Reasons To Sell Your House Before the New Year
Reasons To Sell Your House Before the New Year As the year winds down, you may have decided it's time to move and put your house on the market. But should you sell now or wait until January? While it may be tempting to hold off until after the holidays, here are three reasons to move before the new year. Get One Step Ahead of Other Sellers Typically, in the residential real estate market, homeowners are less likely to list their houses toward the end of the year. People get busy around the holidays and sometimes deprioritize selling their houses until the start of the new year when their schedules and social calendars calm down. But that allows you to get one step ahead. Selling now, while other homeowners may hold off until after the holidays, can help you get a leg up on your competition. Start the process with a real estate agent today to get your house on the market before your neighbors do. Get Your House in Front of Eager Buyers Even though the supply of homes for sale did grow compared to last year, it’s still low. That means there aren’t enough homes on the market today. While some buyers may delay their plans to move until January, others will still need to move for personal reasons or because something has changed. Those buyers will still be active later this year and will be seriously motivated to make their move happen because they need to. Unfortunately, the challenge they'll face is a shortage of available inventory to meet their needs. A recent article from Investopedia says: “. . . if your house is up for sale in the winter and someone is looking at it, chances are that person is serious and ready to buy. Anyone shopping for a new home between Thanksgiving and New Year’s is likely going to be a serious buyer. Putting your home on the market at this time of year and attracting a serious buyer can often result in a quicker sale.” Use Your Equity To Fuel Your Move Keep in mind that homeowners today have record amounts of equity. According to CoreLogic, the average amount of equity per mortgage holder has climbed to almost $290,000. That means the equity you have in your house right now could cover some, if not all, of a down payment on the home of your dreams. And as you weigh the reasons to sell before year-end, it's important to remember the reasons that sparked your desire to move in the first place. Maybe it’s time for a new home in a location that suits you better, one that offers the perfect space for you and your loved ones, or maybe your needs have evolved. A local real estate agent can help you determine how much home equity you have and how you can use it to achieve your goal of making a move. Listing your home before the new year can offer unique benefits. Less competition, motivated buyers, and your equity gains can all play to your advantage. Reach out, and let's achieve your goals before winter sets in.
Don’t Believe Everything You Read About Home Prices
Don’t Believe Everything You Read About Home Prices According to the latest data from Fannie Mae, 23% of Americans still think home prices will go down over the next twelve months. But why do roughly 1 in 4 people feel that way? It has much to do with all the negative talk about home prices over the past year. Since late 2022, the media has created a lot of fear about a price crash, and those concerns remain lingering. You may be hearing people in your own life saying they’re worried about home prices or see on social media that some influencers are saying prices will come tumbling down. If you’re someone who still thinks prices are going to fall, ask yourself this: Which is a more reliable place to get your information – clickbait headlines and social media or a trusted expert on the housing market? The answer is simple. Listen to the professionals who specialize in residential real estate. Here’s the latest data you can actually trust. Housing market experts acknowledge that nationally, prices did dip down slightly late last year, but that was short-lived. Data shows prices have already rebounded this year after that slight decline in 2022 (see graph below): But it’s not just Fannie Mae that’s reporting this bounce back. Experts from across the industry are showing it in their data too. And that’s why so many forecasts now project home prices will net positive this year – not negative. The graph below helps prove this point with the latest forecasts from each organization: What’s worth noting is that, just a few short weeks ago, the Fannie Mae forecast was for 3.9% appreciation in 2023. In the forecast that just came out, that projection was updated from 3.9% to 6.7% for the year. This increase shows just how confident experts are that home prices will net positive this year. So, if you believe home prices are falling, it may be time to get your insights from the experts instead – and they’re saying prices aren’t falling, they’re climbing. Bottom Line There’s been a lot of misleading information about home prices over the past year. And that’s still having an impact on how people are feeling about the housing market today. But it’s best not to believe everything you hear or read. If you want trustworthy information, turn to the real estate experts. Their data shows home prices are on the way back up and will net positive for the year. If you have questions about what’s happening in our local area, let’s connect.
What Are Accessory Dwelling Units, and How Can They Benefit You?
What Are Accessory Dwelling Units, and How Can They Benefit You? Maybe you’re in the market for a home and are having a hard time finding the right one that fits your budget. Or perhaps you’re already a homeowner in need of extra income or a place for loved ones. Whether as a potential homebuyer or a homeowner with changing needs, accessory dwelling units, or ADUs for short, may be able to help you reach your goals. What Is an ADU? As AARP says: “An ADU is a small residence that shares a single-family lot with a larger, primary dwelling.” “An ADU is an independent, self-contained living space with a kitchen or kitchenette, bathroom and sleeping area.” “An ADU can be located within, attached to, or detached from the main residence. It can be created out of an existing structure (such as a garage) or built anew.” If you're considering whether an ADU makes sense for you as a buyer or a homeowner, here's some useful information and benefits that ADUs can provide. Keep in mind that regulations for ADUs vary based on where you live, so lean on a local real estate professional for more information. The Benefits of ADUs Freddie Mac and the AARP identify some of the best features of ADUs for both buyers and homeowners: Living Close by, But Still Separate: ADUs allow loved ones to live together in separate spaces. That means you can enjoy each other’s company and help each other out with things like childcare but also have privacy when needed. If this appeals to you, you may consider buying a home with an ADU or adding an ADU to your house. According to Freddie Mac: “Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.” Aging in Place: Similarly, ADUs allow older people to be close to loved ones who can help them if they need it as they age. It gives them the best of both worlds – independence and support from loved ones. For example, if your parents are getting older and want them nearby, you may want to buy a home with an ADU or build one onto your existing house. Affordable To Build: Since ADUs are often on the smaller side, they’re typically less expensive to build than larger, standalone homes. Building one can also increase your property’s value. Generating Additional Income: If you own a home with an ADU or if you build an ADU on your land, it can help generate rental income you could use toward your own mortgage payments. It’s worth noting that because an ADU exists on a single-family lot as a secondary dwelling, it typically cannot be sold separately from the primary residence. But that’s changing in some states. Work with a professional to understand your options. These are a few of the reasons why many people who benefit from ADUs think they’re a good idea. As Scott Wild, SVP of Consulting at John Burns Research, says: “It’s gone from a small niche in the market to really a much more impactful part of new housing.” Bottom Line ADUs have some significant advantages for buyers and homeowners alike. If you're interested, contact a real estate professional who can help you understand local codes and regulations for this type of housing and what’s available in your market.
Debunking Myths: Why Foreclosures and Bankruptcies Won't Derail the Housing Market's Stability
Foreclosures and Bankruptcies Won’t Crash the Housing Market If you've been following the news recently, you might have seen articles about increased foreclosures and bankruptcies. That could make you feel uneasy, especially if you're thinking about buying or selling a house. But the truth is, even though the numbers are going up, the data shows the housing market isn’t headed for a crisis. Foreclosure Activity Rising, but Less Than Headlines Suggest In recent years, the number of foreclosures has been very low. That’s because, in 2020 and 2021, the forbearance program and other relief options were implemented to help many homeowners stay home during that tough time. When the moratorium ended, there was an expected rise in foreclosures. But just because they’re up, that doesn't mean the housing market is in trouble. To help you see how much things have changed since the housing crash in 2008, check out the graph below using research from ATTOM, a property data provider. It looks at properties with a foreclosure filing going all the way back to 2005 to show that there have been fewer foreclosures since the crash. As you can see, foreclosure filings are inching back up to pre-pandemic numbers, but they're still way lower than when the housing market crashed in 2008. Today, the tremendous amount of equity American homeowners have in their homes can help people sell and avoid foreclosure. The Increase in Bankruptcies Isn’t Dramatic Either As you can see below, the financial trouble many industries and small businesses felt during the pandemic didn’t cause a dramatic increase in bankruptcies. Still, the number of bankruptcies has gone up slightly since last year, nearly returning to 2021 levels. But that isn’t cause for alarm. The numbers for 2021 and 2022 were lower than more typical years. That’s partly because the government provided trillions of dollars to aid individuals and businesses during the pandemic. So, let’s instead focus on the bar for this year and compare it to the bar on the far left (2019). It shows the number of bankruptcies today is still nowhere near where it was before the pandemic. These two factors are why the housing market isn't in danger of crashing. Bottom Line Right now, it's crucial to understand the data. Foreclosures and bankruptcies are rising, but these leading indicators aren’t signaling trouble that would cause another crash.
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