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2024-02-21T22:08:05-07:00
tag:exitrealtypalmbeach.com,2012-09-20:42130
Upgrade Your Home With These 2024 Design Trends
<img src="https://assets.site-static.com/userfiles/1653/image/February_2024_-_MVP_-_LinkedIn_Image.jpg" width="1280" height="720" /> Upgrade Your Home With These 2024 Design Trends
One of the best parts of owning a home is the freedom to make it truly your own with design choices that reflect your personality and lifestyle. Whether you lean toward contemporary design or a farmhouse aesthetic, your home is your canvas.
Even so, it’s always smart to think about the long-term impact those decisions might have on your home’s value. Choosing over-personalized or unpopular materials and finishes could make your home less appealing to future buyers. And selecting out-of-style or overly-trendy elements could cause your home to feel dated quickly.
To help inspire your design choices, we’ve rounded up some of the top trends we’re watching in 2024. Keep in mind, not all of these will work well in every house. If you plan to list or renovate your property, give us a call. We can help you realize your vision and maximize the impact of your investment.
1. Spa-Like Bathrooms
We could all use a little more relaxation in our lives—so why not bring the spa into your home? In 2024, more homeowners will remodel their bathrooms to turn them into personal oases.1,2
If you’re undertaking a renovation, consider upgrading fixtures and materials. Handmade tile and custom cabinetry can add a touch of style and luxury. Trade stark whites for warm neutrals to create a more relaxed feel—think light wood tones, creams, and beiges.3 Complete the look with soft ambient lighting from a backlit mirror or pair of decorative sconces.2,3
If you want to maximize the mind-body benefits of a relaxing bathroom (and have the budget to spare), you might consider installing a steam shower, infrared sauna, or cold plunge tub.3 Not looking to spend as much? Even minor upgrades like a massaging showerhead or heated towel bar can add some pampering to your morning routine.3
But remember, if you’re modifying your bathroom, it’s always wise to work with experienced and licensed professionals to avoid water damage that could lead to costly repairs. We can refer you to a trusted contractor for help.
<a rel="follow" href="https://www.houzz.com/photos/southwestern-bathroom-southwestern-bathroom-salt-lake-city-phvw-vp~85255335" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/bathrooms/southwestern-bathroom-denton-house-design-studio-img~1f71d39e08a332e6_8-4388-1-41349b9.jpg" alt="" border="0" width="500" height="332" nopin="nopin" ondragstart="return false;" onselectstart="return false;" oncontextmenu="return false;" /></a>
<a style="text-decoration: none; color: #444;" href="https://www.exitrealtypalmbeach.com/" target="_blank">Photo by </a> - <a style="text-decoration: none; color: #444;" href="https://www.houzz.com/photos/bathroom-ideas-phbr0-bp~t_712" target="_blank">Browse bathroom photos</a>
2. Maximalist Decor
In 2024, maximalism is back in vogue, contrasting the neutral aesthetic that dominated design in recent years. While maximalism can be summed up as “more is more,” there’s nothing sloppy or cluttered about this look. Instead, it’s all about intentional curation.4
Hallmarks of maximalist style include rich and saturated colors, bold wallpaper, statement rugs and furniture, and lots of art. And forget matching—maximalist interiors often include plenty of contrasting colors, textures, and patterns selected to complement one another.4
If you’re trying to embrace maximalism on a budget, check out thrift stores. They’re often a great place to find unique furniture, colorful rugs, and interesting art or collectibles. Before you invest in rolls of vintage wallpaper, though, it’s important to note—if you plan to sell your home in the near future, the maximalist look won’t appeal to every buyer.
We typically advise sellers to remove clutter and personal items to help buyers imagine their own future lives within the home. Sometimes, that means repainting or redecorating in a more neutral palette. Of course, this shouldn’t stop you from embracing your own style now—just be aware that you may need to walk back your aesthetic prior to selling. We can advise you when the time comes.
<a rel="follow" href="https://www.houzz.com/photos/chez-noz-living-room-eclectic-living-room-san-francisco-phvw-vp~165679815" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/living-rooms/chez-noz-living-room-noz-design-img~105127c50f90e7e6_8-5957-1-ce813a9.jpg" alt="" border="0" width="500" height="338" nopin="nopin" ondragstart="return false;" onselectstart="return false;" oncontextmenu="return false;" /></a>
<a style="text-decoration: none; color: #444;" href="https://www.houzz.com/professionals/interior-designers-and-decorators/noz-design-pfvwus-pf~1325401364" target="_blank">Photo by Noz Design</a> - <a style="text-decoration: none; color: #444;" href="https://www.houzz.com/photos/living-room-ideas-phbr0-bp~t_718" target="_blank">Search living room design ideas</a>
3. Japandi Style
Not quite ready to embrace maximalism? Japandi style, which blends Japanese and Scandinavian influences, offers a more subdued approach that still has plenty of character. The look dates back about 150 years to a time when many Scandinavian designers were traveling to Japan for inspiration.5
Japandi style brings together clean lines, simplicity, and a focus on natural elements and light. It emphasizes the beauty in imperfection, or “wabi sabi,” and a deep connection to Mother Earth. And like Scandinavian decor, the look prioritizes comfort and a sense of sanctuary in the home.5
Interested in playing with Japandi? Common features include calming color palettes and organic materials like raw wood and bamboo. Try softening harsh edges with softer textures, like cozy blankets and ceramic pieces.
The look also minimizes clutter, but that doesn’t mean you need to be a minimalist. Instead, Japandi style embraces storage solutions like baskets, folding screens, and sofas with built-in storage to give everything a place.6 If you’d like some help implementing Japandi-style organization in your home, contact us for a list of recommended professionals.
<a rel="follow" href="https://www.houzz.com/photos/japandi-aesthetic-midcentury-bedroom-phvw-vp~179287167" target="_blank"><img src="https://st.hzcdn.com/simgs/94e1dcfd0196a154_8-6327/midcentury-bedroom.jpg" alt="" border="0" width="500" height="506" nopin="nopin" ondragstart="return false;" onselectstart="return false;" oncontextmenu="return false;" /></a>
<a style="text-decoration: none; color: #444;" href="https://www.houzz.com/professionals/interior-designers-and-decorators/eric-miller-interiors-pfvwus-pf~1260107766" target="_blank">Photo by Eric Miller Interiors</a> - <a style="text-decoration: none; color: #444;" href="https://www.houzz.com/photos/bedroom-ideas-and-designs-phbr0-bp~t_715" target="_blank">Discover bedroom design inspiration</a>
4. Mixed Metals
Mixing metals used to be a “no-no.” But in 2024, it’s definitely a “yes.”
According to designers, mixing the colors and finishes of metal fixtures and hardware can bring visual interest to a room—as long as you go about it the right way.1,7
The most important rule to keep in mind is to stay away from near matches, like brass and gold—that’s more likely to look accidental than intentional. Instead, go for bold contrast: Think polished nickel and matte black.7
Some designers recommend using each metal at least twice in a room to make it look cohesive. Another good rule of thumb is to stick to two types of metals in a small room and two to three in a larger space.7
Finally, you might think about playing with undertones (brass is warm, chrome is cool) to change the “temperature” of a room. And don’t be afraid of a little shine—many designers predict that a retro, high-polished look will replace matte finishes in 2024.8
Want some help sourcing fixtures and hardware in a variety of finishes? Reach out for a list of our favorite retailers.
<a rel="follow" href="https://www.houzz.com/photos/forest-bend-road-transitional-bathroom-dallas-phvw-vp~154080075" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/bathrooms/forest-bend-jessica-koltun-img~2881b44c0e2bb9da_8-8119-1-5951a0b.jpg" alt="" border="0" width="500" height="334" nopin="nopin" ondragstart="return false;" onselectstart="return false;" oncontextmenu="return false;" /></a>
<a style="text-decoration: none; color: #444;" href="https://www.houzz.com/professionals/real-estate-agents/jessica-koltun-home-pfvwus-pf~687930931" target="_blank">Photo by Jessica Koltun Home</a> - <a style="text-decoration: none; color: #444;" href="https://www.houzz.com/photos/bathroom-ideas-phbr0-bp~t_712" target="_blank">More bathroom photos</a>
5. Wood Cabinetry And Accents
The all-white kitchen has been ubiquitous in recent years. But in 2024, classic wood cabinetry is back in a big way.9 In fact, industry professionals surveyed by the National Kitchen & Bath Association predict that wood cabinets will be more popular than white in the next three years.10
Natural wood tones offer a sense of warmth and natural beauty.11 And today’s cabinets aren’t anything like the heavy, dated versions of the past. Instead, light to medium versions—like white oak and walnut—and warmer undertones are trending.9
The addition of wood-grain accents to painted kitchen cabinets—like with a contrasting island or range hood—is another popular option.12 And wood continues to be a favored choice for flooring. A recent survey found that 40% of homeowners opted for either hardwood or engineered wood when renovating their kitchen floors.13
You can also expect to see more wood in bathrooms in 2024. According to Houzz, last year, wood vanities surpassed white in popularity for the first time in recent years, and designers expect the trend to continue.12 While white countertops and walls still dominate bathrooms, a wood-grained vanity brings a relaxed, organic element into the space.
Dreaming about new cabinets or hardwood floors? We’d be happy to share a list of recommended trade professionals who can help.
<a rel="follow" href="https://www.houzz.com/photos/kitchen-transitional-kitchen-chicago-phvw-vp~170243552" target="_blank"><img src="https://st.hzcdn.com/simgs/cb41b371003e898b_8-8646/transitional-kitchen.jpg" alt="" border="0" width="500" height="398" nopin="nopin" ondragstart="return false;" onselectstart="return false;" oncontextmenu="return false;" /></a>
<a style="text-decoration: none; color: #444;" href="https://www.houzz.com/professionals/design-build-firms/great-rooms-building-group-pfvwus-pf~1476412939" target="_blank">Photo by Great Rooms Building Group</a> - <a style="text-decoration: none; color: #444;" href="https://www.houzz.com/photos/kitchen-ideas-and-designs-phbr0-bp~t_709" target="_blank">Look for kitchen pictures</a>
6.Timeless Renovations
In its latest Kitchen Trends Study, Houzz found that “nearly half of homeowners (47%) opt for a timeless design as a sustainable choice during renovations.” Respondents cited long-term cost effectiveness and environmental consciousness as their main motivators.14
In a rapidly changing, technology-driven world, it’s no surprise that homeowners want a nurturing space with lasting appeal—especially if they plan to stay in their homes for years to come.12
Traditional materials and quality craftsmanship lie at the core of timeless design, which some designers are calling “quiet luxury.”15 Think of enduring classics, like hardwood floors, hand-crafted tiles, and marble countertops.12 A timeless color palette will also often include warm neutrals and muted shades of blue and green.15
If you’re thinking about remodeling, it’s wise to incorporate as many classic elements as you can. These stylistic choices tend to hold up well over time, which can prolong the life of your investment and make it easier to sell your home down the road. If you’d like advice on an upcoming project, contact us for a free consultation.
<a rel="follow" href="https://www.houzz.com/photos/timeless-traditional-traditional-entry-minneapolis-phvw-vp~126641066" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/entryways/timeless-traditional-refined-llc-img~34911eb70b8034d7_8-6496-1-56fe92d.jpg" alt="" border="0" width="500" height="324" nopin="nopin" ondragstart="return false;" onselectstart="return false;" oncontextmenu="return false;" /></a>
<a style="text-decoration: none; color: #444;" href="https://www.houzz.com/professionals/general-contractors/refined-llc-pfvwus-pf~1954618217" target="_blank">Photo by REFINED LLC</a> - <a style="text-decoration: none; color: #444;" href="https://www.houzz.com/photos/entryway-ideas-phbr0-bp~t_741" target="_blank">More entryway photos</a>
BEAUTIFY YOUR HOME WHILE BOOSTING ITS VALUE
If you’re thinking about making design changes—whether that’s repainting or a full remodel—it’s important to be informed about how your choices could impact your home’s resale potential. Buyer preferences can vary significantly based on your home’s neighborhood and price point. Before you begin your project, reach out to discuss your plans and how they could impact the value of your home.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
HGTV - <br /><a href="https://www.hgtv.com/design/decorating/design-101/2024-home-and-garden-design-trends-pictures#:~:text=Expect%20to%20see%20more%20indoor,between%20the%20interior%20and%20exterior.%22">https://www.hgtv.com/design/decorating/design-101/2024-home-and-garden-design-trends</a>
The Spruce - <br /><a href="https://www.thespruce.com/2024-design-trends-8411457">https://www.thespruce.com/2024-design-trends-8411457</a>
The Spruce - <br /><a href="https://www.thespruce.com/2024-bathroom-design-trends-8380169">https://www.thespruce.com/2024-bathroom-design-trends-8380169</a>
Homes and Gardens - <br /><a href="https://www.homesandgardens.com/interior-design/maximalist-decor-ideas">https://www.homesandgardens.com/interior-design/maximalist-decor-ideas</a>
The Spruce - <br /><a href="https://www.thespruce.com/japandi-design-4782478">https://www.thespruce.com/japandi-design-4782478</a>
House Beautiful - <br /><a href="https://www.housebeautiful.com/room-decorating/a45851530/japandi-interior-design-style/">https://www.housebeautiful.com/room-decorating/a45851530/japandi-interior-design-style/</a>
The Spruce - <a href="https://www.thespruce.com/4-rules-designers-say-you-should-follow-or-ignore-when-mixing-metals-in-a-room-5199031">https://www.thespruce.com/4-rules-designers-say-you-should-follow-or-ignore-when-mixing-metals-in-a-room-5199031</a>
The Spruce - <br /><a href="https://www.thespruce.com/2024-lighting-trends-8365056">https://www.thespruce.com/2024-lighting-trends-8365056</a>
Good Housekeeping - <br /><a href="https://www.goodhousekeeping.com/home/decorating-ideas/a45576463/wood-kitchen-cabinet-trend-2023/">https://www.goodhousekeeping.com/home/decorating-ideas/a45576463/wood-kitchen-cabinet-trend-2023/</a>
Better Homes and Gardens - <br /><a href="https://www.bhg.com/2024-kitchen-trends-8406562">https://www.bhg.com/2024-kitchen-trends-840656</a>
Real Simple - <br /><a href="https://www.realsimple.com/2024-kitchen-cabinet-trends-masterbrand-7974600">https://www.realsimple.com/2024-kitchen-cabinet-trends-masterbrand-7974600</a>
Houzz - <br /><a href="https://www.houzz.com/magazine/28-home-design-trends-that-will-define-2024-stsetivw-vs~172317389">https://www.houzz.com/magazine/28-home-design-trends-that-will-define-2024-stsetivw-vs~172317389</a>
Houzz - <br /><a href="https://www.houzz.com/magazine/10-kitchen-trends-to-watch-in-layouts-features-and-more-stsetivw-vs~165050822">https://www.houzz.com/magazine/10-kitchen-trends-to-watch-in-layouts-features-and-more-stsetivw-vs~165050822</a>
Houzz - <br /><a href="https://www.houzz.com/magazine/2023-u-s-houzz-kitchen-trends-study-stsetivw-vs~164970160">https://www.houzz.com/magazine/2023-u-s-houzz-kitchen-trends-study-stsetivw-vs~164970160</a>
Better Homes and Gardens - <br />https://www.bhg.com/quiet-luxury-home-trend-7554026
2024-02-01T18:47:00-07:00
2024-02-21T22:08:05-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:41285
Know The Secrets to a Real Estate Transaction
Navigating a real estate transaction can be a complex and potentially stressful process. Here are some tips to help make the experience as stress-free as possible:<br /><br />
Choose the Right Real Estate Agent:<br />Select an experienced and reputable real estate agent who understands your needs and has a proven track record.
Set Realistic Expectations:<br />Understand the current market conditions and set realistic expectations regarding the time it may take to buy or sell a property.
Get Pre-Approved for a Mortgage:<br />If you're a buyer, getting pre-approved for a mortgage can streamline the process and make your offers more attractive to sellers.
Communicate Clearly:<br />Maintain open and clear communication with your real estate agent, mortgage lender, and other parties involved in the transaction.
Understand the Process:<br />Educate yourself about the real estate transaction process to minimize surprises. Know what to expect at each stage.
Anticipate Delays:<br />Understand that delays can happen due to various factors such as inspections, appraisals, or financing issues. Be patient and flexible.
Home Inspection:<br />Schedule a thorough home inspection to identify potential issues early on. This can prevent surprises later in the process.
Have a Contingency Plan:<br />Be prepared for unexpected events by having a contingency plan in place. This could include alternative financing options or a backup property.
Legal and Financial Counseling:<br />Seek legal and financial advice early in the process to avoid complications later. A real estate attorney can help review contracts and ensure legal compliance.
Stay Organized:<br />Keep all documents related to the transaction organized. This includes contracts, inspection reports, and communications. Staying organized helps prevent unnecessary stress.
Negotiate Wisely:<br />Approach negotiations with a level head. Be willing to compromise, and focus on finding solutions that work for all parties involved.
Stay Informed:<br />Stay informed about the real estate market and any changes in regulations or laws that may affect your transaction.
Prepare for Closing Costs:<br />Understand and prepare for closing costs, so there are no financial surprises on the closing day.
Professional Guidance:<br />Surround yourself with a team of professionals, including a real estate agent, mortgage broker, and possibly a real estate attorney, to guide you through the process.
Positive Mindset:<br />Approach the transaction with a positive mindset. Realize that challenges may arise, but maintaining a positive outlook can make the process more manageable.
Remember, every real estate transaction is unique, and unexpected challenges may arise. However, with careful planning, clear communication, and a proactive approach, you can minimize stress and increase the likelihood of a successful and smooth transaction.
2024-01-05T16:43:25-07:00
2024-01-05T17:04:40-07:00
Diana Perez
tag:exitrealtypalmbeach.com,2012-09-20:41633
Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024
<img src="https://assets.site-static.com/userfiles/1653/image/1.png" width="1200" height="628" />
Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024
A growing share of home buyers and sellers sat on the sidelines last year as the pace of home sales continued its downward trajectory.1 In fact, since the Federal Reserve began its series of interest rate hikes in 2022, the combination of higher borrowing costs and record-high home prices has fostered the steepest real estate market slowdown since the 2008 recession.2
Priced out of the market, a generation of would-be buyers has been forced to delay their plans for homeownership.3 At the same time, current owners—reluctant to give up their pandemic-era mortgage rates—are waiting to sell, which has resulted in a sharp drop in listings.4
But there may be some relief in sight: In December, the Fed signaled that it was done raising interest rates—and suggested that it could cut rates by 0.75% over the coming year. While mortgages don’t directly follow the federal funds rate, they typically move in tandem—so cheaper home loans may finally be on the horizon.5
Lower mortgage rates should bring some much-needed movement back into the real estate sector. But with a market this fluid, the home buyers and sellers with an edge will be those who proactively leverage a real estate agent’s on-the-ground expertise and stay flexible so that they can quickly adapt to changes.
What does that mean for you? Read on to learn more about the current state of the U.S. housing market, the potential opportunities for buyers and sellers, and economists’ predictions for the year ahead.
HOME PRICES WILL REMAIN RELATIVELY STABLE
Not even 8% mortgage rates could bring home prices crashing down in 2023, as some prospective home buyers may have hoped. In fact, on average, U.S. property values ended the year higher—with declines in some areas of the country offset by appreciation in others.6
Prices typically fall when rising interest rates drive down demand. So what’s keeping home values high?
Mike Simonsen at Altos Research points to a nationwide housing shortage: “Declining home prices probably require that supply-and-demand imbalance, and what we have is really a balance. There's a balance between low demand and low supply.”7
Analysts expect that equilibrium to continue to prop up home prices in 2024, although the specific forecasts vary. For example, economists at Realtor.com predict that the median home price will fall slightly, by 1.7%, while those at Fannie Mae project modest price growth of 2.8%.6,8
However, experts widely agree: Mortgage rates will be the largest driver of property values. If rates fall faster than expected, more buyers will enter the market—which could send home prices soaring higher.
What does it mean for you? There’s no evidence that home prices are headed for a major decline. So if you’re ready and able to afford a home, this is a great time to test the waters. The best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.
And if you’ve been waiting to sell your home, this could be your year. Price growth has slowed, so now is the time to maximize your equity gains while minimizing your competition. Contact us for recommendations and to find out what your home could sell for in today’s market.
<img src="https://assets.site-static.com/userfiles/1653/image/2.png" width="1200" height="628" />
MORTGAGE RATES SHOULD FINALLY TREND DOWN
The best news we've got incoming for 2024? The extra-high mortgage rates that have weighed heavily on the real estate market may finally be headed south.
At its December meeting, the Fed signaled that the worst is likely behind us and that it expects to cut its overnight rate in 2024. Analysts predict that mortgage rates will fall in lockstep.5
“Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year,” said Freddie Mac’s Chief Economist Sam Khater following the announcement.9
The average 30-year fixed mortgage rate has already declined from an October high of around 8%, and analysts at Fannie Mae, the Mortgage Bankers Association, and Realtor.com all forecast that rates will trend down this year, ending 2024 closer to 6%.7
However, it’s not all good news: It appears that the days of 3% mortgage rates are firmly behind us. “As long as the economy continues to motor along, the new normal of higher rates is here to stay,” explains Greg McBride, chief financial analyst for Bankrate.4 So, when it comes to a home loan, borrowers may need to adjust their expectations.
What does it mean for you? If you're a prospective home buyer, declining mortgage rates could give you the opportunity to lock in a more affordable monthly payment. And if you purchase before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask us to refer you to a mortgage broker who can help you shop around for the best option.
Sellers also have reason to celebrate buyers' lower interest rates: As the barriers to entry to the housing market decline, they could enjoy more or better offers. Reach out to discuss how we can help you maximize your home’s sales potential.
LOWER RATES WILL BRING SOME BUYERS AND SELLERS BACK TO THE MARKET
Over the past couple of years, higher mortgage rates have cooled home buyer demand. They’ve also delayed the plans of many home sellers, who have been reluctant to trade in their current mortgages for loans that are several points higher.
With so many market participants playing the waiting game, the real estate sector has slowed significantly. National Association of Realtors (NAR) Chief Economist Lawrence Yun estimates that the number of existing home sales fell by 18% last year following a 17% decline in 2022.10
However, as financing costs tick down, sales volume is expected to rise. “Lower mortgage rates would help spur home sales activity, which [is] expected to increase in 2024 compared to 2023,” explains Selma Hepp, chief economist at CoreLogic. “Declines in mortgage rates will drive more sellers to trade their existing home and help add much-needed inventory to the market, leading to more transactions.”4
There’s also evidence that the patience of holdout home buyers may be waning, despite higher borrowing costs. A recent survey by Bank of America found that the number who are willing to wait for prices or mortgage rates to decline before making a purchase fell from 85% to 62% in just six months.11
“When it comes down to it, if buying a home is your goal and within your budget, the best time to buy is when you're ready financially and you can find a home that fits your needs,” Matt Vernon, head of consumer lending at Bank of America, advised in a recent release. “Even in the current interest rate environment, there are clear benefits to purchasing a home and beginning to build equity.”11
What does it mean for you? If you’ve been waiting to buy a home, you might want to consider purchasing before the competition picks up. Pent-up demand could bring a flood of buyers back into the market as mortgage rates decline. Contact us if you’re ready to begin your home search.
If you’re hoping to sell this year, you may also want to act fast. An increase in listings will make it harder for your home to stand out. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.
<img src="https://assets.site-static.com/userfiles/1653/image/3.png" width="1200" height="628" />
THE HOUSING SUPPLY SHORTAGE WILL PERSIST
Will home buyers who are eager for options have more homes to choose from this year?
Yun thinks so. He believes sellers will soon grow weary of waiting to list. “Pent-up sellers cannot wait any longer. People will begin to say, ‘life goes on,’” the NAR economist speculated at a November conference. “Listings will steadily show up, and new home sales will continue to do well.”10
But not everyone agrees. Economists at Realtor.com forecast that inventory could drop by as much as 14% this year. The decline in existing homes for sale has been compounded by a persistent shortage of new construction, with single-family housing starts falling 10.3% in 2023 and 11.2% in 2022.6
Even so, newly-built homes are playing an increased role in easing the supply crunch, accounting for around one-third of all homes for sale in 2023—which was twice the historical average.12 But new construction alone isn’t expected to fill the inventory gap.
According to First American Financial Corporation’s Chief Economist Mark Fleming, the U.S. currently has a shortfall of around one million homes, and conditions won’t ease until individual owners re-enter the market. “Only when more homeowners decide to sell, and then buy again, will housing supply and the pace of sales return to anything resembling normal.”13
What does it mean for you? Inventory remains tight, but buyers can benefit from the search expertise of a real estate professional. We can tap our extensive network to access off-market and pre-market listings while helping you explore both new construction and existing homes in our area.
While sellers will continue to benefit from the low-inventory environment, they should be prepared to compete against brand-new homes. We can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers.
WE'RE HERE TO GUIDE YOU
While national real estate forecasts can give you a “big picture” outlook, real estate is local. And as local market experts, we know what's most likely to impact sales and drive home values in your neighborhood. As a trusted partner in your real estate journey, we'll keep our ears to the ground so that we can guide you through the market's twists and turns.
If you’re considering buying or selling a home in 2024, contact us now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
CNN -<br /><a href="https://www.cnn.com/2023/10/19/homes/existing-home-sales-september/index.html">https://www.cnn.com/2023/10/19/homes/existing-home-sales-september/index.html</a>
Goldman Sachs -<br /><a href="https://www.gspublishing.com/content/research/en/reports/2023/10/23/2d814362-a656-4cb3-8586-bea8591188e3.html">https://www.gspublishing.com/content/research/en/reports/2023/10/23/2d814362-a656-4cb3-8586-bea8591188e3.html</a>
ABC News -<br /><a href="https://abcnews.go.com/US/millennials-priced-homeownership-feeling-pressure/story?id=105032436">https://abcnews.go.com/US/millennials-priced-homeownership-feeling-pressure/story?id=105032436</a>
Bankrate -<br /><a href="https://www.bankrate.com/real-estate/housing-market-2024/">https://www.bankrate.com/real-estate/housing-market-2024/</a>
CBS News -<br /><a href="https://www.cbsnews.com/news/interest-rates-are-paused-heres-why-thats-good-news-for-homebuyers/">https://www.cbsnews.com/news/interest-rates-are-paused-heres-why-thats-good-news-for-homebuyers/</a>
Realtor.com -<br /><a href="https://www.realtor.com/research/2024-national-housing-forecast">https://www.realtor.com/research/2024-national-housing-forecast</a>
NerdWallet -<br /><a href="https://www.nerdwallet.com/article/mortgages/2024-homebuying-trends-property-line-november-2023">https://www.nerdwallet.com/article/mortgages/2024-homebuying-trends-property-line-november-2023</a>
Fast Company -<br /><a href="https://www.fastcompany.com/90991612/home-price-2024-outlook-fannie-mae">https://www.fastcompany.com/90991612/home-price-2024-outlook-fannie-mae</a>
Freddie Mac - <br /><a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-below-seven-percent">https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-below-seven-percent</a>
National Association of Realtors -<br /><a href="https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-forecasts-existing-home-sales-will-rise-by-15-percent-next-year">https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-forecasts-existing-home-sales-will-rise-by-15-percent-next-year</a>
Bank of America -<br /><a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/12/bofa-report-shows-fewer-prospective-homebuyers-willing-to-wait-f.html">https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/12/bofa-report-shows-fewer-prospective-homebuyers-willing-to-wait-f.html</a>
Marketplace -<br /><a href="https://www.marketplace.org/2023/11/27/mortgage-rates-new-home-sales/">https://www.marketplace.org/2023/11/27/mortgage-rates-new-home-sales/</a>
First American -<br /><a href="https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024">https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024</a>
2024-01-01T15:33:00-07:00
2024-01-24T16:20:12-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:40667
Celebrate Sustainably: 5 Ideas for an Eco-Friendly Holiday at Home
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Celebrate Sustainably: 5 Ideas for an Eco-Friendly Holiday at Home
It's the most wonderful time of the year. But for many families with festive plans and hectic schedules, it's also the most wasteful.
According to one survey, for example, 60% of respondents admitted to throwing away more than usual during the holiday months as they filled up their trash bins with uneaten food, wrapping paper, gift bags, and commercial packaging.1
The reality is, Americans routinely toss about 25% more trash between Thanksgiving and New Year’s than at any other time of year, according to the U.S. Environmental Protection Agency.2 In fact, we throw away so much ribbon during the holidays—around 38,000 miles’ worth—that the discarded material could easily run more than one and a half times around the Earth.3
As our holiday schedules grow busier, many of us also forget to take simple steps at home to shrink our carbon footprints or prepare for a more energy-efficient winter.
Luckily, it’s not that hard to shift our habits and plan for a more sustainable and environmentally-friendly celebration. Here are five ideas for ringing in the holidays this year without overstressing Mother Nature.
1. PREP YOUR HOME FOR WINTER
Depending on the amount of time and resources you have available, you could cut your carbon emissions significantly this season just by winterizing your home.
Investing in a more sustainable way to warm up your surroundings—such as a geothermal heat pump or solar heating—could be especially impactful if your current HVAC is underperforming and you can afford a more expensive system.4Replacing old appliances or things like chronically leaking windows with newer, more energy-efficient solutions can also save you money over the long term.5 Plus, you may be able to claim a federal energy-efficient tax credit for up to 30% of your investment.6
You don't necessarily have to spend a lot upfront, though, to prep your home for winter. Even simple tweaks—such as sealing windows and doors or upgrading to more energy-efficient window coverings—can lower your energy consumption and reduce your carbon footprint.7
Incorporating environmentally healthier habits into your routine can also make a meaningful difference. According to the U.S. Department of Energy, for example, dialing back your thermostat by as little as seven to 10 degrees for eight hours a day can trim up to 10% from your bills.8
Consider a home energy assessment to help you pinpoint what needs fixing. Depending on your comfort level, you can audit your home's energy efficiency yourself with the help of the Department of Energy's DIY Guide.9 Or you can hire a professional, such as a home energy auditor or weatherization contractor.10 Call us for a recommendation or personal referral.
2. DECORATE SUSTAINABLY
Decking your home's halls is one of the most jolly seasonal activities of all. There's something special about gathering 'round with friends and family and relaxing in the comforting glow of a festively decorated space.
But since so much of the holiday-themed decor that's sold in stores is notoriously disposable, it can be a challenge to spruce up your home sustainably. Cheaply produced and rarely recyclable, store-bought decorations are often made with plastic, styrofoam, and other environmentally unfriendly materials that can crowd landfills for generations.2
Luckily, you don't have to trade style for sustainability when making your holiday decor. Thrifting is still in vogue, so consider crafting new and on-trend decorations out of secondhand finds or upcycling items already in your closet.
For example, you could transform an ill-fitting sweater into a holiday-themed pillow, turn teacups into candles, or turn leftover shipping boxes into creative decorations. Alternatively, natural decor foraged from your yard—such as dried leaves, flowers, pine cones, and branches—can make for especially beautiful wreaths and centerpieces.
If you do purchase store-bought decor, proactively look for the most environmentally friendly options. LED lights are now ubiquitous in stores and use far less energy than incandescent versions.11 Similarly, if you celebrate with a Christmas tree, think twice about choosing an artificial option. Plastic trees may be reusable, but natural trees are generally thought to have a smaller carbon footprint.1
3. CUT BACK ON HOLIDAY SHOPPING
Shopping online or at the mall may be convenient, but it can be costly for the environment. The greenhouse emissions from shipping and transportation alone add up fast, as do the emissions that are produced when an item is first made. According to the online consignment and thrift store, thredUp, 4.5 billion pounds of carbon emissions could be saved if every American bought just one used item instead of new this year.12
Splurging on brand-new products also makes it more likely that the gently used but still functional items that you've got at home will wind up in the trash.
Rather than buy new, check vintage stores and consignment shops for unique gifts that you and your recipient can both feel good about. According to research by thredUp, most people are open to receiving gently-used presents, especially if they're socially-conscious members of Gen Z.12 Alternatively, consider regifting items that you haven't used, upcycling something you own, or try crafting gifts by hand.
Giving away special experiences, such as concert tickets or community memberships, may also be a more eco-friendly option. So is donating to a favorite charity in a gift recipient's name or offering gifts of time, such as promising to help a loved one clean out their garage or fill their freezer with home-cooked meals.
Research shows that gift recipients often value thoughtful gifts with sentimental value, especially if they're homemade or nostalgic or will provide them with a unique experience.13
And if you prefer to buy something tangible, look to local businesses that source or manufacture their goods nearby. Craft fairs and community markets are a great place to start. Or, give us a call and we’d be happy to share a list of our favorite local stores, depending on the type of gift and your budget. We make an effort to patronize the independently-owned shops and restaurants around town and would love to share our recommendations.
4. GREEN YOUR HOLIDAY DINNER
Do you hail from a family of passionate carnivores? If so, trading your meat for a vegetarian option may seem like a step too far—especially for a holiday dinner.
But swapping your meat for beans isn't the only way to “'green” your holiday meal. For example, you can consciously source your meat from ethical sellers, prioritize local producers for seasonal sides, and serve enough filling vegetables to satisfy a large portion of your appetite.14
You can also minimize food waste by planning ahead so that you don't cook more than necessary. Check out the Natural Resources Defense Council's dinner party “Guest-Imator” to help you narrow down how much food you and your guests will actually need.15 In addition, consider using the USDA's FoodKeeper App to help track safety recalls and set up calendar reminders for expired food.16
Once you're finished eating, clear the table immediately and either freeze the leftovers you'd like to keep or send guests home with reusable containers. Or, if you have untouched food that's still whole or in unopened packaging, take it to a local food bank or homeless shelter. We’d be happy to share a list of options in our area.
5. DONATE OR RECYCLE WHAT YOU CAN
Once the festivities are over, the real work on behalf of Mother Nature begins. This is the time when taking a few minutes at the end of your holiday celebration to swiftly collect wrapping paper and ribbons, unwanted packaging, and other discarded items can make a real environmental difference by reducing what you send to landfills. Your goal should be to reuse what you can and compost or recycle what's left over.
For example, if you upgrade any electronic gadgets over the holidays, you can conserve resources and limit pollution by donating or properly recycling your old versions. The U.S. Geological Survey estimated that recycling a million laptop computers could help save the energy equivalent of 3,500 homes' annual usage of electricity.16 Similarly, the EPA says that recycling one million phones can help salvage 35,000 pounds of copper, 772 pounds of silver, 75 pounds of gold, and 33 pounds of palladium.17
It can also help to reimagine new ways to make old traditions more eco-friendly. For instance, if lighting candles is part of your holiday celebration, consider choosing beeswax candles this year instead of the typical paraffin wax, which is a petroleum derivative. Not only are they cleaner burning and less toxic, but the leftover wax is biodegradable and can be composted, unlike traditional candle wax.18
There are also plenty of earth-friendly ways to dispose of a natural Christmas tree without kicking it to the curb. Trees that are sent to landfills release a potent greenhouse gas called methane.19 So, it’s important to properly dispose of a live tree, if you have one, so it can be recycled or composted. If you’re not sure how, reach out for a list of local options.
BOTTOMLINE
We can still celebrate a fun and festive season without draining our community’s resources or sending leftovers to the landfill. And remember, we’re here to lend a helping hand, now or in the new year. This is the perfect time to strategize your next move or set some real estate resolutions with personalized guidance from an expert. Reach out today to schedule a free consultation.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
Eco Watch -<a href="https://www.ecowatch.com/sustainable-decor-winter-holidays.html"><br /></a><a href="https://www.ecowatch.com/sustainable-decor-winter-holidays.html">https://www.ecowatch.com/sustainable-decor-winter-holidays.html</a>
Architectural Digest -<a href="https://www.architecturaldigest.com/story/best-holiday-and-seasonal-decor-for-the-environment"> </a><a href="https://www.architecturaldigest.com/story/best-holiday-and-seasonal-decor-for-the-environment">https://www.architecturaldigest.com/story/best-holiday-and-seasonal-decor-for-the-environment</a>
The New York Times -<a href="https://www.nytimes.com/2019/12/18/style/zero-waste-holiday.html"><br /></a><a href="https://www.nytimes.com/2019/12/18/style/zero-waste-holiday.html">https://www.nytimes.com/2019/12/18/style/zero-waste-holiday.html</a>
Environmental Protection Agency -<a href="https://www.epa.gov/burnwise/heat-pumps"><br /></a><a href="https://www.epa.gov/burnwise/heat-pumps">https://www.epa.gov/burnwise/heat-pumps</a>
U.S. Department of Energy -<a href="https://www.energy.gov/eere/buildings/articles/appliance-and-equipment-standards-fact-sheet"> </a><a href="https://www.energy.gov/eere/buildings/articles/appliance-and-equipment-standards-fact-sheet">https://www.energy.gov/eere/buildings/articles/appliance-and-equipment-standards-fact-sheet</a>
IRS -<a href="https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit"><br /></a><a href="https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit">https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit</a>
Energy Star -<a href="https://www.energystar.gov/saveathome/seal_insulate/sealing_window_door"><br /></a><a href="https://www.energystar.gov/saveathome/seal_insulate/sealing_window_door">https://www.energystar.gov/saveathome/seal_insulate/sealing_window_door</a>
U.S. Department of Energy - <a href="https://www.energy.gov/energysaver/programmable-thermostats">https://www.energy.gov/energysaver/programmable-thermostats</a>
U.S. Department of Energy -<a href="https://www.energy.gov/energysaver/do-it-yourself-home-energy-assessments"><br /></a><a href="https://www.energy.gov/energysaver/do-it-yourself-home-energy-assessments">https://www.energy.gov/energysaver/do-it-yourself-home-energy-assessments</a>
Kiplinger -<a href="https://www.kiplinger.com/slideshow/real-estate/t029-s001-12-ways-to-prepare-your-home-for-winter/index.html"> </a><a href="https://www.kiplinger.com/slideshow/real-estate/t029-s001-12-ways-to-prepare-your-home-for-winter/index.html">https://www.kiplinger.com/slideshow/real-estate/t029-s001-12-ways-to-prepare-your-home-for-winter/index.html</a>
U.S. Department of Energy -<a href="https://www.energy.gov/energysaver/articles/reduce-waste-and-save-energy-holiday-season"> </a><a href="https://www.energy.gov/energysaver/articles/reduce-waste-and-save-energy-holiday-season">https://www.energy.gov/energysaver/articles/reduce-waste-and-save-energy-holiday-season#</a>
Thred Up -<a href="https://newsroom.thredup.com/news/thredup-releases-thrift-for-the-holidays-report-revealing-that-new-waves-of-consumers-are-planning-to-gift-secondhand-this-year"> </a><a href="https://newsroom.thredup.com/news/thredup-releases-thrift-for-the-holidays-report-revealing-that-new-waves-of-consumers-are-planning-to-gift-secondhand-this-year">https://newsroom.thredup.com/news/thredup-releases-thrift-for-the-holidays-report-revealing-that-new-waves-of-consumers-are-planning-to-gift-secondhand-this-year</a>
The Conversation -<a href="https://theconversation.com/the-4-biggest-gift-giving-mistakes-according-to-a-consumer-psychologist-195169"> </a><a href="https://theconversation.com/the-4-biggest-gift-giving-mistakes-according-to-a-consumer-psychologist-195169">https://theconversation.com/the-4-biggest-gift-giving-mistakes-according-to-a-consumer-psychologist-195169</a>
Popular Science -<a href="https://www.popsci.com/story/diy/sustainable-holiday-strategies/"><br /></a><a href="https://www.popsci.com/story/diy/sustainable-holiday-strategies/">https://www.popsci.com/story/diy/sustainable-holiday-strategies/</a>
Natural Resources Defense Council -<a href="https://savethefood.com/guestimator"><br /></a><a href="https://savethefood.com/guestimator">https://savethefood.com/guestimator</a>
USDA -<a href="https://www.usda.gov/media/blog/2018/10/04/usda-updates-foodkeeper-app-include-new-food-items"><br /></a><a href="https://www.usda.gov/media/blog/2018/10/04/usda-updates-foodkeeper-app-include-new-food-items">https://www.usda.gov/media/blog/2018/10/04/usda-updates-foodkeeper-app-include-new-food-items</a>
U.S. Environmental Protection Agency -<a href="https://www.epa.gov/recycle/electronics-donation-and-recycling"><br /></a><a href="https://www.epa.gov/recycle/electronics-donation-and-recycling">https://www.epa.gov/recycle/electronics-donation-and-recycling</a>
CanICompostIt.com -<br /><a href="https://canicompostit.com/candle-wax/">https://canicompostit.com/candle-wax/</a>
CNN -<a href="https://www.cnn.com/2022/11/25/us/real-or-artificial-christmas-tree-climate/index.html"><br /></a><a href="https://www.cnn.com/2022/11/25/us/real-or-artificial-christmas-tree-climate/index.html">https://www.cnn.com/2022/11/25/us/real-or-artificial-christmas-tree-climate/index.html</a>
2023-11-30T22:57:00-07:00
2023-12-03T23:10:47-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:39572
Income Properties Are Trending, But Is Landlord Life for You?
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Income Properties Are Trending, But Is Landlord Life for You?
If the thought of investing your money into brick and mortar—or perhaps some stylishly-painted siding—excites you, join the club.
Investing in real estate has long been one of Americans' favorite ways to grow their wealth. In fact, over 70% of single-family rental properties are currently owned by individual investors rather than corporations, according to Census data.1
Moreover, a decade's worth of Bankrate surveys has found that Americans often prefer real estate for long-term wealth building over other investments. According to Bankrate's latest survey, for example, Americans have historically embraced real estate, in part, because of the strong return on investment it can offer—especially to investors willing to stick with a property over time.2 It’s also a popular way to hedge against inflation since both rental income and property values tend to rise in tandem with overall prices.3
Now, as higher interest rates continue to push priced-out homebuyers to the sidelines, a new crop of “mom and pop” investors are eyeing the mushrooming rental market as a potential goldmine.4 Interest in buying a home to both live in and rent is also on the rise, especially amongst cash-strapped buyers looking to supplement their mortgage payments.5
But how do you know if you’re well-suited to take advantage of these real estate investment opportunities? Here are three signs that owning a rental property could be right for you.
YOU'RE A HOMEBUYER WHO WANTS HELP COVERING THE MORTGAGE
If you're looking for a creative way to buy a home without overspending, “house hacking” could be the answer. Increasingly popular with first-time homebuyers and budget-conscious investors, house hacking simply means buying a home that you intend to live in while renting out a portion of it to one or more tenants.5
House hacking also tends to be easier to break into than traditional real estate investing since you don't need as high a credit score or as large a down payment to qualify for a mortgage. In fact, some government-backed mortgage programs will let you buy a primary residence with little to no money down.6 Buying a home you don't plan to live in, by contrast, may require you to put down as much as 15% to 25% to qualify for a loan.7
If you house hack, the money you collect for rent each month can help cover your mortgage and other homeownership expenses. Depending on your setup, you may also be able to save on utility bills by splitting them with your tenant or tacking a portion onto their monthly rent. Another major advantage of house hacking is that it entitles you to certain tax benefits and deductions available only to landlords.8
When it's time to start your search, we can help you find a property that's ideal for house hacking, such as a house with a walkout basement, a multifamily unit, or a home with enough outdoor space to build an accessory dwelling unit or garage apartment.
2. YOU'RE AN INVESTOR LOOKING FOR STEADY AND RELIABLE INCOME
If you’re not crazy about the idea of a live-in tenant but still desire an additional stream of income, a dedicated long-term rental property could be a better option for you. Besides the monthly proceeds, purchasing a rental home can also add diversity and long-term stability to your investment portfolio and help you build wealth over time.9
According to data from the Federal Reserve, real estate owners have historically prospered. In early 2020, for example, the median home was worth almost triple what it was 30 years prior. Then, during the pandemic-era real estate boom, average home prices grew at an especially frenzied clip, climbing by nearly 50%, on average, in just two and a half years.10
However, the rate of appreciation can be hard to predict, so it’s prudent to invest in a property that also offers positive cash flow, which means the rent you take in exceeds your expenses. This strategy helps to ensure that you’ll put money in your pocket each month, even if the property’s value takes time to grow.
While today’s higher mortgage rates can make it more challenging for landlords to turn a profit, investment opportunities aren’t reserved for cash buyers. In fact, currently, almost 60% of real estate investors take out a loan to finance their purchase, according to Thomas Malone, an economist at the real estate data firm CoreLogic.4 He also notes that more small investors are stepping in to meet demand for rental housing, which has grown since many would-be buyers remain priced out of the purchase market.4
If you want to explore opportunities for a residential rental property that's good for your wallet and attractive to renters, we can help. Reach out with questions or to schedule a free consultation.
3. YOU'RE AN EXPERIENCED INVESTOR LOOKING TO MAXIMIZE YOUR POTENTIAL RETURNS
Another increasingly popular way to draw income from an investment property is to convert it to a short-term vacation rental. But beware: This strategy can be riskier as some municipalities have tightened rental restrictions and others are suffering from market oversaturation.11,12
With that said, if you're an experienced investor who can afford to take on some uncertainty, then investing in a short-term rental could make sense for you.
If you find the right property, for example, you could earn significantly more renting it short-term on a platform like Airbnb than if you rented the home to a long-term tenant.11
The key is to keep it occupied as much as possible at a premium nightly rate. To do that, you’ll need some marketing savvy, hospitality skills, and business acumen. Of course, you can always hire a professional property manager, but you’ll need to factor the cost into your budget.
The vacation rental market enjoyed a boom during the pandemic, and some inexperienced investors are finding they bit off more than they can chew. As a result, there's an opportunity to snap up some of these properties, but you'll need some cash on hand and a willingness to learn the business.12
We can help you scout opportunities in our local market or, if you’re interested in investing in another area, we can refer you to an agent there for assistance.
BOTTOMLINE
Investing in real estate can be a great way to build your wealth long-term and earn some extra income. But to make the most of your investment, it pays to be strategic.
Call us for a consultation so we can discuss your goals and budget. We'll help you discover neighborhoods with the best income potential, point out the homes most suited to renting, and help you brainstorm the best investment strategy for you.
Before you take the plunge, make sure you can answer “YES” <br />to these three questions:
Are you ready to be a landlord?
Owning a rental property can take a lot of time and energy. You're not just buying passive income, you're also building sweat equity since the time you spend maintaining, marketing, and managing your rental can add up quickly. So be prepared to do some soul-searching to ensure you’ll not only flourish as a landlord, but actually enjoy it.
If you want to invest in real estate but aren’t prepared to put in the day-to-day effort required, we can refer you to a property management service for help.
2.Can you afford to invest in real estate?
The last thing you want is to get over-extended with your new real estate venture. Besides the cost of purchasing the property, you’ll need to consider additional expenses, like property taxes, insurance, administrative costs, and maintenance and repairs. You will also need a cash reserve for unexpected issues or potential vacancies.
We can help you run the numbers to determine whether you can charge enough rent to offset your expenditures.
3.Have you found the right income property?
Even if you’ve got your finances in order and are emotionally ready to invest, your success as a landlord will also depend on the property you buy. The criteria for a good rental home and a good family home are often different, so it’s important to lean on professionals for advice.
We can help you find an ideal rental property, taking into account your budget, risk appetite, and investment goals. If you decide to invest in a different area, we'll connect you with an agent who's more plugged into that community. Reach out today to schedule a free consultation.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
PR Newswire - <a href="https://www.prnewswire.com/news-releases/census-data-show-individuals-continue-to-own-largest-share-of-single-family-rental-homes-301725024.html">https://www.prnewswire.com/news-releases/census-data-show-individuals-continue-to-own-largest-share-of-single-family-rental-homes-301725024.html</a>
Bankrate - <br /><a href="https://www.bankrate.com/investing/survey-favorite-long-term-investment-2022/">https://www.bankrate.com/investing/survey-favorite-long-term-investment-2022/</a>
Forbes -<br /><a href="https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/14/why-income-generating-real-estate-is-the-best-hedge-against-inflation/?sh=1081ce921746">https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/14/why-income-generating-real-estate-is-the-best-hedge-against-inflation/?sh=1081ce921746</a>
MarketWatch -<br /><a href="https://www.msn.com/en-us/money/realestate/another-challenge-for-homebuyers-more-investors-are-snapping-up-homes-and-40-of-them-are-using-cash/ar-AA1foWSB">https://www.msn.com/en-us/money/realestate/another-challenge-for-homebuyers-more-investors-are-snapping-up-homes-and-40-of-them-are-using-cash/ar-AA1foWSB</a>
Realtor.com - <a href="https://www.realtor.com/advice/buy/on-the-house-house-hacking-your-way-into-your-first-home/">https://www.realtor.com/advice/buy/on-the-house-house-hacking-your-way-into-your-first-home/</a>
NerdWallet - <br /><a href="https://www.nerdwallet.com/article/mortgages/government-home-loans">https://www.nerdwallet.com/article/mortgages/government-home-loans</a>
LendingTree - <br /><a href="https://www.lendingtree.com/home/mortgage/down-payment-for-rental-property/">https://www.lendingtree.com/home/mortgage/down-payment-for-rental-property/</a>
Quicken Loans - <br /><a href="https://www.quickenloans.com/learn/house-hacking">https://www.quickenloans.com/learn/house-hacking</a>
Investors Business Daily - <a href="https://www.investors.com/etfs-and-funds/personal-finance/rental-properties-investing-experts/">https://www.investors.com/etfs-and-funds/personal-finance/rental-properties-investing-experts/</a>
St. Louis Fed FRED Economic Data - <br /><a href="https://fred.stlouisfed.org/series/MSPUS">https://fred.stlouisfed.org/series/MSPUS</a>
Story by J.P. Morgan - <a href="https://story.jpmorgan.com/real-estate-news/thinking-about-investing-in-short-term-rentals-heres-what-to-know">https://story.jpmorgan.com/real-estate-news/thinking-about-investing-in-short-term-rentals-heres-what-to-know</a>
Skift - <br /><a href="https://skift.com/2023/07/21/short-term-rental-saturation-leads-to-a-correction-and-lots-of-home-sales/">https://skift.com/2023/07/21/short-term-rental-saturation-leads-to-a-correction-and-lots-of-home-sales/</a>
2023-10-01T16:36:00-07:00
2023-10-06T16:54:57-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:38284
7 Common Homebuyer Regrets (And How To Avoid Them)
<img src="https://assets.site-static.com/userfiles/1653/image/August20202320-20MVP20-20Blog20Post20Image.jpg" width="1200" height="628" />7 Common Homebuyer Regrets (And How To Avoid Them)
To avoid buyer's remorse, be sure to consider your future self when shopping for a home.
Most new homebuyers don't regret becoming homeowners. In fact, according to a survey by LendingTree, 80% of recent buyers who successfully overcame a challenging housing market say they're glad they found their current homes.1 But that doesn't mean newly-minted homeowners don't have any regrets about their buying choices.
On the contrary, research shows that even the most-satisfied homeowners would change some aspects of their home purchase if given the opportunity. According to a recent survey by Anytime Estimate, nearly 3 out of 4 buyers who purchased a home in 2021 or 2022 still have a few regrets.2
Some question their decision to move to a neighborhood they still don't love. Others wish they had been less picky about where they lived so they could have paid less. Many are afraid they overspent or think they sacrificed too much in their rush to buy a home.
Here are some of the most common homebuyer regrets we see, along with our professional advice on how to avoid them.
REGRET #1: Spending More Than Necessary
No one wants to overpay for their new home purchase (and, luckily, with the right guidance, doing so is avoidable). But even if you've secured a winning purchase price, there are still plenty of ways to accidentally overspend.
One of the most common ways to overpay? Choose the wrong mortgage. In fact, in today's higher-rate environment, this can be one of the riskiest mistakes a new buyer can make.
According to a recent survey, for example, nearly three-quarters of homebuyers leave money on the table by not bothering to shop around for the best rate.3 And research by LendingTree suggests that buyers in major metro areas lose an average of $63,151 over the life of their loan just by picking the first mortgage they're offered.4
Lesson Learned: As long as you stick to what you can afford, buying a home can be a boon for your financial health. The longer you live in it, for example, the more your home is likely to appreciate in value and boost your long-term savings.
But to get the most value from your purchase, it's worth your time to compare financing options and shop around for the best deal. We also recommend getting a mortgage pre-approval before you start your home search so you know what's within reach. We can refer you to one of our trusted lending partners for help.
REGRET #2: Rushing Into a Home Purchase
In a competitive housing market, it's often necessary to act fast to secure a home. But don't let a need for speed tempt you into making an offer before you've thought through or fully vetted a new property.
Rushing into a home purchase isn’t just risky, it's also one of the most commonly cited sources of homebuyer regret. According to Anytime Estimate, for example, more than 1 in 4 homebuyers felt remorse over how quickly they sped through the home buying process.2
Getting swept away by your emotions can also lead to buyer's remorse. If you've found a home you love and are competing with other buyers, it can be tempting to overlook key details or bid more than you can afford. That's one reason it helps to have a skilled professional by your side to calmly guide you through the process and ensure you act with reason, rather than emotion.
Lesson Learned: Buying a home is exciting. But if you don't keep your emotions in check or act too impulsively, you could make poor choices in the moment that are hard to undo later.
To avoid making last-minute decisions that could backfire, know what you want, what you need, and what you can afford before you start your home search. We can help you set priorities so you’ll be able to move forward with confidence when the time is right.
REGRET #3: Miscalculating the Costs of Homeownership
Though real estate is a great long-term investment, it can be pricey in the short-term, often surprising homeowners who aren't prepared for it. According to some estimates, for example, annual maintenance could cost as much as 1% or more of your home's purchase price.5 Some buyers also forget to factor in additional ownership expenses, such as property taxes, insurance, and repairs.
Failing to think through the costs of homeownership is one of the most common sources of homebuyer regret. According to Anytime Estimate, for example, nearly half of the homebuyers who regret their purchase said they underestimated how much they would spend to live in it.2
However, some homes cost more to live in and maintain than others. So even if you're certain that you can afford the average cost of homeownership, that doesn't necessarily mean that every home in your price range will fit neatly into your budget. For example, very old homes with unique maintenance requirements could be extra pricey to keep up. Similarly, homes with high HOA or condo fees could also eat into your monthly budget.
Lesson Learned: A home should help you build your wealth, not drain it. So it's important to factor in all the potential costs of living in a home—not just obvious ones like your mortgage payment and taxes. To ensure you don't get overextended, add up your estimated maintenance and repair costs, as well as any miscellaneous expenses that are unique to a particular home.
We can help you with these estimates—and, if needed, present you with some less-costly alternatives.
REGRET #4: Underestimating the Time Required To Maintain or Renovate a Home
One of the most joyful aspects of homeownership is getting to relax in a home that's all your own. But if a home is too high maintenance, then you may not have time to savor it.
Many homeowners love to spend their weekends puttering in their gardens or undertaking home improvement projects. But if that's not you, then you may not like living in a home with a big yard or with high-maintenance features, like a pool.
According to a survey by Hippo, for example, 47% of homeowners who feel some regret about their home purchase complain that too much maintenance and upkeep is required.6
Similarly, buyers who purchase fixer-uppers are often surprised by how much time it takes to rehab their new homes. Although buying a fixer-upper is a great way to save on the purchase price, you could come to resent it if it eats up all your free time.
Lesson Learned: Renovation and maintenance projects are often time-consuming and stressful. So beware of committing to a property that requires too much of your attention if you don't have the time or patience for it. With that said, home improvement projects can also bring a lot of joy and satisfaction to owners who like rolling up their sleeves.
We can talk through the realities of homeownership with you and help you choose a property that will fit your personality and schedule.
REGRET #5: Ignoring or Skipping a Home Inspection
It’s easy to get swept up in the excitement of buying a home. Sometimes, buyers will agree to skip a home inspection to sweeten their offer in a competitive market. They may also be tempted to pinch pennies since they’re already facing a large outlay. However, if you skip out on a home inspection, you could come to regret it.
When you hire a home inspector, you get a professional, in-depth examination of the property’s structures and systems before you buy it. It’s a worthwhile investment that can save you money in the long run, either by warning you away from a bad purchase or by providing a list of deficiencies you can use to negotiate with the sellers.
But even the most thorough home inspection isn't going to be worth much if you don't take the time to carefully consider it. If at all possible, make sure you’re on-site during the inspection so you can observe and ask questions. And don’t forget to re-evaluate any repairs that the seller agrees to make to ensure they’ve been properly completed prior to closing.
Lesson Learned: A home inspection can reduce your risk and save you money in the long run. But to maximize its effectiveness, you will need to be an active participant in the process.
We’d be happy to share a list of experienced and trustworthy home inspectors in our area. And when the inspection report is complete, we can help you decide if the purchase is worthwhile and negotiate any relevant seller concessions and repairs.
REGRET #6: Choosing a Home That Doesn't Fit
Homeownership is often a better investment if you’re willing to stay put for at least five years.7 But if your newly purchased home isn’t a good fit, then you may not want to stick around that long.
Many homeowner complaints come down to simple lifestyle issues: Although a mismatch may seem small at first, the problems can magnify if you make so many compromises that they interfere with your quality of life.
Or, sometimes homebuyers can fall in love with a beautiful home and forget about practicalities. For example, a stunning kitchen can’t replace a needed bedroom or bathroom. And a sparkling pool may sit empty if the home requires a lengthy commute to your office.
Make sure you set some guardrails during your home purchase so you don’t over-compromise or accidentally prioritize your wants over your needs.
Lesson Learned: When you’re dealing with limited inventory or a fixed budget, it may be necessary to sacrifice some items on your home wish list. But if you fail to secure your must-haves, you could come to regret your home choice.
We can help you avoid an ill-fitting home purchase by working with you to set (and stick to) priorities and parameters before you begin your search.
REGRET #7: Purchasing Without Professional Help
Another path to homebuyer regret? Foregoing the expert guidance and market insight that you can only get from a licensed real estate agent.
Buying a home without professional representation can be extremely risky. Therefore, it’s no surprise that 86% of buyers enlist the help of an agent when purchasing a home. And the vast majority find their assistance to be invaluable: 89% say they would use their agent again or recommend them to others.8
Real estate is hyperlocal and extremely fluid—especially these days when the market is in constant flux. So it pays to have a knowledgeable expert by your side who can guide you through an often-complicated process.
We can help you avoid expensive mistakes that could lead to buyer’s remorse, all while making your home purchase as seamless and stress-free as possible. And since the home seller typically pays our commission, there’s no added expense for you!
Lesson Learned: When you work with a real estate agent, you benefit from a wealth of expertise and on-the-ground insight that you can't get anywhere else. We’ll help you steer clear of the missteps that so many homebuyers make, so you can focus on enjoying your new home instead of questioning your choices down the road.
The best part? Since the majority of home sellers pay us a commission at closing, in most cases, we offer our invaluable guidance and assistance at no additional cost to you!
BOTTOMLINE
No one wants to look back on their home purchase and realize they made a big mistake. We can help you avoid the pitfalls so you can buy with confidence. To learn more about how we work to ensure our clients’ satisfaction, reach out today to schedule a free consultation.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
LendingTree -<a href="https://www.lendingtree.com/home/mortgage/homebuying-process-survey/"> <br /></a><a href="https://www.lendingtree.com/home/mortgage/homebuying-process-survey/">https://www.lendingtree.com/home/mortgage/homebuying-process-survey/</a>
Anytime Estimate -<a href="https://anytimeestimate.com/research/american-home-buyers-2022/"> <br /></a><a href="https://anytimeestimate.com/research/american-home-buyers-2022/">https://anytimeestimate.com/research/american-home-buyers-2022/</a>
Zillow Home Loans -<a href="https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders"> </a><a href="https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders">https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders</a>
LendingTree -<a href="https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/"> <br /></a><a href="https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/">https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/</a>
CNBC -<a href="https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html#:~:text=Among%20recent%20home%20buyers%2C%2070,cost%20of%20buying%20a%20home"> <br /></a><a href="https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html#:~:text=Among%20recent%20home%20buyers%2C%2070,cost%20of%20buying%20a%20home">https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html</a>
Hippo -<a href="https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during"> </a><a href="https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during">https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during</a>
Realtor.com -<a href="https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/"> <br /></a><a href="https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/">https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/</a>
National Association of Realtors - <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers">https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers</a>
2023-08-01T18:25:00-07:00
2023-08-07T18:36:25-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:37602
This Week's Market Update
NATIONAL MARKET UPDATE
Sales of <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaXzzWITCWhEZhr11tlIjtqck3rguFUhCn0OFNTKzCu1ZKcfKS49nKczhdm-2FTvMVdl-2FLETeGaww1m2WHUXH-2B5qy7Q-3DtOuI_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk69KyC0NnhtatH3MjLl9J-2FMWIEKLUMjXerrVl9p3qacq9EH8DfJG2yvzr0KQIbKHaPVxGhLHDgqH-2BYTaTFFaj9IxtJCubcZungMR3scQ7BG-2FaWVyAWZSdwMxPzi6GNHqclTjw0eIOPg6iLHHgwNO1xo-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaXzzWITCWhEZhr11tlIjtqck3rguFUhCn0OFNTKzCu1ZKcfKS49nKczhdm-2FTvMVdl-2FLETeGaww1m2WHUXH-2B5qy7Q-3DtOuI_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk69KyC0NnhtatH3MjLl9J-2FMWIEKLUMjXerrVl9p3qacq9EH8DfJG2yvzr0KQIbKHaPVxGhLHDgqH-2BYTaTFFaj9IxtJCubcZungMR3scQ7BG-2FaWVyAWZSdwMxPzi6GNHqclTjw0eIOPg6iLHHgwNO1xo-3D&source=gmail&ust=1688477817539000&usg=AOvVaw0AD2qyYXSoGYfp2uCP3yN9">new single-family homes</a> rocketed ahead 12.2% in May, up for the third straight month. Reasons? The supply of completed homes has more than doubled since the bottom, and the median sale price is 7.6% below a year ago.
Existing home supply remains tight, so the <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX1Sq6EX1pLB6tkaHA3V08DhW9CWblKMyjuGpmAwY6baNDw4F-2BCdLXmT5t-2B8qbwtyrpzFubwrs7C3gmhgAzK1ulAq3tr68FAGyyt4WLrEERckwenN_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk9x6p3XyMF3edABUsvzFH9Mx6-2BGZgQOrPPsw2t13d9CHxT7fCjjDiWnD-2BtTrfosvrZRMIZg0VlSITMAup7NUxgONroTkTIULIeY0kHvi-2B0xDGUkcRC4RJHRKr-2Fy8SfJnRK02y0LIZwRg9MSya9M5Z78-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX1Sq6EX1pLB6tkaHA3V08DhW9CWblKMyjuGpmAwY6baNDw4F-2BCdLXmT5t-2B8qbwtyrpzFubwrs7C3gmhgAzK1ulAq3tr68FAGyyt4WLrEERckwenN_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk9x6p3XyMF3edABUsvzFH9Mx6-2BGZgQOrPPsw2t13d9CHxT7fCjjDiWnD-2BtTrfosvrZRMIZg0VlSITMAup7NUxgONroTkTIULIeY0kHvi-2B0xDGUkcRC4RJHRKr-2Fy8SfJnRK02y0LIZwRg9MSya9M5Z78-3D&source=gmail&ust=1688477817539000&usg=AOvVaw302p0IlVNf3o5U4vN99msC">index of signed contracts</a> on those homes dipped in May. But demand is strong, the National Association of Realtors reporting “approximately three offers for each listing.”
The national <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaXyxG-2BHCoTg2ps5uEvGKjzMNedXOLUCfTc3dEjVfKHGtCWBJsgpcT9xGNTbQgu5Rck-2FTHiDcP4ikSJzDQhlwlRU-2FHGt5q5Wt9k-2FWtxV2Q79-2Bt5q2uw6eJhyWH2fwM4IioENkQK8vEbj8cgVMRYaFjiQY-3DhP84_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk-2FyaktBdBqizI39uWhswSA5WOTYV08nONAmBDmld85NNA-2FVbG7-2BGb18Nc82eHU8i2XzAe-2FPxhyVgTJH8i-2BsAkFs-2Bh-2F9i9UYLrWo0p9gqTRE8EP-2FVX0NVnJkENZe6MayGOqiYkLEQ5ATDTWp0B5L4CWk-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaXyxG-2BHCoTg2ps5uEvGKjzMNedXOLUCfTc3dEjVfKHGtCWBJsgpcT9xGNTbQgu5Rck-2FTHiDcP4ikSJzDQhlwlRU-2FHGt5q5Wt9k-2FWtxV2Q79-2Bt5q2uw6eJhyWH2fwM4IioENkQK8vEbj8cgVMRYaFjiQY-3DhP84_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk-2FyaktBdBqizI39uWhswSA5WOTYV08nONAmBDmld85NNA-2FVbG7-2BGb18Nc82eHU8i2XzAe-2FPxhyVgTJH8i-2BsAkFs-2Bh-2F9i9UYLrWo0p9gqTRE8EP-2FVX0NVnJkENZe6MayGOqiYkLEQ5ATDTWp0B5L4CWk-3D&source=gmail&ust=1688477817539000&usg=AOvVaw3Chv-0zsD3e_QfTUh6mZES">Case-Shiller</a> home price index moved up in April for the third straight month, though it’s still down a tad annually. The <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX4i4RxFDHl400ZSLefCeHEJsp7iaICkYWmM6bHHZaTwCuyFbxNRKb9VgIA8ZUPfl2NuhkB7zr8tHpkp2gL0-2B7iTc-2FVQ6KuzkwVnN2zdpBT7WDRnf_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk0-2B8NRjq6hk7uLv-2FCTT5nTUAX8ISJXpbm7QlMbwu3xOAKcadg9vEOoeqwk9OEQsCR0LVgpN4q8dsm3JAQO9jdi8dvXSLElnrzG6HV-2BDfqyyofvy4qNcRl-2Buzyz5-2FFSXp81Rwu9OatJNKqXD6a8TGtMw-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX4i4RxFDHl400ZSLefCeHEJsp7iaICkYWmM6bHHZaTwCuyFbxNRKb9VgIA8ZUPfl2NuhkB7zr8tHpkp2gL0-2B7iTc-2FVQ6KuzkwVnN2zdpBT7WDRnf_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1eBd1Y-2FKDO9QqTem11OyKVrswdBxnwsTtXr8TBgb7lxY7VJftBRZu7-2BwHK90-2BKmzHeUig0j41PHErmwyU6V1LmlEz8SdGixLfkk36L4DYQWk0-2B8NRjq6hk7uLv-2FCTT5nTUAX8ISJXpbm7QlMbwu3xOAKcadg9vEOoeqwk9OEQsCR0LVgpN4q8dsm3JAQO9jdi8dvXSLElnrzG6HV-2BDfqyyofvy4qNcRl-2Buzyz5-2FFSXp81Rwu9OatJNKqXD6a8TGtMw-3D&source=gmail&ust=1688477817539000&usg=AOvVaw2tDBgiryTyyA3KOscMaJ2_">FHFA Index</a> of prices for homes bought with conforming mortgages rose to a new all-time high.
REVIEW OF LAST WEEK
AHEAD AT THE HALF... The three major stock indexes finished the week, the month, and the first half of the year solidly ahead. Traders were feeling the economy can avoid a recession and the Fed is close to done hiking rates.
However, all was not perfect. Consumer spending rose in May a way-less-than-expected 0.1% and Core PCE Prices, the Fed's favorite inflation measure, moderated, but by a mere 0.1% year-over-year.
But a pile of data beat forecasts—Personal Income, Durable Goods Orders, New Home Sales, Consumer Confidence, and weekly Initial Jobless Claims. Plus, Q1 GDP was upwardly revised to report 2.0% economic growth.
The week ended with the Dow UP 2.0%, to 34,408; the S&P 500 UP 2.3%, to 4,450; and the Nasdaq UP 2.2%, to 13,788.
With so much money flowing into equities, bonds finished a bit down overall, the 30-Year UMBS 5.5% slipping 0.52, to $99.39. In Freddie Mac's Primary Mortgage Market Survey, the national average 30-year fixed mortgage rate edged up modestly. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… The Mortgage Bankers Association reported for the week ending June 23, applications for purchase mortgages rose “for the third consecutive week, to the highest level of activity since early May.”
THIS WEEK'S FORECAST
CONSTRUCTION SPENDING, MANUFACTURING, SERVICES, JOBS… May should see a small gain in overall Construction Spending, but we'll focus on the residential part. The June ISM Manufacturing Index is expected to have that sector of the economy still contracting, while the ISM Non-Manufacturing Index shows the dominant services sector barely expanding. About 200,000 new Nonfarm Payrolls are forecast for June, with the Unemployment Rate holding around 3.7%.
In observance of Independence Day, U.S. financial markets will close early today, and will remain closed tomorrow, July 4.
FEDERAL RESERVE WATCH
Forecasting Federal Reserve policy changes in coming months. The futures market still sees the Fed hiking a quarter percent in July and holding there, although sentiment is growing for another bump in November. Note: In the lower chart, an 87.4% probability of change is an 87.4% probability the rate will rise. Current rate is 5.00%-5.25%
AFTER FOMC MEETING ON:
CONSENSUS
Jul 26
5.25%-5.50%
Sep 20
5.25%-5.50%
Nov 1
5.25%-5.50%
Probability of change from current policy:
AFTER FOMC MEETING ON:
CONSENSUS
Jul 26
87.4%
Sep 20
30.6%
Nov 1
46.2%
Thank you to Sean Donahue and Supreme Lending for providing the content for this report
2023-07-03T07:07:36-07:00
2023-07-03T07:20:19-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:38087
Renovate or Relocate? 3 Questions To Help You Decide
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Renovate or Relocate? 3 Questions To Help You Decide
Does your current home no longer serve your needs?
If so, you may be torn between relocating to a new home or renovating your existing one. This can be a difficult choice, and there’s a lot to consider—including potential costs, long-term financial implications, and quality of life.
A major remodel can be a major commitment. From hiring contractors to selecting materials to managing a budget, it can take a tremendous amount of time and energy—not to mention the ordeal of living through construction or relocating to a temporary residence.<br /><br />On the other hand, moving is notoriously taxing. In fact, in one survey, 40% of respondents viewed buying a new home as ”the most stressful event in modern life.”1<br /><br />So which is the better option for you? Let’s take a closer look at some of the factors you should consider before you decide.
What Are Your Motivations for Making a Change?
It’s possible that some of the limitations of your current home can be addressed with a renovation, but others may require a move.
Renovate
Certain issues, like dated kitchens and bathrooms, are fairly easy to remedy with a remodel—and the results can be dramatic. In many cases, a relatively minor renovation can significantly increase your enjoyment of your home.
Other shortcomings can be more challenging to fix but are worth exploring so that you know your options. For example, if your home feels cramped or it lacks certain rooms, you might be able to make changes like installing an extra bathroom, adding a dedicated office, or finishing an attic or basement. You may even be able to build an accessory dwelling unit or extension to accommodate a multi-generational family.
In fact, many Americans have remodeled their homes to meet changing needs since the start of the pandemic. According to the National Association of the Remodeling Industry, 90% of their members reported increased demand for renovations starting in 2020, and 60% reported that the scale of remodeling projects has grown.2
However, the feasibility and cost of these larger changes will depend on factors ranging from zoning and permitting to your home’s current layout. Speaking with an architect or a contractor can help you make an informed decision. Let us refer you to one of our trusted partners to ensure you receive the best possible service.
Relocate
Of course, sometimes, even rebuilding your home from the ground up wouldn’t solve the problem. For example, moving may be the only solution if you’ve switched jobs and now face a lengthy commute or if you need to live closer to an aging family member.
Conversely, if the shift to remote work has opened up your location options, you may wish to seize the opportunity to relocate to a new locale. A 2022 study found that nearly five million Americans had already moved since the start of the COVID-19 pandemic due to increased flexibility from remote work, and nearly 19 million more were planning to move in the near future for the same reasons.3
Moving may also be the best option, even when you’re happy with your geographic location. A local move may make sense if you’re looking for a larger backyard or significantly more space. Similarly, some frustrations—like living on a busy street or a long way from a grocery store—can’t be addressed with a renovation. We are well-versed in this area and can help you determine whether another neighborhood might suit you and your family better.
Which Option Makes the Most Financial Sense?
Renovating and relocating both come with costs, and it’s wise to explore the financial implications of each choice before you move forward.
Renovate
The costs of a renovation can vary widely, so it’s vital to get several estimates from contractors upfront to understand what it might take to achieve your dream home.
Be sure to consider all of the potential expenditures, from materials and permits to updates to your electrical and plumbing systems. It’s also prudent to add 10-20% to your total budget to account for unexpected issues.4 If you plan to DIY all or part of your renovation, don’t forget to factor in the value of your time.
Renovations can also come with hidden expenses. These might include:
Additional home insurance
Short-term rental or hotel if you need to move out during the renovation
Storage unit for possessions that need to be out of the way
Dining out, laundry service, and other essentials if you can’t access appliances at home
Remodeling choices can also impact the long-term value of your home. Some projects may increase your home’s value enough to outweigh your investment, while others could actually hurt your home’s resale potential.
For example, although you may enjoy the additional living space, garage conversions aren’t typically popular with buyers.5 Refinishing hardwood floors, on the other hand, brings an average return of 147% at resale.2 The specific impact of a renovation will depend on a number of factors, including the quality of work, choice of materials, and buyer preferences in your area. We can help you assess how a planned project is likely to affect the value of your home.
Relocate
The cost of a new home, of course, will vary significantly depending on the features you’re seeking. However, you may find that it’s cheaper to move to a home that has everything you want than it is to make major changes to your existing one.
For example, adding a downstairs bedroom suite or opening up a closed floor plan could cost you more than it would to buy a home that already has those features. On the other hand, simpler changes and updates probably won’t outweigh the expense of a relocation.
If you’re considering a move, speak with a real estate agent early in the process. We can assess your current home’s value and estimate the price of a new home that meets your needs. This will help you set an appropriate budget and expectations.
It’s important to remember that the cost of buying a new home doesn't end with the purchase price. You’ll also need to account for additional expenditures, including closing and moving costs and the fees involved with selling your current home. And don’t forget to compare current mortgage rates to your existing one to understand how a different rate could impact your monthly payment.
However, keep in mind that the interest rate on a mortgage is typically lower than the rate on other loan types—so you could pay less interest on a new home purchase than you would on remodel.6 We’re happy to refer you to a lending professional who can help you explore your financing options.
Which Option Will Be the Least Disruptive to Your Life?
A final—but critical—consideration is the time and hassle involved with each option since both renovating and relocating involve a significant amount of each.
Renovate
Don’t underestimate the time and effort involved in a large-scale renovation, even if you choose to hire a general contractor. You will still need to consider and make a number of decisions. For example, even a fairly basic kitchen remodel can involve a seemingly-endless selection of cabinets, tile, countertops, paint colors, fixtures, hardware, and appliances.
And don’t assume that you will get out of packing and unpacking if you stay in your current home. Most renovations—from kitchens to bathrooms to flooring replacement—require you to remove your belongings during the construction process.
The time frame for a remodel is another consideration. High demand for contractors and ongoing material shortages can mean a long wait to get started. And once the project is in progress, you can expect that it will take a couple of weeks to several months to complete.7
Contemplate whether you will be able to live in your home while it’s being renovated and how that would impact your routine. For example, being without a functional kitchen for months can be frustrating, inconvenient, and expensive (since you’ll need to purchase prepared food). Remember that delays are inevitable with construction, and consider what additional challenges they could present.
Relocate
Of course, finding a new home and selling your current one also takes a significant amount of time and energy. According to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers, the average buyer searched for 10 weeks and toured a median of five homes.8
However, in many cases, the timeline can still be shorter than a major renovation. Once you find a home that works for you, it typically takes between 30 and 60 days to close if you’re taking on a mortgage—and the process is even faster if you’re paying with cash.9 Plus, you can look for your dream home without the inconvenience of living in a construction zone.
However, a move comes with its own stress and disruptions. If you’re selling your current home, you’ll need to prep it for the market and keep it ready and available for showings. Once you’ve found a place, the packing and moving process takes time and work, as does settling into a new home—especially if it’s in a different neighborhood.
Fortunately, we are here to help make the moving process as easy as possible, if you choose to pursue that route. We can help you find a property that meets all your needs, sell your current one for top dollar, and refer you to some excellent moving companies that can help pack and transport your belongings.
WHATEVER YOU DECIDE, WE CAN HELP
The decision to renovate or relocate can be overwhelming—but this choice also presents a powerful opportunity to improve your quality of life.
There’s a lot to consider, from how renovations could impact your home’s resale value down the road to your neighborhood’s current market dynamics. We’re happy to help you think through your options. Get in touch for a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
HousingWire -<br /><a href="https://www.housingwire.com/articles/46384-americans-say-buying-a-home-is-most-stressful-event-in-modern-life/">https://www.housingwire.com/articles/46384-americans-say-buying-a-home-is-most-stressful-event-in-modern-life/</a>
National Association of the Remodeling Industry -<br /><a href="https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf?_gl=1*3pfs0m*_gcl_au*NTU2MDQ0MzAyLjE2ODMyMzgzMTY">https://cdn.nar.realtor//sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf?_gl=1*3pfs0m*_gcl_au*NTU2MDQ0MzAyLjE2ODMyMzgzMTY</a>
Business Insider -<br /><a href="https://www.businessinsider.com/5-million-people-moved-because-of-remote-work-since-2020-2022-3">https://www.businessinsider.com/5-million-people-moved-because-of-remote-work-since-2020-2022-3</a>
Forbes -<br /><a href="https://www.forbes.com/home-improvement/contractor/home-renovation-costs/">https://www.forbes.com/home-improvement/contractor/home-renovation-costs/</a>
U.S. News & World Report -<br /><a href="https://realestate.usnews.com/real-estate/articles/10-home-renovations-that-can-decrease-the-value-of-your-home">https://realestate.usnews.com/real-estate/articles/10-home-renovations-that-can-decrease-the-value-of-your-home</a>
Bankrate -<br /><a href="https://www.bankrate.com/mortgages/mortgage-vs-home-equity-loan/#differences">https://www.bankrate.com/mortgages/mortgage-vs-home-equity-loan/#differences</a>
House Beautiful -<br /><a href="https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/">https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/</a>
National Association of Realtors -<br /><a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers">https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers</a>
Forbes -<br /><a href="https://www.forbes.com/advisor/mortgages/how-long-does-it-take-to-close-on-a-house/">https://www.forbes.com/advisor/mortgages/how-long-does-it-take-to-close-on-a-house/</a>
2023-07-01T11:35:00-07:00
2023-07-27T13:30:59-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:37246
Home values continuing to grow
NATIONAL MARKET UPDATE<br /><br /><a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX-2FwfB-2F8wJ6ZaUZDzHVogzbNgD-2F19r642e2hW6TlfvR5sB6rr-2FHrtZfaKrA-2FxY9CII0v9RA1Q5wv-2BU6h3GhkejBnS54Haxmk-2B-2FiHymsY-2BbaNqSoDP_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1d9fYJozEQlCv9kfsIgdbEGIwxms6CitZgQZBKlgY-2F3z-2FpanqZY3ZdFQdW1rvG-2FkHIo8bNKHmyNnvFrhpjQupliLREvBowXSEKNRYOJBvKKiFp7TUHScZ-2By7N3-2FPEec6Pi358GyqmeuKA6tCXZn2YY5xTpHlBu4Nx8oKLlnz2m-2BZRl2nzP86HN7gEI7jeqgqPBqsiCNxIac-2FkuF8bhnrHHvMAyHYB0CdGRYx3r26mkI-2Fxvc2FbdwE8S7TFkv-2FMgzEA-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX-2FwfB-2F8wJ6ZaUZDzHVogzbNgD-2F19r642e2hW6TlfvR5sB6rr-2FHrtZfaKrA-2FxY9CII0v9RA1Q5wv-2BU6h3GhkejBnS54Haxmk-2B-2FiHymsY-2BbaNqSoDP_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1d9fYJozEQlCv9kfsIgdbEGIwxms6CitZgQZBKlgY-2F3z-2FpanqZY3ZdFQdW1rvG-2FkHIo8bNKHmyNnvFrhpjQupliLREvBowXSEKNRYOJBvKKiFp7TUHScZ-2By7N3-2FPEec6Pi358GyqmeuKA6tCXZn2YY5xTpHlBu4Nx8oKLlnz2m-2BZRl2nzP86HN7gEI7jeqgqPBqsiCNxIac-2FkuF8bhnrHHvMAyHYB0CdGRYx3r26mkI-2Fxvc2FbdwE8S7TFkv-2FMgzEA-3D&source=gmail&ust=1687280896761000&usg=AOvVaw2S5b9RnIPkqqGOze32f2EJ">Zillow</a> reports home values rose 1.4% from April to May, faster than the two spring markets before the pandemic. Low inventory is the reason, which can lead to “bidding wars as buyers compete for limited options.”
The Mortgage Bankers Association reports purchase loan applications were up 8% versus the week before, and “the average loan size...decreased for the third straight week, as we continue to see more first-time homebuyer activity.”
Homebuyers are on the move. In the first three months this year, almost 60% of all <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX7Z4gh92aNNcqsW4CL7vsQucS02yrKqU4AsdSs6-2F-2FtSzWs4h-2FRwIqbPctLdBuBmNQoFdTcs3gm8uRxf68Ls4YEQz2XlvZ6p75OzsPBGHhYhI1eOcfaz5W9s6FxNkZbAcUI0j6GcH46mDuENsbXxBqOBdTvdFoZdRT20FPKzNiD-2Fz4vY6x0yWVIunx-2FPq6R1vMM6ZrDTnxNvFaVBnnUT1nIeZuoWIlk-2Fz-2Bb1HNn1P1VXMeq-2F6Wyf-2FtdIp7piYPa1xrrgxByxEogncMcunAHn6TdKjo80TIv-2FnlbDGyE1U-2FBjsH4bZsL4HQ4mMMYUXdqB2FQ-3D-3DbptY_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1d9fYJozEQlCv9kfsIgdbEGIwxms6CitZgQZBKlgY-2F3z-2FpanqZY3ZdFQdW1rvG-2FkHIo8bNKHmyNnvFrhpjQupliLREvBowXSEKNRYOJBvKKiFUBsF2MeTLXRWn-2BaJF7ABam09zTILSZgHtEv3LFkxW-2FB8RVKI5Ym2ssC-2Fs-2FH8yGcP12vliMbA-2B8Ip4U3VEn0pKG6a0wZTHkiBo5cjt5-2FD8VW0F9jiovk7naOlVbjdKhwO-2Bq-2B02HlJCz309Y5hvHJbw-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX7Z4gh92aNNcqsW4CL7vsQucS02yrKqU4AsdSs6-2F-2FtSzWs4h-2FRwIqbPctLdBuBmNQoFdTcs3gm8uRxf68Ls4YEQz2XlvZ6p75OzsPBGHhYhI1eOcfaz5W9s6FxNkZbAcUI0j6GcH46mDuENsbXxBqOBdTvdFoZdRT20FPKzNiD-2Fz4vY6x0yWVIunx-2FPq6R1vMM6ZrDTnxNvFaVBnnUT1nIeZuoWIlk-2Fz-2Bb1HNn1P1VXMeq-2F6Wyf-2FtdIp7piYPa1xrrgxByxEogncMcunAHn6TdKjo80TIv-2FnlbDGyE1U-2FBjsH4bZsL4HQ4mMMYUXdqB2FQ-3D-3DbptY_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1d9fYJozEQlCv9kfsIgdbEGIwxms6CitZgQZBKlgY-2F3z-2FpanqZY3ZdFQdW1rvG-2FkHIo8bNKHmyNnvFrhpjQupliLREvBowXSEKNRYOJBvKKiFUBsF2MeTLXRWn-2BaJF7ABam09zTILSZgHtEv3LFkxW-2FB8RVKI5Ym2ssC-2Fs-2FH8yGcP12vliMbA-2B8Ip4U3VEn0pKG6a0wZTHkiBo5cjt5-2FD8VW0F9jiovk7naOlVbjdKhwO-2Bq-2B02HlJCz309Y5hvHJbw-3D&source=gmail&ust=1687280896761000&usg=AOvVaw1A0xQoVbV9JAsLIKfUl4NI">Realtor.com</a> listing page views in the top 100 metros were for homes outside the shopper's metro, up from the prior quarter and year-over-year.<br /><br />REVIEW OF LAST WEEK
NO HIKE, STOCKS SPIKE... After hiking rates for 10 straight FOMC meetings, the Fed last week held off. Stocks rallied on the hopes of a less-aggressive Fed which might actually succeed in avoiding a recession.
Fed Chair Powell emphasized this wasn't the end of rate hikes, as inflation is still above their 2% target. But the May Consumer Price Index (CPI) showed inflation on a downward trend, hitting 4%, a two-year low.
Also, a sharp decline in wholesale price inflation indicated lower CPIs ahead. A boost in Retail Sales showed consumers still contributing, though University of Michigan Consumer Sentiment reported people expect economic difficulties.
The week ended with the Dow UP 1.2%, to 34,299; the S&P 500 UP 2.6%, to 4,410, and the Nasdaq UP 3.2%, to 13,690.
Bonds rose a tick overall, with the 30-Year UMBS 5.5% inching UP 0.05, to $100.03. Freddie Mac's Primary Mortgage Market Survey found the national average 30-year fixed mortgage rate edged lower again. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Analysts say Gen Xers (age 41 to 56) are the #1 demographic cohort when it comes to the ability to buy homes. They’re at their peak earning years and have benefited from stock market and home price growth.
THIS WEEK'S FORECAST
HOME BUILDING, EXISTING HOME SALES, JOBLESS CLAIMS... It's expected we'll see builders treading water in May, with Housing Starts holding at April's annual rate. Looking to the future, things should get more active, with May Building Permits up from April. May Existing Home Sales are also forecast to be in a holding pattern, thanks to tight inventory. But analysts predict weekly Initial Unemployment Claims will recede from their recent elevated levels.
U.S. stock and bond markets are closed today, June 19, in observance of Juneteenth National Independence Day.<br /><br /><br />
AFTER FOMC MEETING ON:
CONSENSUS
Jul 26
5.25%-5.50%
Sep 20
5.25%-5.50%
Nov 1
5.25%-5.50%
<br />Probability of change from current policy
AFTER FOMC MEETING ON:
CONSENSUS
Jul 26
71.9%
Sep 20
35.1%
Nov 1
38.2%
Thank you to Sean Donanue and Supreme Lending for this content.
2023-06-19T10:40:22-07:00
2023-06-19T11:06:01-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:36840
National Real Estate Market Update for 2023
<img src="https://assets.site-static.com/userfiles/1653/image/June20202320-20MVP20-20Blog20Post20Image.jpg" width="1200" height="628" />
National Real Estate Market Update for 2023
There’s an old adage in real estate: location, location, location. But ever since the Federal Reserve began its series of inflation-fighting interest rate hikes last year, a new mantra has emerged: mortgage rates, mortgage rates, mortgage rates.
Higher rates had the immediate impact of dampening homebuyer affordability and demand. But this year, we’re seeing further repercussions. While analysts expected listing inventory to swell as sales declined, instead, homeowners have been pushing off plans to sell because they feel beholden to their existing, lower mortgage rates.
So what impact is this reduced demand and low supply environment having on home values? And what can we expect from the real estate market in the coming months and years? Here are several key indicators that help to paint a picture of the current market and where it’s likely headed.
HOME SALES ARE EXPECTED TO PICK UP BY EARLY NEXT YEAR
The weather isn’t the only thing that heats up in the spring and summer. Nationally, it tends to be the busiest time in real estate. But this year, the peak season got off to a slow start, with sales declines in both March and April.1,2 Existing home sales in April were down 3.4% from the previous month—and 23.2% from a year earlier.2
What’s causing this market slowdown? Industry experts attribute it to several factors, including near-record home prices, high mortgage rates, and low inventory.
According to National Association of Realtors (NAR) Chief Economist Lawrence Yun, “Home sales are trying to recover and are highly sensitive to changes in mortgage rates. Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It's a unique housing market.”1
However, some industry experts believe the market is poised for a comeback. Forecasters at the Mortgage Bankers Association (MBA) predict that home sales will continue to fall through Q3 before rising in Q4 and throughout next year.3 Analysts at Fannie Mae expect the recovery to take a bit longer, picking up in early 2024.
Meanwhile, home builder confidence is already up, as purchases of new single-family homes surged in March and April to a 13-month high.5 Builder incentives are helping to boost sales: According to the National Association of Home Builders, in May, 54% reported using them to win over budget-conscious buyers.6
What does it mean for you? A slower pace of sales has given buyers some breathing room. If you hated the frenzy of the pandemic-era real estate market, now might be a better time for you to shop for a home. We can help you evaluate your options and make an informed purchase.
If you plan to sell your home, prepare yourself for less foot traffic and a longer sales timeline than you may have found a year ago. It will also be crucial to enlist the help of a skilled agent who knows how to draw in buyers. Reach out for a copy of our multi-step Property Marketing Plan.
PROPERTY VALUES REMAIN RELATIVELY STABLE
Some good news for buyers: While home builder sales climbed in April, the median new-house price fell to $420,800, an 8.2% decrease from a year ago.5 Meanwhile, the median existing-home price dropped to $388,800, down 1.7% year-over-year. Notably, existing-home prices rose in parts of the country but fell in the South and West.2
“Roughly half of the country is experiencing price gains,” explains Yun. “Multiple-offer situations have returned in the spring buying season following the calmer winter market. Distressed and forced property sales are virtually nonexistent.”2
The average national home price remains about 40% higher than it was in early 2020, according to the S&P CoreLogic Case-Shiller index.7 A tight housing supply has helped to buoy prices amidst a slowdown in sales.
“While it varies from region to region, home prices at the national level may fall 1% or 1.5% by the end of the year, so not much,” Doug Duncan, senior vice president and chief economist at Fannie Mae, told Yahoo Finance in April.8
Record levels of home equity will help to stabilize the sector and prevent a wave of foreclosures, even as prices moderate, according to Mark Zandi, chief economist at Moody’s Analytics.9
“But for those who have owned a home for more than a year or two, their home will remain a rock-solid investment. And once affordability is restored, the next generation of households can become homeowners. Getting there is critical to the financial well-being of those households, their communities, and the broader economy,” writes Zandi in The Washington Post.9
What does it mean for you? Prices have softened in certain market segments—and motivated sellers are out there and willing to make deals. We can help you find your next home and negotiate a great price.
If you’re a homeowner, the surge in home values has slowed, but you’re likely still sitting on a nice pile of equity. Reach out for a free assessment to find out how much your home is currently worth.
LISTING INVENTORY IS LOW, BUT NEW CONSTRUCTION IS ON THE RISE
Unsold existing home inventory rose 7.2% from March to April, according to NAR. At the current level of demand, this equates to 2.9 months of supply, which is still well below the 5 to 6 months of inventory required for a “balanced” market.2
Inventory remains tight despite the market slowdown because many would-be sellers are reluctant to give up their lower mortgage rates. “Affordability is not only an issue for first-time homebuyers, but also for many repeat buyers who still need to take on a mortgage,” explains Danielle Hale, chief economist for Realtor.com.10
In a recent survey by the home listing site, 82% of respondents who are planning to both buy and sell a home said they feel “locked in” by their low rate.11
In some areas, new home construction is helping to fill the supply gap. “Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10%,” according to National Association of Home Builders Chief Economist Robert Dietz.12
And more new homes are in the pipeline, after a builder slowdown last year. Single-family housing starts rose 1.6% from March to April (seasonally adjusted) and new construction permits hit a seven-month high.13
What does it mean for you? Inventory remains tight, but less competition means more choice and negotiating power for buyers. If you’ve had trouble finding a home in the past, it may be time to take another look. We can help you explore both new and existing homes in our area.
Sellers are enjoying reduced competition right now, as well. However, the longer you wait to list, the more competition you’re likely to face. And if you feel locked in by your current, lower mortgage rate, consider this: If you roll your equity gains into a down payment on your next home, you could possibly lower your monthly payment. Reach out to discuss your options.
MORTGAGE RATES MAY FINALLY COME DOWN
According to Freddie Mac, the average 30-year fixed-rate mortgage hit a peak of 7.08% in the fourth quarter of 2022, and since then it’s primarily floated between 6 and 7%.14 However, there are signs that rates could trend lower later this year.
“Calmer inflation means lower mortgage rates, eventually,” Yun predicted in a recent statement. “Mortgage rates slipping down to under 6% looks very likely toward the year’s end.”15
Other leading economists agree. In its May forecast, Fannie Mae speculates that 30-year fixed mortgage rates will continue to decline, averaging 6.0% in Q4 2023 and 5.4% by Q4 2024.4 Meanwhile, the MBA predicts rates will fall even faster, averaging 5.6% by Q4 2023 and 4.8% by Q4 2024.3
On May 3, the Federal Reserve raised its benchmark borrowing rate by another quarter point—its 10th consecutive increase since March 2022. However, in its corresponding statement, the Fed omitted language from its previous release about “additional policy firming,” leaving some analysts to speculate that the rate hikes may be over.16
Although mortgage rates aren’t directly tied to the federal funds rate, a decision by the Fed to pause rate increases could have a positive effect. In the meantime, buyers should shop around multiple lenders to find the best rate—and buckle up for what could be an exciting ride.
What does it mean for you? Mortgage rates may finally trend down, which would be great news for buyers. But, a decrease in rates could correspond with an increase in competition and prices. If you start searching now, you’ll be prepared to make an offer when the time is right. We can help you negotiate a great deal and potential seller incentives.
If you’re planning to sell, this is good news for you, too. But, there are several factors to consider when determining the right time to list your home. Reach out for a consultation so we can help you chart the best course.
WE’RE HERE TO GUIDE YOU
While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood.
If you’re considering buying or selling a home, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
National Association of Realtors -<br /><a href="https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march">https://www.nar.realtor/newsroom/existing-home-sales-slid-2-4-in-march</a>
National Association of Realtors -<br /><a href="https://www.nar.realtor/newsroom/existing-home-sales-faded-3-4-in-april">https://www.nar.realtor/newsroom/existing-home-sales-faded-3-4-in-april</a>
Mortgage Bankers Association -<br /><a href="https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-may-2023.pdf?sfvrsn=4bf1d1a7_1">https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/2023/mortgage-finance-forecast-may-2023.pdf?sfvrsn=4bf1d1a7_1</a>
Fannie Mae -<br /><a href="https://www.fanniemae.com/media/47006/display">https://www.fanniemae.com/media/47006/display</a>
U.S. Census Bureau - <br /><a href="https://www.census.gov/construction/nrs/current/index.html">https://www.census.gov/construction/nrs/current/index.html</a>
National Association of Home Builders -<br /><a href="https://www.nahb.org/news-and-economics/press-releases/2023/05/lack-of-existing-inventory--boosts-builder-confidence-to-key-marker">https://www.nahb.org/news-and-economics/press-releases/2023/05/lack-of-existing-inventory--boosts-builder-confidence-to-key-marker</a>
New York Times -<br /><a href="https://www.nytimes.com/2023/04/29/business/spring-housing-market.html">https://www.nytimes.com/2023/04/29/business/spring-housing-market.html</a>?
Yahoo Finance -<br /><a href="https://finance.yahoo.com/news/mortgage-rates-increase-after-weeks-of-declines-160015631.html">https://finance.yahoo.com/news/mortgage-rates-increase-after-weeks-of-declines-160015631.html</a>
The Washington Post -<br /><a href="https://www.washingtonpost.com/business/2023/04/22/housing-prices-put-some-out-of-the-market/">https://www.washingtonpost.com/business/2023/04/22/housing-prices-put-some-out-of-the-market/</a>
CNBC -<br /><a href="https://www.cnbc.com/2023/04/20/home-sales-fell-in-march-amid-volatility-in-mortgage-rates.html">https://www.cnbc.com/2023/04/20/home-sales-fell-in-march-amid-volatility-in-mortgage-rates.html</a>
Realtor.com -<br /><a href="https://www.realtor.com/research/2023-q1-sellers-survey-btts/">https://www.realtor.com/research/2023-q1-sellers-survey-btts/</a>
National Association of Home Builders - <br /><a href="https://www.nahb.org/news-and-economics/press-releases/2023/04/lack-of-existing-inventory-continues-to-support-builder-sentiment">https://www.nahb.org/news-and-economics/press-releases/2023/04/lack-of-existing-inventory-continues-to-support-builder-sentiment</a>
United State Census Bureau -<br /><a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf">https://www.census.gov/construction/nrc/pdf/newresconst.pdf</a>
Freddie Mac -<br /><a href="https://www.freddiemac.com/pmms">https://www.freddiemac.com/pmms</a>
National Association of Realtors - <br /><a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-inflation-april-12-2023">https://www.nar.realtor/blogs/economists-outlook/instant-reaction-inflation-april-12-2023</a>
CNBC - <br /><a href="https://www.cnbc.com/2023/05/03/fed-rate-decision-may-2023-.html">https://www.cnbc.com/2023/05/03/fed-rate-decision-may-2023-.html</a><br /><br />
2023-06-01T09:24:00-07:00
2023-06-05T10:46:55-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:36688
HONOR and REMEMBER
Remember and Honor Those Who Gave All
In a world often overwhelmed by noise and distractions, it becomes all too easy to forget the sacrifices made by those who gave their all for the United States of America. Yet, it is imperative that we remember and honor these extraordinary individuals, not just out of duty or tradition, but for the profound emotional reasons that lie at the heart of their sacrifice.
Every time we look into the eyes of those who fought and fell for our nation, we encounter the reflection of unwavering dedication and selflessness. Their sacrifice evokes a potent mixture of emotions within us, reminding us of the immeasurable depth of love and loyalty they held for their country. It awakens in our hearts a profound sense of gratitude and reverence, for their commitment to something greater than themselves.
When we remember those who gave all for the USA, we are confronted with the fragility of life and the brevity of our existence. Their sacrifice serves as a poignant reminder that time is not an infinite resource, and it compels us to reflect upon the value we place on our own lives and the ideals we hold dear. We are stirred by a profound sense of humility, recognizing that we are the beneficiaries of their courage and determination.
In honoring those who made the ultimate sacrifice, we acknowledge the immense burden they carried and the profound toll it took on their families and loved ones. We come face to face with the raw emotions of grief, loss, and longing that continue to reverberate through their lives. Their sacrifices serve as a reminder that freedom, peace, and security come at a great cost and that the wounds of war and conflict extend far beyond the battlefield.
Furthermore, remembering and honoring those who gave their lives ignites within us a flame of resilience and unity. Their sacrifice becomes a clarion call, urging us to strive for a better future, one where their sacrifice is not in vain. It stirs a deep sense of responsibility, compelling us to carry their legacy forward by working towards a nation that embodies the principles they fought for—liberty, justice, and equality.
Above all, remembering and honoring those who gave all for the USA is an emotional testament to the power of the human spirit. It celebrates the indomitable courage and unwavering resolve that resides within us, even in the face of unimaginable adversity. Their sacrifice teaches us that the bonds that tie us together as a nation are forged in the crucible of sacrifice, and they inspire us to confront our own challenges with unwavering determination and unity.
In essence, remembering and honoring those who gave their lives for the USA is not just an act of remembrance; it is an act of embracing the profound emotional impact their sacrifice has on our collective consciousness. It is an expression of gratitude, humility, and resilience, and it serves as a testament to the enduring power of love for country and the indelible mark left by those who gave their all.
2023-05-29T06:30:00-07:00
2023-05-29T06:37:25-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:35644
Partial Rental can Result in Partial Loss of Homestead Exemption
Rejecting lower-court decisions, the Fla. Supreme Court ruled that homeowners who rent out rooms within their property may lose part of their homestead exemption.
TALLAHASSEE, Fla. – Rejecting lower-court decisions, the Florida Supreme Court on Thursday said a Sarasota man should not have received a homestead property-tax exemption for part of his house that he rented out.
The Supreme Court unanimously sided with Sarasota County Property Appraiser Bill Furst, who in 2014 investigated whether Rod Rebholz should have been receiving a homestead exemption on what was described as a single-family home.
Furst determined that 15% of the property was not entitled to a homestead exemption because it was being rented to a tenant. That resulted in Rebholz facing $7,000 in back taxes, penalties and interest for the tax years 2004 through 2013.
Rebholz, who lived in part of the house and initially applied for a homestead exemption in 1996, challenged the decision, touching off years of legal battling. A circuit judge and a panel of the 2nd District Court of Appeal ruled against the property appraiser, but the Supreme Court on Thursday said the property was not eligible for a full homestead exemption.
“Rebholz and the district court would allow a property’s structure – and the labels used to describe the property – to dictate the application of the homestead tax exemption,” Chief Justice Carlos Muniz wrote in a 19-page opinion. “The result would be to make arbitrary distinctions between functionally similar homeowners and properties, without any constitutional or statutory basis for doing so. In this case, for example, the label ‘single-family residence’ does not reflect the true design and use of Rebholz’s property. That property was effectively a boarding house, a part of which Rebholz lived in and used as his own residence.”
Muniz wrote that Rebholz “lived on the bottom floor, which consisted of a kitchen, living area, and bathroom. The upper floor had a common laundry area and four individual rooms, each with its own living area and bathroom; some of the rooms had a kitchenette. Each room was lockable from the outside. The front door entry to the property had two doorbells, one for the bottom floor and the other for the top.”
Furst’s determination that 15% of the property should not receive a homestead exemption was based on one tenant, John Michael Beaumont, who rented one of the upstairs rooms from 1996 through the tax years in the dispute, according to Thursday’s ruling.
“(Consider) the part of the structure that Rebholz rented to Beaumont throughout the tax years at issue – the 15% that the property appraiser has designated as non-homestead property. Did Rebholz use that property as his residence? Surely not,” Muniz wrote. “The record leaves no doubt that Rebholz gave exclusive use of that portion to Beaumont, subject to Beaumont’s compliance with the terms of their rental agreement.”
The panel of the 2nd District Court of Appeal said in its June 2020 ruling that the house should not be divided up for tax purposes – and pointed to potentially broader implications.
“Based upon our analysis of the Florida Constitution, statutes, and codes, we conclude that the property appraisers of this state are not authorized by law to carve up a homeowner’s permanent residence in order to remove the protection provided by the constitutional homestead exemption when that person rents a bedroom or any other space within their home,” the panel decision said. “Any interpretation to the contrary would circumvent public policy and could create financial hardship for countless Florida citizens who reside within their permanent residences while renting bedrooms or working from home to make ends meet.”
But Muniz on Thursday disputed that the Supreme Court opinion would affect people who work at home.
“The phrase ‘working from home’ speaks to activity occurring within property already found to be the owner’s residence,” the opinion said. “This case is about defining the scope of the residence in the first instance. Here, Rebholz gave a tenant exclusive use of a portion of Rebholz’s property, reserving to himself only the access rights of a landlord. That portion of the property was not Rebholz’s residence.”
A footnote in the opinion said Rebholz died in November 2015 and that the case continued with the trustee of a revocable trust as the plaintiff.
© 2023 The News Service of Florida. All rights reserved.
2023-04-10T08:57:04-07:00
2023-04-10T09:03:04-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:35643
Why Does it Still Feel Like a Seller's Market?
By Kerry Smith
RE usually sees cycles between buyer’s and seller’s markets, but this time it’s a bit different. Supply vs. demand hasn’t changed because both sides pulled back.
SEATTLE – New listings fell 21.8% year-to-year during the four weeks ending April 2, one of the biggest drops since the start of the pandemic, according to a Redfin study.
An increasing number of homeowners don’t want to move because they still have generational-low mortgage rates secured only a few years ago. While rates have fallen for four weeks in a row, according to this week’s report, they’re still about twice as high as they were before 2021.
As a result, buyers unafraid of current mortgage rates quickly scoop up new listings. Of homes going under contract, nearly half are doing so within two weeks; at the beginning of 2023, it was about 25%.
“Elevated mortgage rates are perhaps an even bigger deterrent for would-be sellers than for would-be buyers,” says Redfin Deputy Chief Economist Taylor Marr. “Giving up a 3% mortgage rate for one in the 6% range is a tough pill to swallow. Today’s serious homebuyers have grown accustomed to the idea of a 5% or 6% rate and have adjusted their budgets accordingly.”
“Shiny new listings are getting multiple offers and selling fast. The caveat is that they have to be priced correctly from the beginning,” says Denver Redfin agent Stephanie Collins. “One of my buyers recently made an offer on a move-in ready home in a popular area. The home was priced right in line with the market at $520,000; it received eight offers and went for $560,000 to a competing buyer.”
Florida ranks near top for rising home prices
In cities where buyer demand outpaces seller supply, home prices continue to go up – and Florida is home to three of the top five U.S. cities for price increases.
While Milwaukee led the nation for price increases (up 11.4% year-to-year), Fort Lauderdale came in second (up 8.9%), followed by West Palm Beach (up 8.2%), Miami (up 7.9%) and Columbus, Ohio (up 6.3%).
On the flipside, the top five price declines in the U.S. were largely on the West Coast: Home prices dropped in 28 of the U.S.’s 50 most populous metros, with the biggest drop in Austin, Texas (down 14.7% year-to-year), Sacramento (down 11.7%), Oakland, California (down 10.4%), San Jose (down 10.2%) and Seattle (down 9.6%).
© 2023 Florida Realtors®
2023-04-10T08:02:07-07:00
2023-04-10T08:56:58-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:35503
Market Review
Market in Review for the Week of April 3, 2023
The February <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX1Sq6EX1pLB6tkaHA3V08DiDKjDIy4gx5kpJ2-2FarykytuKxWUFZ-2Fk60ij92HIfW4caYuwppBrVEKtW9qrQpUT46ZccbRobq-2FkiwrWQhuMLGuMj0EfvuBW1CTjVqNTaU0Vw-3D-3Dezoa_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1fkOBAQe288htzm9RFTXIhC8jKwC2thGhL-2B7ih5WvnoT3MKqgj8eKX9Uh-2BN8j66GDGuM6CKCg8nkqJZ4jz8AYTiLAe5SVa8HTNh-2Fw9vZPRk9oA7-2FpF-2BE4yv94wqGKvVvwyGHSyL5RpbavPbrdqLWtkeDE4rtFy3byQu1VrkhHol-2FauLMeFwrvFpPo4nDUlRRaSH3BCB2BDpKoUHWulFUZPnI8MxOz8CB7dd6Qt4A7No7Q3wZarT1V4Svk2lUbBvdLo-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX1Sq6EX1pLB6tkaHA3V08DiDKjDIy4gx5kpJ2-2FarykytuKxWUFZ-2Fk60ij92HIfW4caYuwppBrVEKtW9qrQpUT46ZccbRobq-2FkiwrWQhuMLGuMj0EfvuBW1CTjVqNTaU0Vw-3D-3Dezoa_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1fkOBAQe288htzm9RFTXIhC8jKwC2thGhL-2B7ih5WvnoT3MKqgj8eKX9Uh-2BN8j66GDGuM6CKCg8nkqJZ4jz8AYTiLAe5SVa8HTNh-2Fw9vZPRk9oA7-2FpF-2BE4yv94wqGKvVvwyGHSyL5RpbavPbrdqLWtkeDE4rtFy3byQu1VrkhHol-2FauLMeFwrvFpPo4nDUlRRaSH3BCB2BDpKoUHWulFUZPnI8MxOz8CB7dd6Qt4A7No7Q3wZarT1V4Svk2lUbBvdLo-3D&source=gmail&ust=1680614475505000&usg=AOvVaw1aH2MLNiHw2A_6WV620jDm">Pending Home Sales</a> index of signed contracts on existing homes headed north for the third straight month. The National Association of Realtors noted, “the housing sector’s contraction is coming to an end.”
In line with this, the Mortgage Bankers Association reported demand for purchase loans moved up for the fourth week in a row, as mortgage rates continued to slide back from their 2023 highs.
Buyer demand is also growing as home prices ease. The S&P CoreLogic <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaXyxG-2BHCoTg2ps5uEvGKjzMNedXOLUCfTc3dEjVfKHGtCWBJsgpcT9xGNTbQgu5Rck-2FTHiDcP4ikSJzDQhlwlRU-2FHGt5q5Wt9k-2FWtxV2Q79-2BtCMSIGzOwxGZxywR0C9B7kCS1SQ710hNo1CWBW95vsPyu-2FhUNFc46aOm4T36piC4uaPUw_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1fkOBAQe288htzm9RFTXIhC8jKwC2thGhL-2B7ih5WvnoT3MKqgj8eKX9Uh-2BN8j66GDGuM6CKCg8nkqJZ4jz8AYTiLAe5SVa8HTNh-2Fw9vZPRk9rJVA408YaoPzOMae6-2FzkhgDS7WyPVoCqDFchmo1or4Z-2FH-2FLBjGifDCjSDLHqi9kIQg1siqFICB2wiR2CmnQd2KyYK30hHwsu3lCBOMkFoI7ABh2Yg2TevVHufY38BUq1xH7q-2F7jqLOevzAM3hcP0Lo-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaXyxG-2BHCoTg2ps5uEvGKjzMNedXOLUCfTc3dEjVfKHGtCWBJsgpcT9xGNTbQgu5Rck-2FTHiDcP4ikSJzDQhlwlRU-2FHGt5q5Wt9k-2FWtxV2Q79-2BtCMSIGzOwxGZxywR0C9B7kCS1SQ710hNo1CWBW95vsPyu-2FhUNFc46aOm4T36piC4uaPUw_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1fkOBAQe288htzm9RFTXIhC8jKwC2thGhL-2B7ih5WvnoT3MKqgj8eKX9Uh-2BN8j66GDGuM6CKCg8nkqJZ4jz8AYTiLAe5SVa8HTNh-2Fw9vZPRk9rJVA408YaoPzOMae6-2FzkhgDS7WyPVoCqDFchmo1or4Z-2FH-2FLBjGifDCjSDLHqi9kIQg1siqFICB2wiR2CmnQd2KyYK30hHwsu3lCBOMkFoI7ABh2Yg2TevVHufY38BUq1xH7q-2F7jqLOevzAM3hcP0Lo-3D&source=gmail&ust=1680614475505000&usg=AOvVaw06NgGzaET6X7ZLGRPNazSy">Case-Shiller</a> Home Price Index in January fell month-over-month for the seventh straight month, though it’s still up modestly year-over-year.<br /><br />OUT LIKE A LION... March ended well on Wall Street, with stock prices roaring ahead for both the week and the quarter. Worries about the health of the banking sector have obviously receded<br /><br />University of Michigan Consumer Confidence dipped in March, yet the Conference Board's Consumer Confidence read held up well the week after the bank drama, though it still registered some future growth concerns.<br /><br />The leonine finish to the month was jump started Friday by some pleasing inflation data. The PCE Price Index fell from January's 5.3% to February's 5.0%, while the Fed's favorite Core PCE number went from 4.7% to 4.6%.<br />
The week ended with the Dow UP 3.2%, to 32,274; the S&P 500 UP 3.5%, to 4,109, and the Nasdaq UP 3.4%, to 12,222.
Bond prices slipped a little overall, the UMBS 5.5% down 0.06, to $101.01. The national average 30-year fixed mortgage rate decreased for the third straight week in Freddie Mac's Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.<br /><br />DID YOU KNOW… Attom Data reports that <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX0DOQQjXR-2B9fPfVETkBLC6G5Td06O8foLzz-2BZkGd0ZLdX-2BF7pqKpahdYue-2B3XXroB-2BI9QVLuxcJp4OUtTdFd0-2Bm3Nk4J6GiKFX-2Fw96FR1UIXU7QnZZ7ZMyktY9kGFFw5FA-3D-3D5qKP_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1fkOBAQe288htzm9RFTXIhC8jKwC2thGhL-2B7ih5WvnoT3MKqgj8eKX9Uh-2BN8j66GDGuM6CKCg8nkqJZ4jz8AYTiLAe5SVa8HTNh-2Fw9vZPRk9t4T7v3J5L3FUgKIGjpRsfn1IQmyYpBuTIT-2FQUGIoF3gmghhYJoKXUACJxwTEexu2U0KTa1p1jdH090-2Bs3zY1KORHXeKdKTogOcA40zwVv4-2FaqMsxPNFKjFRMTNFyoSEMTS-2FbYk0kHLjcb2IU5vGykI-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX0DOQQjXR-2B9fPfVETkBLC6G5Td06O8foLzz-2BZkGd0ZLdX-2BF7pqKpahdYue-2B3XXroB-2BI9QVLuxcJp4OUtTdFd0-2Bm3Nk4J6GiKFX-2Fw96FR1UIXU7QnZZ7ZMyktY9kGFFw5FA-3D-3D5qKP_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1fkOBAQe288htzm9RFTXIhC8jKwC2thGhL-2B7ih5WvnoT3MKqgj8eKX9Uh-2BN8j66GDGuM6CKCg8nkqJZ4jz8AYTiLAe5SVa8HTNh-2Fw9vZPRk9t4T7v3J5L3FUgKIGjpRsfn1IQmyYpBuTIT-2FQUGIoF3gmghhYJoKXUACJxwTEexu2U0KTa1p1jdH090-2Bs3zY1KORHXeKdKTogOcA40zwVv4-2FaqMsxPNFKjFRMTNFyoSEMTS-2FbYk0kHLjcb2IU5vGykI-3D&source=gmail&ust=1680614475505000&usg=AOvVaw1sVk9u0w_0f-9dbaSYUX86">home flips</a> last year reached 8.4% of all home sales, their highest level since 2005, even as flippers’ median gross profit dipped to $67,900, a 26.9% ROI, a 14-year low.<br />
THIS WEEK'S FORECAST:
CONSTRUCTION SPENDING, MANUFACTURING, SERVICES, JOBS... Total Construction Spending is expected to come in flat for February, but we'll monitor the residential part. The ISM Manufacturing and Non-Manufacturing Indexes for March are forecast to fall, though Non-Manufacturing (the dominant services sector) should remain in growth territory. The March jobs report is predicted to show Nonfarm Payrolls down and the Unemployment Rate holding.<br /><br />FEDERAL RESERVE WATCH:
The NYSE, Nasdaq, and bond markets will be closed this Friday, April 7, in observance of Good Friday.<br />Forecasting Federal Reserve policy changes in coming months. Wall Street expects rates to hold at the next two meets, but there's growing sentiment for a quarter percent hike. There's a better than 50% probability the rate will change in July, with a greater chance for a hike than for a cut. Note: In the lower chart, a 47.3% probability of change is a 52.7% probability the rate will stay the same. Current rate is 4.75%-5.00%<br />
AFTER FOMC MEETING ON:
CONSENSUS
May 3
4.75%-5.00%
Jun 14
4.75%-5.00%
Jul 26
4.75%-5.00%
<br />
AFTER FOMC MEETING ON:
CONSENSUS
May 3
47.3%
Jun 14
49.3%
Jul 26
51.8%
Thanks as always to Sean Donahue at Supreme Lending.............<br /><br />
<br /><br />
<br />
2023-04-03T08:42:27-07:00
2023-04-03T08:59:39-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:34350
Market Week in Review
This Week in Review
<a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaXzKlKToRqNL5Di6rOVGhWN64Mbh4QOIKqz-2BgSdET36Ke-2BgPPbXqPFERMMvx8HGC-2BoU6hXFRGyAsGVr48LqGmxzKDZ51pSwOs2DIhmuHNCOefJw0X_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1dUx4opRKXohqUDn67EZiAGaGq-2FvI5CAxpPZ8KRuiAtN8ScGW5clC5z8QnwrBqFjVJk4nZgotKhHLfNNU9tjTaG-2FGj9hyRcKCy2pZP8kp1NaN0-2BhteZDVcSXS4RVPc-2B-2FeMOozXUW1rMoAJFWaeEpX6XUxxSJc3de-2BSb-2F37d1b5fnkxnwJKA5FsIzVvX6-2BjvyNkC9PA24fR56krzOJeeXkwJz-2F1lkJnvNUnnGVm-2FrfAtn-2F5ICrIzXTndTANYTjo00c4-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaXzKlKToRqNL5Di6rOVGhWN64Mbh4QOIKqz-2BgSdET36Ke-2BgPPbXqPFERMMvx8HGC-2BoU6hXFRGyAsGVr48LqGmxzKDZ51pSwOs2DIhmuHNCOefJw0X_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1dUx4opRKXohqUDn67EZiAGaGq-2FvI5CAxpPZ8KRuiAtN8ScGW5clC5z8QnwrBqFjVJk4nZgotKhHLfNNU9tjTaG-2FGj9hyRcKCy2pZP8kp1NaN0-2BhteZDVcSXS4RVPc-2B-2FeMOozXUW1rMoAJFWaeEpX6XUxxSJc3de-2BSb-2F37d1b5fnkxnwJKA5FsIzVvX6-2BjvyNkC9PA24fR56krzOJeeXkwJz-2F1lkJnvNUnnGVm-2FrfAtn-2F5ICrIzXTndTANYTjo00c4-3D&source=gmail&ust=1676482730037000&usg=AOvVaw1t6CoHDvbn7CytSp8N2EoM">Black Knight</a> reported purchase loan locks went up 64% from the first to last week of January, the largest jump in five years, as well as a growing trend of homebuyers paying points upfront to permanently reduce their mortgage rate.
The Mortgage Bankers Association saw mortgage applications increase 7.4% last week, noting: “Purchase activity that was put on hold last year…is gradually coming back as rates ease and housing demand remains strong.”
Freddie Mac’s chief economist observed that with the recent rate drop for the 30-year fixed-rate mortgage, “interested homebuyers are easing their way back to the market just in time for the spring homebuying season.”
Review of Last Week:
TAKING A BREAK... Traders paused from their upbeat activities since the start of the year, as stocks fell for the week on disappointing Q4 corporate earnings and economic data, and hawkish comments from the Fed.
Chair Powell said the Fed has a significant road ahead to get inflation down to 2%; the Trade Balance revealed a global trade slowdown; and the Treasury Budget reported a $38 billion deficit, versus a $118 billion surplus a year ago.
But low initial jobless claims indicated the economy could still see a soft landing and the University of Michigan Consumer Sentiment Index rose to a 13-month high, showing Americans are cautiously optimistic.
The week ended with the Dow down 0.2%, to 33,869; the S&P 500 down 1.1%, to 4,090; and the Nasdaq down 2.4%, to 11,718.
Bonds overall fell sharply, the UMBS 5.5% dropping 1.01, to $100.11. Freddie Mac's Primary Mortgage Market Survey reported a slight increase in the national average 30-year fixed mortgage rate. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… The <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX1Sq6EX1pLB6tkaHA3V08Dj5HlxsRTne6mLrk0sekmsCu25iCFYrL2RAP0C6ozPXfym8tBwZOpy2P5SB-2BHnAcJ3CJEWKN4Fpln39iIZX-2Bs5wzZl1DmYqFmDO-2FIbJKTv2c-2FE63hDHFd6vUKFI-2F-2Bd4xlg-3D_Klw_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1dUx4opRKXohqUDn67EZiAGaGq-2FvI5CAxpPZ8KRuiAtN8ScGW5clC5z8QnwrBqFjVJk4nZgotKhHLfNNU9tjTaG-2FGj9hyRcKCy2pZP8kp1NaHkpwq12SC0uIaoLVDekDANxrAwP-2B7gb2DlUzzF6qIWU-2Ft6i1xYc6535yBFPVbDOL-2BdC-2B9bswT2I7ek3-2BQFrI7J6BvqHthx8V8EXU6DWxOVcG7FFWj0AIyFrfn5lV-2BRLrOcr5DakMMV7QmqSeOSbVEQ-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX1Sq6EX1pLB6tkaHA3V08Dj5HlxsRTne6mLrk0sekmsCu25iCFYrL2RAP0C6ozPXfym8tBwZOpy2P5SB-2BHnAcJ3CJEWKN4Fpln39iIZX-2Bs5wzZl1DmYqFmDO-2FIbJKTv2c-2FE63hDHFd6vUKFI-2F-2Bd4xlg-3D_Klw_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1dUx4opRKXohqUDn67EZiAGaGq-2FvI5CAxpPZ8KRuiAtN8ScGW5clC5z8QnwrBqFjVJk4nZgotKhHLfNNU9tjTaG-2FGj9hyRcKCy2pZP8kp1NaHkpwq12SC0uIaoLVDekDANxrAwP-2B7gb2DlUzzF6qIWU-2Ft6i1xYc6535yBFPVbDOL-2BdC-2B9bswT2I7ek3-2BQFrI7J6BvqHthx8V8EXU6DWxOVcG7FFWj0AIyFrfn5lV-2BRLrOcr5DakMMV7QmqSeOSbVEQ-3D&source=gmail&ust=1676482730037000&usg=AOvVaw00jIoMHqM0QRzKQrNfVtFL">NAR</a> reports the median sale price for single-family existing homes climbed 4% in Q4, a deceleration from Q3’s 8.6% increase—plus, around 1 in 10 metros across the U.S. saw price decreases.
With Thanks to Sean Donohue, Senior Loan Officer of Supreme Lending.
2023-02-14T12:20:41-07:00
2023-02-14T12:40:51-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:34202
Market Update Week of February 6 2023
What's New this week:<br /><br /><a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaXzzWITCWhEZhr11tlIjtqcnUveC3-2B6S9sqQ-2BpLHgUqn8uY0wmcISMcw9tViYenKkKw-3D-3DNoot_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1f2FupqYplTHCwnOCFWC-2BFGYs39dgUpS2yKDgiETzwKkG56RXdTRJctzReHOsDnSvXuwr4mh9XAMxp2JQ6lInOvfVRGPuOOZnlpvWVef2SeUqNWzxsFFrsoPJU1PIcJzCFRhape3bwA9vuG8mOgDVPjkv5Do5kgzInEQ90cRdHVe8ELOHVKab93qLXK7IAwUKYttwOOBaVmDiZq-2BlWLlx2vqeqQsmWUylNcfmauwR7Ou9R-2B1-2BQyp4jDhIFtFk0ceB4-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaXzzWITCWhEZhr11tlIjtqcnUveC3-2B6S9sqQ-2BpLHgUqn8uY0wmcISMcw9tViYenKkKw-3D-3DNoot_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1f2FupqYplTHCwnOCFWC-2BFGYs39dgUpS2yKDgiETzwKkG56RXdTRJctzReHOsDnSvXuwr4mh9XAMxp2JQ6lInOvfVRGPuOOZnlpvWVef2SeUqNWzxsFFrsoPJU1PIcJzCFRhape3bwA9vuG8mOgDVPjkv5Do5kgzInEQ90cRdHVe8ELOHVKab93qLXK7IAwUKYttwOOBaVmDiZq-2BlWLlx2vqeqQsmWUylNcfmauwR7Ou9R-2B1-2BQyp4jDhIFtFk0ceB4-3D&source=gmail&ust=1675789516881000&usg=AOvVaw3WGpMg6sJ3-YA-PDq4HJSD">Spending on residential construction</a> in December was a tick below November’s read. But for all of 2022, residential builders spent just under $900 billion, a 13.3% increase over 2021!
<a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaX7Z4gh92aNNcqsW4CL7vsQs-2Bhgbla1Hkj6dyeI9c4JiS7fW9yFIUpuxcoNU7ON7T8R5LQNftUC-2FGX8l85iINNbSVcfHSe8TILiBHzsx0V5tuSLuk_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1f2FupqYplTHCwnOCFWC-2BFGYs39dgUpS2yKDgiETzwKkG56RXdTRJctzReHOsDnSvXuwr4mh9XAMxp2JQ6lInOvfVRGPuOOZnlpvWVef2SeUq0A4QpYc1SQ5n2RnSKX8bM3-2F3GRqa6Ddp0-2BRcqQ6jKH23JR29O-2BjC0anBON6gRmFpoKxK2Iowkd-2BRBCbd-2Fk8zzkbcQvkhA5qq-2BmJ8X8sKkC2PQURzPpILoO-2FjVU17UHWbPhyLpbH9V7I2tCm328L0k-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaX7Z4gh92aNNcqsW4CL7vsQs-2Bhgbla1Hkj6dyeI9c4JiS7fW9yFIUpuxcoNU7ON7T8R5LQNftUC-2FGX8l85iINNbSVcfHSe8TILiBHzsx0V5tuSLuk_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1f2FupqYplTHCwnOCFWC-2BFGYs39dgUpS2yKDgiETzwKkG56RXdTRJctzReHOsDnSvXuwr4mh9XAMxp2JQ6lInOvfVRGPuOOZnlpvWVef2SeUq0A4QpYc1SQ5n2RnSKX8bM3-2F3GRqa6Ddp0-2BRcqQ6jKH23JR29O-2BjC0anBON6gRmFpoKxK2Iowkd-2BRBCbd-2Fk8zzkbcQvkhA5qq-2BmJ8X8sKkC2PQURzPpILoO-2FjVU17UHWbPhyLpbH9V7I2tCm328L0k-3D&source=gmail&ust=1675789516882000&usg=AOvVaw3McucrPvmDXFUQIsXOQcZv">Realtor.com</a> reports the active inventory of for-sale homes is now 69% above a year ago, with homes spending 14 more days on the market compared to last year, giving buyers more time to evaluate more options.
Nationally, home price growth continues to stabilize. The <a href="http://emlink.usherpa.com/ls/click?upn=pZ4qlEXTabSjrvUJkQaaXyxG-2BHCoTg2ps5uEvGKjzMNedXOLUCfTc3dEjVfKHGtCWBJsgpcT9xGNTbQgu5Rck-2FTHiDcP4ikSJzDQhlwlRU-2FHGt5q5Wt9k-2FWtxV2Q79-2Bt5q2uw6eJhyWH2fwM4IioEKGlRnn9RDx1lyoxZqLprp8CF7e7Eda-2Bw-2FnEqKzdHNVkGUj4_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1f2FupqYplTHCwnOCFWC-2BFGYs39dgUpS2yKDgiETzwKkG56RXdTRJctzReHOsDnSvXuwr4mh9XAMxp2JQ6lInOvfVRGPuOOZnlpvWVef2SeUrgpkvjhzfN8hC-2BY-2BhVAAkUSKSA9mFt-2FDZl6qnYRRH8Ed3ItIfXKVFJqMERcZWFYEvfEw7WdbM8aRrtNvE0GrH7P5A8xIpKM07z7l5-2Birom4jLOGvgJzEcPTNpCSIms9RlL5bE-2F4JtbPqCsMoHiroB4-3D" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://emlink.usherpa.com/ls/click?upn%3DpZ4qlEXTabSjrvUJkQaaXyxG-2BHCoTg2ps5uEvGKjzMNedXOLUCfTc3dEjVfKHGtCWBJsgpcT9xGNTbQgu5Rck-2FTHiDcP4ikSJzDQhlwlRU-2FHGt5q5Wt9k-2FWtxV2Q79-2Bt5q2uw6eJhyWH2fwM4IioEKGlRnn9RDx1lyoxZqLprp8CF7e7Eda-2Bw-2FnEqKzdHNVkGUj4_lTq8dHXwfrTa-2Fti45-2F0nOmohdqdndNoyZJKbDbKj50mXw5uqLk-2BVchBMzYY1iyBNVmtZUZF45eVsPbq6YopBadLoHXEAQKw8YRSZr2LDw1f2FupqYplTHCwnOCFWC-2BFGYs39dgUpS2yKDgiETzwKkG56RXdTRJctzReHOsDnSvXuwr4mh9XAMxp2JQ6lInOvfVRGPuOOZnlpvWVef2SeUrgpkvjhzfN8hC-2BY-2BhVAAkUSKSA9mFt-2FDZl6qnYRRH8Ed3ItIfXKVFJqMERcZWFYEvfEw7WdbM8aRrtNvE0GrH7P5A8xIpKM07z7l5-2Birom4jLOGvgJzEcPTNpCSIms9RlL5bE-2F4JtbPqCsMoHiroB4-3D&source=gmail&ust=1675789516882000&usg=AOvVaw3pL-_eV6J7hjYZIlL6Ll3R">S&P CoreLogic Case-Shiller Index</a> registered a 7.7% annual increase in November, down from 9.2% in October. This was the seventh straight month of annual price decelerations.
Last Week in Review:
THE FED, THE JOBS... Stocks ended with the Dow a bit off, but the S&P 500 and Nasdaq up nicely. The week featured an expected quarter percent hike from the Fed and an unexpected 517,000 gain in January nonfarm payrolls!
But Fed Chair Powell acknowledged, "we have more work to do," implying there would be ongoing rate hikes until inflation came under control. We also had the ISM Manufacturing Index showing contraction in January.
However, the January ISM Non-Manufacturing Index booked a return to growth mode for the dominant services sector of the economy. Plus, productivity increased in Q4, and the week's initial and continuing jobless claims fell.
The week ended with the Dow down 0.2%, to 33,926; the S&P 500 UP 1.6%, to 4,136; and the Nasdaq UP 3.3%, to 12,007.
With the good jobs report, bonds dipped a tick overall, the UMBS 5.5% slipping .04, to $101.12. The national average 30-year fixed mortgage rate continued down in Freddie Mac's Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… Freddie Mac noted the 30-year fixed-rate is down from November, allowing “as many as three million more mortgage-ready consumers to qualify and afford a $400,000 loan, which is the median home price.”
Thanks to Supreme Lending, Sean Donahue for the information.
2023-02-06T10:48:59-07:00
2023-02-06T11:06:23-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:34257
Top 6 Home Design Trends To Watch in 2023
Top 6 Home Design Trends To Watch in 2023
<img src="https://assets.site-static.com/userfiles/1653/image/669BFC8C-41E3-4A86-BF3B-2A220A53DA88.png" width="1200" height="628" />
Over the past few years, many of us have spent extra time at home—and that means we appreciate the personal design touches that make a house cozy and comfortable more than ever. Some of us have adapted our dwellings in new ways, from creating functional home offices to upgrading the appliances we use most.
But while it’s important to make your home your own, it’s also smart to think about the long-term impact your renovations could have on its value. Choosing highly-personalized fixtures and finishes can make it harder for future homebuyers to envision themselves in the space. Even if you don’t plan to sell your home soon, investing in popular design choices that are likely to stand the test of time will make things easier down the road.
And if you’re in the market for a new home, it’s wise to keep an eye out for features that might need to be updated soon so you can factor renovation costs into your budget.
We’ve rounded up six trends that we think will influence interior design in 2023, as well as ideas for how you might incorporate them in your own home. Remember, before taking action, it’s always wise to consult with a real estate professional to understand how specific updates and upgrades will affect your property’s value in your local market.
1.Separate Kitchen, Dining and Living Areas
For years, home design has been dominated by open-concept floor plans, particularly for kitchen, dining, and living areas. However, as the pandemic forced families to work and study from home, many struggled to find the privacy and separation they needed. As a result, designers report that more families are choosing to bring back kitchen and dining room walls to break up the space and create quieter areas.1
That doesn’t mean that we’re returning to an era of dark and cramped spaces, however. Even as walls make a return, it’s important to take care to retain a sense of flow and openness within the home and to prioritize natural light.
If you’re buying or building a new home, consider how you will use the space and whether or not an open floor plan will suit your needs. If you already live in a home with an open floor plan and it isn’t working for you, try rearranging furniture and strategically placing pieces like bookshelves, room dividers, or rugs to create distinct areas within the home and reduce noise.
<a rel="follow" href="https://www.houzz.com/photos/rocky-ledge-dining-room-transitional-dining-room-boston-phvw-vp~215248" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/dining-rooms/rocky-ledge-dining-room-lda-architecture-and-interiors-img~3b61195f0e287d3a_8-9255-1-e209a16.jpg" alt="" border="0" width="500" height="334" nopin="nopin" style="display: block; margin-left: auto; margin-right: auto;" /></a>
<a href="https://www.houzz.com/professionals/architects-and-building-designers/lda-architecture-and-interiors-pfvwus-pf~1476490215" target="_blank">Photo by LDa Architecture & Interiors</a> - <a href="https://www.houzz.com/photos/dining-room-ideas-phbr0-bp~t_722" target="_blank">Browse dining room photos</a>
2. Nature-Inspired Design
In the past few years, we’ve seen the “biophilia” trend explode, and there are no signs that it will be any less popular in 2023.2 This trend is all about bringing the outside in by adding natural touches throughout your home.
This year, design experts predict that natural, sustainable materials like bamboo, cork, and live-edge wood will lend character without being overwhelming. Wooden kitchen cabinets and islands will become more common in 2023, with white oak and walnut among the most popular choices.3,4 Wood will also appear in bathroom vanities and shelving and furniture throughout the home.
Colors inspired by nature (think mossy greens and desert tones) will also play into this trend and will blend seamlessly with wood tones. We’re also seeing a return to natural stone countertop materials like quartzite, marble, dark leathered granite, and soapstone.4,5
If you’re planning to add new shelving or redo your kitchen, consider turning to these materials to embrace the biophilic look. Or, incorporate elements of the trend by choosing nature-inspired paint colors and adding to your houseplant collection.
<a rel="follow" href="https://www.houzz.com/photos/aspen-mountain-modern-rustic-living-room-denver-phvw-vp~6564698" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/living-rooms/aspen-mountain-modern-savant-design-group-img~6ae1ad1f0273c2d0_8-6265-1-6583422.jpg" alt="" border="0" width="500" height="334" nopin="nopin" style="display: block; margin-left: auto; margin-right: auto;" /></a>
<a href="https://www.houzz.com/professionals/interior-designers-and-decorators/savant-design-group-pfvwus-pf~755100341" target="_blank">Photo by Savant Design Group</a> - <a href="https://www.houzz.com/photos/living-room-ideas-phbr0-bp~t_718" target="_blank">More living room ideas</a>
3. Lighting as a Design Feature
Spending more time at home has shown us the importance of having the right lighting for specific tasks and times of the day. As a result, many homeowners are reconsidering the ways they light their homes and using light fixtures to change the usability and mood of their spaces.5
In particular, homeowners are rejecting bright, flat overhead lighting and replacing it with lamps and task-specific options. A layered approach to lighting—such as using a combination of under-cabinet, task, and ambient lighting in a kitchen—enables homeowners to tweak the level of light they’re using based on the time of day and what they are doing.
In 2023, we expect to see more statement chandeliers, pendants, and wall sconces in a variety of shapes and materials.6 Thinking about switching up the lighting in your home? Start by adding floor or table lamps and swapping out fixtures before you invest in rewiring your space. Take note of what works and what doesn’t and watch how the light in your home changes throughout the day. You can then use that information to make lighting decisions that require a bigger investment.
<a rel="follow" href="https://www.houzz.com/photos/bergen-street-residence-transitional-living-room-new-york-phvw-vp~82005" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/living-rooms/bergen-street-residence-cwb-architects-img~96a1e5d40cd409c0_8-4045-1-5071281.jpg" alt="" border="0" width="500" height="410" nopin="nopin" /></a>
<a href="https://www.houzz.com/professionals/architects-and-building-designers/the-brooklyn-studio-pfvwus-pf~503411096" target="_blank">Photo by The Brooklyn Studio</a> - <a href="https://www.houzz.com/photos/living-room-ideas-phbr0-bp~t_718" target="_blank">Search living room design ideas</a>
4. More Vibrant Color Palettes
After the long dominance of whites and grays, more vibrant colors are coming back as a way to add character and dimension to homes.
This year, warm and earthy neutrals, jewel tones, and shades of red and pink are particularly popular.7,8 If your style tends toward the subtle, consider options like light, calming greens, blues, and pastels.
Major paint brands have responded to these homeowner preferences with their newest releases. Benjamin Moore’s 2023 color of the year, Raspberry Blush, is a lively shade of pinkish coral, while Sherwin William is embracing warm neutrals with Redend Point, a blushing beige.9,10 Behr’s choice of the year, Blank Canvas, is a creamy off-white that's a warmer version of the stark whites that have been trending over the past few years.11
If you’re planning to put your home on the market soon, it’s better to play on the safer side and avoid extremely bold or bright color choices when it comes to paint or fixed finishes like tile and countertops. Instead, try incorporating pops of color through throw pillows, art, and accessories.
<a rel="follow" href="https://www.houzz.com/photos/yeo-street-neutral-bay-contemporary-bedroom-los-angeles-phvw-vp~14349695" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/bedrooms/yeo-street-neutral-bay-touch-interiors-by-bronwyn-poole-img~7791e04103b8f26a_8-2241-1-39c23a8.jpg" alt="" border="0" width="500" height="316" nopin="nopin" /></a>
<a href="https://www.houzz.com/professionals/interior-designers-and-decorators/touch-interiors-by-bronwyn-poole-pfvwau-pf~562214035" target="_blank">Photo by Touch Interiors by Bronwyn Poole</a> - <a href="https://www.houzz.com/photos/bedroom-ideas-and-designs-phbr0-bp~t_715" target="_blank">Discover bedroom design ideas</a>
5. Curved Furniture and Architectural Accents
Goodbye, sharp corners. In 2023, arches and curves lend a sleek feel that draws on classical design and retro trends while remaining modern.5,8 Rounded corners feel more relaxed and natural than sharp edges, lending more of a sense of flow and comfort to a home.
If you want to incorporate the trend into your new build or remodeling plans, curved kitchen islands and bars and arched alcoves are all good options—or you can take it a step further with arched windows and doorways. You can also carry this trend through to your light fixtures by incorporating a bubble chandelier or globe pendants.
It’s easy to embrace this look without renovations, too. Look for a softer feel in furniture, with sofas, chairs, and tables that showcase curved edges. Or, break up your space with an arched folding screen and a circular rug.
<a rel="follow" href="https://www.houzz.com/photos/the-49th-symphony-designers-showhouse-in-kansas-city-transitional-living-room-kansas-city-phvw-vp~123615117" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/living-rooms/the-49th-symphony-designers-showhouse-in-kansas-city-wilson-lighting-img~19c15b980b4f51ac_8-0511-1-c5dbe4b.jpg" alt="" border="0" width="500" height="330" nopin="nopin" style="display: block; margin-left: auto; margin-right: auto;" /></a>
<a href="https://www.houzz.com/professionals/lighting-showrooms-and-sales/wilson-lighting-pfvwus-pf~59995842" target="_blank">Photo by Wilson Lighting</a> - <a href="https://www.houzz.com/photos/living-room-ideas-phbr0-bp~t_718" target="_blank">Look for living room pictures</a>
6. Art Deco Revival
Art Deco, the architecture and design style that took hold in the 1920s and ’30s, is enjoying a resurgence.12
As a style, Art Deco is marked by bold geometry, textures, and colors, as well as an emphasis on art. But the 2023 interpretation of this style is likely to be a bit less splashy than its historical roots. Designers predict that instead of incorporating all of the elements of the style, which could feel overwhelming, homeowners will pick bursts of color or bold accessories to bring some whimsy to their space.
Keep an eye out for vintage mirrors, lamps, or vases that bring a touch of Art Deco glam to your home, or embrace bold colors and fabrics like velvet. Choose pillows and throw blankets in bright colors and geometric patterns to nod to the look without diving in all the way.
<a rel="follow" href="https://www.houzz.com/photos/art-deco-condo-contemporary-living-room-san-francisco-phvw-vp~8167747" target="_blank"><img src="https://st.hzcdn.com/simgs/pictures/living-rooms/art-deco-condo-favreau-design-img~d951b58702df1018_8-5591-1-fdaf02a.jpg" alt="" border="0" width="500" height="330" nopin="nopin" style="display: block; margin-left: auto; margin-right: auto;" /></a>
<a href="https://www.houzz.com/professionals/interior-designers-and-decorators/favreau-design-pfvwus-pf~1476404507" target="_blank">Photo by Favreau Design</a> - <a href="https://www.houzz.com/photos/living-room-ideas-phbr0-bp~t_718" target="_blank">Browse living room photos</a>
DESIGNED TO SELL
Are you thinking about remodeling or making significant design changes to your home? Wondering how those changes might impact your future resale value?
Buyer preferences vary significantly based on your home’s neighborhood and price range. We’re happy to share our insights on the upgrades that will make it easier (or more difficult!) to sell your home. Give us a call for a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
US News and World Report - <a href="https://realestate.usnews.com/real-estate/slideshows/interior-design-trends-for-2023?slide=2">https://realestate.usnews.com/real-estate/slideshows/interior-design-trends-for-2023?slide=2</a>
Architectural Digest - <a href="https://www.architecturaldigest.com/story/design-trends-in-2023">https://www.architecturaldigest.com/story/design-trends-in-2023</a>
Insider - <a href="https://www.insider.com/popular-home-decor-trends-for-2023-according-to-experts-2022-10#dont-be-surprised-by-wood-in-the-kitchen-7">https://www.insider.com/popular-home-decor-trends-for-2023-according-to-experts-2022-</a>
Houzz - <a href="https://www.houzz.com/magazine/35-home-design-trends-on-the-rise-in-2023-stsetivw-vs~164032473">https://www.houzz.com/magazine/35-home-design-trends-on-the-rise-in-2023-stsetivw-vs~164032473</a>
The Spruce - <a href="https://www.thespruce.com/2023-design-trends-6743803">https://www.thespruce.com/2023-design-trends-6743803</a>
The Spruce - <a href="https://www.thespruce.com/2023-lighting-trends-6891412">https://www.thespruce.com/2023-lighting-trends-6891412</a>
The Spruce - <a href="https://www.thespruce.com/2023-color-trends-6751137">https://www.thespruce.com/2023-color-trends-6751137</a>
Good Housekeeping - <a href="https://www.goodhousekeeping.com/home/decorating-ideas/g42084756/interior-design-trends-2023/">https://www.goodhousekeeping.com/home/decorating-ideas/g42084756/interior-design-trends-2023/</a>
Benjamin Moore -<a href="https://www.benjaminmoore.com/en-us/paint-colors/color/2008-30/raspberry-blush">https://www.benjaminmoore.com/en-us/paint-colors/color/2008-30/raspberry-blush</a>
Sherwin Williams - <a href="https://www.sherwin-williams.com/content/colorforecast/colormix-2023/color-of-the-year-2023">https://www.sherwin-williams.com/content/colorforecast/colormix-2023/color-of-the-year-2023</a>
Behr -<a href="https://www.behr.com/consumer/inspiration/2023-coty/">https://www.behr.com/consumer/inspiration/2023-coty/</a>
The Spruce - <a href="https://www.thespruce.com/art-deco-trend-for-2023-7092174">https://www.thespruce.com/art-deco-trend-for-2023-7092174</a>
2023-02-01T13:24:00-07:00
2023-02-09T15:03:50-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:34017
Last Week Market in Review
BACK TO THE RALLY... After the prior week's losses, traders put their rally caps back on and sent the three major stock indexes up strongly on signs the Fed is curbing inflation without a big boost in unemployment. <br /><br />The PCE Price index, the Fed's favorite measure, showed inflation moderated from November's 5.5% read to 5.0% in December. Meanwhile, initial weekly jobless claims fell by 6,000, to 186,000.<br /><br />In addition, the economy grew at a 2.9% annual rate in Q4, there were some strong quarterly corporate results, and Durable Goods Orders and University of Michigan Consumer Sentiment came in better-than-expected.
The week ended with the Dow UP 1.8%, to 33,978; the S&P 500 UP 2.5%, to 4,071; and the Nasdaq UP 4.3%, to 11,622.
Bond prices ended flat overall, but the UMBS 5.5% rose .05, to $101.16. Freddie Mac's Primary Mortgage Market Survey showed the national average 30-year fixed mortgage rate continued to trend down. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW… New Home Sales and Pending Home Sales are timelier indicators of where real estate is heading because they’re calculated when contracts are signed. So, it was good news that both trended up in December.
2023-01-30T11:55:51-07:00
2023-01-30T12:03:14-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:33298
2023 Real Estate Market Outlook (And What It Means for You)
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2023 Real Estate Market Outlook (And What It Means for You)
Last year, one factor drove the real estate market more than any other: rising mortgage rates.
In March 2022, the Federal Reserve began a series of interest rate hikes in an effort to pump the brakes on inflation.1And while some market sectors have been slow to respond, the housing market has reacted accordingly.
Both demand and price appreciation have tapered, as the primary challenge for homebuyers has shifted from availability to affordability. And although this higher-mortgage rate environment has been a painful adjustment for many buyers and sellers, it should ultimately lead to a more stable and balanced real estate market.
So what can we expect in 2023? Will mortgage rates continue to climb? Could home prices come crashing down? While this is one of the more challenging real estate periods to forecast, here’s what several industry experts predict will happen to the U.S. housing market in the coming year.
MORTGAGE RATES WILL FLUCTUATE LESS
In 2022, 30-year fixed mortgage rates surged from roughly 3% in January to around 7%. According to Rick Sharga of real estate data company ATTOM, “We’ve never seen rates double in so short a period.”2
This year, economists forecast a less dramatic shift.
In an interview with Bankrate, Nadia Evangelou, senior economist for the National Association of Realtors, shares her vision of three possible mortgage rate scenarios:3
Inflation continues to surge, forcing the Fed to repeatedly raise interest rates. In that scenario, she predicts that rates could reach as high as 8.5%.
Inflation decelerates and mortgage rates follow suit, averaging 7 to 7.5% for the year.
Rising interest rates trigger a recession, which could ultimately lead mortgage rates to drop closer to 5% by the end of the year.
Realtor.com forecasts something similar to scenario #2 above: “Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year’s end.”4 The Mortgage Bankers Association, however, projects something closer to Evangelou’s scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5.2% by Q4.5
Economists at Fannie Mae fall somewhere in the middle. In a recent press release, they predicted that the U.S. economy will experience a “modest recession” this year.6 But in their December Housing Forecast, they project that 30-year fixed mortgage rates will only fall by half a point from an average of 6.5% in Q1 to 6.0% in Q4.7
“From our perspective, the good news is that demographics remain favorable for housing, so the sector appears well-positioned to help lead the economy out of what we expect will be a brief recession,” said Fannie Mae Chief Economist Doug Duncan.6
What does it mean for you? Even the experts can’t say for certain where mortgage rates are headed. Instead of trying to ”time the market,” focus instead on buying or selling a home when the time is right for you. There are a variety of mortgage options available that can make a home purchase more affordable, including adjustable rates, points, and buydowns—and keep in mind you can always refinance down the road. We’d be happy to refer you to a trusted mortgage professional who can outline your best options.
SALES VOLUME WILL FALL AND INVENTORY WILL RISE
It looks like the home-buying frenzy we experienced in recent years is behind us. While the desire to own a home remains strong, higher mortgage rates have made it unaffordable for a large segment of would-be buyers.
Many economists expect the number of home sales to continue to decline this year, leading to an increase in listing inventory and days-on-market, or the time it takes to sell a home. But, there is a wide range when it comes to specifics.
Economists at Fannie Mae forecast that total home sales will fall by around 20% this year before rising again by nearly 15% in 2024.7 National Association of Realtors Chief Economist Lawrence Yun projects a less extreme dip of 7% in 2023 with a rebound of 10% next year.8
Realtor.com Chief Economist Danielle Hale foresees something in between. “The deceleration in home sales is likely to continue as high home prices and mortgage rates limit the pool of eligible home buyers. We anticipate that existing home sales will decline another 14.1% in 2023.” She expects this drop in sales to lead to a nearly 23% increase in inventory levels this year, offering more choices for buyers who have struggled to find a home in the past.9
However, given the severe lack of housing supply, even with a double-digit increase, the market is expected to remain relatively tight and below pre-pandemic levels. Hale points out: “It’s important to keep historical context in mind. The level of inventory in 2023 is expected to fall roughly 15% short of the 2019 average.”9
What does it mean for you? If you’ve been frustrated by a lack of inventory in the past, 2023 may bring new opportunities for you to find the perfect home. And today’s buyers have more negotiating power than they’ve had in years. Contact us to find out about current and future listings that meet your criteria.
If you’re hoping to sell, you may want to act fast; rising inventory levels will mean increased competition. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.
HOME PRICES WILL REMAIN RELATIVELY STABLE
While some economists expect home prices to fall this year, many expect them to remain fairly stable. “For most parts of the country, home prices are holding steady since available inventory is extremely low,” said Yun at a November conference.8
Nationally, Yun expects the average median home price to tick up by 1% in 2023, with some markets experiencing greater appreciation and others experiencing declines.8 Economists at Fannie Mae offer a similar projection, forecasting a slight decrease in their Home Price Index of about 1.5%, year-over-year.7
Other experts foresee a larger fluctuation. Hale expects U.S. home prices to rise by 5.4% this year, while Morgan Stanley is forecasting a 7% drop from the peak in June 2022.9,10
Still, many economists agree that a housing market crash like the one we experienced in 2008 is highly unlikely. The factors that caused home prices to plunge during the Great Recession—specifically lax lending standards and a surplus of inventory—aren’t prevalent in our current market.10 Therefore, home values are expected to remain comparatively stable.
What does it mean for you? It can feel scary to buy a home when there’s uncertainty in the market. However, real estate is a long-term investment that has been shown to appreciate over time. And keep in mind that the best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.
And if you’re planning to sell this year, you’ll want to chart your path carefully to maximize your profits. Contact us for recommendations and to find out what your home could sell for in today’s market.
RENT PRICES WILL CONTINUE TO CLIMB
Affordability challenges for would-be buyers, inflationary pressures, and an overall lack of housing could continue to drive “above-average” rent price increases in much of the country.11 The Federal Reserve Bank of Dallas expects year-over-year rental price growth to tick up to 8.4% in May before moderating later in the year.12
According to Hale, “U.S. renters will continue to face challenges from limited supply and excess demand in the coming year that will keep upward pressure on rent growth. At a national level, we forecast rent growth of 6.3% in the next 12 months, somewhat ahead of home price growth and historical rent trends.”9
However, there are signs that the surge in rent prices could be tapering. According to Jay Parsons, head of economics for rental housing software company RealPage, there’s some evidence of a slowdown in demand. He predicts that market-rate rents will rise just 3.3% this year. Still, analysts agree that a return to lower pre-pandemic rental prices is unlikely.10
What does it mean for you? Rent prices are expected to keep climbing. But you can lock in a set mortgage payment and build long-term wealth by putting that money toward a home purchase instead. Reach out for a free consultation to discuss your options.
And if you’ve ever thought about purchasing a rental property, now may be a perfect time. Call today to get your investment property search started.
WE’RE HERE TO GUIDE YOU
While national real estate forecasts can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and drive home values in your particular neighborhood.
If you’re considering buying or selling a home in 2023, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
Forbes -<br /><a href="https://www.forbes.com/advisor/investing/fed-funds-rate-history/">https://www.forbes.com/advisor/investing/fed-funds-rate-history/</a>
Bankrate -<br /><a href="https://www.bankrate.com/mortgages/will-mortgage-rates-go-up-in-december-2022/">https://www.bankrate.com/mortgages/will-mortgage-rates-go-up-in-december-2022/</a>
Bankrate -<br /><a href="https://www.bankrate.com/real-estate/housing-market-predictions-2023/">https://www.bankrate.com/real-estate/housing-market-predictions-2023/</a>
Realtor.com - <br /><a href="https://www.realtor.com/news/trends/2023-the-year-of-the-homebuyer-our-bold-predictions-on-home-prices-mortgage-rates-and-more/">https://www.realtor.com/news/trends/2023-the-year-of-the-homebuyer-our-bold-predictions-on-home-prices-mortgage-rates-and-more/</a>
Mortgage Bankers Association - <br /><a href="https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-dec-2022.pdf?sfvrsn=b584bf7_1">https://www.mba.org/docs/default-source/research-and-forecasts/forecasts/mortgage-finance-forecast-dec-2022.pdf?sfvrsn=b584bf7_1</a>
Fannie Mae - <br /><a href="https://www.fanniemae.com/newsroom/fannie-mae-news/economy-still-expected-enter-and-exit-modest-recession-2023">https://www.fanniemae.com/newsroom/fannie-mae-news/economy-still-expected-enter-and-exit-modest-recession-2023</a>
Fannie Mae -<br /><a href="https://www.fanniemae.com/media/45801/display">https://www.fanniemae.com/media/45801/display</a>
National Association of Realtors - <br /><a href="https://www.nar.realtor/newsroom/nars-lawrence-yun-predicts-us-home-prices-wont-experience-major-decline-could-possibly-rise-slightly">https://www.nar.realtor/newsroom/nars-lawrence-yun-predicts-us-home-prices-wont-experience-major-decline-could-possibly-rise-slightly</a>
Realtor.com -<br /><a href="https://www.realtor.com/research/2023-national-housing-forecast/">https://www.realtor.com/research/2023-national-housing-forecast/</a>
The New York Times - <br /><a href="https://www.nytimes.com/2022/11/04/realestate/housing-market-interest-rates.html">https://www.nytimes.com/2022/11/04/realestate/housing-market-interest-rates.html</a>
CNBC -<br /><a href="https://www.cnbc.com/2022/09/28/how-much-higher-rent-will-go-in-2023-according-to-experts.html">https://www.cnbc.com/2022/09/28/how-much-higher-rent-will-go-in-2023-according-to-experts.html</a>
Federal Reserve Bank of Dallas -<br /><a href="https://www.dallasfed.org/research/economics/2022/0816">https://www.dallasfed.org/research/economics/2022/0816</a>
2023-01-01T14:54:00-07:00
2023-01-03T17:50:15-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:33113
What To Expect From the Housing Market in 2023
The 2022 housing market has been defined by two key things: inflation and rapidly rising <a href="https://www.mykcm.com/2022/11/09/whats-ahead-for-mortgage-rates-and-home-prices/" title="mortgage rates">mortgage rates</a>. And in many ways, it’s put the market into a reset position.
<article id="post-106440" class="post-106440 post type-post status-publish format-standard has-post-thumbnail hentry category-buyers category-sellers category-housing-market-updates category-interest-rates category-pricing">
As the Federal Reserve (the Fed) made moves this year to try to lower inflation, mortgage rates more than <a href="https://www.freddiemac.com/research/forecast/20221021-quarterly-forecast-rapidly-rising-rates-declining-demand-driving-housing-market" title="doubled" target="_blank" rel="noopener noreferrer">doubled</a> – something that’s never happened before in a calendar year. This had a cascading impact on buyer activity, the balance between <a href="https://www.mykcm.com/2022/11/23/what-buyers-need-to-know-about-the-inventory-of-homes-available-for-sale/" title="supply and demand">supply and demand</a>, and ultimately home prices. And as all those things changed, some buyers and sellers put their plans on hold and decided to wait until the market felt a bit more predictable.
But what does that mean for next year? What everyone really wants is more stability in the market in 2023. For that to happen we’ll need to see the Fed bring inflation down even more and keep it there. Here’s what housing market experts say we can expect next year.
What’s Ahead for Mortgage Rates in 2023?
Moving forward, experts agree it’s still going to be all about inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, <a href="https://www.mykcm.com/2022/11/21/mortgage-rates-will-come-down-its-just-a-matter-of-time/" title="mortgage rates">mortgage rates</a> will likely respond. While there may be early signs inflation is easing as we round out this year, we’re not out of the woods just yet. Inflation is still something to watch in 2023.
Right now, experts are factoring all of this into their mortgage rate forecasts for next year. And if we average those forecasts together, experts say we can expect rates to stabilize a bit more in 2023. Whether that’s between 5.5% and 6.5%, it’s hard for experts to say exactly where they’ll land. But based on the average of their projections, a more predictable rate is likely ahead (see chart below):
<a href="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106529" src="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png" alt="What To Expect from the Housing Market in 2023 | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng.png 960w, https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng-600x450.png 600w, https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng-768x576.png 768w, https://files.mykcm.com/2022/12/20155840/mortgage-rate-projections-for-2023-MEM-Eng-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
That means, we’ll start the year out about where we are right now. But we could see rates tick down if inflation continues to drop. As Greg McBride, Chief Financial Analyst at Bankrate, <a href="https://www.bankrate.com/real-estate/housing-market-predictions-2023/#home-values" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“. . . mortgage rates could pull back meaningfully next year if inflation pressures ease.”
In the meantime, expect some volatility as rates will likely fluctuate in the weeks ahead. If we see inflation come back under control, that would be good news for the housing market.
What Will Happen to Home Prices Next Year?
Homes prices will always be defined by supply and demand. The more buyers and fewer homes there are on the market, the more home prices will rise. And that’s exactly what we saw during the pandemic.
But this year, things changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates. The level of moderation has varied by local area – with the biggest changes happening in overheated markets. But do experts think that will continue?
The graph below shows the latest home price forecasts for 2023. As the different colored bars indicate, some experts are saying home prices will appreciate next year, and others are saying home prices will come down. But again, if we take the average of all the forecasts (shown in green), we can get a feel for what 2023 may hold.
<a href="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-106442" src="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png" alt="What To Expect from the Housing Market in 2023 | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM.png 960w, https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM-600x450.png 600w, https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM-768x576.png 768w, https://files.mykcm.com/2022/12/19163206/home-price-forecasts-projections-for-2023-MEM-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>
The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation in 2023. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/2023-real-estate-forecast-market-to-regain-normalcy#:~:text=Housing%20inventory%20is%20expected%20to,appreciation%20will%20slow%2C%20he%20added." title="says" target="_blank" rel="noopener noreferrer">says</a>:
“After a big boom over the past two years, there will essentially be no change nationally. . . Half of the country may experience small price gains, while the other half may see slight price declines.”
Bottom Line
The 2023 housing market is going to be defined by mortgage rates, and rates will be determined by what happens with inflation. The best way to keep a pulse on what experts are projecting for next year is to lean on a trusted real estate advisor. Let’s connect.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
</article>
2022-12-22T12:47:38-07:00
2022-12-22T12:53:51-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:32765
Home for the Holidays: How To Stretch Your Budget in a Season of Inflation
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Home for the Holidays: How To Stretch Your Budget<br />in a Season of Inflation
You don't have to break the bank to celebrate the holidays in style—even in this season of inflation. Prices may be higher on everything from food to gifts to decorations, but there are still plenty of opportunities to eke out extra savings.
For example, according to the U.S. Environmental Protection Agency (EPA), you can save a couple of hundred dollars a year just by sealing your home and boosting its insulation.1 Other small fixes—such as swapping old light bulbs for LEDs and plugging electronics into a powerstrip—can boost your yearly savings enough to pay off some of your holiday budget.
And thanks to a pandemic-era boom in online shopping, it is easier than ever to find deals on new and pre-owned furniture, thrifted gifts, DIY decor, and more. Even secondhand stalwarts like Goodwill have joined the digital fray, making it a cinch to score gently-used treasures at extra-low prices.2
You won't be the only one bargain-hunting your way to a more financially-stable New Year. Multiple surveys have found that inflation is not only chilling people's spending, it's also prompting shoppers to search for better deals and creative ways to reduce their bills.3
Here are some strategies you can use to boost your holiday budget by trimming household expenses:
2.Hunt for Deals on Groceries
If you're finding it harder than it used to be to serve your family dinner on a budget, you're not alone. With the U.S. food-at-home index (a measure of grocery price inflation) at a 43-year high, many families are struggling to control costs on food staples, such as meat, dairy, produce, and grains.4
That's made pulling off holiday gatherings especially stressful lately. But don't despair: Even with inflation, retailers are still giving motivated shoppers plenty of opportunities to whittle down their bills.
The key is to pay attention to the cost of each item on your shopping list—not just the most expensive—and look for easy swaps and discounts. For example, try buying non-perishable items in bulk, especially when they’re on sale, and only in-season produce. Or trade name-brand goods for less expensive options from a store's private label. As you tap into your inner bargain hunter, you could be surprised by what you save when you’re more mindful of your selections.
And unlike in the old days, you no longer have to clip your way through paper flyers to snag a bargain. Instead, you can save both time and money by scouting for deals online, digitally clipping coupons, and earning cash back through special apps and browsers. For example, coupon aggregation sites, like Coupons.com, and shopping apps—such as Checkout 51 and Ibotta—make it easy to score discounts and cash back on a variety of purchases, including groceries.
Also, check to see if your neighborhood grocer posts their weekly flyers online. If you're hosting a holiday party, the markdowns you find can help you narrow your food and recipe choices, based on what's currently on sale.
2. Prep Your Home for Holiday Guests With Pre-Owned Finds
You don't have to sacrifice style for the sake of preserving your holiday budget either. If you're expecting company this year and would like to add some festive flair to your home, you can do so inexpensively—especially if you're willing to decorate with items that are secondhand.
Thrifting is back in vogue, with an increasing number of shoppers preferring pre-owned furniture and home goods. A recent study found that the “recommerce” market grew almost 15% last year, which was twice the pace of general retail.5 Plus, buying used isn’t just a great way to save money, it also helps the environment by keeping reusable items out of landfills.
Fortunately, it’s become easier to score secondhand deals online. For example, you can scout consumer marketplaces on Facebook, Craigslist, and OfferUp. Or you can take advantage of neighborhood freecycles and “Buy Nothing” groups. And a number of thrift shops now have e-commerce sites, including major chains, like Goodwill.
If you're handy with a paintbrush or have some basic carpentry skills, you can also modernize some of your existing furniture by upcycling it yourself. Or, if you enjoy crafting, search through your own recycling or sewing bin for raw material to make one-of-a-kind decorations.
Don't stress yourself out, though, if you don't have the time or money to dress your home the way you hoped. “A house doesn’t have to be perfect or completely done for it to feel festive or inviting,” designer Justina Blakeney noted in an interview with the Washington Post. “These are family and friends, and they are not judging you.”6
3.Forgo Major Renovations in Favor of DIY Home Improvements
Holidays are always a tricky time to undergo big renovations. But with ongoing worker and material shortages, now is an especially bad time to commit. Inflated costs can add thousands to your reno budget –—and unnecessary stress to your holiday.
Instead of suffering through an ill-timed remodel, you're better off saving this time of year for simpler, less expensive projects you can do yourself.
One winter-perfect upgrade to consider: Build a DIY fire pit so that you and your guests can roast marshmallows and relax in the cozy comfort of your backyard. You can also add some extra ambiance by hanging energy-efficient LED outdoor string lights that change from white to colorful. These are festive enough for the holidays, but also versatile enough to use year-round.
Or, if you'd rather curl up by an indoor fire, channel your DIY energy into a fireplace upgrade. Adding a wooden beam to the top of your mantel can add an extra layer of coziness. Alternatively, re-tiling or painting your fireplace surround can lend contemporary flair.
Just be sure to stick to DIY projects that you know you can do a quality job on—especially if your changes will be difficult to reverse. Feel free to reach out for a free assessment to find out how your planned renovations could impact your home’s resale value.
4.Invest in Home Maintenance Projects That Cut Your Utility Bills
You can save money by completing basic home maintenance tasks[1] , such as swapping your furnace filter and updating your lightbulbs. But if you really want to lower your bills this winter, consider projects that make your home more energy efficient.
According to the EPA, 9 out of 10 homes in the U.S. are under-insulated, which wastes energy and money.7 Luckily, there are plenty of DIY insulation projects that you can complete in just a few days. For example, the EPA offers guides on how to:
Insulate your attic or basement crawl space
Weatherstrip doors and windows
Seal areas around the house that may be leaking air, including electrical outlets and fireplaces
The savings you get from these projects can really add up. The EPA estimates that sealing and insulating your ducts can make your HVAC system up to 20% more efficient.8 And thanks to new provisions from the Inflation Reduction Act, you can also save a bundle this year by investing in certain energy-efficient upgrades and claiming a tax credit.9Be sure to check with us about any local rebates and incentives that may be available, too, before getting started on a project.
5. Use Expense Tracking to Boost Your Holiday Budget
To avoid overextending yourself during the holidays, one of the best things you can do is track your income and expenses. If your monthly budget is usually tight, you may need to make some adjustments to free up cash for holiday expenditures.
For example, here's a sample budget worksheet that we created. Start by adding in your expenses: Under the “Typical” column, you can list your standard expenses, and under the “Adjusted” column, list any areas where you could cut back on spending.
Then consider how your standard wages may be adjusted this month by extra shifts, additional tips, or an end-of-year bonus. By decreasing your spending and/or increasing your income, you can build room in your budget for holiday gifts and gatherings.
HOUSEHOLD BUDGET WORKSHEET
Typical
Adjusted
Difference (+/-)
HOUSING
Mortgage/taxes/insurance or Rent
Utilities (electricity, water, gas, trash)
Phone, internet, cable
Home maintenance and repairs
FOOD
Groceries
Restaurants
TRANSPORTATION
Car payment/insurance
Gas, maintenance, repairs
OTHER
Health insurance
Clothing and personal care
Childcare
Entertainment
Charitable contributions
Savings, retirement, college fund
INCOME
Salary/wages
Bonus, tips, other
MONTHLY TOTALS
Total Adjusted Income
Total Adjusted Expenses
-
EXTRA SAVINGS FOR YOUR HOLIDAY BUDGET
Feel free to utilize this worksheet as a template that you can personalize to your needs, or ask us for a PDF copy that you can print out and use right away.
WE’RE HERE TO HELP
We would love to help you meet your financial goals now and in the year ahead. Whether you want to find lower-cost alternatives for home renovations, maintenance, or services, we are happy to provide our insights and referrals.
And if you’re saving up to buy a new home, we can help with that, too. This is the perfect time to score a great deal because only the most motivated homebuyers and sellers are active in the market right now. So reach out to schedule a free consultation. We can fill you in on some of the exciting programs and incentives we’re seeing that help make homeownership more affordable.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
U.S. Environmental Protection Agency (EPA) - <a href="https://www.energystar.gov/campaign/waysToSave#!card0-GW91">https://www.energystar.gov/campaign/waysToSave#!card0-GW91</a>
USA Today - <a href="https://www.usatoday.com/story/money/retail/2022/10/05/goodwill-launches-online-store-goodwillfinds-website/8185084001/">https://www.usatoday.com/story/money/retail/2022/10/05/goodwill-launches-online-store-goodwillfinds-website/8185084001/</a>
Retail Dive - <br /><a href="https://www.retaildive.com/news/inflation-drives-shopping-changes-consumers-survey/629973/">https://www.retaildive.com/news/inflation-drives-shopping-changes-consumers-survey/629973/</a>
NBC News - <br /><a href="https://www.nbcnews.com/select/shopping/how-save-groceries-ncna1299053">https://www.nbcnews.com/select/shopping/how-save-groceries-ncna1299053</a>
CNBC - <a href="https://www.cnbc.com/2022/09/14/secondhand-shopping-is-booming-heres-how-much-you-can-save.html">https://www.cnbc.com/2022/09/14/secondhand-shopping-is-booming-heres-how-much-you-can-save.html</a>
Washington Post - <br /><a href="https://www.washingtonpost.com/home/2021/11/09/holiday-entertaining-tips/">https://www.washingtonpost.com/home/2021/11/09/holiday-entertaining-tips/</a>
U.S. Environmental Protection Agency - <a href="https://www.energystar.gov/campaign/seal_insulate/why_seal_and_insulate">https://www.energystar.gov/campaign/seal_insulate/why_seal_and_insulate</a>
Energy Star -<br /><a href="https://www.energystar.gov/campaign/waysToSave">https://www.energystar.gov/campaign/waysToSave</a>
The White House - <br /><a href="https://www.whitehouse.gov/cleanenergy/?utm_source=cleanenergy.gov">https://www.whitehouse.gov/cleanenergy/?utm_source=cleanenergy.gov</a>
Extra blog graphic quote: Save money by completing home maintenance tasks and projects
2022-12-01T12:28:00-07:00
2022-12-04T13:13:58-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:32207
7 Tips to Maximize Your Home’s Sale Price
<img src="https://assets.site-static.com/userfiles/1653/image/Copy_of_November_2022_-_MVP_-_Blog_Post_Image.png" width="1200" height="628" />7 Tips to Maximize Your Home’s Sale Price
Over the past few years, a real estate buying frenzy bid up home prices to eye-popping amounts. However, as mortgage rates have risen, buyer demand has cooled. 1 Consequently, home sellers who enter the market today may need to reset their expectations.
The reality is, it’s no longer enough to stick a “for sale” sign in the yard and wait for buyers to bang down the door. If you want to net the most money possible for your property in today’s market, you’ll need an effective game plan and a skilled team of professionals to implement it.
Fortunately, we’ve developed a listing strategy that combines our proven approach to preparation, pricing, and promotion—all designed to help you get top dollar for your home. But you will play an important role in the selling process, as well.
Here are some crucial steps you can take to set yourself up for success as a home seller in this market:
1. Make Strategic Repairs and Improvements
When you sell something, it’s important to consider what your customer wants to buy. And according to the National Association of Realtors, only 6% of today’s buyers report that they are looking for a DIY fixer-upper.2 The vast majority want a move-in-ready home, which means that any outstanding repairs or dated features can be a major turn-off.
Before your home goes on the market, we’ll conduct a thorough walk-through to identify any problems that could prevent it from selling. In some cases, we may recommend a professional pre-listing inspection. Finding and addressing issues like leaks, rot, and foundation problems up front can pay off in the final sale price. Plus, it prevents sales from falling through because of a red flag on the home inspection, a scenario no seller wants to face.
Beyond repairs, we’ll also help you identify the simple upgrades that offer the highest return on your investment. For example, new paint can give your home a fresh look at a reasonable cost. However, it’s important to choose the right colors. One study found that painting your bathroom light blue could lead to a 1.6% increase in the offer price!3 Similarly, minor landscaping improvements can pay off in a major way. A healthy lawn offers an estimated 256% return on investment.4
2. Declutter and Depersonalize
When buyers look at a home for sale, they’re trying to envision themselves living there. That’s hard to do if it’s chock-full of the current owner’s family photos, children’s artwork, and souvenir collections. Plus, cluttered homes look smaller, and older items can make them feel dated.
Decluttering before you put your home up for sale will help you in the long run—after all, you’ll need to move all your things to your new home eventually. Now is the time to shred, digitize, or organize old documents, donate old clothes, or move bulky furniture into storage. At a minimum, you’ll want to pack away excess items neatly before potential buyers view the home. Remove personal photos and other trinkets to create a blank slate that viewers can imagine decorating with their own prized possessions.
If you feel overwhelmed by this process, we’d be happy to make recommendations or refer you to a local service provider who can help.
3. Stage Your Home for Success
Just as you take care to dress professionally for a job interview, you should always ensure your home looks its best for potential buyers. Home shoppers today are used to scrolling through Instagram and Pinterest, and they want to see the same wow factor when touring a home.
The process of making your home look its best and appeal to potential buyers is called staging, and it can be a game changer. According to the International Association of Home Staging Professionals, an average priced staged home sells 5 to 11 times faster than its unstaged counterpart. Even better, the majority of staged homes sell for 4% to 20% over list price!5
Some sellers hire a professional stager, who may bring in furniture and decor to increase the home’s appeal. Others choose to stage their homes themselves. We can help advise you on which route to choose and how much to invest in the process.
It’s also important to consider what buyers in your neighborhood are likely to be looking for in a home. We can help guide your staging choices with our local market insights. For example, in neighborhoods where a large share of residents work from home, it may be effective to stage one room as an office space so potential buyers can envision their day-to-day routine.
4. Prep for Each Showing
Most of us don’t live picture-perfect lives, and our homes reflect that (sometimes messy) reality. But when your home is on the market, it’s important to ensure that it is always ready for viewers, even on short notice. A missed showing is a missed opportunity to sell your home!
Before your home hits the market, it may be worth hiring professional cleaners to get in all the nooks and crannies. After, try your best to keep things spic and span. Just a few minutes a day wiping down counters, sweeping the floors, and vacuuming can make a big difference.
It’s also worth noting that most buyers will open cabinets, drawers, and closets—so try to make sure everything is as neat and organized as possible. Keep toiletries and small appliances off countertops, and secure valuables and sensitive documents in a safe or off-site.
Want help finding a cleaning service to make your home shine for buyers? Reach out for a referral!
5. Price Your Home Correctly From the Start
In the past few years, you may have seen homes in your neighborhood sell for shocking amounts and wondered if you could get a similar price for your property. The temptation to list your home on the high side can be strong, but it’s best to be realistic from the start. Even in a hot market, some homes will sit for months. And the longer a property is listed, the more buyers worry that something is wrong with it.6
Of course, you also don’t want to set your price too low and lose out on potential profit. That’s why it’s essential to work with real estate agents (like us!) who know the ins and outs of our local market and what buyers are willing to pay today. In a quickly-evolving market, comparable sales from a few months ago can lag the current market reality.
Fortunately, if you’ve owned your home for several years, chances are good that it’s worth much more today than you paid for it. That means you stand to walk away with a handsome profit. In fact, recent reports show that homeowner equity is at an all-time high.7
6. Avoid Acting on Emotion
The past few years of over-asking-price offers with few contingencies have set certain expectations for many sellers. It’s only natural to feel hurt or even offended if an offer comes in lower than what you think your home is worth.
However, it’s important to keep in mind that those market conditions were unprecedented, and we are now returning to a more typical market. Home sellers who act rationally, rather than emotionally, are going to get the best results.
Remember: You can always counter a low offer. The same goes for repair requests and contingencies—everything is negotiable. However, it’s important to accept that the market is adjusting and flexibility is key. Keep your expectations reasonable, and remain open-minded. And you can rest assured knowing that we’ll be by your side every step of the way to help you navigate the process and negotiate a great deal.
7. Work With a Local Market Expert
The economics impacting mortgage rates may be national, but real estate markets are hyperlocal. That’s why working with a professional agent who understands your neighborhood’s dynamics is essential. Through our experience, we’ve gathered insights that can help us position your home for success in this market. Plus, we have the resources to connect with qualified buyers searching for a home like yours.
Working with a knowledgeable agent is also the secret to getting as much money as possible for your home. We have access to extensive data on recent sales in your neighborhood, which we will use to price and promote your property. That’s one reason why homes sold by agents draw much higher prices than those sold by their owners alone. While for-sale-by-owner homes went for a median price of $260,000 in 2020, the median for homes sold by agents was $318,000.8 That’s a difference of $58,000—and money you don’t want to leave on the table.
YOUR AGENT AND ADVOCATE
Selling a home in a fast-changing market can be stressful. You’re likely to hear conflicting advice and opinions from people in your life, and decisions like what color to paint your front door or how much to list your home for can be overwhelming.
That’s where we come in. The market may be adjusting, but it’s still highly advantageous for sellers—and we’re here to help you make the most of it. We’re listing experts in our area, and we know what steps you need to take for a smooth, profitable transaction.
If you’re considering buying or selling a home, we invite you to reach out to schedule a free consultation. We’re happy to talk through your specific situation and goals and help you identify your next steps.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
Yahoo! Finance - <a href="https://finance.yahoo.com/news/bidding-war-rate-drops-lowest-120000537.html">https://finance.yahoo.com/news/bidding-war-rate-drops-lowest-120000537.html</a>
National Association of Realtors -<a href="https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf">https://cdn.nar.realtor/sites/default/files/documents/2022-home-buyers-and-sellers-generational-trends-03-23-2022.pdf</a>
Zillow - <a href="https://www.zillowgroup.com/news/paint-colors-that-could-lead-to-higher-offers/">https://www.zillowgroup.com/news/paint-colors-that-could-lead-to-higher-offers/</a>
Angi - <a href="https://www.angi.com/articles/smart-landscaping-tips-can-increase-home-value.htm">https://www.angi.com/articles/smart-landscaping-tips-can-increase-home-value.htm</a>
International Association of Home Staging Professionals - <a href="https://pages.iahsp.com/home-staging-statistics/">https://pages.iahsp.com/home-staging-statistics/</a>
Washington Post - <a href="https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/">https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/</a>
Realtor.com - <a href="https://www.realtor.com/research/changes-in-value-of-household-real-estate-q2-2022/">https://www.realtor.com/research/changes-in-value-of-household-real-estate-q2-2022/</a>
National Association of Realtors - <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#purchased">https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#purchased</a>
2022-10-31T21:00:00-07:00
2022-11-02T16:54:00-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:31744
The Future Of Florida Property Insurance
Florida’s insurance market has been in a meltdown mode for several years now and this is prior to last week’s historic landfall on southwest Florida from Hurricane Ian. Unfortunately, the category-4 storm packed 155-mph winds and brought upon a record storm surge. What many may not realize is that six insurers have been declared insolvent so far this year and this was before Hurricane Ian, in what had been a relatively calm hurricane season. As a result, annual insurance rates in the Sunshine State are three times the national average at $4,231.
Tallying up the damage
Hurricane Ian will likely rank highly among one of the costliest storms to hit the United States. Here are some of the costliest storms to have hit the U.S. (in 2021 dollars):
#1. Hurricane Katrina: $89.7 billion
#2. Hurricane Ida: $36 billion
#3. Hurricane Sandy: $35.1 billion
#4. (tied) Hurricane Harvey: $33 billion
#4. (tied) Hurricane Irma: $33 billion
It has been estimated that Hurricane Ian-related losses will likely come in somewhere between $25 billion and $40 billion. As for how much of this bill will be covered by Floridians is yet to be determined. With this said, the federal government has announced that it would help cover insurance gaps for damaged homes, up to $37,900, as well as up to another $37,900 for “lost property.”
What’s next?
Needless to say, the future of Florida’s property insurance market is uncertain at best. Unfortunately, years of fraud and abuse have certainly caused a lot of damage to not only the insurance companies, but ultimately the policyholders paying for this fraud in the form of higher premiums. One area in particular that has been exploited is the “assignment of benefits” provision. In particular, we have seen many roofers exploit this by offering to conduct free roof inspections. When conducting these roof inspections, many of these roofers will even go as far as to damage the roof just so that they may submit a claim to the insurance company. This has been going on for quite some time and has resulted in higher premiums for all policyholders. As a homeowner, it is simple. If a roofer approaches you about conducting a free roof inspection, don’t allow them to do it.
Another area that needs to be addressed is to change tort laws to reduce litigation. At the present time, many insurance companies have to spend an incredible amount of money to defend against the settlement of claims. This can be an impediment for the insurance companies because it ties their hands.
Summary
If there is anything to learn from the recent impact from Hurricane Ian, it is that we must always have a hurricane plan in place to ensure our safety and secure our property. In addition, it is wise to plan for the worst case scenario when obtaining insurance coverage for your property. It is amazing how quickly a devastating storm can destroy your biggest investment.
Courtesy of: Natasha Moore REALTOR® with Live South Florida Realty
2022-10-09T17:00:00-07:00
2022-10-09T16:57:54-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:31640
Buy Now or Rent Longer? 5 Questions to Answer Before Purchasing Your First Home
<img src="https://assets.site-static.com/userfiles/1653/image/Copy_of_October_2022_-_MVP_-_Blog_Post_Image_Resized.png" width="1200" height="628" />
Buy Now or Rent Longer? 5 Questions to Answer<br />Before Purchasing Your First Home
Deciding whether to jump into the housing market or rent instead is rarely an easy decision – especially if you’re a first-time homebuyer. But in today’s whirlwind market, you may find it particularly challenging to pinpoint the best time to start exploring homeownership.
A real estate boom during the pandemic pushed home prices to an all-time high.1 Add higher mortgage rates to the mix, and some would-be buyers are wondering if they should wait to see if prices or rates come down.
But is renting a better alternative? Rents have also soared along with inflation – and are likely to continue climbing due to a persistent housing shortage.2 And while homebuyers can lock in a set mortgage payment, renters are at the mercy of these rising costs for the foreseeable future.
So, what's the better choice for you? There’s a lot to consider when it comes to buying versus renting. Luckily, you don’t have to do it alone. Reach out to schedule a free consultation and we'll help walk you through your options. You may also find it helpful to ask yourself the following questions:
How long do I plan to stay in the home?
You'll get the most financial benefit from a home purchase if you own the property for at least five years.3 If you plan to sell in a shorter period of time, a home purchase may not be the best choice for you.
There are costs associated with buying and selling a home, and it may take time for the property’s value to rise enough to offset those expenditures.
Even though housing markets can shift from one year to the next, you’ll typically find that a home’s value will ride out a market’s ups and downs and appreciate with time.4 The longer you own a property, the more you are likely to benefit from its appreciation.
Once you’ve found a community that you’d like to stay in for several years, then buying over renting can really pay off. You’ll not only benefit from appreciation, but you’ll also build equity as you pay down your mortgage – and you’ll have more security and stability overall.
Also important: If you plan to stay in the home for the life of the mortgage, there will come a time when you no longer have to make those payments. As a result, your housing costs will drop dramatically, while your equity (and net worth) continue to grow.
Is it a better value to buy or rent in my area?
If you know you plan to stay put for at least five years, you should consider whether buying or renting is the better bargain in your area.
One helpful tool for evaluating your options is a neighborhood’s price-to-rent ratio: just divide the median home price by the median yearly rent price. The higher the price-to-rent ratio is, the more expensive it is to buy compared to rent.5 Keep in mind, though, that this equation provides only a snapshot of where the market stands today. As such, it may not accurately account for the full impact of rising home values and rent increases over the long term.
According to the National Association of Realtors, a typical U.S. homeowner who purchased a single-family existing home 10 years ago would have gained roughly $225,000 in equity — all while maintaining a steady mortgage payment.6
In contrast, someone who chose to rent for the past 10 years would have not only missed out on those equity gains, but they would have also seen U.S. rental prices increase by around 66%.7
So even if renting seems like a better bargain today, buying could be the better long-term financial play.
Ready to compare your options? Then reach out to schedule a free consultation. As local market experts, we can help you interpret the numbers to determine if buying or renting is the better value in your particular neighborhood.
Can I afford to be a homeowner?
If you determine that buying a home is the better value, you’ll want to evaluate your financial readiness.
Start by examining how much you have in savings. After committing a down payment and closing costs, will you still have enough money left over for ancillary expenses and emergencies? If not, that’s a sign you may be better off waiting until you’ve built a larger rainy-day fund.
Then consider how your monthly budget will be impacted. Remember, your monthly mortgage payment won’t be your only expense going forward. You may also need to factor in property taxes, insurance, association fees, maintenance, and repairs.
Still, you could find that the monthly cost of homeownership is comparable to renting, especially if you make a sizable down payment. Landlords often pass the extra costs of homeowning onto tenants, so it’s not always the cheaper option.
Plus, even though you’ll be in charge of financing your home’s upkeep if you buy, you’ll also be the one who stands to benefit from the fruits of your investment. Every major upgrade, for example, not only makes your home a nicer place to live; it also helps boost your home's market value.
If you want to buy a home but aren’t sure you can afford it, give us a call to discuss your goals and budget. We can give you a realistic assessment of your options and help you determine if your homeownership dreams are within reach.
Can I qualify for a mortgage?
If you’re prepared to handle the costs of homeownership, you’ll next want to look into how likely you are to get approved for a mortgage.
Every lender will have its own criteria. But, in general, you can expect a creditor to scrutinize your job stability, credit history, and savings to make sure you can handle a monthly mortgage payment.
For example, lenders like to see evidence that your income is stable and predictable. So if you’re self-employed, you may need to provide additional documentation proving that your earnings are dependable. A lender will also compare your monthly debt payments to your income to make sure you aren’t at risk of becoming financially overextended.
In addition, a lender will check your credit report to verify that you have a history of on-time payments and can be trusted to pay your bills. Generally, the higher your credit score, the better your odds of securing a competitive rate.
Whatever your circumstances, it’s always a good idea to get preapproved for a mortgage before you start house hunting. Let us know if you’re interested, and we’ll give you a referral to a loan officer or mortgage broker who can help.
Want to learn more about applying for a mortgage? Reach out to request a copy of our report: “8 Strategies to Secure a Lower Mortgage Rate”
How would owning a home change my life?
Before you begin the preapproval process, however, it’s important to consider how homeownership would affect your life, aside from the long-term financial gains.
In general, you should be prepared to invest more time and energy in owning a home than you do renting one. There can be a fair amount of upkeep involved, especially if you buy a fixer-upper or overcommit yourself to a lot of DIY projects. If you’ve only lived in an apartment, for example, you could be surprised by the amount of time you spend maintaining a lawn.
On the other hand, you might relish the chance to tinker in your very own garden, make HGTV-inspired improvements, or play with your dog in a big backyard. Or, if you’re more social, you might enjoy hosting family gatherings or attending block parties with other committed homeowners.
The great thing about owning a home is that you can generally do what you want with it – even if that means painting your walls fiesta red one month and eggplant purple the next.
The choice – like the home – is all yours.
HAVE MORE QUESTIONS? WE’VE GOT ANSWERS
The decision to buy or rent a home is among the most consequential you will make in your lifetime. We can make the process easier by helping you compare your options using real-time local market data. So don't hesitate to reach out for a personalized consultation, regardless of where you are in your deliberations. We'd be happy to answer your questions and identify actionable steps you can take now to reach your long-term goals.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
CNN - <br /><a href="https://www.cnn.com/2022/08/11/homes/home-prices-second-quarter/index.html">https://www.cnn.com/2022/08/11/homes/home-prices-second-quarter/index.html</a>
NPR - <a href="https://www.npr.org/2022/07/14/1109345201/theres-a-massive-housing-shortage-across-the-u-s-heres-how-bad-it-is-where-you-l">https://www.npr.org/2022/07/14/1109345201/theres-a-massive-housing-shortage-across-the-u-s-heres-how-bad-it-is-where-you-l</a>
Bankrate - <br /><a href="https://www.bankrate.com/mortgages/5-year-real-estate-rule/">https://www.bankrate.com/mortgages/5-year-real-estate-rule/</a>
Federal Reserve Bank of St. Louis -<br /><a href="https://fred.stlouisfed.org/series/MSPUS">https://fred.stlouisfed.org/series/MSPUS</a>
National Association of REALTORS - <a href="https://www.nar.realtor/blogs/economists-outlook/price-to-rent-ratios-by-state-from-2014-2019">https://www.nar.realtor/blogs/economists-outlook/price-to-rent-ratios-by-state-from-2014-2019</a>
National Association of REALTORS -<br /><a href="https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years">https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years</a>
Statista - <br /><a href="https://www.statista.com/statistics/200223/median-apartment-rent-in-the-us-since-1980/">https://www.statista.com/statistics/200223/median-apartment-rent-in-the-us-since-1980/</a>
2022-10-01T13:30:00-07:00
2022-10-01T16:53:35-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:31197
Florida ranks as Best State for Retirement in 2022.
In a study conducted by Bankrate.com, and heavily weighted for affordability, Florida takes the number one spot.<br /><br />Whether it’s kicking back on the porch reading the newspaper, enjoying the outdoors or just being closer to the grandkids, post-career goals vary for people. But all states are not the same when it comes to retirement, a recent study from Bankrate found.<br /><br />Bankrate conducted a study to find the <a href="https://www.bankrate.com/retirement/best-and-worst-states-for-retirement/#:~:text=of%20our%20rankings.-,The%20best%20states%20to%20retire%20in%202022,scores%20in%20affordability%20and%20weather." target="_blank">best and worst states for retirement</a> in 2022.<br /><br />“For this study, Bankrate looked at five broad categories: affordability, wellness, culture, weather and crime. We placed the heaviest weighting on affordability,” according to the study, whose authors acknowledged that some things, such as proximity to loved ones or personal dislike of the cold, were just too subjective to measure.<br /><br />The Southeast dominated the top two spots followed by some Midwest states and others across the U.S. Florida, well known for its warm weather, abundant golf and retirement communities such as The Villages, unsurprisingly took the top spot.<br />Let’s check out the best and worst states:<br /><br />
Alaska was relegated to the last spot because of its poor scores for weather, crime and affordability. If avoiding taxes is your top goal, however, you may still want to consider Alaska, which beat out all other states in that category.
As for overall affordability, Michigan is your destination. Despite the frigid winters, The Great Lakes State broke the overall top five for 2022 thanks in large part to its cost of living.
Also in the top five were Georgia, for its mostly pleasant weather (outside of hurricane season) and affordability; Ohio for its affordability and lack of bad scores in other metrics; and Missouri, also for affordability and weather.
If it’s still too hard to pick, consider the advice of Laura Kovacs, former director of education at the Scottsdale Area Association of Realtors in Arizona who recently retired herself:
“Go to a variety of different places that you seem to be attracted to – places that have a lower cost of living and lower property taxes – and test them out for a while. If you’re interested in Florida or Arizona or California, stay there for a while and see if you like the climate at the time of year you’re going to be living there.”
, © 1998-2022 WFLA, Nexstar Broadcasting, Inc. All rights reserved. Courtesy of The Florida Association of Realtors Magazine
2022-09-07T08:00:00-07:00
2022-09-07T10:43:30-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:31362
8 Strategies to Secure a Lower Mortgage Rate
<img src="https://assets.site-static.com/userfiles/1653/image/adrianruiztrelles/Copy_of_September_2022_-_MVP_-_Blog_Post_Image.png" width="1200" height="628" />
8 Strategies to Secure a Lower Mortgage Rate
Mortgage rates have been on a roller coaster ride this year, rising and falling amid inflationary pressures and economic uncertainty. And even the experts are divided when it comes to predicting where rates are headed next.1
This climate has been unsettling for some homebuyers and sellers. However, with proper planning, you can work toward qualifying for the best mortgage rates available today – and open up the possibility of refinancing at a lower rate in the future.
How does a lower mortgage rate save you money? According to Trading Economics, the average new mortgage size in the United States is currently around $410,000.2 Let’s compare a 5.0% versus a 6.0% fixed-interest rate on that amount over a 30-year term.
Mortgage Rate <br />(30-year fixed)
Monthly Payment on $410,000 Loan<br />(excludes taxes, insurance, etc.)
Difference in Monthly Payment
Total Interest Over 30 Years
Difference in Interest
5.0%
$2,200.97
$382,348.72
6.0%
$2,458.16
+ $257.19
$474,936.58
+ $92,587.86
With a 5% rate, your monthly payments would be about $2,201. At 6%, those payments would jump to $2,458, or around $257 more. That adds up to a difference of almost $92,600 over the lifetime of the loan. In other words, shaving off just one percentage point on your mortgage could put nearly $100K in your pocket over time.
So, how can you improve your chances of securing a low mortgage rate? Try these eight strategies:
1. Raise your credit score.
Borrowers with higher credit scores are viewed as “less risky” to lenders, so they are offered lower interest rates. A good credit score typically starts at 690 and can move up into the 800s.3 If you don’t know your score, check with your bank or credit card company to see if they offer free access. If not, there are a plethora of both free and paid credit monitoring services you can utilize.
If your credit score is low, you can take steps to improve it, including:4
Correct any errors on your credit reports, which can bring down your score. You can access reports for free by visiting AnnualCreditReport.com.
Pay down revolving debt. This includes credit card balances and home equity lines of credit.
Avoid closing old credit card accounts in good standing. It could lower your score by shortening your credit history and shrinking your total available credit.
Make all future payments on time. Payment history is a primary factor in determining your credit score, so make it a priority.
Limit your credit applications to avoid having your score dinged by too many inquiries. If you’re shopping around for a car loan or mortgage, minimize the impact by limiting your applications to a short period, usually 14 to 45 days.5
Over time, you should start to see your credit score climb — which will help you qualify for a lower mortgage rate.
2. Keep steady employment.
If you are preparing to purchase a home, it might not be the best time to make a major career change. Unfortunately, frequent job moves or gaps in your résumé could hurt your borrower eligibility.
When you apply for a mortgage, lenders will typically review your employment and income over the past 24 months.5If you’ve earned a steady paycheck, you could qualify for a better interest rate. A stable employment history gives lenders more confidence in your ability to repay the loan.
That doesn’t mean a job change will automatically disqualify you from purchasing a home. But certain moves, like switching from W-2 to 1099 (independent contractor) income, could throw a wrench in your home buying plans.6
3. Lower your debt-to-income ratios.
Even with a high credit score and a great job, lenders will be concerned if your debt payments are consuming too much of your income. That’s where your debt-to-income (DTI) ratios will come into play.
There are two types of DTI ratios:7<br /><br />
Front-end ratio — What percentage of your gross monthly income will go towards covering housing expenses (mortgage, taxes, insurance, and dues or association fees)?
Back-end ratio — What percentage of your gross monthly income will go towards covering ALL debt obligations (housing expenses, credit cards, student loans, and other debt)?
What’s considered a good DTI ratio? For better rates, lenders typically want to see a front-end DTI ratio that’s no higher than 28% and a back-end ratio that’s 36% or less.7
If your DTI ratios are higher, you can take steps to lower them, like purchasing a less expensive home or increasing your down payment. Your back-end ratio can also be decreased by paying down your existing debt. A bump in your monthly income will also bring down your DTI ratios.
4. Increase your down payment.
Minimum down payment requirements vary by loan type. But, in some cases, you can qualify for a lower mortgage rate if you make a larger down payment.8
Why do lenders care about your down payment size? Because borrowers with significant equity in their homes are less likely to default on their mortgages. That’s why conventional lenders often require borrowers to purchase private mortgage insurance (PMI) if they put down less than 20%.
A larger down payment will also lower your overall borrowing costs and decrease your monthly mortgage payment since you’ll be taking out a smaller loan. Just be sure to keep enough cash on hand to cover closing costs, moving expenses, and any furniture or other items you’ll need to get settled into your new space.
5. Compare loan types.
All mortgages are not created equal. The loan type you choose could save (or cost) you money depending on your qualifications and circumstances.
For example, here are several common loan types available in the U.S. today:9
Conventional — These offer lower mortgage rates but have more stringent credit and down payment requirements than some other types.
FHA — Backed by the government, these loans are easier to qualify for but often charge a higher interest rate.
Specialty — Certain specialty loans, like VA or USDA loans, might be available if you meet specific criteria.
Jumbo — Mortgages that exceed the local conforming loan limit are subject to stricter requirements and may have higher interest rates and fees.10
When considering loan type, you’ll also want to weigh the pros and cons of a fixed-rate versus variable-rate mortgage:11
Fixed rate — With a fixed-rate mortgage, you’re guaranteed to keep the same interest rate for the entire life of the loan. Traditionally, these have been the most popular type of mortgage in the U.S. because they offer stability and predictability.
Adjustable rate — Adjustable-rate mortgages, or ARMs, have a lower introductory interest rate than fixed-rate mortgages, but the rate can rise after a set period of time — typically 3 to 10 years.
According to the Mortgage Bankers Association, 10% of American homebuyers are now selecting ARMs, up from just 4% at the start of this year.12 An ARM might be a good option if you plan to sell your home before the rate resets. However, life is unpredictable, so it’s important to weigh the benefits and risks involved.
6. Shorten your mortgage term.
A mortgage term is the length of time your mortgage agreement is in effect. The terms are typically 15, 20, or 30 years.13 Although the majority of homebuyers choose 30-year terms, if your goal is to minimize the amount you pay in interest, you should crunch the numbers on a 15-year or 20-year mortgage.
With shorter loan terms, the risk of default is less, so lenders typically offer lower interest rates.13 However, it’s important to note that even though you’ll pay less interest, your mortgage payment will be higher each month, since you’ll be making fewer total payments. So before you agree to a shorter term, make sure you have enough room in your budget to comfortably afford the larger payment.
7. Get quotes from multiple lenders
When shopping for a mortgage, be sure to solicit quotes from several different lenders and lender types to compare the interest rates and fees. Depending upon your situation, you could find that one institution offers a better deal for the type of loan and term length you want.<br /><br />Some borrowers choose to work with a mortgage broker. Like an insurance broker, they can help you gather quotes and find the best rate. However, if you use a broker, make sure you understand how they are compensated and contact more than one so you can compare their recommendations and fees.14
Don’t forget that we can be a valuable resource in finding a lender, especially if you are new to the home buying process. After a consultation, we can discuss your financing needs and connect you with loan officers or brokers best suited for your situation.
8. Consider mortgage points.
Even if you score a great interest rate on your mortgage, you can lower it even further by paying for points. When you buy mortgage points — also known as discount points — you essentially pay your lender an upfront fee in exchange for a lower interest rate. The cost to purchase a point is 1% of your mortgage amount. For each point you buy, your mortgage rate will decrease by a set amount, typically 0.25%.15 You’ll need upfront cash to pay for the points, but you can more than make up for the cost in interest savings over time.
However, it only makes sense to buy mortgage points if you plan to stay in the home long enough to recoup the cost. You can determine the breakeven point, or the period of time you’d need to keep the mortgage to make up for the fee, by dividing the cost by the amount saved each month.15 This can help you determine whether or not mortgage points would be a good investment for you.
Getting Started
Unfortunately, the rock-bottom mortgage rates we saw during the height of the pandemic are behind us. However, today’s 30-year fixed rates still fall beneath the historical average of around 8% — and are well below the all-time peak of 18.45% in 1981.16, 17
And although higher mortgage rates have made it more expensive to finance a home purchase, they have also eliminated some of the competition from the market. Consequently, today’s buyers are finding more homes to choose from, fewer bidding wars, and more sellers willing to negotiate or offer incentives such as cash toward closing costs or mortgage points.
If you’re ready and able to buy a home, there’s no reason that concerns about mortgage rates should sideline your plans. The reality is that many economists predict home prices to continue climbing.18 So you may be better off buying today at a slightly higher rate than waiting and paying more for a home a few years from now. You can always refinance if mortgage rates go down, but you can’t make up for the lost years of equity growth and appreciation.
If you have questions or would like more information about buying or selling a home, reach out to schedule a free consultation. We’d love to help you weigh your options, navigate this shifting market, and reach your real estate goals!
Sources:
Washington Post -<br /><a href="https://www.washingtonpost.com/business/2022/08/04/mortgage-rates-sink-below-5-percent-first-time-four-months/">https://www.washingtonpost.com/business/2022/08/04/mortgage-rates-sink-below-5-percent-first-time-four-months/</a>
Trading Economics -<br /><a href="https://tradingeconomics.com/united-states/average-mortgage-size">https://tradingeconomics.com/united-states/average-mortgage-size</a>
NerdWallet -<br /><a href="https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score">https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score</a>
Debt.org -<br /><a href="https://www.debt.org/credit/improving-your-score/">https://www.debt.org/credit/improving-your-score/</a>
The Balance -<br /><a href="https://www.thebalance.com/will-multiple-loan-applications-hurt-my-credit-score-960544">https://www.thebalance.com/will-multiple-loan-applications-hurt-my-credit-score-960544</a>
Time -<br /><a href="https://time.com/nextadvisor/mortgages/how-lenders-evaluate-your-employment/">https://time.com/nextadvisor/mortgages/how-lenders-evaluate-your-employment/</a>
Bankrate -<br /><a href="https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/">https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/</a>
NerdWallet -<br /><a href="https://www.nerdwallet.com/article/mortgages/payment-buy-home">https://www.nerdwallet.com/article/mortgages/payment-buy-home</a>
Consumer Financial Protection Bureau -<br /><a href="https://www.consumerfinance.gov/owning-a-home/loan-options/">https://www.consumerfinance.gov/owning-a-home/loan-options/</a>
NerdWallet -<br /><a href="https://www.nerdwallet.com/article/mortgages/jumbo-loans-what-you-need-to-know">https://www.nerdwallet.com/article/mortgages/jumbo-loans-what-you-need-to-know</a>
Bankrate -<br /><a href="https://www.bankrate.com/mortgages/arm-vs-fixed-rate/">https://www.bankrate.com/mortgages/arm-vs-fixed-rate/</a>
MarketWatch -<br /><a href="https://www.marketwatch.com/picks/as-mortgage-rates-rise-heres-exactly-how-more-homebuyers-are-snagging-mortgage-rates-around-4-01656513665">https://www.marketwatch.com/picks/as-mortgage-rates-rise-heres-exactly-how-more-homebuyers-are-snagging-mortgage-rates-around-4-01656513665</a>
Consumer Financial Protection Bureau -<br /><a href="https://www.consumerfinance.gov/owning-a-home/loan-options/#anchor_loan-term_361c08846349fe">https://www.consumerfinance.gov/owning-a-home/loan-options/#anchor_loan-term_361c08846349fe</a>
Federal Trade Commission -<br /><a href="https://consumer.ftc.gov/articles/shopping-mortgage-faqs">https://consumer.ftc.gov/articles/shopping-mortgage-faqs</a>
Bankrate -<br /><a href="https://www.bankrate.com/mortgages/mortgage-points/">https://www.bankrate.com/mortgages/mortgage-points/</a>
CNBC -<br /><a href="https://www.cnbc.com/select/mortgage-rates-today-still-relatively-low/">https://www.cnbc.com/select/mortgage-rates-today-still-relatively-low/</a>
Rocket Mortgage -<br /><a href="https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed">https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed</a>
MarketWatch - <br /><a href="https://www.marketwatch.com/picks/continuing-home-price-deceleration-heres-what-5-economists-and-real-estate-pros-predict-will-happen-to-the-housing-market-this-year-01659347993">https://www.marketwatch.com/picks/continuing-home-price-deceleration-heres-what-5-economists-and-real-estate-pros-predict-will-happen-to-the-housing-market-this-year-01659347993</a>
2022-08-31T22:12:00-07:00
2022-09-14T22:31:55-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:30714
Are we going into the next Housing Bubble?
Are we going into the next housing bubble?
Probably not, and here's why according to a recent article in the National Association of REALTORS® Magazine:
For one, instead of a housing surplus, like there was in 2008, the nation is facing a severe inventory shortage. Homebuilders put more than 2 million housing units a year into the pipeline in the years leading up to the 2008 bubble and were overbuilding at the time, notes Lawrence Yun, chief economist for the National Association of REALTORS®. “Today, it is exactly the opposite,” he says. “The country is still facing historically low inventory levels and low rental vacancy rates that are the <a href="https://magazine.realtor/daily-news/2021/06/16/time-to-act-the-state-of-america-s-housing-stock-is-dire" data-di-id="di-id-4ec1272a-6c2cb20">consequences of multiple years of underproduction</a>.”
· Mortgages are structured differently. The kind of subprime lending that was blamed for the 2008 crash is a much smaller and more regulated part of the market today. “The lenders and regulators do not want to make the same mistake of lending to people who cannot repay the mortgage,” Yun says. “Therefore, the credit scores of mortgage approvals have been high.” The typical credit score for a mortgage borrower was a near-record 776 in the first quarter of 2022. During the Great Recession, it dipped to 707. Plus, for adjustable-rate mortgages, which have fluctuating interest rates over a set period of years, borrowers nowadays must show they can afford the fully reset rate, says Glenn Brunker, president of mortgage servicer Ally Homes.
· Housing inventories remain low. The nation is roughly 3 million homes short of meeting buyer demand, Freddie Mac estimates. NAR has called for a <a href="https://www.nar.realtor/newsroom/once-in-a-generation-response-needed-to-address-housing-supply-crisis" target="_blank">“once-in-a-generation response”</a> to the supply crisis. About 1.2 million single-family housing starts are predicted for 2023—still far from the 2 million–plus in the early 2000s, according to Statista data. Yun says housing inventory likely will remain an issue for years to come.
· Buyer demand remains high. Purchasing a house was the top accomplishment postgraduate students aspire to achieve—more than getting a successful job, getting married, having a baby, or traveling, according to a Grand Canyon University survey. “There is still too much real demand and too little inventory,” McGrath says about the state of the housing market. “Affordability has taken a hit with higher [mortgage] rates, but people still want to buy homes.”
· Real estate can be a hedge against inflation. Locking in a fixed-rate mortgage now will protect homeowners against future increases in housing prices. Such an opportunity doesn’t exist when you’re renting, and rental prices have climbed drastically over the last year. Plus, renting doesn’t offer the ability to build equity.
· A market correction is not the same as a crash. The housing market has showed recent signs of slowing. But “based on present evidence, there is no expectation that a fallout from a housing correction would be comparable to the 2007–09 global financial crisis in terms of magnitude or macroeconomic gravity,” a group of Dallas Fed economists wrote this spring.
<a href="https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-june-23-2022" target="_blank">Homebuying costs have increased $800 every month</a> this year due to higher mortgage rates and home prices, according to Nadia Evangelou, NAR’s senior economist and director of forecasting. The 30-year fixed-rate mortgage, which averaged 2.9% just a year ago, was at <a href="https://magazine.realtor/daily-news/2022/07/14/volatility-in-mortgage-rates-as-recession-fears-grow" data-di-id="di-id-7ba653f8-69285d52">5.51% for the week ending July 14</a>, according to Freddie Mac.
“Rising interest rates and buyer fatigue from bidding wars have caused the market to stabilize and return closer to normal, but the market still favors home sellers,” says Scott Orich, a sales associate with Flyhomes in San Mateo, Calif.
2022-08-09T08:27:00-07:00
2022-08-09T08:41:40-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:30549
10 Pro Tips for a Smooth Home Move
<img src="https://assets.site-static.com/userfiles/1653/image/adrianruiztrelles/2AEA3F66-41DF-417E-B42D-1439AB02C06B.png" width="1200" height="628" />10 Pro Tips for a Smooth Home Move
The process of buying a new home can be both exhilarating and exhausting. But the journey doesn’t stop when you close on your property. On the contrary, you still have quite a bit to do before you can begin the process of settling into your new place.
Fortunately, you don’t have to do everything in a day. You don’t have to do it all alone, either. When you work with us to sell or purchase a home, you’ll have an ally by your side long after your transaction has closed. We’ll continue to be a resource, offering advice and referrals whenever you need them on packing, hiring movers and contractors, and acclimating to your new home and neighborhood.
When it comes to a life event as stressful as moving, it pays to have a professional by your side. Here are some of our favorite pro tips to share with clients as they prepare for an upcoming move.
1. Watch out for moving scams.
Maybe you receive a flyer for a moving company in the mail. Perhaps you find a mover online. Either way, never assume that you’re getting accurate information. According to the Better Business Bureau, moving-related fraud is on the rise. In 2021 alone, individuals and families reported more than $730,000 lost to moving scams, an increase of 216% over the previous year.1
How can you tell if a moving deal is too good to be true? Trust your instincts. If the price appears too low or you can’t pin down the mover’s physical business address, try someone else. The same goes for any moving company representative who dodges questions. Reputable movers should offer transparent pricing, conduct in-home estimates, and provide referrals and copies of their insurance documents upon request.2 For help finding trustworthy movers, reach out. We’d be happy to share our recommendations.
2. Insure your belongings.
Your moving company promises to take care of your custom piano or your antique furniture. But don’t just take their word for it. Ask to see how much insurance they carry and talk about how the claims process works. That way, you’ll know what is (and isn’t) covered in case of loss or damage.
Of course, some items are priceless because they’re irreplaceable. You might want to move your more sensitive valuables (jewelry, documents, family heirlooms, etc.) in your own vehicle just to be safe. For added peace of mind, call your rental or home insurance provider if you’re moving anything yourself. You might already be protected or be able to purchase extra insurance to cover your move. If those options are unavailable, you could opt for moving insurance from a third-party carrier.3
3. Start packing when you start looking for a new home.
As soon as your house hunting begins in earnest, think about packing away things you won’t need for the next few months. These could include seasonal or holiday decor, clothing, and books. Tackling just one or two boxes a day will give you a head start.
If you're going to put your current home on the market, you'll want to declutter anyway. Decluttering will make your home seem larger, and depersonalizing helps buyers envision their own items in the space. Consider selling, donating, or throwing out possessions you no longer need. The things you want to keep can be placed in storage until you officially start moving to a new place.
4. Pack to make unpacking easier.
Have you ever opened a packed box only to find that it’s filled with an assortment of items that don’t belong together? This isn’t efficient and will only make unpacking harder. A better way to pack is to bundle items from a single room in a labeled box. Labels can let movers know (and remind you) where to place each box, whether it’s fragile, and which side needs to be up. Some people like to assign colors to each room in their new home to make distributing color-coded boxes a breeze.
Feel free to unleash your inner organizer with this project. For example, you could create a spreadsheet and assign each box a number. As boxes are packed, simply fill in the spreadsheet with a list of contents. Anyone with access to the spreadsheet can log in and quickly find the desired item.
5. Think outside the box when transporting clothes.
Who wants to worry about boxing up clothes? If you plan on hiring professional movers, ask if you can leave clothing in your dressers. In many cases, they will use plastic to wrap the dresser so the drawers don’t fall out during transport. If keeping your clothes in your furniture makes it too heavy, the movers might be able to wrap and move drawers by themselves.
Another easy transport trick involves turning clean garbage bags into garment bags. Poke a hole in the bottom of a garbage bag, turn the bag upside down, slide it over five to seven garments on hangers, and lay the items flat in the back seat or trunk of your vehicle. The bags will help prevent wrinkling, and your clothes will be ready to hang up when you get to your new home.
6. Document prior to disassembling appliances and furnishings.
Few things are as confusing as looking at a plastic baggie filled with nuts, bolts, and screws from your disassembled dining room table or sorting through a box of electrical wires and cords to see which ones fit your TV.
The best workaround to easier reassembly is to document the disassembly process. Take photos and videos or thorough notes as you go. Whether it’s your headboard or treadmill, be very precise. And just a tip: Construct your beds first when you get to your new home. After a long moving day, the very last thing you want is to be assembling beds into the wee hours of the morning.
7. Prioritize unpacking kids’ rooms.
Children can become very stressed by a big move. To ease their transition, consider prioritizing unpacking their rooms as their “safe zones.”4 You aren’t obligated to unpack everything, certainly. However, set up your children’s rooms to be functional. That way, your kids can hang out in a private oasis away from the chaos while you’re running around and moving everything else.
Depending upon how old your youngsters are, you might want to give them decorating leeway, too. Even if it’s just letting them choose where furniture goes, it gives them a sense of buy-in. This can help ease the blues of leaving a former home they loved.
8. Be a thoughtful pet parent.
Many types of pets can’t handle the commotion of moving day. Knowing this, be considerate and seek ways to give your pets breaks from the action. You might ask a friend to pet sit your pooch or keep your kitty in a quieter room, like a guest bathroom.
Be sure to check in on your pet frequently. Pets like to know that you’re around. Give them treats, food, and water throughout the day. When it’s time to transport your pet, do it calmly. At your new property, give your pet access to just a room or two at first. Pets typically prefer to acclimate themselves slowly to unfamiliar environments.5
9. Plan for your move like you’re planning for an exciting vacation.
When you plan vacations, you probably look up local restaurants, shops, and recreational areas. Who says you can’t do the same thing when moving? Create a list of all the places you want to go and things you want to do around your newly purchased home. Having a to-explore list keeps everyone’s spirits high and gives you starting points to settle into the neighborhood.
And don’t feel that you have to cook that first night. Once the moving trucks are gone, you can always pop over to a local eatery or order DoorDash for major convenience. The first meal in your new home should be a happy, welcoming treat. And if you’re relocating to our neck of the woods, we would love to introduce you to all the hot spots in town and recommend our local favorites.
10. Pack an “Open Me First!” box.
You won’t be able to unpack all your boxes in one day, but you shouldn’t go without your sheets, pillows, or toothbrush. Designate some boxes with “Open Me First!” labels. (Pro tip: Keep a tool kit front and center for all that reassembling.)
Along these lines, use luggage and duffel bags to transport everyone’s personal must-have items and enough clothing for a couple of days. That way, you won’t have to rummage through everything in the middle of your move looking for sneakers or snacks.
When packing your “Open Me First!” boxes, think about which items you’ll need in those first 24 hours. For example, toilet paper and hand soap are musts. A box cutter will make unpacking a lot easier, and paper towels and trash bags are sure to come in handy. Reach out for a complete, printable list of “Open Me First!” box essentials to keep on hand for your next move!
LET’S GET MOVING
Getting the phone call from your real estate agent that your bid was accepted is a thrilling moment. Make sure you keep the positivity flowing during the following weeks by mapping out a streamlined, efficient move. Feel free to get in touch with us today to help make your big move your best move.
Sources:
Better Business Bureau - <a href="https://www.bbb.org/article/scams/24198-bbb-scam-alert-avoid-moving-scams-this-national-moving-month">https://www.bbb.org/article/scams/24198-bbb-scam-alert-avoid-moving-scams-this-national-moving-mont</a>
Move.org - <a href="https://www.move.org/how-to-tell-moving-company-scam/">https://www.move.org/how-to-tell-moving-company-scam/</a>
Forbes - <a href="https://www.forbes.com/advisor/homeowners-insurance/moving-insurance/">https://www.forbes.com/advisor/homeowners-insurance/moving-insurance/</a>
New York Times - <a href="https://www.nytimes.com/2020/07/13/parenting/moving-tips-kids.html">https://www.nytimes.com/2020/07/13/parenting/moving-tips-kids.html</a>
ASPCA - <a href="https://www.aspca.org/pet-care/general-pet-care/moving-your-pet">https://www.aspca.org/pet-care/general-pet-care/moving-your-pet</a>
2022-07-31T21:00:00-07:00
2022-08-03T15:50:24-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:29595
Higher Rates and Short Supply: The State of Real Estate in 2022
<img src="https://assets.site-static.com/userfiles/1653/image/adrianruiztrelles/0CFC03D5-927E-4460-8AC4-44DF49915827.png" width="1200" height="628" />
Higher Rates and Short Supply: The State of Real Estate in 2022
<br />The last two years caught many of us off guard—and not just because of the pandemic. They also ushered in the hottest housing market on record, with home prices rising nationally by nearly 19% in 2021, driven primarily by low mortgage rates and a major supply shortage.1
But while some had hoped 2022 would bring a return to normalcy, the U.S. real estate market continues to boom, despite rising interest rates and decreasing affordability.
So what’s driving this persistent demand? And is there an end in sight?
Here are three factors impacting the real estate market right now. Find out how they could affect you if you’re a current homeowner or plan to buy or sell a home this year.
<br />MORTGAGE RATES ARE RISING FASTER THAN EXPECTED
Over the past couple of years, homebuyers have faced intense competition for new homes—in part due to historically low mortgage rates that were a result of the Federal Reserve’s efforts to keep the economy afloat during the COVID-19 pandemic.
However, in response to a concerning level of inflation, the Fed is now reversing those efforts by raising the federal funds rate. And as a result, mortgage rates are rising, as well. Few experts predicted, though, that mortgage rates would go up as quickly as they have.
In January 2022, the Mortgage Bankers Association projected that rates would reach 4% by the end of this year.2 By mid-April, however, the average 30-year fixed mortgage rate had already hit 5%, up from around 3% just one year prior.3 On a $400,000 mortgage, that 2% difference could translate into an additional $461 per monthly payment.
Since then, mortgage rates have continued on an upward trend. So what impact are these rising rates having on demand? While many buyers had hoped for a cooling effect, experts warn that may not be the case.
Ali Wolf, chief economist at housing market research firm Zanda, told Fortune magazine, "Rising mortgage rates are having a counterintuitive effect on the housing market. Home shoppers are actually sprung into action in an attempt to buy a home before mortgage rates rise any higher."4
Since inventory remains low, the resulting “race” has kept the homebuying market highly competitive–at least for now.
What does it mean for you?
While current 30-year fixed mortgage rates represent an increase over previous months, they remain well below the historical average of 8%.5 As inflation across the economy continues, the Fed is likely to raise rates further this year. Buyers should act fast to secure a good mortgage rate. We’d be happy to refer you to a lender who can help.
For sellers, speed is also of the essence. The pool of potential buyers may shrink as mortgages become more expensive. And if you plan to finance your next home, you’ll want to act quickly to secure a favorable rate for yourself. Contact us today to discuss your options.
<br />HOME PRICES KEEP CLIMBING
History shows that higher interest rates don’t necessarily translate to lower home prices. In fact, home prices rose 5% between 1980 and 1982, a period of significantly higher mortgage rates and inflation.5
Forecasters expect that home prices will continue to go up throughout 2022, though likely at a slower pace than the 18.8% increase of the last 12 months.4 Bank of America predicts that prices will be up approximately 10% by the end of this year, while Fannie Mae estimates 11.2%.6,7
In addition to limited supply and a race to beat rising mortgage rates, home values are also climbing because of positive economic indicators, like low unemployment.8 Plus, rents are soaring–up 17% from a year ago–which is prompting more first-time homebuyers to enter the market.9 Add to that the continued popularity of remote work, and it’s easy to see why property prices continue to surge.
However, it’s not all bad news for prospective homebuyers. Economists expect that as mortgage rates rise, the rate of appreciation will continue to taper, though the effect may be gradual.
“Eventually mortgage rates will slow down home prices,” according to Ken Johnson, an economist at Florida Atlantic University interviewed by Marketwatch.10 “We should not see rapid upticks in prices as mortgage rates rise.” Forecasters agree—Fannie Mae expects price increases to slow to 4.2% in 2023.7
What does it mean for you?
While the pace of appreciation is likely to decrease next year, home prices show no signs of going down. However, current labor shortages are leading to higher salaries and better job opportunities for many workers. You may find that your income growth outpaces home prices, making homeownership more affordable for you in the future.
For homeowners, the outlook’s even brighter. You could find yourself sitting on a nice pile of equity. Contact us for a free home value assessment to find out.
<br />INVENTORY REMAINS EXTREMELY LOW
As noted, one of the largest hurdles to homeownership is a lack of inventory. According to a February 2022 report by Realtor.com, there’s an expanding gap between household formation and home construction, which has resulted in a nationwide shortage of 5.8 million housing units.11
The origins of this shortage date back to the 2008 housing crisis, during which crashing home values led contractors to stop building new properties—a trend that has not been fully reversed.12
That decline in home construction also resulted in a decrease in the number of home building professionals, a trend that was exacerbated by job losses during the COVID-19 pandemic. Now, many builders are limited by their ability to find qualified labor.
Another major challenge is a staggering increase in the cost of materials. Pandemic-related supply chain shortages have been a significant driver, with home building material costs rising on average 20% on a year-over-year basis. The price of framing lumber alone has tripled since August 2021.13
These trends add tens of thousands of dollars to the cost of a typical home. Factors like a lack of buildable land in many areas, restrictive zoning, and a shortage of developers are also contributing to the issue.14
Most homebuying experts agree that the lack of inventory is the primary factor driving rising housing prices and unprecedented competition for homes. With available housing units near four-decade lows, the end of the current housing boom is not yet in sight.15
What does it mean for you?
Prospective buyers should be prepared to compete for a home, since low inventory can lead to multiple offers. You may also need to expand your search parameters. If you’re ready to look, we’re ready to help.
For sellers, the picture is rosier. In this strong market, your home may be worth more than you realize. Contact us to find out how much your home could sell for in today’s market.
<br />WE’RE HERE TO GUIDE YOU
While national real estate trends can provide a “big picture” outlook, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.
If you’re considering buying or selling a home, contact us now to schedule a free consultation. We can help you assess your options and make the most of this unique real estate landscape.
<br />Sources:<br />1. Marketwatch - https://www.marketwatch.com/picks/home-price-appreciation-will-normalize-what-5-economists-and-real-estate-pros-predict-will-happen-to-home-prices-in-2022-01646940841 <br />2. Bankrate - <br />https://www.bankrate.com/mortgages/mortgage-rate-forecast<br />3. CNBC -<br />https://www.cnbc.com/2022/04/16/heres-how-much-the-same-mortgage-costs-now-compared-to-last-year.html<br />4. Fortune -<br />https://fortune.com/2022/03/23/housing-market-interest-rate-economic-shock/ <br />5. National Association of Realtors -<br />https://www.nar.realtor/blogs/economists-outlook/instant-reaction-mortgage-rates-april-07-2022 <br />6. Fortune -<br />https://fortune.com/2022/03/16/home-prices-2022-2023-bank-of-america-forecast-mortgage-rates/<br />7. Fortune - <br />https://fortune.com/2022/03/07/what-home-prices-will-look-like-2023-fannie-mae/<br />8. Fortune - <br />https://fortune.com/2022/03/17/home-prices-drop-housing-markets-california-michigan-massachusetts-corelogic/<br />9. CNN - <br />https://www.cnn.com/2022/03/23/success/us-national-rent-february/index.html<br />10. MarketWatch -<br />https://www.marketwatch.com/story/home-prices-increase-at-one-of-the-fastest-rates-on-record-but-higher-mortgage-rates-should-slow-future-growth-11648559497<br />11. Realtor.com -<br />https://www.realtor.com/research/us-housing-supply-gap-expands/<br />12. NPR -<br />https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain <br />13. Investopedia -<br />https://www.investopedia.com/housing-market-dips-in-early-march-2022-5222449<br />14. NPR -<br />https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain <br />15. Fortune - <br />https://fortune.com/2022/03/14/housing-market-key-metric-inventory-zillow-bad-for-buyers/
2022-06-01T14:57:00-07:00
2022-06-15T15:15:11-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:28749
5 Ways to Write a Winning Offer in Today’s Real Estate Market
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5 Ways to Write a Winning Offer in Today’s Real Estate Market
Our nation is in the midst of a serious housing crunch. Last year, a lack of inventory and soaring prices left many would-be homebuyers feeling pinched. But now, with interest rates climbing, many of them are also feeling desperate to lock in a mortgage—which has only added fuel to the fire.1
Fortunately, if you’re a buyer struggling to find a home, we have some good news. While it’s true that higher mortgage rates can decrease your purchasing budget, there are additional ways to compete in a hot market.
Yes, a high offer price gets attention. But most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.
We can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm.
1. Demonstrate Solid Financing
<br />The reality is, no one gets paid if a home sale falls through. That’s why sellers (and their listing agents) favor offers with a high probability of closing.
Sellers particularly love all-cash offers because there’s no chance of financing issues cropping up at the last moment. But don’t despair if you can’t pay cash for your home. According to the National Association of Realtors, only about 1 in 4 home purchases are all-cash deals, which means the vast majority are financed with a mortgage.2
If sellers are assured that financing will come through, buying with a mortgage doesn’t have to be a big disadvantage. The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer.
It’s also important to consider the reputation of your lender. While sellers may not know or care about a lender’s reputation, their agents often do. Some lenders are much easier to work with than others, especially if you are pursuing certain types of mortgages like FHA or VA loans.3 If so, you’ll want a lender who specializes in these types of mortgages. If you’re unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business.
2. Put Down a Sizeable Deposit
<br />Buyers can show sellers that they’re serious about their offer and have “skin in the game” by putting down a large earnest money deposit.
Earnest money is a deposit held in escrow by a title company or the seller’s broker or lawyer. If the purchase goes through, it is applied to the down payment and closing costs—if the sale falls through, the buyer may lose some or all of that deposit.
While an earnest money deposit is typically around 1-2% of the sale price, offering a higher deposit can help demonstrate to the buyer that you are serious about the property.4 However, this strategy can also be risky. We can help you determine an appropriate deposit to offer based on your specific circumstances.
3. Ask for Few (or No) Contingencies
<br />Most real estate offers include contingencies, which are clauses that allow one or both parties to back out of the agreement if certain conditions are not met. These contingencies appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.5
Common contingencies include:
<br />● Financing: A financing contingency gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.<br />● Inspection: An inspection contingency gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.<br />● Appraisal: Most lenders will not offer a mortgage on a home that costs more than it's worth. An appraisal contingency gives the buyer an opportunity to get the home professionally assessed to ensure that its value is at or above the sales price. If an appraisal comes in low, the seller may be asked to renegotiate the contract.<br />● Sale of a prior home: Some buyers cannot afford to purchase a new home until they sell their previous one. If the buyer is unable to sell their current home within a specified window of time, this contingency enables them to withdraw from the contract without penalty.
Since contingencies reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. The more contingencies that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive certain contingencies.
However, it’s very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection contingency may find out too late that the home requires extensive renovations, and a buyer who waives the appraisal may risk their mortgage falling through. If you back out of a home purchase without the protection of a contingency, you could lose your earnest money deposit.6 We can help you assess the risks and benefits involved.
4. Offer a Flexible Closing Date and/or Leaseback Option
<br />When it comes to selling a house, money isn’t everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may prefer a longer closing timeline that gives them time to find housing in their new location.
Similarly, short-term leaseback options, in which the sale is completed but the seller retains the right to rent the home for a specified period of time, can be compelling.7 These arrangements enable the seller to use the money from the sale of their home to purchase their next house. A leaseback agreement also makes it possible for them to avoid moving twice when their next home is not yet ready to occupy.
Flexible closing dates and leaseback options can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.
Of course, the value of these terms depends on the seller’s situation. We can reach out to the listing agent to find out the seller’s preferred terms, and then collaborate with you to write a compelling offer that works for both parties.
5. Work With a Skilled Buyer’s Agent
<br />In this ultra-competitive real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. We will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk.
Plus, we know how to write offers that are designed to win over both the seller and their listing agent. The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer’s agents who are professional, communicative, and courteous.
Once your offer is accepted, we’ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you’ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.
Helping You Get to the Right Offer<br />In many cases, a competitive offer doesn’t need to be all-cash, contingency-free, or significantly above asking price. But if you’re serious about buying a home in today’s market, it’s important to consider what you can do to sweeten the deal.
If you’re a buyer, we can help you compete in today’s market without getting steamrolled. And if you’re a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.
<br />Sources:<br />1. National Association of Realtors -<br />https://www.nar.realtor/newsroom/pending-home-sales-dwindle-4-1-in-february<br />2. National Association of Realtors -<br />https://www.nar.realtor/newsroom/existing-home-sales-fade-7-2-in-february<br />3. Forbes - <br />https://www.forbes.com/advisor/mortgages/housing-crisis-tips/<br />4. Realtor.com -<br />https://www.realtor.com/advice/finance/earnest-money-deposit-mistakes-buyers-make/ <br />5. Bankrate -<br />https://www.bankrate.com/real-estate/contingency-clause/<br />6. Home Buying Institute - <br />http://www.homebuyinginstitute.com/mortgage/risks-of-waiving-a-contingency/<br />7. Realtor.com -<br />https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement
2022-05-01T19:30:00-07:00
2022-05-02T09:27:50-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:28633
Median home prices jump by $100k in Palm Beach, Broward counties while inventory sinks
Rising prices and low inventory continue to be the trend in Broward and Palm Beach counties, according to the March real estate reports from the Broward, Palm Beaches & St. Lucie Realtors®.
In <a href="https://southfloridaagentmagazine.com/?s=Palm+Beach+County">Palm Beach County</a>, the median single-family home price increased 23% year over year, from $440,000 in March 2021 to $541,000 in the same month this year. Median days on to contract dropped from 18 to 10, year over year.
Months of housing inventory dropped from 1.8 to 1.2. “The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory,” the report said. “Anything higher is traditionally a buyers’ market, and anything lower is a seller’s market.”
Palm Beach townhomes and condos saw the median sale price jump 20% year over year, from $245,000 to $294,000. Median days to contract sunk from 41 days to 10, and months of inventory also dropped sharply, from 3.4 months to one.
“Palm Beach County’s median home price hit $541,000 in March,” <a href="https://southfloridaagentmagazine.com/?s=Carlos+Melendez">Carlos A. Melendez</a>, president of Broward, Palm Beaches & St. Lucie Realtors®, said in the report. “This is the highest price we’ve seen this year as prospective buyers from all over the world continue to demand housing in Palm Beach County. Homes are selling at an astonishing rate, sitting roughly 10 days on the market before going under contract.”
The Broward County median single-family home sale price hit a record $545,000 in March, a $100,000 increase from March 2021. The median time to contract dropped from 16 days last year to just 10 days last month.
Single-family home inventory dropped from 1.6 months in March of last year to 1.1 months this year.
The trends were similar for Broward townhomes and condominiums. The median sale price rose from $210,000 to $238,000 year over year. Median days to contract dropped from 40 to 16, and months of condo inventory plummeted from 4.1 months last year to just 1.4 months this year.
2022-04-25T09:32:00-07:00
2022-04-28T08:34:37-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:28323
Seller’s Checklist: A Timeline to Prep Your Home for Sale
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Seller’s Checklist: A Timeline to Prep Your Home for Sale
We’re still in a seller’s market, but that doesn’t mean your home is guaranteed to easily sell.1 If you want to maximize your sale price, it’s still important to prepare your home before putting it on the market.
Start by connecting with a real estate agent as soon as possible. Having the eyes and ears of an insightful real estate professional on your side can help you boost your home’s appeal to buyers. What’s more, beginning the preparation process early allows you to tackle repairs and upgrades that can increase your property’s value.
Use the checklist below to figure out what other tasks you should complete in the months leading up to listing your home. While everyone’s situation is unique, these guidelines will help you make sure you’re ready to sell when the time is right. Of course, you can always call us if you’re not sure where to start or what to tackle first. We can help customize a plan that works for you.
<br />AS SOON AS YOU THINK OF SELLING
Some home sellers want to plan their future move far in advance, while others will be required to pack up on very short notice. Whatever your circumstances, these first steps will help assure you’ll be ahead of the listing game.
● Contact Your Real Estate Agent
We go the extra mile when it comes to servicing our clients, and that includes a series of complimentary, pre-listing consultations to help you prepare your home for the market.
Some sellers make the mistake of waiting until they are ready to list their home to contact a real estate agent. But we’ve found that the earlier we’re brought into the process, the better the result. That often means a faster sale—and more money in your pocket after closing.
We know what buyers want in today’s market, and we can help devise a plan to maximize your property’s appeal. We can also connect you with our trusted network of contractors, vendors, and service professionals, so you’ll be sure to get the VIP treatment. This network of support can alleviate stress and help ensure you get everything done in the weeks or months leading up to listing.
● Address Major Issues and Upgrades
In most cases, you won’t need to make any major renovations before you list. But if you’re selling an older home, or if you have any doubt about its condition, it’s best to get us involved as soon as possible so we can help you assess any necessary repairs.
In some instances, we may recommend a pre-listing inspection. Although it's less common in a seller's market, a pre-listing inspection can help you avoid potential surprises down the road. We can discuss the pros and cons during our initial meeting.
This is the time to address major structural, systems, or cosmetic issues that could hurt the sale of your home down the line. For example, problems with the frame, foundation, or roof are likely to be flagged on an inspection report. Issues with the HVAC system, electrical wiring, or plumbing may cause the home to be unsafe. And sometimes outdated or unpopular design features can limit a home’s sales potential.
Remember, when you’re dealing with major repairs or renovations, it’s best to give yourself as much time as possible. Given rampant labor and material shortages, starting right away can help you avoid costly delays.2 Contact us so we can guide you on the updates that are worth your time and investment.
<br />1 MONTH (OR MORE) BEFORE YOU LIST
Once any large-scale renovations have been addressed, you can turn your attention to the more minor updates that still play a major role in how buyers perceive your home.
● Make Minor Repairs
Look for any unaddressed maintenance or repair issues, such as water spots, pest activity, and rotten siding. This is the time to take care of those small annoyances like squeaky hinges, sticking doors, and leaky faucets, too.
Many of these issues can be handled by going the DIY route and using a few simple tools. Tackle the ones you can and be sure to call a professional for the ones you’re not comfortable doing yourself. We can refer you to local service providers who can help.
Remember that it’s easy to overlook these small issues because you live with them. When you work with us, you get a fresh set of eyes on your home—so you don’t miss any important repairs that could make a big difference to buyers.
● Refresh Your Design
This is a great time to think about some simple design updates that can make a significant impression on buyers. For example, a fresh coat of paint is an easy and affordable way to spruce up your home. One survey found that interior paint offered a 107% return on investment.3 For broad appeal, opt for warm, neutral colors.
And never underestimate the importance of good curb appeal. Homes with good curb appeal sell for 7% more, on average, than similar homes with an “uninviting exterior.”4 If weather permits, lay fresh sod where needed, plant colorful flowers, and add some new mulch to your beds.
Even just repositioning your furniture can make a huge difference to buyers. A survey by the Real Estate Staging Association found that staged homes sold faster, and 73% sold over list price.5 We can refer you to a local stager or offer our insights and suggestions if you prefer the DIY route.
● Declutter and Depersonalize
Doing a little bit of decluttering every day is a lot easier than trying to take care of it all at once right before your home hits the market. A simple strategy is to do this one room at a time, working your way through each space whenever you have a bit of free time.
Start by donating or discarding items that you no longer want or need. Then pack up any seasonal items, family photos, and personal collections you can live without for the next few weeks. Bonus: This will give you a head start on packing for your move!
<br />1 WEEK BEFORE YOU GO TO MARKET
With just one week before your home is available for sale, all major items should be crossed off your to-do list. Now it’s time to focus on the small details that will really make your home shine. Here are a few key areas to focus on during this last week.
● Check-In With Your Agent
We’ll connect again to make sure we’re aligned on the listing price, marketing plan, and any remaining prep. We will be there every step of the way, ensuring you’re fully prepared to maximize the sale of your home.
● Tidy Your Exterior
You’ve already done the major landscaping—now it’s time to tackle the last few details. Make sure your lawn is freshly mowed, hedges are trimmed, and flower beds are weeded.
In addition, now is the time to clean your home’s exterior if you haven’t already. Power wash your siding, empty the gutters, and wash all your windows and screens.
● Deep Clean Your Interior
Your house should be deep cleaned before listing, including a thorough deodorizing of the home’s interior and steam cleaning for all carpets. Consider hiring a professional cleaning company to ensure the space smells and looks as fresh as possible.
In addition to cleaning, take some time to tidy up. Buyers will look inside your closets, pantries, and cabinets, so make sure they are neat and organized. Small appliances and toiletries should be cleared off the countertops.
<br />DAY OF SHOWING
Now you’re all set to go and there are just a few small things you need to handle on the day of showings or open houses. Do a final walk-through and take care of these finishing touches to give potential buyers the best possible impression.
● Pre-Showing Prep
Happy and comfortable buyers are more likely to submit offers! Make them feel at home by adjusting the thermostat to a comfortable temperature. Open any blinds and curtains throughout the house, and turn on all lights so buyers can see all the potential in your home.
Then tidy up by vacuuming and sweeping floors, emptying (or hiding) trash cans, and wiping down countertops. In the bathrooms, close toilet lids and hang clean hand towels.
Don’t forget to secure firearms, jewelry, sensitive documents, prescription medications, and any other items of value in a safe or store them off-site.
Finally, it’s best to have pets out of the house during showings. If possible, you should also remove evidence of pets (litter box, dog beds, etc.), which can be a turn-off for some buyers.
<br />DON’T WAIT TO PREP YOUR HOME FOR SELLING
If you want to get top dollar for your home, don’t put it on the market before it’s ready. The right preparation can make all the difference when it comes to maximizing the offers you get. The upgrades and changes you need to make will depend upon your home’s condition, so don’t wait to speak with an agent.
Call our team if you’re thinking about selling your home, even if you’re not sure when. It’s never too early to seek the guidance of your real estate agent and start preparing your home to sell.
Sources:<br />1. Fortune -<br />https://fortune.com/2022/02/08/should-i-buy-house-sellers-market-housing-real-estate-fannie-mae/<br />2. Forbes -<br />https://www.forbes.com/advisor/home-improvement/labor-materials-shortage-impacts-renovations/<br />3. PR Web -<br />https://www.prweb.com/releases/2012-homegain/home-improvement-survey/prweb9433460.htm<br />4. Realtor Magazine -<br />https://magazine.realtor/daily-news/2020/01/27/how-much-does-curb-appeal-affect-home-value<br />5. Real Estate Staging Association -<br />https://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548
2022-04-01T16:16:00-07:00
2022-04-05T17:13:21-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:27594
Hedge Against Inflation With These 3 Real Estate Investment Types
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Hedge Against Inflation With These 3 Real Estate Investment Types
The annual inflation rate in the United States is currently around 7.5%—the highest it has been since 1982.1 It doesn’t matter if you’re a cashier, lawyer, plumber, or retiree; if you spend U.S. dollars, inflation impacts you.
Economists expect the effects of inflation, like a higher cost of goods, to continue.2 Luckily, an investment in real estate can ease some of the financial strain.
Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate canhelp.
WHAT IS INFLATION AND HOW DOES IT IMPACT ME?
Inflation is a decline in the value of money. When the rate of inflation rises, prices for goods and services go up. Therefore, a dollar buys you a little bit less with every passing day.
The consumer price index, or CPI, is a standard measure of inflation. Based on the latest CPI data, prices increased 7.5% from January 2021 to January 2022.1 A little bit of inflation is considered healthy for the economy, but 7.5% in a single year is high.
How does inflation affect your life? Here are a few of the negative impacts:
Decreased Purchasing Power
We touched on this already, but as prices rise, your dollar won’t stretch as far as it used to. That means you’ll be able to purchase fewer goods and services with a limited budget.
Increased Borrowing Costs
In an effort to curb inflation, the Federal Reserve is expected to raise the federal funds rate. Therefore, consumers are likely to pay a higher interest rate on new mortgages, car loans, and variable-rate credit cards.3
Lower Standard of Living
Wage growth tends to lag behind price increases. According to Moody Analytics, when adjusted for inflation, average weekly earnings in January were down 3.1% from a year earlier.4 As such, life is becoming less affordable for everyone. Inflation can force those on a fixed income, like retirees, to make lifestyle changes and prioritize essentials.
Eroded Savings
If you store all your savings in a bank account, inflation is even more damaging. As of February 2022, the national average interest rate for a savings account is 0<a href="https://www.bankrate.com/banking/savings/average-savings-interest-rates/">.</a>06%, not nearly enough to keep up with inflation. And economists don’t expect that rate to go much higher.3
One of the best ways to mitigate these effects is to find a place to invest your money other than the bank. Even though interest rates are expected to rise, they’re unlikely to get high enough to beat inflation. If you hoard cash, the value of your money will decrease every year and more rapidly in years with elevated inflation.
REAL ESTATE: A PROVEN HEDGE AGAINST INFLATION
So where is a good place to invest your money to protect (hedge) against the impacts of inflation? There are several investment vehicles that financial advisors traditionally recommend, including:
Stocks
Some people invest in stocks as their primary inflation hedge. However, the stock market can become volatile during inflationary times, as we’ve seen in recent months.5
Commodities
Commodities are tangible assets, like oil, livestock, and minerals. The theory is that the price of commodities should climb alongside inflation. But the classic choice–gold–hasn’t risen consistently during periods of inflation since the 1970s, according to data from Morningstar Direct.6
Inflation-Indexed Bonds
Treasury inflation-protected securities, or TIPS, are U.S. government-issued bonds that are indexed to the inflation rate. Bonds are considered low risk, but the returns they offer are generally low, as well.7<br />
Real Estate<br />Real estate prices across the board tend to rise along with inflation and often rise faster than inflation.8 That’s one of the reasons demand for real estate is soaring right now.9
We believe real estate is the best hedge against inflation. Owning real estate does more than protect your wealth—it can actually make you money. For example, home prices rose nearly 17% from 2020 to 2021, 10% ahead of the 7% inflation that occurred in the same timeframe.10
Plus, certain types of real estate investments can help you generate a stream of passive income. In the past year, property owners didn’t just avoid the erosion of purchasing power caused by inflation; they got ahead.
TYPES OF REAL ESTATE INVESTMENTS
Though there are myriad ways to invest in real estate, there are three basic investment types that we recommend for beginner and intermediate investors. Remember that we can help you determine which options are best for your financial goals and budget.
Primary Residence
If you own your home, you’re already ahead. The advantages of homeownership become even more apparent in inflationary times. As inflation raises prices throughout the economy, the value of your home is likely to go up concurrently. At the same time, you’ve locked in a set mortgage payment for the next 30 years, so you’ll be immune to rising rental costs.
If you don’t already own your primary residence, homeownership is a worthwhile goal to pursue.
Though the task of saving enough for a down payment may seem daunting, there are several strategies that can make homeownership easier to achieve. If you’re not sure how to get started with the home buying process, contact us. Our team can help you find the strategy and property that fits your needs and budget.
Whether you already own a primary residence or are still renting, now is a good time to also start thinking about an investment property. The types of investment properties you’ll buy as a solo investor generally fall into two categories: long-term rentals and short-term rentals.
Long-Term (Traditional) Rentals
A long-term or traditional rental is a dwelling that’s leased out for an extended period. An example of this is a single-family home where a tenant signs a one-year lease and brings all their own furniture.
Long-term rentals are a form of housing. For most tenants, the rental serves as their primary residence, which means it’s a necessary expense. This unique quality of long-term rentals can help to provide stable returns in uncertain times, especially when we have high inflation.
To invest in a long-term rental, you’ll need to budget for maintenance, repairs, property taxes, and insurance. You’ll also need to have a plan for managing the property. But a well-chosen investment property should pay for itself through rental income, and you’ll benefit from appreciation as the property rises in value.
We can help you find an ideal long-term rental property to suit your budget and investment goals. Reach out to talk about your needs and our local market opportunities.
Short-Term (Vacation) Rentals
Short-term or vacation rentals function more like hotels in that they offer temporary accommodations. A short-term rental is defined as a residential dwelling that is rented for 30 days or less. The furniture and other amenities are provided by the property owner, and today many short-term rentals are listed on websites like Airbnb and Vrbo.
A short-term rental can potentially earn you a higher return than a long-term rental, but this comes at the cost of daily, hands-on management. With a short-term rental, you’re not just entering the real estate business; you’re entering the hospitality business, too.
Done right, short-term rentals can be both a hedge against inflation and a profitable source of income. As a bonus, when the home isn’t being rented you have an affordable vacation spot for yourself and your family!
Contact us today if you’re interested in exploring options in either the long-term or short-term rental market. Mortgage rates are expected to rise, so you’ll want to act fast to maximize your investment return.
WE’RE INVESTED IN HELPING YOU
Inflation is a fact of life in the U.S. economy. Luckily, you can prepare for inflation with a carefully managed investment portfolio that includes real estate. Owning a primary residence or investing in a short-term or long-term rental will help you both mitigate the effects of inflation and grow your net worth, which makes it a strategic move in our current financial environment.
If you’re ready to invest in real estate to build wealth and protect yourself from rising inflation, contact us. Our team can help you find a primary residence or investment property that meets your financial goals.
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
Bloomberg -<br /><a href="https://www.bloomberg.com/news/articles/2022-02-10/u-s-inflation-charges-higher-with-larger-than-forecast-gain">https://www.bloomberg.com/news/articles/2022-02-10/u-s-inflation-charges-higher-with-larger-than-forecast-gain</a>
CNN -<br /><a href="https://www.cnn.com/2022/01/01/economy/inflation-prices-2022-preview/index.html">https://www.cnn.com/2022/01/01/economy/inflation-prices-2022-preview/index.html</a>
CNBC -<br /><a href="https://www.cnbc.com/2022/01/26/the-fed-sets-the-stage-for-a-rate-hike-heres-what-that-means-for-you.html">https://www.cnbc.com/2022/01/26/the-fed-sets-the-stage-for-a-rate-hike-heres-what-that-means-for-you.html</a>
Reuters -<br /><a href="https://www.reuters.com/business/us-consumer-prices-rise-strongly-january-weekly-jobless-claims-fall-2022-02-10/">https://www.reuters.com/business/us-consumer-prices-rise-strongly-january-weekly-jobless-claims-fall-2022-02-10/</a>
NBC News -<br /><a href="https://www.nbcnews.com/business/markets/market-slide-dow-falls-700-points-sp-enters-correction-territory-rcna13304">https://www.nbcnews.com/business/markets/market-slide-dow-falls-700-points-sp-enters-correction-territory-rcna13304</a>
CNBC -<br /><a href="https://www.cnbc.com/2021/12/20/gold-is-losing-its-status-as-an-inflation-hedge-two-traders-warn.html">https://www.cnbc.com/2021/12/20/gold-is-losing-its-status-as-an-inflation-hedge-two-traders-warn.html</a>
Morningstar -<br /><a href="https://www.morningstar.com/articles/1079158/why-are-inflation-protected-bond-funds-losing-money">https://www.morningstar.com/articles/1079158/why-are-inflation-protected-bond-funds-losing-money</a>
The Washington Post -<br /><a href="https://www.washingtonpost.com/business/2022/01/04/heres-how-inflation-could-affect-your-next-real-estate-move/">https://www.washingtonpost.com/business/2022/01/04/heres-how-inflation-could-affect-your-next-real-estate-move/</a>
Bloomberg - <br /><a href="https://www.bloomberg.com/news/articles/2022-01-24/is-real-estate-a-good-investment-hedge-against-inflation-what-the-experts-say">https://www.bloomberg.com/news/articles/2022-01-24/is-real-estate-a-good-investment-hedge-against-inflation-what-the-experts-say</a>
CNN -<br /><a href="https://www.cnn.com/2022/01/20/homes/us-nar-home-sales-december-and-2021/index.html">https://www.cnn.com/2022/01/20/homes/us-nar-home-sales-december-and-2021/index.html</a>
2022-03-01T12:55:00-07:00
2022-03-02T13:11:47-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:26160
8 Popular Home Design Features for 2022
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There’s a lot to consider when selling your home, from the market and appraisals to where you’ll go next. Don’t forget, however, that design is also a key factor. It’s often one of the first things buyers notice when they walk into a home, and it’s also a detail that you, as a seller, can easily control.
According to Realtor.com’s 2022 housing market forecast, home for-sale inventory will increase from last year, as will the projected number of overall sales.1 This means, if you’re looking to sell in the near future, now is the time to consider how you can stand out.
Updating your home design is one way to do that. Changes like new security features or upgraded siding can add value to your home now and be highlighted when you market it for sale later. To get the most out of your updates, focus on these popular home design features that will wow buyers in 2022.
Keep in mind, not all of these will work well in every house. If you plan to buy, list, or renovate a property, give us a call. We can help you realize your vision and maximize the impact of your investment.
Eco-Friendly Fixtures
Millennials account for the largest share of current homebuyers, according to the National Association of Realtors.2Sustainable living tops the list of priorities for this generation. A recent Deloitte survey found that nearly one-third of millennials initiate or deepen their consumer investment in products or services that help the environment—this also includes the houses they choose to live in.3
Here are a few eco-friendly design features that will be attractive to these millennial buyers in 2022. Bonus, they can net a significant return on investment (ROI) for you, as a seller, too.
Energy-Efficient Windows: Heat gain or loss from low-performance windows drives 25–30 percent of home heating and cooling costs, according to Energy.gov.4 Therefore, energy-efficient windows can help homeowners save money.
Low-Flow Water Fixtures: According to the EPA, replacing your shower head with one that’s labeled with WaterSense can save four gallons of water with each shower.5 Doing the same with your faucet can save 700 gallons per year. This leads to cost savings and environmental support.
Native Landscaping: According to the American Society of Landscape Architects, 58 percent of members report increased client demand for native trees and plants as a means to combat biodiversity loss from climate change..6 Enhance the eco-friendly appeal of your home with some native plants in the front yard.
Wellness Retreat Nooks
The pandemic has had a significant impact on mental health. For example, in an effort to prioritize mental health, many people are relocating to quieter, more peaceful homes, with 22 percent of city dwellers planning a move to less congested residential areas, according to the Home Improvement Research Institute’s (HIRI) 2021 Insights Summit.7
However, no matter where you live, you can still intrigue buyers by jumping on this trend. At-home wellness amenities, which were once viewed as luxuries, are now on many homeowners’ must-have lists. Indoor spaces that function as a retreat for wellness and self-care have become extremely popular, according to HIRI.
Improve your quality of life in your home with reading nooks, spa-inspired bathrooms, and exercise or meditation spaces. Even if your house doesn’t have the square footage to section off an entire room for relaxation, making simple tweaks to natural light, air purifiers, and indoor plants can help you feel better in your home now while enabling future buyers to see the opportunity for their own space.
Calming Paint Colors
Paint colors that produce a calming atmosphere will also be a key selling point in 2022. Soft earth tones and natural hues will prevail this year, including various shades of blue, green, brown, and beige. Recent research suggests steering clear of trendy paint colors in favor of a more classic palette to bring the feel of nature indoors in a subtle and soothing way.8
In fact, the same research found that buyers are often willing to pay an extra $4,698 for a house with a light blue bathroom or an extra $1,491 for a house with a dark blue bedroom. Another crowd-pleasing hue to refresh the walls with is BEHR’s 2022 paint color of the year, known as Breezeway.9
This shade of green with silver undertones was created to mimic sea glass. As the BEHR website describes it, Breezeway “evokes feelings of coolness and peace, while representing a desire to move forward and discover newfound passions.”
Home Safety Features
Buyers want peace of mind more now than ever before. According to a 2021 survey from the American Institute of Architects, members report seeing an increase in the popularity of these home safety features10:
Emergency backup power generation
Accommodations for multiple generations
Wider accessible doorways and hallways
Home security monitoring equipment
Interior ramps and home elevator features
Consider how you can build home safety features like these into the design of your home to enhance your quality of life now and attract more buyers later. For example, you could install a backup generator in the garage and sell it with the house or update your major doorways to be wider.
Before making an investment in expensive home safety upgrades, contact us. We can help you determine what will deliver the greatest ROI for your location and goals.
Designated Work Spaces
It may come as no surprise that after the pandemic, 63 percent of homebuyers want their next house to feature room for a designated office, according to the National Association of Home Builders.11 In addition, 70 percent of these buyers want the office to be at least 100 square feet (or a 10x10 room).
If you can, consider turning a bedroom or a den into a work-from-home office. When designing the space, make it both functional and aesthetically pleasing. Position a desk near the window for natural light, install a bookshelf unit, arrange a few succulents on the work surface, and hang a few framed posters or a cork bulletin board on the wall. You want the space to foster productivity as well as be a place in your home you enjoy spending time.
When you get ready to sell, we can help you highlight your designated work space. Given the high demand for this design feature, it can help you interest more buyers and attract more competitive offers—if marketed creatively.
Luxury Kitchen Retouches
The kitchen has always been a main focal point of interior design, and that’s no different in 2022. Families will always need this space to come together in their own homes.
This year’s buyers want a kitchen with new upgrades and retouches, but you don’t have to renovate the entire kitchen to make an impact. If you’re not sure where to start, here are a few tips on how to create a kitchen that buyers will love without spending too much money on renovations:
Repaint the kitchen, keeping the calm and nature-inspired colors in mind that are most popular right now. Taking a kitchen from dark to light by painting cabinets and walls can make all the difference.
Update the hardware. These kitchen “accessories” stand out and add personality to an otherwise standard kitchen.
Update light fixtures to bring in more light while also adding a fresh look and feel to the space.
Unique Accent Walls
In a recent interview with the National Association of Realtors, Brian Santos, the director of education for Fresh Coat Painters, explains that bold, unique accent walls are trendy right now.12 An accent wall gives a home character while maintaining the calming feel of natural- and neutral-colored walls.
Santos also explains that this is part of a design aesthetic that draws inspiration from the Roaring Twenties, and it’s likely to remain a sought-after home feature in 2022. Here are some bold colors to consider for your home’s accent walls:
Solid black
Jewel or metallic tones
Textured wallpaper
Painted ceilings
Built-in shelves
If you’re planning to sell in the next year, talk to us before adding an accent wall. Depending on your target buyer, it may be a design feature that actually hurts your home’s value. We can run a free Comparative Market Analysis on your home to help you understand what would resell best in your neighborhood.
Exterior Siding Updates
A new exterior siding refresh is one of the most affordable renovation projects you can do to help increase a home’s resale value. The average cost is just $12 per square foot, but higher-end material options can push costs closer to $50 per square foot.13 What’s more, there are many siding materials available, from fiber-cement, brick, and wood to vinyl, metal, and stone.
While all these options can infuse the exterior with character and add curb appeal, fiber-cement and vinyl deliver the highest ROI. In fact, according to a 2021 Cost vs. Value Report, a vinyl siding replacement can boost resale value by $11,315 (68.3 percent cost recoup), and a fiber-cement siding replacement can boost resale value by $13,618 (69.4 percent cost recoup).14
Give your home this simple, affordable, and attractive facelift before putting it on the market. If you’re not sure how to get started yourself, our team can connect you with a trusted vendor to guide you through the process.
Keep These Home Design Features on Your Radar in 2022
These design features can infuse personality into your home while helping to close the deal if you plan to sell in 2022. The average buyer knows just what they’re looking for in a space they plan to call home, so with some investment and foresight, you can give your house an edge over the competition—and boost resale value in the process.
However, you don’t need to make all these changes to attract more buyers. We can help you determine which design features you should add to your home by sharing insights and tips on how to maximize the return on your investment. We can also run a Comparative Market Analysis on your home to find out how it compares to others in the area, which will help us decide what changes need to be made. Contact us to schedule a free consultation!
Sources:
Realtor - <br /><a href="https://www.realtor.com/research/2022-national-housing-forecast/">https://www.realtor.com/research/2022-national-housing-forecast/</a>
National Association of Realtors - <br /><a href="https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends">https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends</a>
Deloitte - <br /><a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf">https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf</a>
Energy.gov - <br /><a href="https://www.energy.gov/energysaver/update-or-replace-windows">https://www.energy.gov/energysaver/update-or-replace-windows</a>
EPA.gov - <br /><a href="https://www.epa.gov/watersense/about-watersense">https://www.epa.gov/watersense/about-watersense</a>
American Society of Landscape Architects - <br /><a href="https://www.asla.org/NewsReleaseDetails.aspx?id=60427">https://www.asla.org/NewsReleaseDetails.aspx?id=60427</a>
Home Improvement Research Institute - <br /><a href="https://www.hiri.org/blog/4-major-home-wellness-trends-from-hiri-summit-speaker-dr-jie-zhao">https://www.hiri.org/blog/4-major-home-wellness-trends-from-hiri-summit-speaker-dr-jie-zhao</a>
Zillow - <br /><a href="http://zillow.mediaroom.com/2021-07-15-Homes-With-Light-Blue-Bathrooms,-Dark-Blue-Bedrooms-Could-Sell-for-Up-to-4,698-More-Than-Expected">http://zillow.mediaroom.com/2021-07-15-Homes-With-Light-Blue-Bathrooms,-Dark-Blue-Bedrooms-Could-Sell-for-Up-to-4,698-More-Than-Expected</a>
Behr - <br /><a href="https://www.behr.com/colorfullybehr/behr-announces-2022-color-of-the-year-and-trends-palette/">https://www.behr.com/colorfullybehr/behr-announces-2022-color-of-the-year-and-trends-palette/</a>
American Institute of Architects - <br /><a href="http://info.aia.org/AIArchitect/2021/0910/aia-interactive/index.html">http://info.aia.org/AIArchitect/2021/0910/aia-interactive/index.html#</a>
National Association of Home Builders - <br />​​<a href="https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2021/special-study-what-home-buyers-really-want-march-2021.pdf?_ga=2.188050984.1824982414.1639512139-1247360189.1639512139">https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2021/special-study-what-home-buyers-really-want-march-2021.pdf?_ga=2.188050984.1824982414.1639512139-1247360189.1639512139</a>
National Association of Realtors - <br /><a href="https://www.nar.realtor/blogs/styled-staged-sold/hot-home-trend-the-accent-wall-is-back">https://www.nar.realtor/blogs/styled-staged-sold/hot-home-trend-the-accent-wall-is-back</a>
Forbes - <br /><a href="https://www.forbes.com/advisor/home-improvement/how-much-does-siding-cost-to-install/">https://www.forbes.com/advisor/home-improvement/how-much-does-siding-cost-to-install/</a>
Remodeling Magazine - <br /><a href="https://www.remodeling.hw.net/cost-vs-value/2021/">https://www.remodeling.hw.net/cost-vs-value/2021/</a>
2022-02-01T20:31:00-07:00
2022-02-06T21:41:07-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:25549
A Return to ‘Normal’? The State of Real Estate in 2022
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Last year was one for the real estate history books. The pandemic helped usher in a buying frenzy that caused home prices to soar nationwide by a record 19.9% between August 2020 and August 2021.1
However, there were signs in the fourth quarter that the red-hot housing market was beginning to simmer down. In the month of October, only 60.3% of sales involved a bidding war—down from a high of 74.5% in April.2 While this trend could be attributed to seasonality, it could also be a signal that the real estate run-up may have passed its peak.
So what’s ahead for the U.S. housing market in 2022? Here’s where industry experts predict the market is headed in the coming year.
MORTGAGE RATES WILL CREEP UP
Most economists expect to see mortgage rates gradually rise this year after hitting record lows in late 2020 and early 2021.3
Freddie Mac forecasts the 30-year fixed-rate mortgage will average 3.5% in 2022, up from around 3% in 2021.4
The Mortgage Bankers Association predicts that rates will tick up to 4% by the end of the year. "Mortgage lenders and borrowers should expect rising mortgage rates over the next year, as stronger economic growth pushes Treasury yields higher," said Mike Fratantoni, chief economist for the Mortgage Bankers Association at their 2001 Annual Convention & Expo in October.5
However, it’s important to keep in mind that even a 4% mortgage rate is low when compared to historical standards. According to industry trade blog The Mortgage Reports, “Between 1971 and December 2020, 30-year mortgage rates averaged 7.89%.”6
What does it mean for you? Low mortgage rates can reduce your monthly payment and make homeownership more affordable. Fortunately, there’s still time to lock in a historically-low rate. Whether you’re hoping to purchase a new home or refinance an existing mortgage, act soon before rates go up any further. We’d be happy to connect you with a trusted lending professional in our network.
THE MARKET WILL BECOME MORE BALANCED
In 2021, we experienced one of the most competitive real estate markets ever. Fears about the virus and a shift to remote work triggered a huge uptick in demand. At the same time, many existing homeowners delayed their plans to sell, and supply and labor shortages hindered new construction.
This led to an extreme market imbalance that benefitted sellers and frustrated buyers. According to George Ratiu, director of economic research at Realtor.com, “Prices and sellers reached for the moon [last] year. It looks like we are now about to move back to earth.”7
Data from Realtor.com released in November showed that listing price reductions had more than doubled since February 2021. And the average days on market (an indicator of how long it takes a home to sell) has been slowly creeping up since June.7
What’s causing this change in market dynamics? The real estate market typically slows down in the fall and winter. But economists also suspect a fundamental shift in supply and demand.
At the National Association of Realtors’ annual conference last November, the group’s chief economist, Lawrence Yun, told attendees that he expects increased supply to come from an uptick in new construction—which is already underway—and an end to the mortgage forbearance program. “With more housing inventory to hit the market, the intense multiple offers will start to ease,” he said.8
Demand is also predicted to wane slightly in the coming year. Rising mortgage rates and record-high prices have made homeownership unaffordable for a growing number of Americans. And in a recent Reuters poll, nearly 80% of property analysts said they expect housing affordability to worsen over the next several years.9
What does it mean for you? If you struggled to buy a home last year, there may be some relief on the horizon. Increased supply and softening demand could make it easier to finally secure the home of your dreams. If you’re a seller, it’s still a great time to cash out your big equity gains! And with more inventory on the market, you’ll have an easier time finding your next home. Reach out for a free consultation so we can discuss your specific needs and goals.
HOME PRICES LIKELY TO KEEP CLIMBING, BUT AT A SLOWER PACE
Nationally, home prices rose an estimated 16.8% in 2021.8 But the average rate of appreciation is expected to slow down in 2022.
Danielle Hale, chief economist at Realtor.com, told Yahoo! News, “Home asking prices have decelerated in the second half of 2021, with median listing price growth slipping from a peak of 17.2% in April to just 8.6% in October.”10
But experts disagree about how much more property values can continue to climb this year. Goldman Sachs predicts that home prices will rise by 13.5%, while Fannie Mae and Freddie Mac are forecasting a 7.9% and 7% rate of appreciation, respectively.2
However, not all analysts are as bullish. The National Association of Realtors predicts a 2.8% rate of appreciation for existing homes and 4.4% for new homes, while the Mortgage Bankers Association expects the average home price to decrease by 2.5% by the end of the year.10,2
According to Hale, “With prices near all-time highs and mortgage rates expected to rise, we expect this slowdown in prices to continue.”10
What does it mean for you? If you’re a buyer who has been waiting on the sidelines for home prices to drop, you may be out of luck. Even if home prices dip slightly (and most economists expect them to rise) any savings are likely to be offset by higher mortgage rates. The good news is that decreased competition means more choice and less likelihood of a bidding war. We can help you get the most for your money in today’s market.
RENTS WILL CONTINUE TO RISE
Along with home, gasoline, and used vehicle prices, rent prices rose dramatically last year. According to CoreLogic, in September, rents for single-family homes were up 10.2% nationally year over year.11 And economists at Realtor.com expect them to climb another 7.1% in 2022.12
“Homes are expensive now...but for most people, the comparison that is most important is how that cost of homeownership is going to compare to the cost of renting,” Zillow Senior Economist Jeff Tucker told CNBC in November.13
Tucker also pointed out that rent is less predictable than a mortgage—and more likely to go up along with inflation.13
Real assets, like real estate, are often used as a hedge against inflation. That’s because property values typically rise with inflation.14 And when a homeowner takes out a mortgage, they lock in a set housing payment for the next 30 years.
In contrast, renters are at the mercy of the market—and they don’t gain any of the benefits of homeownership, like tax deductions, equity, or appreciation.
George Ratiu of Realtor.com told CNBC that he advises buyers to consider their budget and time frame. If they plan to stay in the home for at least three to five years, he believes it often makes sense to buy.13
Fortunately, it’s shaping up to be a better year for buyers. “I think 2022 has the promise of providing less competition, a lot more homes to choose from, and, as a result, a lot more approachable prices,” Ratiu said.13
What does it mean for you? Both property and rent prices are expected to continue rising. But when you purchase a home with a fixed-rate mortgage, you can rest assured knowing that your monthly mortgage payment will never go up. Whether you’re a first-time homebuyer or a real estate investor, we can help you make the most of today’s real estate market.
WE’RE HERE TO GUIDE YOU
While national real estate numbers and predictions can provide a “big picture” outlook for the year, real estate is local. And as local market experts, we can guide you through the ins and outs of our market and the local issues that are likely to drive home values in your particular neighborhood.
f you’re considering buying or selling a home in 2022, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.
Sources:
Fortune - <a href="https://fortune.com/2021/11/04/us-home-prices-real-estate-forecast-2022-outlook/">https://fortune.com/2021/11/04/us-home-prices-real-estate-forecast-2022-outlook/</a>
Fortune - <a href="https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/">https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/</a>
Freddie Mac - <a href="https://www.google.com/url?q=http://www.freddiemac.com/pmms/pmms30.html&sa=D&source=docs&ust=1638967830220000&usg=AOvVaw0aD3U0D9M-QZg6IJ9RxDDz">http://www.freddiemac.com/pmms/pmms30.html</a>
Freddie Mac - <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-strong-housing-market-will-continue-even-rates-and">https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-strong-housing-market-will-continue-even-rates-and</a>
Mortgage Bankers Association - <a href="https://www.mba.org/2021-press-releases/october/mba-annual-forecast-purchase-originations-to-increase-9-percent-to-record-173-trillion-in-2022">https://www.mba.org/2021-press-releases/october/mba-annual-forecast-purchase-originations-to-increase-9-percent-to-record-173-trillion-in-2022</a>
The Mortgage Reports - <a href="https://themortgagereports.com/61853/30-year-mortgage-rates-chart">https://themortgagereports.com/61853/30-year-mortgage-rates-chart</a>
Realtor.com - <a href="https://www.realtor.com/news/trends/has-housing-market-peaked/">https://www.realtor.com/news/trends/has-housing-market-peaked/</a>
National Association of Realtors - <a href="https://www.nar.realtor/newsroom/nars-yun-says-housing-market-doing-well-may-normalize-in-2022">https://www.nar.realtor/newsroom/nars-yun-says-housing-market-doing-well-may-normalize-in-2022</a>
Reuters - <a href="https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/">https://www.reuters.com/world/us/rise-us-house-prices-halve-next-year-affordability-worsen-2021-12-07/</a>
Yahoo! News - <a href="https://www.yahoo.com/now/where-home-prices-headed-2022-130012748.html">https://www.yahoo.com/now/where-home-prices-headed-2022-130012748.html</a>
CNBC - <a href="https://www.cnbc.com/2021/11/16/inflation-rent-for-single-family-homes-surged-10percent-in-september.html">https://www.cnbc.com/2021/11/16/inflation-rent-for-single-family-homes-surged-10percent-in-september.html</a>
Realtor.com - <a href="https://www.realtor.com/news/trends/what-to-expect-in-2022-housing-market/">https://www.realtor.com/news/trends/what-to-expect-in-2022-housing-market/</a>
CNBC - <a href="https://www.cnbc.com/2021/11/23/rising-inflation-hot-housing-market-what-you-need-to-know-about-buying-a-home.html">https://www.cnbc.com/2021/11/23/rising-inflation-hot-housing-market-what-you-need-to-know-about-buying-a-home.html</a>
Money - <a href="https://money.com/inflation-2021-stocks-bitcoin-gold-reits-commodities/">https://money.com/inflation-2021-stocks-bitcoin-gold-reits-commodities/</a>
2022-01-06T22:55:00-07:00
2022-01-06T23:18:58-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:25057
20 Unique Home Gifts for Every Person on Your List
<img src="https://assets.site-static.com/userfiles/1653/image/adrianruiztrelles/164C180D-4DE1-4C79-B4BF-C4C767622AD9.png" width="800" height="418" alt="Gift Ideas Blog" title="December Blog" />
Every year, it seems the holidays sneak up on us—and every year, that brings with it the dreaded last-minute gift panic. Finding a present that hits all the right notes can be surprisingly stressful, even when it comes to people you’ve known for years.
But have no fear! We’ve lined up a list of unique gifts for every “type” on your list. And since we work in real estate, they’re all centered around home life. From the coffee snob to the sports enthusiast, these presents are the perfect way to bring beauty, function or a touch of whimsy to your loved one’s home this holiday season.
FOR THOSE WHO ARE ALWAYS IN THE KITCHEN
We all know someone whose kitchen is their happy place—but once all the basics are covered, it can be hard to find the perfect present. These gifts will be a treat for the chef, baker, or food lover on your list, no matter how well equipped they are.
<a name="_nw4ka25xx8b0"></a>1. The Coffee Snob
<a href="https://www.amazon.com/dp/B000I1WP7W">Glass Pour-Over Coffeemaker</a> - $36
Have a java lover on your list who just can’t get their brew right at home? This high-end pour-over system makes a smooth brew that can even be refrigerated and reheated so your recipient can enjoy a perfect cup at any time.
<a name="_dm145387jgxa"></a>2. The Foodie
<a href="https://www.uncommongoods.com/product/shiitake-mushroom-log-kit">Shiitake Mushroom Log Kit</a> - $30
Help your favorite gourmand create restaurant-quality meals with this kit that allows them to grow delicious mushrooms right in their cupboard. All they’ll need to do is soak the wood and put it in a cool place, then wait a few weeks, and voila—mushrooms! Best of all, they can keep growing mushrooms on the same log for years.
<a name="_p27kiekynxtn"></a>3. The Baker
<a href="https://www.williams-sonoma.com/products/vintage-etched-cake-stand/">Vintage Etched Cake Stand</a> - $60
If you’re lucky enough to have a fabulous home baker on your list, give a gift that reflects the joy their treats bring to others. This lovely glass cake stand is the platform that a beautifully decorated dessert deserves.
<a name="_cj3bzojba7qq"></a>4. The Tea Aficionado
<a href="https://www.amazon.com/Teabloom-Teapot-Gift-Set-Removable/dp/B074M7M1BX/">Flowering Tea Set</a> - $25
Your favorite tea lover may have tried all of the herbal blends out there, but we bet they haven’t seen tea like this. This set contains two “blossoms” of tea leaves hand-sewn around flowers that bloom when you place them in the included glass teapot and add hot water.
FOR THOSE WHO WOULD RATHER BE IN THE BACKYARD
For many of us, time outdoors is the ultimate source of rejuvenation. The nature-lover on your list is sure to appreciate these presents that help them maximize that joy in their daily lives.
<a name="_ggijiclhwcrv"></a>5. The Gardener
<a href="https://www.potterybarn.com/products/burgon-and-ball-striped-garden-tool-bag/">Striped Garden Tote Bag</a> - $37
Dedicated gardeners all need a great bag to carry their gear. This tote is attractive and sturdy and will help them keep their home’s exterior beautiful and welcoming.
<a name="_ktqiduodnoqq"></a>6. The Flower Lover
<a href="https://bouqs.com/subscriptions">Monthly Flower Subscription</a> - starting at $40/month
If your loved one prefers to enjoy their flora without all the work, a delivery of farm-fresh flowers is sure to surprise and delight. And you can keep the joy blossoming year-round with a monthly or bi-monthly subscription.
<a name="_jgeihzcmpjfr"></a>7. The Environmentalist
<a href="https://www.amazon.com/Final-Straw-Collapsible-Stainless-Reusable/dp/B07ZS2QZVV/">Collapsible Metal Straw</a> - $20
Know someone who is trying to bring less plastic into their home? This reusable metal straw means they’ll never have to buy a box of plastic straws again. And since it collapses into a tiny carrying case, they can use it at home or on the go.
<a name="_gmtvm682ckjh"></a>8. The Outdoor Adventurer
<a href="https://www.amazon.com/dp/B07FDXDB3W">Solar Phone Charger</a> - $29
Have a camper or adventurer on your list? This solar-powered phone charger, which comes with a built-in flashlight and compass, is a must-have. It will also make a great addition to their home emergency kit.
FOR THOSE WITH THEIR NOSE TO GRINDSTONE
Like it or not, most of us spend a good chunk of our lives working—whether at a job or on projects and chores around the house. These gifts are designed to make that work a bit easier and more enjoyable.
<a name="_p7i6mz3huijh"></a>9. The Remote Worker
<a href="https://www.amazon.com/LapGear-Office-Mouse-Phone-Holder/dp/B07N9JMSW6/">Home Office Lap Desk</a> - $35
Working at home can be great—in part because you can work from anywhere in the house. The remote worker on your list will appreciate this lap desk with a built-in mouse pad and phone slot, which will allow them to work comfortably from the couch or the bed without overheating their computer.
<a name="_hsubxsr43w0v"></a>10. The Back-to-The-Office Worker
<a href="https://www.amazon.com/Premium-Bento-Lunch-Modern-Colors/dp/B017QBK7ZI">Bento Lunch Box</a> - $27
If your loved one is heading back to the office, it doesn’t mean they have to give up the healthy habit of a home-cooked meal. Send them to work with this stylish lunch box packed full of nutritious food.
<a name="_4w5ziuzc5ntt"></a>11. The Do-It-Yourselfer
<a href="https://www.amazon.com/Bosch-GLM-20-Compact-Distance/dp/B01CG97GR2/">65ft Laser Distance Measure</a> - $50
The handy person on your list can say goodbye to unwieldy tape measures with this nifty device. It’s perfect for DIY projects up to 65 feet.
<a name="_hb3ltnsvzwu3"></a>12. The Clean Freak
<a href="https://www.amazon.com/dp/B00144I3ZU/">Portable Sanitizing Travel Wand</a> - $60
In the COVID-19 era, we’ve all become a little germaphobic. This UV wand kills viruses and bacteria in seconds without any wiping or washing required. It’s perfect for disinfecting shoes, computer keyboards, and more!
FOR THOSE MOST PASSIONATE ABOUT THEIR HOBBIES
Of course, there’s a lot more to life than work. If you’re gifting a friend or family member who really lights up when they talk about their hobbies, we’ve got you covered.
<a name="_yehsverp1k7e"></a>13. The Sports Enthusiast
<a href="https://www.uncommongoods.com/product/hockey-stick-bbq-set">Hockey Stick BBQ Set</a> - $45
Looking for a gift for the sports enthusiast in your life that isn’t another jersey? These BBQ tools made from repurposed hockey sticks are a great pick. Perfect for cooking up food to watch with the game!
<a name="_v5fadpnyfkto"></a>14. The Bookworm
<a href="https://www.amazon.com/dp/1441304827">The Book Lover’s Journal</a> - $13
Know someone who loves to curl up on the couch with a good book? This journal will help the book-lover on your list keep track of what they’ve read, as well as their ever-growing “to-read” list.
<a name="_xje4v2v2414b"></a>15. The Runner
<a href="https://www.uncommongoods.com/product/marathon-map-hydration-bottles">Marathon Map Hydration Bottles</a> - $36
Help the runner you love to stay hydrated (and motivated) with a water bottle inscribed with their favorite race route. It’s perfect for runs around the neighborhood or just toting around the house.
<a name="_dorr5zec0m5q"></a>16. The Tourist
<a href="https://www.tumi.com/p/just-in-case-backpack-01100401041/">Travel Backpack</a> - $100
Make it easy for the travel lover on your list to bring back souvenirs. This lightweight backpack folds flat so it’s easy to pack but sturdy enough to carry their new treasures all the way home.
FOR THOSE WHO PUT FAMILY FIRST
For many of us, the greatest joy in life comes from our relationship with our family. Help your recipient strengthen and celebrate those all-important connections with these thoughtful gifts.
<a name="_e4jge8j57s0r"></a>17. The New Parent
<a href="https://www.amazon.com/dp/B087YR85NZ">4-in-1 Baby Food Maker</a> - $155
It’s hard to know what to buy for new parents once their registry is cleared out, but if they’re interested in making baby food at home, this tool is a must-have. It makes the process, from steaming to mixing, fast and easy.
<a name="_3i0n9rw8y5be"></a>18. The Genealogy Fan
<a href="https://www.ancestry.com/cs/offers/bundle">DNA Kit</a> - $99
Know someone interested in reconnecting with their ancestral home? This DNA kit can help them trace their geographical heritage and uncover their family history.
<a name="_ct986xxyn5fo"></a>19. The Pet Person
<a href="https://gopupsocks.com/product/custom-socks/">Custom Printed Socks</a> - $25
Is your friend’s pet their favorite family member? These adorable socks are sure to put a smile on their face as they cozy up on the couch with their fur baby. And since you can feature up to four pets on each pair of socks, no one needs to feel left out.
<a name="_9pic2jr72taw"></a>20. The Documentarian
<a href="https://www.apple.com/shop/product/HPEB2VC/B/fujifilm-instax-mini-link-printer">Mini Link Printer</a> - $100
We all have that relative who snaps a million photos at every family event. Help them capture each precious moment with this unique gadget that essentially transforms a smartphone into a Polaroid camera. It makes it easy to customize and print out snapshots to display around the house or insert into a scrapbook for posterity.
READY TO GIVE YOURSELF THE ULTIMATE GIFT?
We want to be your real estate consultants through every season of life. So please don’t hesitate to reach out with questions or to ask for recommendations or referrals any time of year. And when you’re ready to give yourself the gift of a new home, contact us to talk about your options. From finding the right neighborhood to identifying the amenities that will make the biggest difference to your quality of life, we’re always eager to help.
2021-12-02T21:50:00-07:00
2021-12-02T23:05:18-07:00
Adrian Ruiz Trelles
tag:exitrealtypalmbeach.com,2012-09-20:17771
What It Means To Be in a Sellers’ Market
<article id="post-97616" class="post-97616 post type-post status-publish format-standard has-post-thumbnail hentry category-sellers category-housing-market-updates category-pricing">
If you’ve given even a casual thought to <a href="https://www.mykcm.com/2021/03/04/is-it-a-good-time-to-sell-my-house/" title="selling">selling</a> your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is <a href="https://www.mykcm.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/" title="available">available</a> for buyers who are looking for homes to purchase.
The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" title="Existing Home Sales Report" target="_blank" rel="noopener noreferrer">Existing Home Sales Report</a> from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply at the current sales pace.
Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):<a href="https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1.png" rel="noopener noreferrer" class="use_kcm_lightbox" target="_blank"><img loading="lazy" class="aligncenter wp-image-97618" src="https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1.png" alt="What It Means To Be in a Sellers’ Market | MyKCM" width="600" height="450" srcset="https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1.png 1000w, https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1-600x450.png 600w, https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1-768x576.png 768w, https://files.mykcm.com/2021/03/23171041/20210329-MEM-Eng-1-100x75.png 100w" sizes="(max-width: 600px) 100vw, 600px" /></a>When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it <a href="https://www.mykcm.com/2021/03/24/why-you-should-think-about-listing-prices-like-an-auctions-reserve-price/" title="essential">essential</a> for buyers to submit very attractive <a href="https://www.mykcm.com/2021/03/15/how-to-make-a-winning-offer-on-a-home/" title="offers">offers</a>.
As this happens, home prices rise and <a href="https://www.mykcm.com/2021/03/08/5-reasons-to-sell-your-house-this-spring-2/" title="sellers">sellers</a> are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so <a href="https://www.mykcm.com/2021/02/22/where-have-all-the-houses-gone/" title="few">few</a> homes are available to buy, it will likely get a lot of attention from hopeful buyers.
Today, there are many buyers who are ready, willing, and able to purchase a home. Low <a href="https://www.mykcm.com/2021/03/09/how-upset-should-you-be-about-3-mortgage-rates/" title="mortgage rates">mortgage rates</a> and a year filled with unique <a href="https://www.mykcm.com/2020/11/16/why-working-from-home-may-spark-your-next-move/" title="changes">changes</a> have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.
Bottom Line
Home prices are <a href="https://www.mykcm.com/2021/03/02/home-prices-what-happened-in-2020-what-will-happen-this-year/" title="appreciating">appreciating</a> in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it.
</article>
<a href="https://www.mykcm.com/2021/03/26/2021-real-estate-myth-buster-infographic/" rel="prev" title="« 2021 Real Estate Myth Buster [INFOGRAPHIC]">« 2021 Real Estate Myth Buster [INFOGRAPHIC]</a><a href="https://www.mykcm.com/2021/03/30/how-a-change-in-mortgage-rate-impacts-your-homebuying-budget/" rel="next" title="How a Change in Mortgage Rate Impacts Your Homebuying Budget »">How a Change in Mortgage Rate Impacts Your Homebuying Budget »</a>
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
2021-03-30T17:25:00-07:00
2021-03-30T17:34:26-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:15111
New Emotional Support Animal Law: What’s It All Mean?
<article data-history-node-id="9371" role="article" about="/news-media/news-articles/2020/07/new-emotional-support-animal-law-whats-it-all-mean" class="news full clearfix" aria-label="New Emotional Support Animal Law: What’s It All Mean?">
By Meredith Caruso
This year, the Florida Legislature passed a bill affecting emotional-support animal guidance in Florida. The law creates new clarifications for emotional support animals. It’s important to understand exactly what it does – and does not – do.
ORLANDO, Fla. – Last month, Florida Realtors <a href="https://www.floridarealtors.org/news-media/news-articles/2020/06/law-takes-aim-emotional-support-animal-certificate-abuse">notified members of a new law</a>, effective July 1, 2020, in relation to service animals. As mentioned in the article, the law was largely written to address the abuse of “online certificates,” which allege to be the gold standard in determining whether or not an animal is a “true” emotional support animal (ESA) or not.
This article breaks down the new law. More importantly, this hopefully helps Realtors understand what they can and cannot ask for if they’re handling rentals for landlords – and what a tenant stating the need for an ESA should be ready to provide.
A big takeaway? It can be found in this part of the law:
“An emotional support animal registration of any kind, including, but not limited to, an identification card, patch, certificate or similar registration obtained from the internet is not, by itself, sufficient information to reliably establish that a person has a disability or a disability-related need for an emotional support animal.”
Let’s break down the law:
Pursuant to Section 760.27 of the Florida Statutes, “it is unlawful to discriminate in the provision of housing to a person with a disability or disability-related need for, and who has at or at any time obtains, an emotional support animal.” Translation: If a prospective buyer or tenant has an ESA or, at any point time obtains an ESA, the housing provider may not discriminate on this basis.
A person, i.e. a buyer or tenant, with a disability or disability-related need must be allowed to keep the animal in his or her dwelling as a reasonable accommodation in housing. Additionally, they cannot be charged extra for the animal. In other words, you cannot charge a pet fee/deposit for an ESA. This part of the law effectively mirrors existing federal law. (Note: A person with a disability or a disability-related need is liable for any damage done to the premises or to another person on the premises by his or her ESA.)
So what can a housing provider ask of a person with an ESA? The statute breaks down what may be requested in relation to what the housing provider is trying to establish: One, that the person does, in fact, have a disability, and two, the disability-related need for an ESA. It’s important to note that this information could come from different sources.
First: Establishing the person has a disability
When not readily apparent, you are able to ask for “reliable information that reasonably supports that the person has a disability.” The statute goes on to list supporting information that may be provided, including:
A determination of disability from any federal, state or local government agency
Receipt of disability benefits or services from any federal, state or local government agency
Proof of eligibility for housing assistance or a housing voucher received because of a disability
Information from a qualified health care practitioner, telehealth provider or any other similarly licensed or certified practitioner or provider in good standing with his or her profession’s regulatory body in another state, but only if such out-of-state practitioner has provided in-person care or services to the tenant on at least one occasion. Such information is reliable if the practitioner or provider has personal knowledge of the person’s disability and is acting within the scope of his or her practice to provide the supporting information
Information from any other source that the housing provider reasonably determines to be reliable in accordance with the federal Fair Housing Act and s. 504 of the Rehabilitation Act of 1973
In other words, when a person’s disability isn’t readily apparent, a housing provider may request information to support the claim of a disability. This could come in various forms, i.e. receipt of disability benefits from the state or a letter from a treating health provider stating the person does in fact have a disability.
Second: establishing the need for an ESA
Again, when not readily apparent, you are able to ask for “reliable information that reasonably supports the person’s need for the particular emotional support animal being requested.” The statute clarifies that this information may include:
Information identifying the particular assistance or therapeutic emotional support provided by the specific animal from a qualified health care practitioner, telehealth provider or any other similarly licensed or certified practitioner or provider in good standing with his or her profession’s regulatory body in another state. Such information is reliable if the practitioner or provider has personal knowledge of the person’s disability and is acting within the scope of his or her practice to provide the supporting information.
Information from any other source that the housing provider reasonably determines to be reliable in accordance with the federal Fair Housing Act and s. 504 of the Rehabilitation Act.
Namely, in establishing the need for a particular ESA, a housing provider may ask for evidence to show the need for the ESA itself. The law also states that if the person requests to keep more than one ESA, the housing provider can ask for information specific to each animal. This is in addition to being able to request proof of vaccinations.
The above paragraphs lay out what can be asked by a service provider. So now let’s look at what cannot be done with regards to requesting information on ESAs: Specifically, the new law states that a housing provider may not request information that may disclose or reveal the actual diagnosis or severity of a person’s disability. Nor can any medical records be requested relating to that disability. If the person, i.e. tenant or buyer, chooses to provide this information, that is at the discretion of that individual.
Additionally, while a housing provider may develop and make available to persons a “routine method” for receiving and processing reasonable accommodation requests for ESAs, a housing provider may not require the use of a specific form or notarized statement, or deny a request solely because a person did not follow the housing provider’s “routine method.”
As noted earlier, a major point under the new law: Some sort of certificate or other online registration obtained via the internet, by itself, is insufficient to establish that the person has a) a disability or b) a disability-related need for an ESA.
See also “<a href="https://www.floridarealtors.org/news-media/news-articles/2020/02/rules-vs-access-when-screening-assistance-animals">Rules vs. Access When Screening for Assistance Animals</a>” (Joel Maxson, March 2020 Florida Realtors Legal News).
Questions? Call <a href="https://www.floridarealtors.org/tools-research/legal-hotline">Florida Realtors Legal Hotline</a>, a free service included with membership.
© 2020 Florida Realtors®
</article>
2020-09-02T08:38:00-07:00
2021-03-30T17:34:44-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:15110
The Cost of Renting Vs. Buying a Home [INFOGRAPHIC]
<img width="1046" height="1129" src="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg" class="attachment-entry size-entry wp-post-image" alt="The Cost of Renting Vs. Buying a Home [INFOGRAPHIC] | MyKCM" srcset="https://files.mykcm.com/2020/08/27112012/20200828-MEM-1046x1129.jpg 1046w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-556x600.jpg 556w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-948x1024.jpg 948w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-768x829.jpg 768w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1423x1536.jpg 1423w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1897x2048.jpg 1897w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-100x108.jpg 100w, https://files.mykcm.com/2020/08/27112012/20200828-MEM-1484x1602.jpg 1484w" sizes="(max-width: 1046px) 100vw, 1046px" style="font-size: 17px;" />
Some Highlights
The <a href="https://www.zillow.com/research/affordability/" title="percentage" target="_blank" rel="noopener noreferrer">percentage</a> of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
This is making buying a home an increasingly attractive option for many people, especially with low mortgage <a href="https://www.simplifyingthemarket.com/2020/08/14/mortgage-rates-payments-by-decade-infographic/?a=645272-2877c00547dd13a208f0005932db7b2e" title="rates" target="_blank" rel="noopener noreferrer">rates</a> driving purchasing power.
Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.
2020-09-02T08:29:00-07:00
2020-09-02T08:32:52-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:15109
How Will the Presidential Election Impact Real Estate?
<img width="750" height="410" src="https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Will the Presidential Election Impact Real Estate? | MyKCM" srcset="https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
The year 2020 will be remembered as one of the most challenging times of our lives. A worldwide pandemic, a recession causing historic unemployment, and a level of social unrest perhaps never seen before have all changed the way we live. Only the real estate market seems to be unaffected, as a <a href="https://www.nar.realtor/newsroom/pending-home-sales-rise-5-9-in-July" title="new forecast" target="_blank" rel="noopener noreferrer">new forecast</a> projects there may be more homes purchased this year than last year.
As we come to the end of this tumultuous year, we’re preparing for perhaps the most contentious presidential election of the century. Today, it’s important to look at the impact past presidential election years have had on the real estate market.
Is there a drop-off in home sales during a presidential election year?
BTIG, a research and analysis company, looked at new home sales from 1963 through 2019 in their report titled <a href="http://researchwiseny.btig.com/ResearchLibraryAnalec/DownloadResearch.aspx?E=cafidk-b" title="One House, Two House, Red House, Blue House" target="_blank" rel="noopener noreferrer">One House, Two House, Red House, Blue House</a>. They noted that in non-presidential years, there is a -9.8% decrease in November compared to October. This is the normal seasonality of the market, with a slowdown in activity that’s usually seen in fall and winter.
However, it also revealed that in presidential election years, the typical drop increases to -15%. The report explains why:
“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty.”
Are those sales lost forever?
No. BTIG determined:
“This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”
In a separate <a href="https://meyersresearchllc.com/planning-for-2020-what-an-election-year-means-for-home-sales/" title="study" target="_blank" rel="noopener noreferrer">study</a> done by Meyers Research & Zonda, Ali Wolf, Chief Economist, agrees that those purchases are just delayed until after the election:
“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year.”
Will it matter who is elected?
To some degree, but not in the overall number of home sales. As mentioned above, consumer confidence plays a significant role in a family’s desire to buy a home. How may consumer confidence impact the housing market post-election? The BTIG report covered that as well:
“A change in administration might benefit trailing blue county housing dynamics. The re-election of President Trump could continue to propel red county outperformance.”
Again, overall sales should not be impacted in a significant way.
Bottom Line
If mortgage rates remain near all-time lows, the economy continues to recover, and unemployment continues to decrease, the real estate market should remain strong up to and past the election.
2020-09-02T08:19:00-07:00
2020-09-02T08:34:54-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:10334
8 REASONS THE CORONAVIRUS WON’T CRASH THE HOUSING MARKET
It’s all you hear on the news, it’s all you read in the papers, and it’s all you see on social media. The coronavirus is everywhere, and it’s safe to say that everyone is scared, both of the disease itself and the potential economic implications of the whole country going into a temporary quarantine.
Echos of the 2008 housing market crash have many agents imagining doomsday scenarios and assuming the worst.
But in a recent article published by <a href="https://www.usatoday.com/story/money/2020/03/11/recession-heres-how-coronavirus-crises-different-2008/5012228002/" rel="noopener" target="_blank">USA Today</a>, Gus Faucher, chief economist of PNC Financial Services Group, said, “A recession is not inevitable. If we do get a recession, it is likely to be brief and much less severe than the Great Recession.”
Faucher notes that the 2008 financial crisis and recession resulted from years of deeply rooted economic insecurities, which isn’t the case now.
“What we’re seeing is caused by something external to the economy,” Faucher said.
There are key differences in this market that spell good things for the housing market despite recent events. Let’s examine some of the key indicators that we will avoid a housing market crash.
1. Inventory is low.
A December 2019 <a href="https://www.forbes.com/sites/alyyale/2019/12/05/2020-will-see-historic-low-level-of-housing-inventory/#73e56773d7f5" rel="noopener" target="_blank">Forbes article</a> predicted a historically low level of housing inventory in 2020. According to NAR statistics, there is a chronic shortfall of 300,000 to 400,000 housing units every year.
Bryan Souza, a real estate agent from Fresno, Calif., who worked through the 2008 recession, says there is a key difference between that market and today’s.<br /><br />“Back then, we had 18 months of supply...it was a buyer's market,” Souza said. Today, in our local metro and actually nationwide, we're looking at two to three months of inventory. And so, it's more of a seller’s market.”
Even when markets turn, buyer demand remains. Even if some buyers initially delay their purchases out of fear, when that fear subsides, most buyers will still want to buy — and that pent-up demand will turn into sales.
2. Mortgage rates are low.
Mortgage rates have been below 4% for some time and are expected to remain low. These low rates will encourage more people to buy, even if they are dissuaded by initial fears caused by the virus.
3. Subprime loans are down.
The 2008 crash was set off when banks and other lenders approved an overabundance of mortgages to unqualified buyers, driving up home prices to too-high levels. When home prices began spiraling down, millions of Americans stopped making mortgage payments and lost their homes, and banks were pushed to the edge of bankruptcy.
At that time, household debt climbed to a record 134% of gross domestic product. Today, household debt is at a historically low 96% of GDP. Households today are saving about 8% of their income, compared to just 3% in 2008.
According to data from the Federal Reserve Bank of New York and Equifax Consumer Credit Panel, from the third quarter of 2001 through the end of 2008, an average of 20% of all mortgages originated went to people with subprime credit scores (lower than 660). In the third quarter of 2018, subprime borrowers received just 9% of all mortgages.
All of this means more Americans are better equipped to handle a temporary economic disruption that won’t significantly impact their ability to buy homes or hold onto their current ones.
4. Today’s homeowners have more equity in their homes.
According to a Federal Reserve report called the Flow of Funds, Americans owned $18.7 trillion of their homes, giving them a 64% equity stake. By comparison, this number was just 52.7% in the first quarter of 2007. This means that the vast majority of homeowners will have no problem keeping their homes during these uncertain times.
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5. The government is offering a moratorium on foreclosures for 60 days — which is likely to be extended for up to 12 months.
In light of the current situation, the Department of Housing and Urban Development announced that all single-family homeowners with Federal Housing Administration-backed mortgages would be shielded from foreclosure or eviction until mid-May.
The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to suspend all foreclosures for "at least 60 days." The FHFA also offered payment forbearance to homeowners affected by COVID-19, allowing them to suspend mortgage payments for up to 12 months.
These moves should instill confidence in home sellers and give them an opportunity to sell their homes during the extension.
6. Home prices appreciated during previous recessions.
Not every recession signals a housing market crash. In fact, home prices went up in three out of the last five recessions (1980, 1981, 2001) and remained mostly flat in one (they dropped 1.9% in the 1991 recession). They only dropped significantly in 2008.
According to Zillow, annual home value appreciation across all states since 1997 has averaged 4.6% during times of economic growth and 4% during recessions.
The current market conditions are much more similar to how they were in 2001, after 9/11.
7. People will always need a place to live.
More than ever, people understand the value of having a roof over their heads. In times of uncertainty, homeownership is a security people take pride in and work toward. Real estate is above all a human industry, and humans crave the stability of homeownership.
8. No one knows how long this will last.
Fear is at an all-time high right now. There is so much uncertainty about how this virus will impact people in the United States that people are assuming the worst.
If a viable cure is found in the next few weeks and rolled out, this pandemic could be a much shorter-term issue than initially anticipated. Now is not the time to start panicking and stop doing what works and makes sense.
If you have a solid marketing strategy, like a marketing system you follow or marketing materials, like books, that are consistently helping you get listings, now isn’t the time to abandon tried and true resources.
Stick to what’s working, adapt with the change, and you will come out on top.
SOURCE: <a href="https://blog.smartagents.com/8-reasons-coronavirus-wont-crash-housing-market">https://blog.smartagents.com/8-reasons-coronavirus-wont-crash-housing-market</a>
2020-03-21T10:21:00-07:00
2020-03-21T10:43:03-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9965
First Time Buyers
2020-01-22T09:50:00-07:00
2020-01-22T09:58:57-07:00
Heidi Shade
tag:exitrealtypalmbeach.com,2012-09-20:9931
Canadians should use Canadian Banks to Finance USA Purchase
For Canadians, buying a home in the U.S. is different than what Canadian buyers are used to. And one of the biggest challenges is how Canadians handle the difference in the exchange rate when paying for property in the U.S. The good news is that there is at least one Canadian Bank that can finance a Canadian buyer's U.S. purchase without that buyer losing money on the exchange differential in currency. RBC Bank of Canada is one such bank and fortunately I have a select relationiship with them to assist any Canadian buyers who are interested in owning property here in the U.S.
RBC works in partnership with real estate professionals like myself and our Canadian clients to bridge the gap and get things done right. Some major differences of dealing with RBC:
RBC uses your Canadian credit history to help you qualify- unlike most U.S. banks.
RBC won't charge Canadians a foreign national fee- saving them up to 2% on their rate.
RBC mortgages are available in all 50 states.
Foreign exchange is a big concern for Canadian buyers. When Canadian clients finance a U.S. home instead of paying cash, they limit their upfront foreign exchange cost to just the 20% down payment and closing costs.
RBC accepts funds drawn from your Canadian equity to cover the down payment on U.S. property.
RBC will share their network of cross-border tax and legal professionals to assist our mutual clients move easily throughout the buying process.
If you are Canadian and looking to own real estate in the U.S, look for the advantages offered you by RBC and me here in South Florida. And if you are looking elsewhere in the U.S, I can help you find a trusted Real Estate professional in any area who can work with you and RBC to make your U.S Real Estate purchase go smoothly. <br /><br />RBC has a great Canadian Dollar to US Dollar converter program for assistance. Click this link: <a href="https://www.rbcbank.com/cgi-bin/tools/cadusd-foreign-exchange-calculator/start.cgi?utm_source=bronto&utm_medium=email&utm_campaign=cbree&utm_content=drip-10_calculator" title="CAD to USD Converter from RBC Bank" target="_blank">CAD to USD Converter</a>
2020-01-19T11:18:00-07:00
2020-01-19T14:18:46-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:9787
ORGANIC FOOD ON A BUDGET
Organic food usually tastes better, and is better for you, but it can also be very expensive compared to non-organic products. Organic food can cost nearly 50 percent more, thanks to the extra labor required to produce it and consumers’ demand exceeding supply.
So how do you get tasty organic food without spending a ton of extra money? Follow these tips to get more bang for your buck.
Shop at farmers’ markets: You can get fresh organic produce for far less at a farmers’ market than you’d pay at the grocery store. It’ll taste just as good, and you’re getting your food straight from the source.
Choose seasonal produce: Out-of-season produce usually has to be imported, and that can really drive up the price. Focus your meals on in-season fruits and vegetables so that you don’t end up paying $6.00 for a pound of organic asparagus.
Shop more frequently, and plan your meals around bulk sales: The trick here is to only buy what’s needed for your meals, and to only plan for a week of meals at most. That way you’re less likely to throw food away, because you can use leftover produce for more meals before it goes bad.
Grow your own: A home vegetable garden will provide some extremely cheap organic produce, and gardening can also be a fun and rewarding hobby.
2019-12-27T09:07:00-07:00
2020-09-02T08:35:14-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9786
PRIORITY TASKS FOR YOUR MOVE IN
Moving into a new home is an exciting time, and you’re probably daydreaming about decor and paint schemes and new furniture. But before you get into the fun stuff, there are some basics you should cover first.
Change the locks
Even if you’re promised that new locks have been installed in your home, you can never be too careful. It’s worth the money to have the peace of mind that comes with knowing that no one else has the keys to your home. Changing the locks can be a DIY project, or you can call in a locksmith for a little extra money.
Steam clean the carpets
It’s good to get a fresh start with your floors before you start decorating. The previous owners may have had pets, young children, or just some plain old clumsiness. Take the time to steam clean the carpets so that your floors are free of stains and allergens. It’s pretty easy and affordable to rent a steam cleaner—your local grocery store may have them available.
Call an exterminator
Prior to move-in, you probably haven’t spent enough time in the house to get a view of any pests that may be lurking. Call an exterminator to take care of any mice, insects, and other critters that may be hiding in your home.
Clean out the kitchen
If the previous occupants wanted to skip on some of their cleaning duties when they moved out, the kitchen is where they probably cut corners. Wipe down the inside of cabinets, clean out the refrigerator, clean the oven, and clean in the nooks and crannies underneath the appliances.
2019-12-27T09:00:00-07:00
2020-09-02T08:35:51-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9724
Selling Your Home During the Holidays
The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Really. Once you've committed to the challenge, don your gay apparel and follow these tips from FrontDoor.
1. Deck the halls, but don’t go overboard.<br />Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
2. Hire a reliable real estate agent.<br />That means someone who will work hard for you and won't disappear during Thanksgiving, Christmas or New Year's. Ask your friends and family if they can recommend a listing agent who will go above and beyond to get your home sold. This will ease your stress and give you more time to enjoy the season.
3. Seek out motivated buyers.<br />Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.
4. Price it to sell.<br />No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.
5. Make curb appeal a top priority.<br />When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
6. Take top-notch real estate photos.<br />When the weather outside is frightful, homebuyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.
7. Create a video tour for the Web.<br />You'll get less foot traffic during the holidays thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don't have time to physically see your home or would rather not drive in a snowstorm.
8. Give house hunters a place to escape from the cold.<br />Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.
9. Offer holiday cheer in the form of financing.<br />Bah, humbug! Lenders are scrooges these days, but if you've got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.
2019-12-13T15:25:00-07:00
2019-12-13T14:30:17-07:00
Sheryl Volk
tag:exitrealtypalmbeach.com,2012-09-20:9647
Do I Need a Permit for That?
When does a homeowner need a permit to remodel? Ask local government. It varies by city and few offer an easy-to-find master list of permit-needed activities.<br /><br />
When undertaking a remodel or home improvement project, how do you know when you need a building permit from your city government?
Cities require permits to ensure that the changes on a home go on record. The changes also are reviewed by an inspector to ensure they’re up to code. For example, if you decide to rewire your electricity panel, exposed wires could represent a safety issue to you and your home.
When homeowners sell their home, buyers and lenders will want to know if any remodels they did complied with building codes. So the permit could salvage a sale too.
“The general rule of thumb is that structural, electrical, plumbing, or mechanical work will require a permit,”
A fence installation or repair, window installations, plumbing and electrical work, replacing the water heater or changes to the ventilation system, as well as gas and wood fireplaces all will likely require a permit for the work. Also, any additions or upgrades made to the home, typically of $5,000 or more, will likely require a permit.
On the flip side, permits likely won’t be needed for painting, installing floors or faucets, or landscaping work.
Permit requirements vary by city. Check with the local building department to be on the safe side.
courtesy:© Copyright 2019 INFORMATION INC., Bethesda, MD (301) 215-4688
2019-11-29T10:10:00-07:00
2020-01-19T11:14:42-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:9646
Create A Stylish Home With Kids And Stay On Budget
Home decorating when you have kids may seem like an exercise in futility, yet design experts say it’s well within reach for families to stylishly furnish a house and still remain within budget.<br /><br />The arrival of a child can spark a desire to redecorate as many parents buy new furniture to accommodate their growing family. And as kids get older, parents may find their family’s needs require updating a home with storage for sports equipment or tailoring a room to a teen’s maturing taste.
“Your style changes a little bit when you have kids,” says Emily Clark, 42, a stay-at-home mother of five who blogs about decorating from Charlotte, North Carolina. “It doesn’t mean it can’t be beautiful,” she adds. “I work at home. This is my environment 99% of the time when I’m not in the car. I want it to be a happy place when I’m here.”
While there’s no hard-and-fast rule about how much to budget for home decorating, Clark and other experts note that you don’t have to spend a fortune.
Creative hacks like repainting a room or buying new pillows for a sofa or bed can help spruce up a room without high costs.
To be sure, families with big budgets can find ways to spend tens of thousands of dollars on decorating, from custom built-ins to expensive furniture. Yet it’s possible to create a stylish home without draining your bank account.
Below are three tips from design experts about how to decorate a home with kids while sticking to a budget.
Hire a decorator – or not
Hiring a decorator doesn’t have to be an expensive. For instance, you can hire one for an hour-long basic consultation, which could cost $50 to $150 an hour or more, depending on the decorator’s fee. And some furniture stores provide decorating advice to customers.
Still, says Kerrie Kelly, a design expert with Zillow and the founder of Kerrie Kelly Design Lab, “It’s a bit of the Wild West right now” in terms of what decorators charge. Some stick with a per-hour fee, while others charge by the project, she says.
An increasingly popular option is to hire an online decorating service, says Clark. Sites such as Havenly and Decorist offer these services, which can cost between $19 to $1300 or more, depending on the level of advice.
“You can send pictures of your space, and they give you a list of things to buy or an inspiration board,” she says. “It’s good for a budget.”
But consumers can also take a DIY approach to design. Look through Pinterest or Instagram to find images of styles that appeal to you, Clark recommends.
“There are ideas galore all over,” she adds. “Pin 25 living rooms you love. Go back and look - they probably have a common theme.”
Consider furniture that can be repurposed
From the get-go, parents are likely to search for new furniture to accommodate their growing family, such as changing tables and storage for toys. But before you buy an item, consider how it might be repurposed as children get older.
“I turned my changing table into a bar cart,” notes Mitchell Parker, editor at home-remodeling and design site Houzz.com. “It worked out great.”
He adds, “Anytime you can look ahead and incorporate pieces that can transition and grow with your kid is a good idea.”
And before buying furniture, consider what you already own that could be repurposed, says Zillow’s Kelly. “Maybe take that dining room cabinet and put it in the den for children’s books, and use it as a library,” she notes.
Buy durable fabrics and carpets
If you’re considering new upholstered furniture, take a look at durable fabrics like Crypton or Sunbrella, says Zillow’s Kelly. Furniture stores such as Pottery Barn offer furniture with these types of fabrics, which can make it easier to clean up a spill and therefore ease your mind about children’s sometimes rough use.
Carpet tiles are also a flexible option for families, Kelly adds. Spills or damage can be easily fixed by replacing a single tile, and they can be changed out for new colors as children get older, she says.
“You invest a lot in a sofa and you don’t want your sofa to get ruined the first time your kid spills a soda,” says Houzz.com’s Parker. “We also recommend things that can be thrown into the washing machine, like slipcovers. Anything like that will help.”
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Courtesy:© 2019 South Bergenite, North Jersey Media Group, Inc. All Rights Reserved.
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2019-11-29T09:41:00-07:00
2020-01-19T11:18:08-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:9619
CONSIDER THIS: WHEN TO REFINANCE
Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.
Scoring a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate.
Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.
Switching from an adjustable rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.
2019-11-25T20:25:00-07:00
2019-11-25T20:38:59-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:9618
TOP TIPS FOR HOUSE HUNTING ONLINE
Hunting for a new home online is a great place to start your search, but it should not be your end all be all. Good listing agents are excellent at highlighting the best features of the home, but keep in mind there may be more than meets the eye. To make the most of your time and efforts and gather a well-rounded picture of home listings online, keep the following three things in mind.
Stay up to date. When you start your search, make sure you find a site that pulls up-to-date listings directly from the multiple listing service (MLS) where real estate agents actively post their most current homes for sale. Many online resources update less often or fail to remove listings that are off the market, making it more difficult to sort through the clutter.
Pictures can be deceiving. Real estate photographers are experts at showing a home in the best possible light. Many use tools and strategies to boost appeal, such as a fisheye lens to make areas look larger and creative editing to make colors and textures really pop. But, often listings will not contain photos of unappealing parts of the home, like small closets or outdated bathrooms.
See it to believe it. Once you find what appears to be your dream home online, call up your real estate agent and schedule a showing. You want to take the opportunity to vet the home in person and explore every part of it before beginning the offer process. Your real estate agent will help you cover all your bases and will ask questions you may not have thought of.
2019-11-25T20:13:00-07:00
2019-11-25T20:17:08-07:00
Ramon "Ray" Negron