Think Twice Before Waiting for Lower Home Prices
As the housing market continues to change, you may be wondering where it’ll go from here. One factor you’re probably thinking about is home prices, which have come down a bit since they peaked last June. And you’ve likely heard something in the news or on social media about a price crash on the horizon. As a result, you may be holding off on buying a home until prices drop significantly. But that’s not the best strategy.
A recent survey from Zonda shows 53% of millennials are still renting right now because they’re waiting for home prices to come down. But here’s the thing: the most recent data shows that home prices appear to have bottomed out and are now on the rise again. Selma Hepp, Chief Economist at CoreLogic, reports:
“U.S. home prices rose by 0.8% in February . . . indicating that prices in most markets have already bottomed out.”
And the latest data from Black Knight shows the same shift. The graph below compares home price trends in November to those in February:
So, should you keep waiting to buy a home until prices come down? If you factor in what the experts are saying, you probably shouldn’t. The data shows prices are increasing in much of the country, not decreasing. And the latest data from the Home Price Expectation Survey indicates that experts project home prices will rise steadily and return to more normal levels of appreciation after 2023. The best way to understand what home values are doing in your area is to work with a local real estate professional who can give you the latest insights and expert advice.
Bottom Line
If you’re waiting to buy a home until prices come down, you may want to reconsider. Work with an agent to make sure you understand what’s happening in your local housing market.
Article courtesy of Keeping Current Matters
We’re in a Sellers Market. What Does That Mean?
Even though activity in the housing market has slowed from the frenzy we saw over a year ago, today’s low supply of homes for sale is still a sellers’ market. But what does that really mean? And why are conditions today so good if you want to list your house?
It starts with the number of homes available for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes 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):
What Does This Mean for You?
When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find one to purchase. That creates increased competition among purchasers and keeps upward pressure on prices. And if buyers know they’re not the only one interested in a home, they’re going to do their best to submit a very attractive offer. As this happens, sellers are positioned to negotiate deals that meet their ideal terms. Lawrence Yun, Chief Economist at NAR, says:
“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”
Right now, there are still buyers who are ready, willing, and able to purchase a home. If you list your house right now in good condition and at the right price, it could get a lot of attention from competitive buyers.
Bottom Line
Today’s sellers’ market can be a great time for homeowners ready to make a move. Listing your house now will maximize your exposure to serious, competitive buyers. Connect with a local real estate professional to jumpstart the selling process.
Article courtesy of Keeping Current Matters
February 2023 Market Update
January 2023 Market Update
December 2022 Market Update
Apps to Make Saving Easier
Saving for a home, retirement, a vacation or anything else can be difficult.
The median retirement savings of all working-age families in the United States is $5,000, according to the Economic Policy Institute. Given that many financial advisers recommend having about $1 million in retirement, that leaves many families far short of their retirement plans.
Don’t let such big goals keep you from striving for them. Many mobile apps help people reach multiple savings goals, often in painless ways that only require the change you’d normally get at the cash register.
For a retirement plan, home down payment or other large financial goal, you’re probably best off by maximizing automatic paycheck deductions or contributing regularly to a savings account. For smaller savings goals, here are some apps to check out:
Qapital: Set multiple savings goals and have money moved into savings based on rules you set. The service is free.
You won’t have to sacrifice the things you love buying. Buying an espresso every morning at your local coffee shop? Tell the app to save $5 every time you buy coffee. Or it can round up that coffee purchase by a lower amount, such as moving a $3.50 coffee to $4 and putting that extra 50 cents in your account.
Digit: This service has a different way of helping users save money. It connects to your checking account and analyzes your income and spending and finds money it can set aside for you. It never transfers more than you can afford, so you don’t have to worry about overdrafting your account.
Digit used to be free, but now charges $3 per month for its service. A 100-day free trial is available.
Acorns: This micro-investing app turns every purchase you make into an investment.
It connects your accounts and cards that you use to make everyday purchases and rounds your purchases to the nearest dollar. That spare change is automatically invested. You can also set up recurring or one-time investments.
Acorns costs $1 per month to use. For accounts of $5,000 or more, the fee is 0.25 percent per year.
SmartyPig: This online saving account lets you save for specific goals by making automatic transfers from your linked bank account. Want to save for a new TV? SmartyPig can help you set up an account for that.
The service is free. Up to six withdrawals per account can be made each month.
Article courtesy of Institute for Luxury Home Marketing
November 2022 Market Update
4 Ways to Slash Utility Bills With a DIY Energy Audit
Fixing a few of your home’s most likely trouble spots can improve energy efficiency and save you a bundle on utility bills. Consumer editors at ThisOldHouse.com provide a starting point for your DIY energy audit:
Drafty Windows
On a windy day, close all windows and exterior doors, as well as the chimney flue damper. Light a stick of incense, move it around the perimeter of each window and watch for air that stirs the rise of smoke. If you find a culprit, scrape out any cracked or dried caulk on the outside where the casing meets the siding. Apply a fresh bead of paintable acrylic latex, such as DAP’s Alex Plus. For doors, add new weather stripping. The work may shave off up to $20 from your annual bill for each window and door you weatherize.
Damaged Fireplace Damper
Up to 20 percent of your home’s warmed air can be drawn up and out via your chimney flue. Check it by closing the damper and holding a lit candle inside the firebox. If it blows around or blows out, you are losing a lot of warm air. Hire a chimney sweep to give it a good cleaning and check the damper. The $100 or $200 service call may reduce your annual heating bill by as much as $500.
Old, Tank-Style Water Heater
Water heaters more than 10 years old are likely lined with fiberglass insulation, which is less effective at preventing heat loss than the foam used today. Check the age of yours on the printed label, then touch the tank. If it feels warm, it’s losing insulation. Wrapping it in a pre-cut blanket and fitting foam sleeves or insulating tape around the pipes can reduce annual water-heating bills by up to 9 percent.
An Over-Worked Fridge
The refrigerator gets no time off, and wear and tear over time will take a toll on the gasket. Check by closing the door on a sheet of paper. If you don’t feel resistance when you pull it out, the gasket seal is leaking cold air. Order a new one from the manufacturer for about $60 – $90. It’s relatively easy to remove the old one, and installing the new one following the manufacturer’s instructions will improve its performance by up to 25 percent.
Article courtesy of Institute for Luxury Home Marketing
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