Greater Springfield Real Estate BlogRecently posted or modified blog posts in the category - Selling Your Homehttps://www.viewspringfieldrealestate.com/blog/Copyright ViewSpringfieldRealEstate.com2023-10-11T10:15:49-07:00tag:viewspringfieldrealestate.com,2012-09-20:31055How Homeowner Net Worth Grows with Time [INFOGRAPHIC]How Homeowner Net Worth Grows with Time [INFOGRAPHIC]
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231005/How-Homeowner-Net-Worth-Grows-with-Time-KCM-Share.png" width="600" /><br /><br />
<a href="https://www.simplifyingthemarket.com/en/content/images/20231005/How-Homeowner-Net-Worth-Grows-with-Time-MEM.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231005/How-Homeowner-Net-Worth-Grows-with-Time-MEM.png" /></a>
Some Highlights
If you’re thinking about buying a home this year, be sure to consider the <a href="https://www.mykcm.com/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/" rel="noopener noreferrer" target="_blank">long-term</a> financial <a href="https://www.mykcm.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/" rel="noopener noreferrer" target="_blank">advantages</a> of homeownership, like home equity.
On average, people who bought homes 32 years ago have seen their home’s value nearly <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" rel="noopener noreferrer" target="_blank">triple</a> over that time.
If you’re wondering if <a href="https://www.mykcm.com/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/" rel="noopener noreferrer" target="_blank">buying</a> a home is a <a href="https://www.fanniemae.com/research-and-insights/perspectives/consumers-homeownership-aspirations-remain-high-despite-higher-home-prices-and-interest-rates" rel="noopener noreferrer" target="_blank">good idea</a>, remember rising home values could grow your net worth with time. When you’re ready to start your homebuying journey, let’s talk.
2023-11-16T07:45:00-07:002023-10-11T10:15:49-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:31049The Latest Expert Forecasts for Home Prices in 2023The Latest Expert Forecasts for Home Prices in 2023
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20231005/20231011-The-Latest-Expert-Forecasts-for-Home-Prices-in-2023.png" width="600" /><br /><br />
Are you thinking about <a href="https://www.simplifyingthemarket.com/en/2023/08/14/where-are-people-moving-today-and-why/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">making a move</a>? If so, all the speculation that <a href="https://www.simplifyingthemarket.com/en/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">home prices</a> would crash this year may have you feeling a bit on edge about your decision. Let the data and the experts reassure you. Prices aren’t in a downward spiral and will actually finish the year strong.
Even though you may have heard talk that prices would drop 5, 10, or even 20% this year, that hasn’t happened. The big reason why is the <a href="https://www.simplifyingthemarket.com/en/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">supply of homes</a> for sale is too low. There are just <a href="https://www.simplifyingthemarket.com/en/2023/09/15/plenty-of-buyers-are-still-active-today-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">more buyers</a> looking to buy than <a href="https://www.simplifyingthemarket.com/en/2023/09/14/why-is-housing-inventory-so-low/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">homes available</a>, and that’s kept prices from falling.
To prove this year wasn’t a bust for <a href="https://www.simplifyingthemarket.com/en/2023/09/12/what-experts-project-for-home-prices-over-the-next-5-years/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">home prices</a>, let’s look at the latest 2023 forecast from a number of experts.
Most Experts Project Home Prices Will Net Positive this Year
The general consensus from industry experts is that home <a href="https://www.simplifyingthemarket.com/en/2023/09/05/expert-home-price-forecasts-revised-up-for-2023/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">price appreciation</a> will actually be positive for 2023. The graph below shows the latest 2023 year-end forecasts from six different organizations:
<a href="https://www.simplifyingthemarket.com/en/content/images/20231005/20231011-2023-Year-End-Home-Price-Forecasts.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20231005/20231011-2023-Year-End-Home-Price-Forecasts.png" /></a>
As you can see, all but one project nationally prices will net positive this year. That’s significant because it shows the majority are optimistic about home price growth.
If you’re still worried about the one red bar that shows an overall price drop for the year, think about this. The <a href="https://cdn.nar.realtor/sites/default/files/documents/forecast-q3-2023-us-economic-outlook-07-27-2023.pdf" rel="noopener noreferrer" target="_blank">projection</a> from the National Association of Realtors (NAR) is for only a slight decline. It’s not the big crash all the headlines called for. Plus, if you average all six forecasts together, the expectation is that prices will net somewhere around 3.3% positive growth for the year.
If these 6 organizations aren’t enough to convince you that prices won’t come tumbling down, here’s something else to consider. One of the six forecasts represented in the graph is the <a href="https://pulsenomics.com/surveys/#home-price-expectations" rel="noopener noreferrer" target="_blank">Home Price Expectation Survey</a> (HPES) from Pulsenomics. It combines survey results from over 100 economists, investment strategists, and housing market analysts. The HPES found that the average from all 100 of those experts is 3.3% price growth for the year.
If you look back at the graph above, you’ll notice the blue average for the forecasts in this graph is also 3.3%. While individual forecasts may vary, both the HPES survey and the average of these forecasts provide the same projection. And 3.3% appreciation is a completely different story than prices falling.
Bottom Line
If you’re worried about home prices falling this year, let the experts reassure you. Based on the average of the latest forecasts, home prices will actually show positive growth this year. If you have questions about what’s happening with home prices in our local area, let’s connect.
KCM2023-10-11T09:38:31-07:002023-10-11T09:39:24-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:28999Why Buying or Selling a Home Helps the Economy and Your CommunityWhy Buying or Selling a Home Helps the Economy and Your Community
<br /><img src="https://files.keepingcurrentmatters.com/content/images/20230614/20230615-why-buying-or-selling-a-home-helps-the-economy-and-your-community.jpg" width="600" /><br /><br />
If you're thinking about <a href="https://www.simplifyingthemarket.com/en/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">buying</a> or <a href="https://www.simplifyingthemarket.com/en/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">selling</a> a house, it's important to know that it doesn't just affect your life, but also your community.
The National Association of Realtors (NAR) releases a <a href="https://cdn.nar.realtor/sites/default/files/documents/2023-state-by-state-economic-impact-of-real-estate-activity-report-us-05-01-2023.pdf?_gl=1*13hskvj*_gcl_au*NTQ4NDc1ODEzLjE2Nzg5MTgyNzk" rel="noopener noreferrer" target="_blank">report</a> every year to show how much economic activity is generated by <a href="https://www.simplifyingthemarket.com/en/2023/05/25/the-benefits-of-selling-now-according-to-experts/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">home sales</a>. The chart below illustrates that impact:
<a href="https://www.simplifyingthemarket.com/en/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank"><img src="https://files.keepingcurrentmatters.com/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png" /></a>
As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), <a href="https://chicagoagentmagazine.com/2023/01/02/nahb-robert-dietz-new-construction/" rel="noopener noreferrer" target="_blank">explains</a> how the housing industry <a href="https://www.simplifyingthemarket.com/en/2023/05/18/powerful-job-market-fuels-homebuyer-demand/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">adds jobs</a> to a community:
“The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.”
Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from Fortune <a href="https://fortune.com/2022/08/09/real-estate-housing-market-falling-prices-economic-risk/" rel="noopener noreferrer" target="_blank">notes</a> housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy:
“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . . consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint.”
When you <a href="https://www.simplifyingthemarket.com/en/2023/05/24/owning-a-home-helps-protect-against-inflation/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">buy</a> or sell a home, you work with a <a href="https://www.simplifyingthemarket.com/en/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">team of professionals</a>, including contractors, specialists, lawyers, and city officials. Each person plays a role in making the transaction happen.
So, when you <a href="https://www.simplifyingthemarket.com/en/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">make a move</a> in the housing market, you're not just <a href="https://www.simplifyingthemarket.com/en/2023/05/23/why-buying-a-vacation-home-beats-renting-one-this-summer/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" rel="noopener noreferrer" target="_blank">meeting</a> your own needs, you're also making a positive impact on the community. Knowing this can give you a sense of empowerment as you make your decision this year.
Bottom Line
Each and every home sale is important for the local economy. If you’re ready to <a href="https://www.viewspringfieldrealestate.com/" rel="noopener noreferrer" target="_blank">move</a>, let’s connect. It won’t just change your life – it’ll also have a strong positive effect on the whole community.
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.
2023-07-07T07:00:00-07:002023-07-05T14:58:01-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:25075Equity Gains for Today’s HomeownersEquity Gains for Today’s Homeowners
<img width="750" height="410" src="https://files.mykcm.com/2023/03/01162155/equity-gains-for-todays-homeowners-KCM.jpg" class="attachment-entry size-entry wp-post-image" alt="Equity Gains for Today’s Homeowners | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2023/03/01162155/equity-gains-for-todays-homeowners-KCM.jpg 750w, https://files.mykcm.com/2023/03/01162155/equity-gains-for-todays-homeowners-KCM-600x328.jpg 600w, https://files.mykcm.com/2023/03/01162155/equity-gains-for-todays-homeowners-KCM-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Today’s homeowners are sitting on significant equity, even as home price appreciation has eased recently. If you’re a homeowner, your <a href="https://www.simplifyingthemarket.com/2023/02/27/one-major-benefit-of-investing-in-a-home/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="net worth" target="_blank" rel="noopener noreferrer">net worth</a> got a boost over the past few years thanks to rising home prices. Here’s what it means for you, even as the market moderates.
How Equity Has Grown in Recent Years
Because of the imbalance between how many <a href="https://www.simplifyingthemarket.com/2023/02/17/the-spring-housing-market-could-be-a-sweet-spot-for-sellers-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="homes" target="_blank" rel="noopener noreferrer">homes</a> were for sale and the number of homebuyers in the market over the past few years, home prices appreciated substantially.
And while price appreciation has <a href="https://www.simplifyingthemarket.com/2023/02/16/wondering-whats-going-on-with-home-prices/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="slowed" target="_blank" rel="noopener noreferrer">slowed</a> this year, that doesn’t mean you’ve lost all the equity in your home. In fact, the latest Homeowner Equity Insights report from CoreLogic <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights-q3-2022/" title="finds" target="_blank" rel="noopener noreferrer">finds</a> the average homeowner’s equity has grown by $34,300 over the past year alone.
And if you’ve been in your home longer than that, chances are you have even more equity than you realize.
While that’s the national number, if you want to know what happened in your area, look at the map below from the Federal Housing Finance Agency (FHFA). It <a href="https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx" title="shows" target="_blank" rel="noopener noreferrer">shows</a> on average how much home prices have risen over the past five years, which has been a major driver behind equity growth.
<a href="https://files.mykcm.com/2023/03/01162153/percent-change-in-home-prices-MEM.png" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-107719" src="https://files.mykcm.com/2023/03/01162153/percent-change-in-home-prices-MEM.png" /></a>
Why This Is So Important Right Now
While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you <a href="https://www.simplifyingthemarket.com/2023/02/21/the-two-big-issues-the-housing-markets-facing-right-now/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="sell" target="_blank" rel="noopener noreferrer">sell</a> your current house, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.
So, if you’ve been holding off on selling, it may be time to find out how much equity you have and how it can help fuel your next move.
Bottom Line
Homeownership is a long game, and if you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.
<a href="https://bit.ly/3mwoGUL">KCM</a>
2023-03-23T11:15:00-07:002023-03-23T11:11:00-07:00Colton Moostag:viewspringfieldrealestate.com,2012-09-20:15895What’s Causing Today’s Competitive Real Estate Market? [INFOGRAPHIC]What’s Causing Today’s Competitive Real Estate Market? [INFOGRAPHIC]
<img width="1046" height="2072" src="https://files.mykcm.com/2021/10/07124832/20211008-MEM-1046x2072.png" class="attachment-entry size-entry wp-post-image" alt="What’s Causing Today’s Competitive Real Estate Market? [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/10/07124832/20211008-MEM-1046x2072.png 1046w, https://files.mykcm.com/2021/10/07124832/20211008-MEM-303x600.png 303w, https://files.mykcm.com/2021/10/07124832/20211008-MEM-517x1024.png 517w, https://files.mykcm.com/2021/10/07124832/20211008-MEM-768x1521.png 768w, https://files.mykcm.com/2021/10/07124832/20211008-MEM-775x1536.png 775w, https://files.mykcm.com/2021/10/07124832/20211008-MEM-1034x2048.png 1034w, https://files.mykcm.com/2021/10/07124832/20211008-MEM-100x198.png 100w, https://files.mykcm.com/2021/10/07124832/20211008-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
Today’s strong sellers’ market is the direct result of high <a href="https://www.simplifyingthemarket.com/2021/09/14/the-truth-about-todays-buyer-demand/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="demand">demand</a> and low <a href="https://www.simplifyingthemarket.com/2021/10/06/what-do-supply-and-demand-tell-us-about-todays-housing-market/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="supply">supply</a>.
Low <a href="http://www.freddiemac.com/pmms/" title="mortgage rates" target="_blank" rel="noopener noreferrer">mortgage rates</a> and <a href="https://www.pewresearch.org/fact-tank/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/" title="generational trends" target="_blank" rel="noopener noreferrer">generational trends</a> have created an increased demand for homes. Meanwhile, the slower pace of new home <a href="https://cdn.nar.realtor/sites/default/files/documents/Housing-is-Critical-Infrastructure-Social-and-Economic-Benefits-of-Building-More-Housing-6-15-2021.pdf" title="construction" target="_blank" rel="noopener noreferrer">construction</a> and homeowners <a href="https://blog.firstam.com/economics/why-homebodies-versus-pandemic-fueled-demand-will-determine-the-outlook-for-housing-market-potential" title="staying" target="_blank" rel="noopener noreferrer">staying</a> in their homes longer have both led to today’s low supply.
If you’re thinking of selling, let’s connect to talk about our <a href="https://www.nar.realtor/research-and-statistics/research-reports/realtors-confidence-index" title="local area" target="_blank" rel="noopener noreferrer">local area</a> and how you can take advantage of today’s <a href="https://www.simplifyingthemarket.com/2021/09/24/its-still-a-sellers-market-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="housing market">housing market</a>.
<a href="https://bit.ly/3v2UuRq">KCM</a>
2021-10-12T14:05:00-07:002021-10-12T14:06:42-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:15655As Home Equity Rises, So Does Your WealthAs Home Equity Rises, So Does Your Wealth
<img width="750" height="410" src="https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="As Home Equity Rises, So Does Your Wealth | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share.jpg 750w, https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/09/29110528/20210930-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Homeownership is still a crucial part of the American dream. For those people who <a href="https://www.simplifyingthemarket.com/2021/06/18/owning-a-home-has-distinct-financial-benefits-over-renting-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="own a home">own a home</a> (and those looking to buy one), it’s clear that being a homeowner has considerable benefits both <a href="https://www.simplifyingthemarket.com/2021/05/03/americans-find-the-nonfinancial-benefits-of-homeownership-most-valuable/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="emotionally">emotionally</a> and <a href="https://www.simplifyingthemarket.com/2021/04/08/homeownership-is-full-of-financial-benefits/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="financially">financially</a>. In addition to long-term stability, buying a home is one of the best ways to increase your net worth. This boost to your <a href="https://www.simplifyingthemarket.com/2021/06/17/housing-wealth-the-missing-piece-of-the-affordability-equation/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="wealth">wealth</a> comes in the form of equity.
<a href="https://www.simplifyingthemarket.com/2021/07/23/pop-quiz-can-you-define-these-key-terms-in-todays-housing-market-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="Equity">Equity</a> is the difference between what you owe on the home and its market value based on factors like price appreciation.
The best thing about equity is that it often grows without you even realizing it, especially in a <a href="https://www.simplifyingthemarket.com/2021/08/17/what-does-being-in-a-sellers-market-mean/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="sellers’ market">sellers’ market</a> like we’re in now. In today’s real estate market, the combination of <a href="https://www.simplifyingthemarket.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="low housing supply">low housing supply</a> and high buyer demand is driving <a href="https://www.simplifyingthemarket.com/2021/08/16/a-look-at-home-price-appreciation-and-what-it-means-for-sellers/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="home values">home values</a> up. This is giving homeowners a significant equity boost.
According to the latest data from CoreLogic, the amount of equity homeowners have has continued to grow as home values appreciate. Here are some key takeaways from the <a href="https://www.corelogic.com/intelligence/homeowner-equity-insights/" title="Homeowner Equity Insights Report" target="_blank" rel="noopener noreferrer">Homeowner Equity Insights Report</a>:
The average homeowner gained $51,500 in equity over the past year
There was a 29.3% increase in national homeowner equity year over year
To give you an idea of what that looks like in your area, the map below shows the average equity gains by state.<a href="https://files.simplifyingthemarket.com/2021/09/29110531/20210930-MEM-Eng-1.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99434" src="https://files.mykcm.com/2021/09/29110531/20210930-MEM-Eng-1.png" alt="As Home Equity Rises, So Does Your Wealth | MyKCM" width="600" height="450" /></a>
What does all of that mean for you?
If you’re already a homeowner, you likely have more equity in your house than you realize. The numbers in the map above reflect year-over-year growth. If you’ve been in your home for longer than a year, you’ll likely have even more equity than that. That equity can take you places. You can use the equity you’ve gained to fuel your next move, achieve other life goals, and more.
On the other hand, if you haven’t purchased a home yet, understanding equity can help you realize why homeownership is a worthwhile goal. Homeowners across the nation gained an average of over $50,000 in equity this year. Don’t miss out on this chance to grow your net worth.
Bottom Line
If you want to learn more, let's connect. A trusted advisor can help you understand where home prices are today, how they contribute to a homeowner’s net worth, and the impact equity can have when you own a home.
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2021-10-08T09:11:00-07:002021-09-30T14:44:09-07:00Curtis Coletag:viewspringfieldrealestate.com,2012-09-20:15299Your Checklist To Get Ready To Sell [INFOGRAPHIC]Your Checklist To Get Ready To Sell [INFOGRAPHIC]
<img width="1046" height="1353" src="https://files.mykcm.com/2021/08/26133632/20210827-MEM-1046x1353.png" class="attachment-entry size-entry wp-post-image" alt="Your Checklist To Get Ready To Sell [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/26133632/20210827-MEM-1046x1353.png 1046w, https://files.mykcm.com/2021/08/26133632/20210827-MEM-464x600.png 464w, https://files.mykcm.com/2021/08/26133632/20210827-MEM-792x1024.png 792w, https://files.mykcm.com/2021/08/26133632/20210827-MEM-768x994.png 768w, https://files.mykcm.com/2021/08/26133632/20210827-MEM-1187x1536.png 1187w, https://files.mykcm.com/2021/08/26133632/20210827-MEM-100x129.png 100w, https://files.mykcm.com/2021/08/26133632/20210827-MEM.png 1301w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
When it comes to <a href="https://www.simplifyingthemarket.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="selling">selling</a> your house, you want it to look its best inside and out.
It’s important to focus on tasks that can make it inviting, show it’s cared for, and boost your curb appeal for <a href="https://www.simplifyingthemarket.com/2021/08/05/surprising-shift-favors-homeowners-buyers-now-prefer-existing-homes/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="prospective buyers">prospective buyers</a>.
Let’s <a href="https://www.simplifyingthemarket.com/2021/06/14/the-right-expert-will-guide-you-through-this-unprecedented-market/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="connect">connect</a> to make sure your house shows well and catches a buyer’s eye.
Graddy Real Estate 417-501-5091
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2021-09-27T07:20:00-07:002021-09-14T08:32:36-07:00Colton Moostag:viewspringfieldrealestate.com,2012-09-20:15441Reasons You Should Consider Selling This FallReasons You Should Consider Selling This Fall
<img width="750" height="410" src="https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Reasons You Should Consider Selling This Fall | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share.jpg 750w, https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/08/31113807/20210907-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you're trying to decide when to sell your house, there may not be a better time to list than right now. The ultimate <a href="https://www.simplifyingthemarket.com/2021/08/17/what-does-being-in-a-sellers-market-mean/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="sellers' market">sellers' market</a> we're in today won't last forever. If you’re thinking of making a move, here are four reasons to put your house up for sale sooner rather than later.
1. Your House Will Likely Sell Quickly
According to the Realtors Confidence Index released by the <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-07-realtors-confidence-index-08-23-2021.pdf" title="National Association of Realtors&nbsp;" target="_blank" rel="noopener noreferrer">National Association of Realtors </a>(NAR), homes continue to sell quickly – on average, they're selling in just 17 days. As a seller, that's great news for you.
Average days on market is a strong indicator of buyer <a href="https://www.simplifyingthemarket.com/2021/08/18/real-estate-its-still-a-lack-of-supply-not-a-lack-of-demand/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="demand">demand</a>. And if homes are selling quickly, buyers have to be more decisive and act fast to submit their offer before other buyers swoop in.
2. Buyers Are Willing To Compete for Your House
In addition to selling quickly, homes are receiving multiple offers. That same survey shows sellers are seeing an average of 4.5 offers, and they’re competitive ones. The graph below shows how the average number of offers right now compares to previous years:<a href="https://files.simplifyingthemarket.com/2021/08/31113814/20210907-MEM-Eng-1.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99211" src="https://files.mykcm.com/2021/08/31113814/20210907-MEM-Eng-1.png" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" /></a>Buyers today know <a href="https://www.simplifyingthemarket.com/2021/08/31/what-buyers-and-sellers-need-to-know-about-the-appraisal-gap/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="bidding wars">bidding wars</a> are a likely outcome, and they're coming prepared with their best offer in hand. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.
3. When Supply Is Low, Your House Is in the Spotlight
One of the most significant challenges for motivated buyers is the current <a href="https://www.simplifyingthemarket.com/2021/07/27/a-look-at-housing-supply-and-what-it-means-for-sellers/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="inventory of homes">inventory of homes</a> for sale. Though it’s improving, it remains at near-record lows. The <a href="https://www.nar.realtor/newsroom/existing-home-sales-climb-2-0-in-July" title="chart" target="_blank" rel="noopener noreferrer">chart</a> below shows how today’s low inventory stacks up against recent years. The lighter the blue is in the chart, the lower the housing supply.<a href="https://files.simplifyingthemarket.com/2021/08/31113816/20210907-MEM-Eng-2.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-99212" src="https://files.mykcm.com/2021/08/31113816/20210907-MEM-Eng-2.png" alt="Reasons You Should Consider Selling This Fall | MyKCM" width="600" height="450" /></a>If you’re looking to take advantage of buyer demand and get the most attention for your house, <a href="https://www.simplifyingthemarket.com/2021/08/25/why-2021-is-still-the-year-to-sell-your-house/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="selling now">selling now</a> before more listings come to the market might be your best option.
4. If You’re Thinking of Moving Up, Now May Be the Time
If your current home no longer meets your needs, it may be the perfect time to make a move. Today, homeowners are gaining a significant amount of wealth through <a href="https://www.simplifyingthemarket.com/2021/07/09/your-home-equity-can-take-you-places-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="growing equity">growing equity</a>. You can leverage that equity, plus current <a href="https://www.simplifyingthemarket.com/2021/08/23/what-do-experts-say-about-todays-mortgage-rates/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="low mortgage rates">low mortgage rates</a>, to power your move now. But these near-historic low rates won’t last forever.
Experts forecast interest rates will rise. In their forecast, Freddie Mac <a href="http://www.freddiemac.com/fmac-resources/research/pdf/2021Q3-Forecast-04.pdf" title="says" target="_blank" rel="noopener noreferrer">says</a>:
“While we forecast rates to increase gradually later in the year, we don't expect to see a rapid increase. At the end of the year, we forecast 30-year rates will be around 3.4%, rising to 3.8% by the fourth quarter of 2022.”
When rates rise, even modestly, it’ll impact your monthly payment and by extension your purchasing power.
Bottom Line
Don't delay. The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers gives sellers a unique opportunity this season. If you’re thinking about making a move, let's chat about why it makes sense to list your house now.
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2021-09-14T16:02:00-07:002021-09-14T16:13:57-07:00Kari Wyrschtag:viewspringfieldrealestate.com,2012-09-20:14045Homes Across the Country Are Selling Fast [INFOGRAPHIC]Homes Across the Country Are Selling Fast [INFOGRAPHIC]
<img width="1046" height="2094" src="https://files.mykcm.com/2021/05/26172158/20210528-MEM-1046x2094.png" class="attachment-entry size-entry wp-post-image" alt="Homes Across the Country Are Selling Fast [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/05/26172158/20210528-MEM-1046x2094.png 1046w, https://files.mykcm.com/2021/05/26172158/20210528-MEM-300x600.png 300w, https://files.mykcm.com/2021/05/26172158/20210528-MEM-512x1024.png 512w, https://files.mykcm.com/2021/05/26172158/20210528-MEM-768x1537.png 768w, https://files.mykcm.com/2021/05/26172158/20210528-MEM-767x1536.png 767w, https://files.mykcm.com/2021/05/26172158/20210528-MEM-1023x2048.png 1023w, https://files.mykcm.com/2021/05/26172158/20210528-MEM-100x200.png 100w, https://files.mykcm.com/2021/05/26172158/20210528-MEM.png 1301w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
In today’s whirlwind real estate market, houses are selling at astonishing speed – from sea to shining sea.
Four years ago, the average house spent 39 days on the market. Two years ago, homes were on the market for about 24 days. Today, that number has dropped to just <a href="https://cdn.nar.realtor/sites/default/files/documents/REALTOR_Confidence_Index_052021.pdf" title="17 short days" target="_blank" rel="noopener noreferrer">17 short days</a>.
If you’re looking to sell your house quickly and on the best possible terms, today’s market can’t be beat. Let’s connect to discuss how to secure a speedy, top-dollar sale for your house.
Graddy Real Estate 417-501-5091
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2021-06-02T08:52:00-07:002021-09-14T15:55:18-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:11301This Isn’t a Bubble. It’s Simply Lack of Supply.This Isn’t a Bubble. It’s Simply Lack of Supply.
<img width="1046" height="1490" src="https://files.mykcm.com/2021/04/22135919/20210423-MEM-1046x1490.png" class="attachment-entry size-entry wp-post-image" alt="This Isn’t a Bubble. It’s Simply Lack of Supply. [INFOGRAPHIC] | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/04/22135919/20210423-MEM-1046x1490.png 1046w, https://files.mykcm.com/2021/04/22135919/20210423-MEM-421x600.png 421w, https://files.mykcm.com/2021/04/22135919/20210423-MEM-719x1024.png 719w, https://files.mykcm.com/2021/04/22135919/20210423-MEM-768x1094.png 768w, https://files.mykcm.com/2021/04/22135919/20210423-MEM-1078x1536.png 1078w, https://files.mykcm.com/2021/04/22135919/20210423-MEM-100x142.png 100w, https://files.mykcm.com/2021/04/22135919/20210423-MEM.png 1300w" sizes="(max-width: 1046px) 100vw, 1046px" /><br /><br />
Some Highlights
In a recent <a href="https://www.axios.com/housing-boom-bubble-mortgage-50b573de-94f0-4d7c-a34d-b2b40d9dc664.html" title="article" target="_blank" rel="noopener noreferrer">article</a>, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), discussed the state of today’s housing market.
When addressing whether or not today’s high buyer competition and rising home prices are evidence of a housing bubble, Yun said that this “is not a bubble. It is simply lack of supply.”
Today’s housing market is healthy, and rising prices are driven by real buyer demand. Let’s connect to talk about the best ways to navigate such an energetic market.
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2021-04-23T10:38:00-07:002021-04-23T10:40:42-07:00Curtis Coletag:viewspringfieldrealestate.com,2012-09-20:10948Should We Fear the Surge in Cash-Out Refinances?Should We Fear the Surge in Cash-Out Refinances?
<img width="750" height="410" src="https://files.mykcm.com/2021/03/22164901/20210323-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Should We Fear the Surge in Cash-Out Refinances? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/03/22164901/20210323-KCM-Share.jpg 750w, https://files.mykcm.com/2021/03/22164901/20210323-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/03/22164901/20210323-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
Freddie Mac recently released their <a href="http://www.freddiemac.com/research/datasets/refinance-stats/index.page" title="Quarterly Refinance Statistics" target="_blank" rel="noopener noreferrer">Quarterly Refinance Statistics</a> report which covers refinances through 2020. The report explains that the dollar amount of cash-out refinances was greater in 2020 than in recent years. A cash-out refinance, as <a href="https://www.investopedia.com/terms/c/cashout_refinance.asp" title="defined" target="_blank" rel="noopener noreferrer">defined</a> by Investopia, is:
“a mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash.”
The Freddie Mac report led to articles like the one published by The Real Deal titled, House or ATM? Cash-Out Refinances Spiked in 2020, which <a href="https://therealdeal.com/national/2021/03/11/house-or-atm-cash-out-refinancings-spiked-in-2020/" title="reports" target="_blank" rel="noopener noreferrer">reports</a>:
“Americans treated their homes like ATMs last year, withdrawing $152.7 billion amid a cash-out refinancing spree not seen since before the 2008 financial crisis.”
Whenever you combine the terms “spiked,” “homes like ATMs,” and “financial crisis,” it conjures up memories of the housing crash we experienced in 2008.
However, that comparison is invalid for three reasons:
1. Americans are sitting on much more home equity today.
Mortgage data giant Black Knight just issued information on the amount of <a href="https://www.blackknightinc.com/blog-posts/tappable-equity-skyrockets-to-record-high-in-2020/" title="tappable equity" target="_blank" rel="noopener noreferrer">tappable equity</a> U.S. homeowners with a mortgage have. Tappable equity is the amount of equity available for homeowners to use and still have 20% equity in their home. Here’s a graph showing the findings from their report:<a href="https://files.simplifyingthemarket.com/2021/03/22164858/20210323-MEM-Eng-1.png?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" target="_blank" rel="noopener noreferrer"><img class="aligncenter wp-image-97603" src="https://files.mykcm.com/2021/03/22164858/20210323-MEM-Eng-1.png" alt="" width="600" height="450" /></a>In 2006, directly before the crash, tappable home equity in the U.S. topped out at $4.6 trillion. Today, that number is $7.3 trillion.
As Black Knight explains:
“At year’s end, some 46 million homeowners held a total $7.3 trillion in tappable equity, the largest amount ever recorded...That’s an increase of more than $1.1 trillion (+18%) since the end of 2019, the largest percentage gain since 2013 and – you guessed it – the largest dollar value gain in history, to boot. All in all, it works out to roughly $158,000 on average per homeowner with tappable equity, up nearly $19,000 from the end of 2019.”
2. Homeowners cashed-out a much smaller amount this time.
In 2006, Americans cashed-out a total of $321 billion. In 2020, that number was less than half, totaling $153 billion. The $321 billion made up 7% of the total tappable equity in the country in 2006. On the other hand, the $153 billion made up only 2% of the total tappable equity last year.
3. Fewer homeowners tapped their equity in 2020 than in 2006.
Freddie Mac reports that 89% of refinances in 2006 were cash-out refinances. Last year, that number was less than half at 33%. As a percentage of those who refinanced, many more Americans lowered their equity position fifteen years ago as compared to last year.
Bottom Line
It’s true that many Americans liquidated a portion of the equity in their homes last year for various reasons. However, less than half of them tapped their equity compared to 2006, and they cashed-out less than one-third of that available equity. Today’s cash-out refinance situation bears no resemblance to the situation that preceded the housing crash.
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2021-03-25T12:32:00-07:002021-03-25T12:33:45-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:10878To Renovate or Not To Renovate Before You SellTo Renovate or Not To Renovate Before You Sell
<img width="750" height="410" src="https://files.mykcm.com/2021/03/17160017/20210318-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="To Renovate or Not To Renovate Before You Sell | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/03/17160017/20210318-KCM-Share.jpg 750w, https://files.mykcm.com/2021/03/17160017/20210318-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/03/17160017/20210318-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
When thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers. However, with so many <a href="https://www.simplifyingthemarket.com/2021/01/14/why-right-now-may-be-the-time-to-sell-your-house/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="buyers" target="_blank" rel="noopener noreferrer">buyers</a> competing for available homes right now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you’re thinking of selling this season.
1. There aren’t enough homes for sale right now.
A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a <a href="https://www.nar.realtor/newsroom/existing-home-sales-tick-up-0-6-in-january" title="1.9-month" target="_blank" rel="noopener noreferrer">1.9-month</a> supply of homes available today. As a result, buyer competition is high and homes are only on the market for about <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-01-realtors-confidence-index-02-19-2021.pdf" title="21 days" target="_blank" rel="noopener noreferrer">21 days</a>, during which time many receive multiple offers from hopeful buyers.
In a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might just mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to work with a real estate advisor to determine which improvements are truly necessary, and which ones are not likely to be deal-breakers for buyers.
Today, many buyers are more willing to take on home improvement projects themselves in order to get the home they’re after, even if it means putting in a little extra work. <a href="https://www.homeadvisor.com/r/wp-content/uploads/2020/12/DP6355-StateOfHomeSpending-2020-R4.pdf" title="Home Advisor" target="_blank" rel="noopener noreferrer">Home Advisor</a> explains:
“When it comes to the number of home improvement projects completed, Gen Z homeowners are leading the pack, completing an average of 3.5 projects. Millennials closely follow Gen Z, taking on an average of 3.3 projects, followed by Gen X at 2.8 projects. Boomers completed an average of 2 projects, and the Silent Generation completed the fewest projects, on average, at 1.8 per household. Compared to 2019, millennials are spending 60% more on home improvement and doing on average 30% more projects.”
In this market, it may be wise to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. As a seller, your dollars and time might be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior. Instead of over-investing in your home with upgrades that the buyers may change anyway, work with a real estate professional to determine the key <a href="https://www.simplifyingthemarket.com/2021/03/05/how-to-prepare-your-house-for-a-winning-sale-this-spring-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="projects" target="_blank" rel="noopener noreferrer">projects</a> that will maximize your listing, without overdoing it.
2. Focus on getting a good return on your investment.
When planning any bigger projects to tackle, you and your real estate agent will want to discuss the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all of them. You might be surprised by how well your house could fair in today’s sellers’ market. <a href="https://www.remodeling.hw.net/cost-vs-value/2020/key-trends-in-the-2020-cost-vs-value-report" title="Hanley Wood" target="_blank" rel="noopener noreferrer">Hanley Wood</a> states:
“The 2020 Cost vs. Value report shows a predictable increase in costs for all 22 remodeling projects but a consistent dip in the perceived value of those projects at the time of home sale, as estimated by real-estate professionals in more than 100 metro areas across the U.S. This results in a slight downturn on the return on investment for nearly all projects relative to the trends we saw in last year’s report.”
Ideally, homeowners getting ready to move should try to avoid over-investing in big renovations if they won’t make that money back when they sell their house. According to the 2020 State of Home Spending report from <a href="https://www.homeadvisor.com/r/wp-content/uploads/2020/12/DP6355-StateOfHomeSpending-2020-R4.pdf" title="Home Advisor" target="_blank" rel="noopener noreferrer">Home Advisor</a>:
“The average household spending on home services rose to $13,138, an increase over last year’s survey results, where homeowners who did projects spent $9,081 on average in 2019.”
Before you renovate, contact a local real estate professional to see if it’s the best course of action. You may find out that putting your house on the market as-is will help you sell quickly, and it may result in the best return on your investment. Every home is different, but a conversation with your agent is mission-critical to make sure you make the right moves when selling this season.
Bottom Line
We’re in a strong sellers’ market, and that means you have the <a href="https://www.simplifyingthemarket.com/2021/02/24/how-much-leverage-do-todays-house-sellers-have/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="leverage" target="_blank" rel="noopener noreferrer">leverage</a> to sell your house on your terms. Let’s connect today to determine if renovating is really the best way to spend your time and money before you sell.
Graddy Real Estate 417-501-5091
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2021-03-18T15:07:00-07:002021-03-18T15:09:11-07:00Colton Moostag:viewspringfieldrealestate.com,2012-09-20:10496Are There Going to Be More Homes to Buy This Year?Are There Going to Be More Homes to Buy This Year?
<img width="750" height="410" src="https://files.mykcm.com/2021/02/23105448/20210225-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="Are There Going to Be More Homes to Buy This Year? | MyKCM" loading="lazy" srcset="https://files.mykcm.com/2021/02/23105448/20210225-KCM-Share.jpg 750w, https://files.mykcm.com/2021/02/23105448/20210225-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2021/02/23105448/20210225-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" /><br /><br />
If you’re looking for a home to purchase right now and having trouble finding one, you’re not alone. At a time like this when there are so <a href="https://www.simplifyingthemarket.com/2021/01/29/is-right-now-the-right-time-to-sell-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="few" target="_blank" rel="noopener noreferrer">few</a> houses for sale, it’s normal to wonder if you’ll actually find one to buy. According to the National Association of Realtors (<a href="https://www.nar.realtor/newsroom/existing-home-sales-rise-0-7-in-december-annual-sales-see-highest-level-since-2006" title="NAR" target="_blank" rel="noopener noreferrer">NAR</a>), across the country, inventory of available homes for sale is at an all-time low – the lowest point recorded since NAR began tracking this metric in 1982. There are, however, more homes expected to hit the market later this year. Let’s break down the three key places they’ll likely come from as 2021 continues on.
1. Homeowners Who Didn’t Sell Last Year
In 2020, many sellers decided to pause their moving plans for a number of different reasons. From health concerns about the pandemic to financial uncertainty, plenty of homeowners decided not to move last year.
Now that vaccines are being distributed and there’s a light at the end of the COVID-19 tunnel, it should bring some peace of mind to many potential sellers. As Danielle Hale, Chief Economist at realtor.com, <a href="https://www.realtor.com/research/weekly-housing-trends-view-data-week-feb-6-2021/" title="notes" target="_blank" rel="noopener noreferrer">notes</a>:
“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”
Many of the homeowners who decided not to sell in 2020 will enter the market later this year as they begin to feel more comfortable showing their house in person, understanding their financial situation, and simply having more security in life.
2. More New Homes Will Be Built
Last year was a strong year for home builders, and according to the National Association of Home Builders (<a href="https://www.washingtonpost.com/business/2021/01/11/2021-housing-market-predictions/" title="NAHB" target="_blank" rel="noopener noreferrer">NAHB</a>), 2021 is expected to be even better:
“For 2021, NAHB expects ongoing growth for single-family construction. It will be the first year for which total single-family construction will exceed 1 million starts since the Great Recession.”
With more houses being built in many markets around the country, homeowners looking for new houses that meet their <a href="https://www.simplifyingthemarket.com/2021/01/12/4-reasons-people-are-buying-homes-in-2021/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="changing" target="_blank" rel="noopener noreferrer">changing</a> needs will be able to move into their dream homes. When they sell their current houses, this will create opportunities for those looking to find a home that’s already built to do so. It sets a simple chain reaction in motion for hopeful buyers.
3. Those Impacted Financially by the Economic Crisis
Many experts don’t anticipate a large wave of <a href="https://www.simplifyingthemarket.com/2021/01/13/will-forbearance-plans-lead-to-a-tsunami-of-foreclosures/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="foreclosures" target="_blank" rel="noopener noreferrer">foreclosures</a> coming to the market, given the <a href="https://www.simplifyingthemarket.com/2020/12/14/5-steps-to-follow-when-applying-for-forbearance/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="forbearance" target="_blank" rel="noopener noreferrer">forbearance</a> options afforded to current homeowners throughout the pandemic. Some homeowners who have been impacted economically will, however, need to move this year. There are also homeowners who didn’t take advantage of the forbearance option or were already in a foreclosure situation before the pandemic began. In those cases, homeowners may decide to sell their houses instead of going into the foreclosure process, especially given the <a href="https://www.simplifyingthemarket.com/2021/02/17/3-ways-home-equity-can-have-a-major-impact-on-your-life/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="equity" target="_blank" rel="noopener noreferrer">equity</a> in homes today. Lawrence Yun, Chief Economist at NAR, <a href="https://www.investors.com/news/housing-market-outlook-2021-watch-these-stocks-trends-cities/" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“Given the huge price gains recently, I don't think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that's a bit of a silver lining in that we don't expect a massive sale of distressed properties.”
As we can see, it looks like we’re going to have an increase in the number of homes for sale in 2021. With fears of the pandemic starting to ease, new homes being built, and more listings coming to the market prior to foreclosure, there’s hope if you’re planning to buy this year. And if you’re thinking of selling and making a move, doing so while demand for your house is high might create an outstanding move-up option for you.
Bottom Line
Housing demand is high and supply is low, so if you’re thinking of moving, it’s a great time to do so. There are likely many buyers who are looking for a home just like yours, and there are options coming for you to find a new house too. Let’s connect today to see how you can benefit from the opportunities available in our local market.
Contact Graddy Real Estate for more information
417-501-5091 info@adamgraddy.com
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2021-02-22T10:13:00-07:002021-03-01T15:44:25-07:00Adam Graddytag:viewspringfieldrealestate.com,2012-09-20:8776What’s the Difference between an Appraisal and a Home Inspection?What’s the Difference between an Appraisal and a Home Inspection?
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If you’re planning to buy a home, an <a href="https://cdn.nar.realtor/sites/default/files/documents/valuation-appraisal-for-homebuyers-12-2020.pdf" title="appraisal" target="_blank" rel="noopener noreferrer">appraisal</a> is an important <a href="https://www.simplifyingthemarket.com/2020/12/04/the-path-to-homeownership-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="step" target="_blank" rel="noopener noreferrer">step</a> in the process. It’s a professional evaluation of the market value of the home you’d like to buy. In most cases, an appraisal is ordered by the lender to confirm or verify the value of the home prior to lending a buyer money for the purchase. It’s also a different step in the process from a home inspection, which assesses the condition of the home before you finalize the transaction. Here’s the breakdown of each one and why they’re both important when buying a home.
Home Appraisal
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/appraisal-valuation/residential-appraisal-process-for-home-buyers" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“A home purchase is typically the largest investment someone will make. Protect yourself by getting your investment appraised! An appraiser will observe the property, analyze the data, and report their findings to their client. For the typical home purchase transaction, the lender usually orders the appraisal to assist in the lender’s decision to provide funds for a mortgage.”
When you apply for a mortgage, an unbiased appraisal (which is required by the lender) is the best way to confirm the value of the home based on the sale price. Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal will help make sure the bank doesn’t loan you more than what the home is worth.
This is especially critical in today’s <a href="https://www.simplifyingthemarket.com/2020/12/10/why-it-makes-sense-to-sell-your-house-this-holiday-season/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="sellers’ market" target="_blank" rel="noopener noreferrer">sellers’ market</a> where low <a href="https://www.simplifyingthemarket.com/2021/01/14/why-right-now-may-be-the-time-to-sell-your-house/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="inventory" target="_blank" rel="noopener noreferrer">inventory</a> is driving an increase in <a href="https://www.simplifyingthemarket.com/2020/10/16/how-to-prepare-for-a-bidding-war-infographic/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="bidding wars" target="_blank" rel="noopener noreferrer">bidding wars</a>, which can push home <a href="https://www.simplifyingthemarket.com/2021/01/11/what-does-2021-have-in-store-for-home-values/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="prices" target="_blank" rel="noopener noreferrer">prices</a> upward. When sellers are in a strong position like this, they tend to believe they can set whatever price they want for their house under the assumption that competing buyers will be willing to pay more.
However, the lender will only allow the buyer to borrow based on the value of the home. This is what helps keep home prices in check. If there’s ever any confusion or discrepancy between the appraisal and the sale price, your trusted real estate professional will help you navigate any additional negotiations in the buying process.
Home Inspection
Here’s the key difference between an appraisal and an inspection. MSN <a href="https://www.msn.com/en-us/money/realestate/what-is-a-home-appraisal-everything-you-need-to-know/ar-BB17nckC?fbclid=IwAR2hDqkZowDqKWBcb7DxAI_iy37ONH_n3-B1XBOYdN0_resgnZr163iZ9j0" title="explains" target="_blank" rel="noopener noreferrer">explains</a>:
“In simplest terms, a home appraisal determines the value of a home, while a home inspection determines the condition of a home.”
The home <a href="https://www.simplifyingthemarket.com/2019/10/01/what-to-expect-from-your-home-inspection-2/?a=532972-99f4242e1a79ceab1ea79b4dbc35f0b9" title="inspection" target="_blank" rel="noopener noreferrer">inspection</a> is a way to determine the current state, safety, and condition of the home before you finalize the sale. If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. Your real estate agent is a key expert to help you through this part of the process.
Bottom Line
The appraisal and the inspection are critical steps when buying a home, and you don’t need to manage them by yourself. Let’s connect today so you have the expert guidance you need to navigate through the entire homebuying process.
Contact Graddy Real Estate for more information!
417-501-5091 info@adamgraddy.com
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2021-01-26T09:26:00-07:002021-01-26T09:30:36-07:00Kelsey Watterstag:viewspringfieldrealestate.com,2012-09-20:7986Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/2624/image/kelseywatters/winter-home-selling-BackyardProduction.jpg" width="1000" height="526" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.
Contact Graddy Real Estate for more information.
417-501-5091 info@adamgraddy.com2020-12-05T13:18:00-07:002021-01-26T09:41:54-07:00Colton Moos