel="noopener noreferrer">rents</a> and keep <a href="https://www.nar.realtor/blogs/economists-outlook/housing-affordability-weakens-in-june-as-home-prices-ascend" title="monthly payments" target="_blank" rel="noopener noreferrer">monthly payments</a> affordable. Sellers can reap the benefits of <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-07-realtors-confidence-index-08-23-2021.pdf" title="multiple offers" target="_blank" rel="noopener noreferrer">multiple offers</a> and a fast sale.
If this sounds like good news to you, let’s connect today so you can capitalize on the <a href="https://www.mykcm.com/2021/09/02/5-reasons-todays-housing-market-is-anything-but-normal/" title="unique">unique</a> opportunity you have in today’s market.
2021-09-17T05:29:00-07:002021-09-17T05:31:24-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:7006 Reasons You Should Consider Selling This Fall
<img width="750" height="410" src="https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Reasons You Should Consider Selling This Fall | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’re trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a> we’re in today won’t last forever. If you’re thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.
1. Your House Will Likely Sell Quickly
According to the Realtors Confidence Index released by the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-07-realtors-confidence-index-08-23-2021.pdf" title="National Association of Realtors&nbsp;" target="_blank" rel="noopener noreferrer">National Association of Realtors </a>(NAR), homes continue to sell quickly – on average, they’re selling in just 17 days. As a seller, that’s great news for you.
Average days on market is a strong indicator of buyer <a href="https://www.mykcm.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/" title="demand">demand</a>. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.
2. Buyers Are Willing To Compete for Your House
In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers, and they’re competitive ones. The graph below shows how the average number of offers right now compares to previous years:<a href="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99211" src="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Buyers today know <a href="https://www.mykcm.com/2021/08/31/what-buyers-and-sellers-need-to-know-about-the-appraisal-gap/" title="bidding wars">bidding wars</a> are a likely outcome, and they’re coming prepared with their best offer in hand. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current <a href="https://www.mykcm.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/" title="inventory of homes">inventory of homes</a> for sale. Though it’s improving, it remains at near-record lows. The <a href="https://www.nar.realtor/newsroom/existing-home-sales-climb-2-0-in-July" title="chart" target="_blank" rel="noopener noreferrer">chart</a> below shows how today’s low inventory stacks up against recent years. The lighter the blue is in the chart, the lower the housing supply.<a href="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99212" src="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png 1000w, https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>If you’re looking to take advantage of buyer demand and get the most attention for your house, <a href="https://www.mykcm.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/" title="selling now">selling now</a> before more listings come to the market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through <a href="https://www.mykcm.com/2021/07/09/your-home-equity-can-take-you-places-infographic/" title="growing equity">growing equity</a>. You can leverage that equity, plus current <a href="https://www.mykcm.com/2021/08/23/what-do-experts-say-about-todays-mortgage-rates/" title="low mortgage rates">low mortgage rates</a>, to power your move now. But these near-historic low rates won’t last forever.
Experts forecast interest rates will rise. In their forecast, Freddie Mac <a href="http://www.freddiemac.com/fmac-resources/research/pdf/2021Q3-Forecast-04.pdf" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While we forecast rates to increase gradually later in the year, we don’t expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4%, rising to 3.8% by the fourth quarter of 2022.”
When rates rise, even modestly, it’ll impact your monthly payment and by extension your purchasing power.
Bottom Line
Don’t delay. The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season. If you’re thinking about making a move, let’s chat about why it makes sense to list your house now.
2021-09-07T05:37:00-07:002021-09-08T06:39:41-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6947Your Agent Is Key When Pricing Your House [INFOGRAPHIC]
<img width="1046" height="1843" src="https://files.mykcm.com/2021/09/02133755/20210903-MEM-1046x1843.png" class="attachment-entry size-entry wp-post-image" alt="Your Agent Is Key When Pricing Your House [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/02133755/20210903-MEM-1046x1843.png 1046w, https://files.mykcm.com/2021/09/02133755/20210903-MEM-340x600.png 340w, https://files.mykcm.com/2021/09/02133755/20210903-MEM-581x1024.png 581w, https://files.mykcm.com/2021/09/02133755/20210903-MEM-768x1353.png 768w, https://files.mykcm.com/2021/09/02133755/20210903-MEM-872x1536.png 872w, https://files.mykcm.com/2021/09/02133755/20210903-MEM-1162x2048.png 1162w, https://files.mykcm.com/2021/09/02133755/20210903-MEM-100x176.png 100w, https://files.mykcm.com/2021/09/02133755/20210903-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" />
Some Highlights
Pricing your house right takes market experience and expertise.
To find the best <a href="https://www.nar.realtor/determining-asking-price" title="list price" target="_blank" rel="noopener noreferrer">list price</a>, your agent balances current market demand, values of homes in your neighborhood, where <a href="https://www.corelogic.com/intelligence/find-stories/us-sp-corelogic-case-shiller-rockets-to-16-6-reaches-new-records/" title="prices" target="_blank" rel="noopener noreferrer">prices</a> are headed, and your home’s condition.
If you’re ready to sell, don’t <a href="https://www.mykcm.com/2021/07/08/selling-your-house-make-sure-you-price-it-right/" title="guess">guess</a> on the price. Let’s connect today so we price your house to attract <a href="https://www.mykcm.com/2021/08/13/sellers-are-in-a-sweet-spot-infographic/" title="multiple offers">multiple offers</a> and maximize your <a href="https://www.mykcm.com/2021/08/04/sellers-make-todays-home-price-appreciation-work-for-you/" title="return on investment">return on investment</a>.
2021-09-03T05:18:00-07:002021-09-03T05:20:47-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6883What Buyers and Sellers Need To Know About the Appraisal Gap
<img width="750" height="410" src="https://files.mykcm.com/2021/08/27155647/20210831-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What Buyers and Sellers Need To Know About the Appraisal Gap | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/27155647/20210831-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/27155647/20210831-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/27155647/20210831-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
It’s economy 101 – when supply is low and demand is high, prices naturally rise. That’s what’s happening in today’s housing market. Home <a href="https://www.mykcm.com/2021/08/16/a-look-at-home-price-appreciation-and-what-it-means-for-sellers/" title="prices are appreciating">prices are appreciating</a> at near-historic rates, and that’s creating some challenges when it comes to <a href="https://www.mykcm.com/2021/07/23/pop-quiz-can-you-define-these-key-terms-in-todays-housing-market-infographic/" title="home appraisals">home appraisals</a>.
In recent months, it’s become increasingly common for an appraisal to come in below the contract price on the house. Shawn Telford, Chief Appraiser for <a href="https://www.corelogic.com/intelligence/appraisal-gap-increases-in-hot-markets/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a>, explains it like this:
“Recently, we observed buyers paying prices above listing price and higher than the market data available to appraisers can support.This difference is known as ‘the appraisal gap . . . .’”
Why does an appraisal gap happen?
Basically, with the heightened buyer demand, purchasers are often willing to pay over asking to secure the home of their dreams. If you’ve ever toured a house you’ve fallen in love with, you understand. Once you start to picture yourself and your furniture in the rooms, you want to do everything you can to land the property, including putting in a high <a href="https://www.mykcm.com/2021/06/21/5-things-homebuyers-need-to-know-when-making-an-offer/" title="offer">offer</a> to try to beat out other would-be buyers.
When the appraiser comes in, they look at things a bit more objectively. Their job is to assess the inherent value of the home, so they’re going to study the facts. <a href="https://www.corelogic.com/intelligence/whats-the-secret-to-increasing-appraised-value/" title="Dustin Harris" target="_blank" rel="noopener noreferrer">Dustin Harris</a>, Appraiser Coach, drives this point home:
“It’s important for everyone to understand that the appraiser’s job in the end is to remain that unbiased third party, to truly tell the client what that home is worth in the current market, regardless of what decisions have been made on the price side of things.”
In simple terms, while homebuyers may be willing to pay more, appraisers are there to assess the market value of the home. Their goal is to make sure the lender isn’t loaning more money than the home is worth. It’s objective, rather than emotional.
In a highly competitive market like today’s, having a discrepancy between the two numbers isn’t unusual. Here’s a look at the increasing rate of appraisal gaps, according to data from <a href="https://www.corelogic.com/intelligence/appraisal-gap-increases-in-hot-markets/" title="CoreLogic" target="_blank" rel="noopener noreferrer">CoreLogic</a> (see graph below):<a href="https://files.mykcm.com/2021/08/27155650/20210831-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99174" src="https://files.mykcm.com/2021/08/27155650/20210831-MEM-Eng-1.png" alt="What Buyers and Sellers Need To Know About the Appraisal Gap | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/27155650/20210831-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/08/27155650/20210831-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/27155650/20210831-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/27155650/20210831-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
What does this mean for you?
Ultimately, knowledge is power. The best thing you can do is understand appraisal gaps may impact your transaction if you’re buying or selling. If you do encounter an appraisal below your contract price, know that in today’s <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a>, the most common approach is for the seller to ask the buyer to make up the difference in price. Buyers, be prepared to bring extra money to the table if you really want the home.
Above all else, lean on your <a href="https://www.mykcm.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/" title="real estate agent">real estate agent</a>. Whether you’re a <a href="https://www.mykcm.com/2021/06/25/homebuyers-hang-in-there-infographic/" title="buyer">buyer</a> or <a href="https://www.mykcm.com/2021/08/04/sellers-make-todays-home-price-appreciation-work-for-you/" title="seller">seller</a>, your trusted advisor is your ally if you come up against an appraisal gap. We’ll help you understand your options and handle any additional negotiations that need to happen.
Bottom Line
In today’s real estate market, it’s important to stay informed on the latest trends. Let’s connect so you have an ally to help you navigate an appraisal gap to get the best possible outcome in the Philadelphia or Main Line areas.
2021-08-31T05:24:00-07:002021-08-31T06:27:07-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6872The Difference in Net Worth Between Homeowners and Renters Is Widening
<img width="750" height="410" src="https://files.mykcm.com/2021/08/25162102/20210830-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Difference in Net Worth Between Homeowners and Renters Is Widening | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/25162102/20210830-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/25162102/20210830-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/25162102/20210830-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Becoming financially secure is an important goal for many people today, but some don’t realize just how much <a href="https://www.mykcm.com/2021/07/09/your-home-equity-can-take-you-places-infographic/" title="homeownership">homeownership</a> can help them achieve that dream. A recent report, <a href="https://www.personalcapital.com/assets/email/PCA-Empower-Financial-Wellness-Report.pdf" title="The Journey Toward Financial Freedom" target="_blank" rel="noopener noreferrer">The Journey Toward Financial Freedom</a>, surveys Americans about their perspective on financial wellness and their goals. It shows there may be a significant misconception about the role owning a home plays in building wealth:
“Home ownership is one of the indicators Americans say is least connected to financial health.”
Two major personal wealth goals – homeownership and net worth – work hand-in-hand. Below are just a few reasons why, if you’re looking for financial security, homeownership should be a top priority.
Homeownership Is an Important Cornerstone of Building Wealth
Every three years, the Federal Reserve releases the <a href="https://www.federalreserve.gov/publications/files/scf20.pdf" title="Survey of Consumer Finances" target="_blank" rel="noopener noreferrer">Survey of Consumer Finances</a> which highlights the difference in wealth between homeowners and renters. The graph below shows the findings across the previous surveys including the latest data (2019), and the results are staggering:<a href="https://files.mykcm.com/2021/08/25162108/20210830-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99152" src="https://files.mykcm.com/2021/08/25162108/20210830-MEM-Eng-1.png" alt="The Difference in Net Worth Between Homeowners and Renters Is Widening | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/25162108/20210830-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/08/25162108/20210830-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/25162108/20210830-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/25162108/20210830-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>As the graph illustrates, the gap between homeowners and renters continues to widen. That’s because homeownership contributes massively to an individual’s overall net worth. Odeta Kushi, Deputy Chief Economist at First American, <a href="https://blog.firstam.com/economics/reconomy-podcast-should-you-rent-or-buy" title="highlights" target="_blank" rel="noopener noreferrer">highlights</a> this idea:
“. . . between 2016 and 2019, housing wealth was the single biggest contributor to the increase in net worth across all income groups . . . .”
When we look even closer at the most recent data from 2019, the average homeowner’s net worth is more than 40 times greater than that of the average renter (see graph below):<a href="https://files.mykcm.com/2021/08/25162105/20210830-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99151" src="https://files.mykcm.com/2021/08/25162105/20210830-MEM-Eng-2.png" alt="The Difference in Net Worth Between Homeowners and Renters Is Widening | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/25162105/20210830-MEM-Eng-2.png 1000w, https://files.mykcm.com/2021/08/25162105/20210830-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/08/25162105/20210830-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/08/25162105/20210830-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>The gap exists in large part because homeowners <a href="https://www.mykcm.com/2021/01/06/the-importance-of-home-equity-in-building-wealth/" title="build equity">build equity</a> as their home appreciates in value and they pay off a portion of their mortgage each month. When you own your home, your monthly mortgage payment is, in essence, forced savings that come back to you when you sell your home or refinance. As a <a href="https://www.mykcm.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/" title="renter">renter</a>, you’ll never see a return on the money you pay out in rent every month.
If you’re ready to start building your net worth, the current real estate market offers several opportunities you should consider. For example, with today’s low mortgage rates, your <a href="https://www.mykcm.com/2021/07/30/waiting-to-buy-a-home-could-cost-you-infographic/" title="purchasing power">purchasing power</a> may be higher now than it has been in some time. That means there may be no better time than now to start working towards your homeownership goals – especially since rates are anticipated to rise in the coming months.
Bottom Line
Owning a home provides one of the strongest foundations for building individual wealth and lasting financial security. If you’re ready to start your path towards homeownership, let’s connect today to find you a home in Philadelphia or the Main Line.
2021-08-30T05:31:00-07:002021-08-30T07:41:16-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6823Why 2021 Is Still the Year To Sell Your House
<img width="750" height="410" src="https://files.mykcm.com/2021/08/24123816/20210825-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Why 2021 Is Still the Year To Sell Your House | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/24123816/20210825-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/24123816/20210825-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/24123816/20210825-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
If you’re trying to decide whether or not to <a href="https://www.mykcm.com/2021/08/06/ready-to-sell-but-dont-know-where-youll-go-infographic/" title="sell&nbsp;your house">sell your house</a>, this is the time to think seriously about making a move. Fannie Mae’s recent <a href="https://www.fanniemae.com/research-and-insights/surveys/national-housing-survey" title="Home Purchase Sentiment Index" target="_blank" rel="noopener noreferrer">Home Purchase Sentiment Index</a> (HPSI) reveals the number of respondents who say it’s a good time to sell is higher now than it was over the past few summers (see graph below). Today, the majority of consumers, 75 percent, say it’s a good time to <a href="https://www.mykcm.com/2021/08/09/the-community-and-economic-impacts-of-a-home-sale/" title="sell a house">sell a house</a>.<a href="https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99135" src="https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1.png" alt="Why 2021 Is Still the Year To Sell Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1.png 960w, https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/24123635/20210825-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Why is sellers sentiment up year-over-year?
The higher good time to sell sentiment has to do with today’s <a href="https://www.mykcm.com/2021/07/22/todays-real-estate-market-explained-through-4-key-trends/" title="market conditions">market conditions</a>, specifically low housing supply and high buyer demand. In the simplest terms, we don’t have enough houses available for sale to meet buyer demand.
According to <a href="https://www.nar.realtor/newsroom/existing-home-sales-climb-2-0-in-july" title="the latest data" target="_blank" rel="noopener noreferrer">the latest data</a> from the National Association of Realtors (NAR), we’re still firmly in a <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sellers’ market">sellers’ market</a> because housing supply is well below a balanced norm (shown in the graph below). <a href="https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-99134" src="https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2.png" alt="Why 2021 Is Still the Year To Sell Your House | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2.png 960w, https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2-600x450.png 600w, https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2-768x576.png 768w, https://files.mykcm.com/2021/08/24123632/20210825-MEM-Eng-2-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>Clearly, the scales are tipped in a seller’s favor today. But while <a href="https://www.mykcm.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/" title="housing supply">housing supply</a> is undeniably low, the right side of the graph shows how the inventory situation is improving little by little each month as more sellers list their homes for sale.
As a seller, that means each month, buyers have more options to pick from. By extension, that means your house may get less buyer attention with time. Danielle Hale, Chief Economist for realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-july-31-2021/" title="explains it like this" target="_blank" rel="noopener noreferrer">explains it like this</a>:
“More homeowners continue to list homes for sale compared to a year ago… Notably, while new listings continue to lag behind a more ‘normal’ 2019 pace, the gap is shrinking. Even though homes continue to sell quickly thanks to high demand and limited supply, new listings are subtly shifting the balance of market conditions in favor of buyers.”
So, what’s that mean for you?
If you’ve been waiting for the perfect time to sell, there may not be a better chance than right now. Inventory is gradually increasing each month, so selling sooner rather than later will help you maximize your <a href="https://www.mykcm.com/2021/08/04/sellers-make-todays-home-price-appreciation-work-for-you/" title="home’s potential">home’s potential</a>.
Bottom Line
If you’re planning to sell your house, 2021 is still the year to do it. The unique mix of low supply and high demand won’t last forever. Let’s connect to discuss what you need to do now to sell your house and take advantage of this sellers’ market.
2021-08-25T05:35:00-07:002021-08-25T06:41:20-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6811What To Do with Your Vacation Home as Summer Ends
<img width="750" height="410" src="https://files.mykcm.com/2021/08/20133508/20210824-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="What To Do with Your Vacation Home as Summer Ends | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/20133508/20210824-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/20133508/20210824-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/20133508/20210824-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
As summer comes to a close, is it time to think about selling your vacation home? Based on recent data and expert opinions, it’s something you may want to consider. According to <a href="https://www.nar.realtor/research-and-statistics/research-reports/vacation-home-counties" title="research" target="_blank" rel="noopener noreferrer">research</a> from the National Association of Realtors (NAR), vacation home sales are up 57.2% year-over-year for January-April 2021.
If you’ve taken your last vacation this summer, here are reasons you should consider selling your vacation home this year.
1. Remote work continues to drive demand for vacation homes.
As the report from NAR says, based on continuously evolving work needs, there could be more interest in your <a href="https://www.mykcm.com/2021/06/07/why-you-may-want-to-cash-in-on-your-second-home/" title="second home">second home</a> than you think:
“In 2020, across all nine divisions, the fraction of the workforce that work from home is typically higher in the vacation home counties than in the non-vacation home counties… The opportunity to work from home could further raise the demand for vacation homes in future years.
Recent data shows we’ll likely see a sustained increase in the rate of <a href="https://www.mykcm.com/2021/07/21/remote-work-has-changed-our-home-needs-is-it-time-for-your-home-to-change-too/" title="remote work">remote work</a>over the next five years. That means your vacation home could be highly sought after by certain buyers. Lawrence Yun, Chief Economist at NAR, puts it best, <a href="https://www.nar.realtor/newsroom/vacation-home-sales-skyrocket-as-a-result-of-pandemic" title="saying" target="_blank" rel="noopener noreferrer">saying</a>:
“Vacation homes are a hot commodity at the moment . . . . With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.”
2. Selling could allow you to upgrade your vacation spot – or even your day-to-day scenery.
When <a href="https://www.mykcm.com/2021/06/24/demand-for-vacation-homes-is-still-strong/" title="demand is high">demand is high</a>, so is buyer competition. When competition is strong, buyers will do everything they can to make their offer on your vacation home as appealing as possible. This can include things like all-cash offers and more. If you <a href="https://www.mykcm.com/2021/08/17/what-does-being-in-a-sellers-market-mean/" title="sell now">sell now</a>, you’ll be able to benefit from high buyer competition and pick the offer with the best possible terms for you. That offer could give you the opportunity to purchase the primary residence of your dreams.
Or, if you find that you’ll continue working from home, you could consider taking up more permanent residence in your vacation home and selling your primary residence instead. While this isn’t a choice everyone can consider, it could be a great option.
No matter what the situation, you don’t have to make the decision on your own. Your trusted <a href="https://www.mykcm.com/2021/06/28/save-time-and-effort-by-selling-with-an-agent/" title="real estate advisor">real estate advisor</a> can help you determine your best option when you’re <a href="https://www.mykcm.com/2021/07/12/4-major-incentives-to-sell-this-summer/" title="ready to sell">ready to sell</a>.
Bottom Line
Buyers remain interested in vacation homes this year for a number of reasons. Now that summer is winding down, it’s time to think about taking advantage of today’s demand for vacation homes. Let’s connect today if you’re ready to give your second home its day in the sun.
2021-08-24T05:20:00-07:002021-08-24T05:22:21-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6740The Best Use of Time (and Money) When It Comes to Renovations
<img width="750" height="410" src="https://files.mykcm.com/2021/08/11133833/20210812-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="The Best Use of Time (and Money) When It Comes to Renovations | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/11133833/20210812-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/11133833/20210812-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/11133833/20210812-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling.
Here are some considerations a professional will guide you through:
1. With current supply challenges, buyers may be willing to take on projects of their own.
A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a <a href="https://www.mykcm.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/" title="sellers’ market">sellers’ market</a>. According to a recent <a href="https://www.nar.realtor/newsroom/existing-home-sales-expand-1-4-in-june" title="report" target="_blank" rel="noopener noreferrer">report</a> by the National Association of Realtors (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory:
“Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May’s 2.5-month supply but down from 3.9 months in June 2020.”
So, what’s that mean for you? If you’re a seller trying to decide whether or not to renovate, this is especially important because it’s indicative of buyer behavior. When there <a href="https://www.mykcm.com/2021/07/13/why-this-isnt-your-typical-summer-housing-market/" title="aren’t enough homes">aren’t enough homes</a> for sale, buyers may be more willing to purchase a home that doesn’t meet all their needs and renovate it themselves later.
2. Not all renovation projects are equal.
You don’t want to spend <a href="https://www.mykcm.com/2021/05/28/homes-across-the-country-are-selling-fast-infographic-3/" title="time">time</a> and money on a project that isn’t worth the cost or is too niche design-wise for some homebuyers. According to an article by <a href="https://www.renofi.com/blog/home-renovation-trends-2021/" title="Renofi.com" target="_blank" rel="noopener noreferrer">Renofi.com</a>, basing home updates on what’s trendy right now can be a costly mistake:
“The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one thats design quality won’t last a good while.”
Before making any decisions, talk to your real estate advisor. They have insight into what other sellers are doing before listing their homes and how buyers are reacting to those upgrades. Don’t spend the time and money to be trendy – if your buyer wants to upgrade to the newest fad later, they can.
3. If you’ve already made upgrades this past year, your agent can help spotlight them.
If you have already completed some renovations on your house, you’re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects. HomeAdvisor’s 2021 <a href="https://www.homeadvisor.com/r/wp-content/uploads/2021/02/DP6428-TrueCostReport-2021-FINAL.pdf" title="State of Home Spending Report" target="_blank" rel="noopener noreferrer">State of Home Spending Report</a> found:
“35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.”
Let your real estate professional know if you fall in this category. They can highlight any recent upgrades you’ve made in your house’s listing.
Bottom Line
When it comes to renovations, your return-on-investment should be top of mind. Let’s connect today to talk through any upgrades you’ve already made and to find out what you should prioritize before you sell to maximize your house’s potential.
2021-08-12T05:47:00-07:002021-08-12T06:49:00-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6706Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes
<img width="750" height="410" src="https://files.mykcm.com/2021/08/02135720/20210805-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/02135720/20210805-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/02135720/20210805-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/02135720/20210805-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
In April, the National Association of Home Builders (NAHB) posted an article, <a href="https://eyeonhousing.org/2021/04/home-buyers-preferences-shift-towards-new-construction/" title="Home Buyers’ Preferences Shift Towards New Construction" target="_blank" rel="noopener noreferrer">Home Buyers’ Preferences Shift Towards New Construction</a>, which reported:
“60% of people who were looking to buy a home in 2020 said they’d prefer new construction to an existing home.”
However, it seems buyers are now shifting their preferences back to existing homes.
The latest <a href="https://www.conference-board.org/data/consumerconfidence.cfm" title="Consumer Confidence Survey" target="_blank" rel="noopener noreferrer">Consumer Confidence Survey</a> reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.
NAHB confirms this sentiment in their latest <a href="https://eyeonhousing.org/wp-content/uploads/2021/07/HOUSING-TRENDS-REPORT-Q221.pdf?_ga=2.121964555.1460318833.1627861533-1134178126.1605647352" title="Housing Trends Report" target="_blank" rel="noopener noreferrer">Housing Trends Report</a>. The organization explains that existing homes are now the top preference among today’s buyers. Here’s a breakdown of those findings:<a href="https://files.mykcm.com/2021/08/02135722/20210805-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-98897" src="https://files.mykcm.com/2021/08/02135722/20210805-MEM-Eng-1.png" alt="Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/08/02135722/20210805-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/08/02135722/20210805-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/08/02135722/20210805-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/08/02135722/20210805-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
Why the shift?
There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:
The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.
There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.
Bottom Line
If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time for us to connect to discuss the possibility.
2021-08-05T06:17:00-07:002021-08-05T06:20:17-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6705Sellers: Make Today’s Home Price Appreciation Work for You
<img width="750" height="410" src="https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Sellers: Make Today’s Home Price Appreciation Work for You | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share.jpg 750w, https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/07/30152505/20210804-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" />
Home prices continue to rise as we move through the summer, and that’s good news for <a href="https://www.mykcm.com/2021/07/12/4-major-incentives-to-sell-this-summer/" title="sellers">sellers</a> who are looking to maximize their home’s potential. If you’re on the fence about whether to list your house now or later, the question you should really ask is: will this price appreciation last?
Here’s what three leading industry experts have to say about what lies ahead:
<a href="https://www.nar.realtor/newsroom/existing-home-sales-expand-1-4-in-june" title="Lawrence Yun," target="_blank" rel="noopener noreferrer">Lawrence Yun,</a> Chief Economist, National Association of Realtors (NAR):
“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expectprices to appreciate at a slower pace by the end of the year.”
<a href="https://www.corelogic.com/intelligence/find-stories/us-sp-corelogic-case-shiller-rockets-to-16-6-reaches-new-records/" title="Selma Hepp" target="_blank" rel="noopener noreferrer">Selma Hepp</a>, Deputy Chief Economist, CoreLogic:
“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months . . . . Nevertheless, with more new listings and new home construction, home price acceleration that has built momentum, and continues to reach new highs, will likely slow later this summer but remain in double digits.”
<a href="https://www.bloomberg.com/news/articles/2021-07-22/u-s-mortgage-rates-slide-to-lowest-in-more-than-five-months?sref=BRvilyBN" title="George Ratiu" target="_blank" rel="noopener noreferrer">George Ratiu</a>, Chief Economist, realtor.com:
“Many sellers are going to take advantage of higher prices. This summer is going to signal the move to the next chapter, and this will very much be the year they’re going to put their home on the market.”
What It Means for You:
The experts agree that the summer months give sellers a great opportunity to capitalize on today’s home prices. And while prices aren’t expected to depreciate, the rise in prices is forecast to moderate over <a href="https://www.mykcm.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/" title="the next few years">the next few years</a>. That means selling your house today could set you up for a bigger win.
Bottom Line
Listen to the experts. If you’re ready to make a move, let’s connect to discuss <a href="https://www.mykcm.com/2021/07/08/selling-your-house-make-sure-you-price-it-right/" title="selling your house">selling your house</a> sooner rather than later so you can take advantage of today’s home price appreciation before it moderates.
2021-08-04T05:15:00-07:002021-08-05T06:17:29-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:66524 Reasons Why the End of Forbearance Will Not Lead to a Wave of Foreclosures
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With forbearance plans about to come to an end, many are concerned the housing market will experience a wave of foreclosures like what happened after the housing bubble 15 years ago. Here are four reasons why that won’t happen.
1. There are fewer homeowners in trouble this time
After the last housing crash, about <a href="https://economics.cmail20.com/t/ViewEmail/d/6DD5AA0E9F6529292540EF23F30FEDED/5323CD85A2087AFD22947492D9797BBC" title="9.3 million" target="_blank" rel="noopener noreferrer">9.3 million</a> households lost their home to a foreclosure, short sale, or because they simply gave it back to the bank.
As stay-at-home orders were issued early last year, the overwhelming fear was the pandemic would decimate the housing industry in a similar way. Many experts projected <a href="https://blog.firstam.com/economics/this-time-its-different-why-a-wave-of-foreclosures-is-unlikely" title="30% of all mortgage holders" target="_blank" rel="noopener noreferrer">30% of all mortgage holders</a> would enter the forbearance program. Only 8.5% actually did, and that number is now <a href="https://www.mba.org/2021-press-releases/july/share-of-mortgage-loans-in-forbearance-decreases-to-350-percent" title="down to 3.5%" target="_blank" rel="noopener noreferrer">down to 3.5%</a>.
As of last Friday, the total number of mortgages still in forbearance stood at <a href="https://www.blackknightinc.com/blog-posts/forbearances-flat-for-second-consecutive-week/" title="1,863,000" target="_blank" rel="noopener noreferrer">1,863,000</a>. That’s definitely a large number, but nowhere near 9.3 million.
2. Most of the 1.86M in forbearance have enough equity to sell their home
Of the 1.86 million homeowners currently in forbearance, 87% have at least <a href="https://cdn.blackknightinc.com/wp-content/uploads/2021/06/BKI_MM_Apr2021_Report.pdf" title="10% equity" target="_blank" rel="noopener noreferrer">10% equity</a> in their homes. The 10% equity number is important because it enables homeowners to sell their houses and pay the related expenses instead of facing the hit on their credit that a foreclosure or short sale would create.
The remaining 13% might not all have the option to sell, so if the entire 13% of the 1.86M homes went into foreclosure, that would total 241,800 mortgages. To give that number context, here are the <a href="https://www.newyorkfed.org/microeconomics/hhdc.html" title="annual foreclosure numbers" target="_blank" rel="noopener noreferrer">annual foreclosure numbers</a> of the three years leading up to the pandemic:
2017: 314,220
2018: 279,040
2019: 277,520
The probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures coming out of the housing crash 15 years ago. The number does, however, draw a similar comparison to the three years prior to the pandemic.
3. The current market can absorb any listings coming to the market
When foreclosures hit the market in 2008, there was an excess supply of homes for sale. The situation is exactly the opposite today. In 2008, there was a 9-month supply of listings for sale. Today, that number stands at less than <a href="https://www.nar.realtor/newsroom/existing-home-sales-expand-1-4-in-june" title="3 months of inventory" target="_blank" rel="noopener noreferrer">3 months of inventory</a> on the market.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://magazine.realtor/daily-news/2020/11/18/yun-real-estate-could-see-best-winter-ever" title="explains" target="_blank" rel="noopener noreferrer">explains</a>when addressing potential foreclosures emerging from the forbearance program:
“Any foreclosure increases will likely be quickly absorbed by the market. It will not lead to any price declines.”
4. Those in power will do whatever is necessary to prevent a wave of foreclosures
Just last Friday, the White House released a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/23/fact-sheet-biden-administration-announces-additional-actions-to-prevent-foreclosures/" title="fact sheet" target="_blank" rel="noopener noreferrer">fact sheet</a> explaining how homeowners with government-backed mortgages will be given further options to enable them to keep their homes when exiting forbearance. Here are two examples mentioned in the release:
“For homeowners who can resume their pre-pandemic monthly mortgage payment and where agencies have the authority, agencies will continue requiring mortgage servicers to offer options that allow borrowers to move missed payments to the end of the mortgage at no additional cost to the borrower.”
“The new steps the Department of Housing and Urban Development (HUD), Department of Agriculture (USDA), and Department of Veterans Affairs (VA) are announcing will aim to provide homeowners with a roughly 25% reduction in borrowers’ monthly principal and interest (P&I) payments to ensure they can afford to remain in their homes and build equity long-term. This brings options for homeowners with mortgages backed by HUD, USDA, and VA closer in alignment with options for homeowners with mortgages backed by Fannie Mae and Freddie Mac.”
When evaluating the four reasons above, it’s clear there won’t be a flood of foreclosures coming to the market as the forbearance program winds down.
Bottom Line
As Ivy Zelman, founder of the major housing market analytical firm Zelman & Associates, <a href="https://www.tomferry.com/our-podcast/experience-91/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“The likelihood of us having a foreclosure crisis again is about zero percent.”
2021-07-28T05:38:00-07:002021-07-28T07:42:17-07:00Reid Rosenthaltag:reidrosenthalgroup.com,2012-09-20:6640A Look at Housing Supply and What It Means for Sellers
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One of the hottest topics of conversation in today’s real estate market is the <a href="https://www.mykcm.com/2021/06/15/hope-is-on-the-horizon-for-todays-housing-shortage/" title="shortage of available homes">shortage of available homes</a>. Simply put, there are many more potential buyers than there are homes for sale. As a seller, you’ve likely heard that low supply is good news for you. It means your house will get more attention, and likely, more offers. But as life begins to return to normal, you may be wondering if that’s something that will change.
While it may be tempting to blame the pandemic for the current inventory shortage, the pandemic can’t take all the credit. While it did make some sellers hold off on listing their houses over the past year, the truth is the low supply of homes was years in the making. Let’s take a look at the root cause and what the future holds to uncover why now is still a great time to sell.
Where Did the Shortage Come From?
It’s not just today’s high buyer demand. Our low supply goes hand-in-hand with the number of new homes built over the past decades. According to Sam Khater, VP and Chief Economist at <a href="http://www.freddiemac.com/perspectives/sam_khater/20210415_single_family_shortage.page" title="Freddie Mac" target="_blank" rel="noopener noreferrer">Freddie Mac</a>:
“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”
Data in a <a href="https://cdn.nar.realtor/sites/default/files/documents/Housing-is-Critical-Infrastructure-Social-and-Economic-Benefits-of-Building-More-Housing-6-15-2021.pdf" title="recent report" target="_blank" rel="noopener noreferrer">recent report</a> from the National Association of Realtors (NAR) tells the same story. New home construction has been lagging behind the norm for quite some time. Historically, builders completed an average of 1.5 million new housing units per year. However, since the housing bubble in 2008, the level of new home construction has fallen off (see graph below):<a href="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png" target="_blank" rel="" class="use_kcm_lightbox"><img loading="lazy" class="aligncenter wp-image-98794" src="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png" alt="A Look at Housing Supply and What It Means for Sellers | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/07/26170119/20210727-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>The same NAR report elaborates on the impact of this below-average pace of construction:
“. . . the underbuilding gap in the U.S. totaled more than 5.5 million housing units in the last 20 years.”
“Looking ahead, in order to fill an underbuilding gap of approximately 5.5 million housing units during the next 10 years, while accounting for historical growth, new construction would need to accelerate to a pace that is well above the current trend, to more than 2 million housing units per year. . . .”
That means if we build even more new houses than the norm every year, it’ll still take a decade to close the underbuilding gap contributing to today’s supply-and-demand mix. Does that mean today’s ultimate <a href="https://www.mykcm.com/2021/03/29/what-it-means-to-be-in-a-sellers-market/" title="sellers’ market">sellers’ market</a> is here to stay?
We’re already starting to see an increase in <a href="https://www.mykcm.com/2021/07/05/home-builders-ramp-up-construction-based-on-demand/" title="new home construction">new home construction</a>, which is great news. But newly built homes can’t bridge the supply gap we’re facing right now on their own. In the <a href="https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf" title="State of the Nation’s Housing 2021 Report" target="_blank" rel="noopener noreferrer">State of the Nation’s Housing 2021 Report</a>, the Joint Center for Housing Studies of Harvard University (JCHS) says:
“…Although part of the answer to the nation’s housing shortage, new construction can only do so much to ease short-term supply constraints. To meet today’s strong demand, more existing single-family homes must come on the market.”
Early Indicators Show More Existing-Home Inventory Is on Its Way
When we look at existing homes, the latest reports signal that <a href="https://www.mykcm.com/2021/07/14/housing-supply-is-rising-what-does-that-mean-for-you/" title="housing supply is growing">housing supply is growing</a>gradually month-over-month. This uptick in existing homes for sale shows things are beginning to shift. Based on recent data, <a href="https://twitter.com/odetakushi/status/1407344750534041615" title="Odeta Kushi" target="_blank" rel="noopener noreferrer">Odeta Kushi</a>, Deputy Chief Economist at First American, has this to say:
“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.”
Lawrence Yun, Chief Economist at NAR, <a href="https://www.nar.realtor/real-estate-today" title="echoes that sentiment:" target="_blank" rel="noopener noreferrer">echoes that sentiment:</a>
“As the inventory is beginning to pick up ever so modestly, we are still facing a housing shortage, but we may have turned a corner.”
So, what does all of this mean for you? Just because life is starting to return to normal, it doesn’t mean you missed out on the best time to sell. It’s not too late to take advantage of <a href="https://www.mykcm.com/2021/06/16/dont-wait-to-sell-your-house/" title="today’s sellers’ market">today’s sellers’ market</a> and use <a href="https://www.mykcm.com/2021/07/06/a-look-at-home-price-appreciation-through-2025/" title="rising equity">rising equity</a> and <a href="https://www.mykcm.com/2021/07/19/what-you-should-do-before-interest-rates-rise/" title="low interest rates">low interest rates</a> to make your next move.
Bottom Line
It’s still a great time to sell in Philadelphia and the Main Line. Even though housing supply is starting to trend up, it’s still hovering near historic lows. Let’s connect to discuss how you can list your house now and use the inventory shortage to get the best possible terms for you.
2021-07-27T05:57:00-07:002021-07-27T05:59:30-07:00Reid Rosenthal