Remote Work Is Changing How Some Buyers Search for Their Dream Homes
Remote Work Is Changing How Some Buyers Search for Their Dream Homes The way Americans work has changed in recent years, and remote work is at the forefront of this shift. Experts say it’ll continue to be popular for years and project that 36.2 million Americans will work remotely by 2025. To give you some perspective, that's a 417% increase compared to the pre-pandemic years when there were just 7 million remote workers. This trend is a game-changer if you’re in the market to buy a home and work remotely, either full or part-time. It can help you overcome today’s affordability and housing inventory challenges. How Remote Work Helps with Affordability Remote or hybrid work lets you change how you approach your home search. Since you’re no longer commuting daily, living near your office may not be as essential. If you’re willing to move further out in the suburbs instead of the city, you could open up your pool of affordable options. In a recent study, Fannie Mae explains: “Home affordability may also be a reason why we saw an increase in remote workers’ willingness to relocate or live farther away from their workplace . . .” If you're considering moving, having this kind of location flexibility can boost your chances of finding a home that fits your budget. Work with your agent to cast a wider net that includes additional areas with a lower cost of living. More Work Flexibility Means More Home Options And as you broaden your search to include more affordable options, you may also have the chance to get more features for your money too. Given the low supply of homes for sale, finding a home that fits all your wants and needs can be challenging. By opening up your search, you’ll give yourself a bigger pool of options, making it easier to find a home that truly fits your lifestyle. This could include homes with more square footage, diverse home styles, and a wider range of neighborhood amenities that were previously out of reach. Historically, living close to work was a sought-after perk, often coming with a hefty price tag. But now, the dynamics have changed. If you work from home, you can choose where you want to live without the burden of long daily commutes. This shift allows you to focus more on finding an affordable home that delivers on your dream home features. Bottom Line Remote work goes beyond job flexibility. It's a chance to broaden your horizons in your home search. Without being bound to a fixed location, you have the freedom to explore all of your options. Let’s connect to find out how this freedom can lead you to your ideal home.
Your Home Equity Can Offset Affordability Challenges
Your Home Equity Can Offset Affordability Challenges Are you thinking about selling your house? If so, today’s mortgage rates may make you wonder if that’s the right decision. Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home. If you’re worried about this too, know that even though rates are high right now, so is home equity. Here’s what you need to know. Bankrate explains exactly what equity is and how it grows: “Home equity is the portion of your home that you’ve paid off and own outright. It’s the difference between what the home is worth and how much is still owed on your mortgage. As your home’s value increases over the long term and you pay down the principal on the mortgage, your equity stake grows.” In other words, equity is how much your home is worth minus what you still owe on your home loan. How Much Equity Do Homeowners Have Now? Recently, your equity has been growing faster than you might think. To help contextualize just how much the average homeowner has, CoreLogic says: “. . . the average U.S. homeowner now has about $290,000 in equity.” That’s because, over the past few years, home prices went up significantly – and those rising prices helped your equity to accumulate faster than usual. While the market has started to normalize, more people still want to buy homes than homes available for sale. This high demand is causing home prices to go up again. According to the Federal Housing Finance Agency (FHFA), the Census, and ATTOM, a property data provider, nearly two-thirds (68.7%) of homeowners have either fully paid off their mortgages or have at least 50% equity (see chart below): That means nearly 70% of homeowners have a tremendous amount of equity. How Equity Helps with Your Affordability Concerns With today’s affordability challenges, your equity can make a big difference when you move. After you sell your house, you can use the equity you've built in your home to help you buy your next one. Here’s how: Be an all-cash buyer: If you've lived in your current home for a long time, you might have enough equity to buy a new house without taking out a loan. If that's the case, you won't need to borrow money or worry about mortgage rates. The National Association of Realtors (NAR) states: “These all-cash home buyers are happily avoiding the higher mortgage interest rates . . .” Make a larger down payment: Your equity could be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won't have to borrow as much money, so today’s rates become less of a sticking point. Experian explains: “Increasing your down payment lowers your principal loan amount and, consequently, your loan-to-value ratio, which could lead to a lower interest rate offer from your lender.” Bottom Line If you're thinking about moving, the equity you've built up can make a big difference, especially today. Let's connect to find out how much equity you've got in your current house and how you can use it for your next home.
Are More Homes Coming onto the Market?
Are More Homes Coming onto the Market? An important factor shaping today’s market is the number of homes for sale. And, if you’re considering whether or not to list your house, that’s one of the biggest advantages you have right now. When housing inventory is this low, your house will stand out, especially if priced right. But there are some early signs that more listings are coming. According to the latest data, new listings (homeowners who just put their houses up for sale) are trending up. Here’s why this is noteworthy and what it may mean for you. More Homes Are Coming onto the Market than Usual It’s well known that the busiest time in the housing market each year is the spring buying season. That’s why there’s a predictable increase in the volume of newly listed homes throughout the first half of the year. Sellers are anticipating this and ramping up for the months when buyers are most active. But, as the school year and the holidays approach, the market cools. It’s what’s expected. But here’s what’s surprising. Based on the latest data from Realtor.com, there’s an increase in the number of sellers listing their houses later this year than usual. A peak this late in the year isn’t typical. You can see both the normal seasonal trend and the unusual August in the graph below:As Realtor.com explains: “While inventory continues to be in short supply, August witnessed an unusual uptick in newly listed homes compared to July, hopefully signaling a return in seller activity heading toward the fall season . . .” While this is only one month of data, it’s unusual enough to note. It’s still too early to say if this trend will continue, but it’s something you’ll want to stay ahead of if it does. What This Means for You If you’ve been putting off selling your house, now may be the sweet spot to make your move. If this trend continues, you’ll have more competition the longer you wait. And if your neighbor puts their house up for sale too, you may have to share buyers’ attention with that other homeowner. If you sell now, you can beat your neighbors to the punch. But, even with more homes coming onto the market, the market is still well below normal supply levels. And that inventory deficit isn’t going to be reversed overnight. The graph below helps put this into context so you can see the opportunity you still have now: Bottom Line Even though inventory is still low, you don’t want to wait for more competition in your neighborhood. You still have an incredible opportunity if you sell your house today. Let’s connect to explore the benefits of selling now before more homes come to the market.
Planning to Retire? Your Equity Can Help You Make a Move
Planning to Retire? Your Equity Can Help You Make a Move Retiring is a significant milestone in life, bringing many changes and new opportunities. As the door to this exciting chapter opens, you may consider selling your house and finding a home better suited for your evolving needs. Fortunately, you may be better positioned to make a move than you realize. Here are a few reasons why. Consider How Long You’ve Been in Your Home From 1985 to 2009, the average length of time homeowners stayed in their homes was roughly six years. But according to the National Association of Realtors (NAR), that number is higher today. Since 2010, the average home tenure is just over nine years (see graph below): This means many homeowners have lived in their houses even longer in recent years. When you live in a home for a significant amount of time, it’s natural for you to experience changes in your life while in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options. Consider the Equity You’ve Gained And, if you’ve been in your home for more than a few years, you’ve likely built up substantial equity that can fuel your next move. That’s because you gain equity as you pay your loan and as home prices appreciate. And, the longer you’ve been in your home, the more you may have gained. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below): While home prices vary by area, the national average shows that the typical homeowner who’s been in their house for five years saw it increase by nearly 60%. And the average homeowner who’s owned their home for 30 years saw it almost triple in value. Whether you’re looking to downsize, relocate to a dream destination, or move so you live closer to friends or loved ones, that equity can help. Whatever your home goals are, a trusted real estate agent can work with you to find the best option. They’ll help you sell your current house and guide you as you buy the right home for you and your lifestyle today. Bottom Line As you plan for your retirement, let’s connect so we can find out how much equity you’ve built up over the years and plan how you can use it toward the purchase of a home that fits your changing needs.
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