Should Baby Boomers Buy or Rent After Selling Their Houses?

Should Baby Boomers Buy or Rent After Selling Their Houses? Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about selling your house, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to downsize or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead? That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you. Expect Rents to Keep Going Up The graph below uses data from the Census to show how rents have been climbing steadily since 1988:Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year. When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac sums it up like this: “. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.” Owning Your Home Comes with Unique Benefits According to AARP, buying your next home is a better long-term strategy than renting: “Though each option has pros and cons, buying provides more pros, with a broader range of benefits.” To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers: Owning your home can help you save money for the future. Your home, and the equity you build as a homeowner, can provide generational wealth that could be passed on to loved ones, giving them a better life. You might not have to pay a monthly mortgage payment at all. If you have enough equity to buy your next home outright, you wouldn’t have a monthly mortgage payment. While you might still need to cover property taxes or maintenance fees, not having to worry about a monthly mortgage payment could be a big relief. Aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier. Bottom Line If you're a baby boomer who’s wondering whether you should buy or rent your next home, let’s connect. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.

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What Experts Project for Home Prices Over the Next 5 Years

What Experts Project for Home Prices Over the Next 5 Years If you're planning to buy a home, one thing to consider is what experts project home prices will do in the future and how that might affect your investment. While you may have seen negative news over the past year about home prices, they’re doing far better than expected and are rising across the country. And data shows, experts forecast home prices will keep appreciating. Experts Project Ongoing Appreciation Pulsenomics polled over 100 economists, investment strategists, and housing market analysts in the latest quarterly Home Price Expectation Survey (HPES). The results show what the panelists project will happen with home prices over the next five years. Here are those expert forecasts saying home prices will go up every year through 2027 (see graph below):If you’re worried home prices would fall because of stories you’ve read online, here's the big takeaway. Even though home prices vary by local market, experts project prices will continue to rise across the country for years to come. And these numbers indicate the return to more normal home price appreciation. And while the projected increase in 2024 isn’t as large as 2023, it’s important to recognize home price appreciation is cumulative. In other words, if these experts are correct after your home’s value rises by 3.32% this year, it’ll appreciate another 2.17% next year. This is a good example of why owning a home is a choice that wins big over time. What Does This Mean for You? Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. To see how a typical home's value could change in the next few years using the expert projections from the HPES, check out the graph below:In this example, let’s say you bought a $400,000 home at the beginning of this year. If you factor in the HPES forecast, you could accumulate more than $71,000 in household wealth over the next five years. So, if you're considering whether buying a home is a good choice, remember how it can be a powerful way to grow your wealth in the long run.  Bottom Line According to the experts, home prices are expected to grow over the next five years at a more normal pace. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) grow. Let’s connect to start the homebuying process today.

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Housing Market Forecast for the Rest of 2023 [INFOGRAPHIC]

Housing Market Forecast for the Rest of 2023 [INFOGRAPHIC] Some Highlights Want to know what experts say will happen in the rest of 2023? Home prices are already appreciating again in many areas. The average of the expert forecasts shows positive price growth. Where mortgage rates go for the rest of the year will depend on inflation. Based on historical trends, rates are likely to ease as inflation continues to cool. Even though low inventory continues to be a challenge, experts project 5 million homes will still sell this year. That pace should pick up if rates come down.

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Tips for Making Your Best Offer on a Home

Tips for Making Your Best Offer on a Home While the wild ride that was the 'unicorn' years of housing is behind us, today's market is still competitive in many areas because the supply of homes for sale is still low. If you're looking to buy a home this season, know that the peak frenzy of bidding wars is in the rearview mirror, but you may still come up against some multiple-offer scenarios. Here are a few things to consider to help you put your best foot forward when making an offer on a home. 1. Lean on a Real Estate Professional Rely on an agent who can support your goals and help you understand what's happening in today's housing market. Agents are experts in the local market and on national trends too. They'll use both areas of expertise to ensure you have all the information you need to move confidently. Plus, they know what's worked for other buyers in your area and what sellers may look for in an offer. It may seem simple, but catering to a seller's needs can help your request stand out. As an article from Forbes says: "Getting to know a local realtor where you’re hoping to buy can also potentially give you a crucial edge in a tight housing market." 2. Get Pre-Approved for a Home Loan Given the current affordability challenges, having a clear budget in mind is especially important. The best way to get a clear picture of what you can borrow is to work with a lender to get pre-approved for a home loan. That'll help you be more financially confident because you'll better understand your numbers. It shows sellers you're serious, too. And that can give you a competitive edge if you get into a multiple-offer scenario. 3. Make a Fair Offer It's only natural to want the best deal on a home. However, submitting an offer that's too low does have some risks. You don't want to make an offer that will be tossed out as soon as it's received to see if it sticks. As Realtor.com explains: “. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.” Your agent's expertise in this part of the process will help you stay competitive and find a fair price for you and the seller. 4. Trust Your Agent's Expertise Throughout Negotiations During the 'unicorn' years of housing, some buyers skipped home inspections or didn't ask for concessions from the seller to submit the winning bid on a home. An article from Bankrate explains this isn't happening as often today, and that's good news: “While the market has largely calmed down since then, sellers are still very much in the driver’s seat in this era of scarce housing inventory. It’s not as common for buyers to waive inspections anymore, but it does still happen. . . . It’s in the buyer’s best interest to have a home inspected . . . Inspections alert you to existing or potential problems with the home, giving you not just an early heads up but also a useful negotiating tactic.” Fortunately, today's market is different, and you may have more negotiating power. When putting together an offer, your trusted real estate advisor will help you think through what levers to pull and which ones you may want to maintain. Bottom Line When you buy a home this summer, I'd like to connect so you have an expert to help you make your best offer.

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