If you’re thinking about buying a home, you’ve probably heard mortgage rates are rising and have wondered what that means for you. Since mortgage rates have increased over two percentage points this year, it’s natural to think about how this will impact your homeownership plans. Today, buyers are reacting in one of two ways: they’re either making the decision to buy now before rates climb higher or they’re waiting it out in hopes rates will fall. Let’s look at some context that can help you understand why so many buyers are jumping off the fence and into action rather than waiting to buy. A Look Back: How the Current Mortgage Rate Compares to Historical Data One factor that could help you make your decision to buy now is how today’s mortgage rates compare to historical data. While higher than the average 30-year fixed rate in recent years, the latest rates are still comparatively low when you look at the bigger picture of where rates have been since 1971 (see graph below): Mark Fleming, Chief Economist at First American, explains it like this:
“. . . historical context is important. An average 30-year, fixed mortgage rate of 5.5 percent is still well below the historical average of nearly 8 percent.” If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still gives you a window of opportunity to lock in a rate that’s comparatively lower than decades past. A Look Ahead: What Happens if Rates Climb Further The buyers who are springing into action now are also motivated to make their move because they know rates have risen steadily this year, and they’re eager to get ahead of any further increases. Why? When mortgage rates climb, they impact the monthly mortgage payment you’ll have on the home you’re buying. Basically, it’ll likely cost you more to buy a home if you wait. Experts say mortgage rates will rise (although more moderately) in the months ahead. Odeta Kushi, Deputy Chief Economist at First American, explains: “. . . ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.” So, if you’re ready and financially able to buy now, it may make more sense to get off the fence and make your purchase sooner rather than later. As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), says: “With even higher interest rates on the horizon, I don’t see any reason to hold off from purchasing a home right now. If you feel financially secure, you should start looking for a home.” At the end of the day, there is no perfect advice on when to buy a home. What you should do depends on your goals, your finances, and your personal situation. Use this information with the help of local real estate professionals to make an informed decision on what’s best for you. Bill McBride of Calculated Risk sums it up best: “. . . if you’re on the fence about whether to buy now or wait for a better deal, buying sooner rather than later might be wise. That said, home buying is always a personal decision. Whether you should buy in 2022 depends on your financial situation and the local housing market where you live.” Bottom Line For many buyers, rising mortgage rates are motivating them to act now and make a purchase before rates rise higher. To decide what move is best for you, partner with a trusted real estate professional so you have expert advice on your side. Source: KCM #BuyingMyths#FirstTimeHomeBuyers#ForBuyers#HousingMarketUpdates#InterestRates#MoveUpBuyers#StephenSimardRealtor #RealBrokerLLC
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Everyone has questions about today’s housing market. While you can run a quick search online, you may not find the most up-to-date or reliable information. If you want expert answers, ask a local real estate professional. DM me so I can help answer your questions about today’s market.
Source: KCM #askapro #realestateexpert #expertanswers #stayinformed #staycurrent #powerfuldecisions #firsttimehomebuyer #housingmarket #househunting #sellyourhouse #realestatetipsandadvice #keepingcurrentmatters #StephenSimardRealtor #RealBrokerLLC In today’s housing market, homeowners have a great opportunity to sell their house and receive the best terms for their personal situation. That’s because there’s a limited number of homes for sale, which is creating competition among buyers. Right now, homebuyers want three things:
These buyer needs give you an amazing advantage – also known as leverage – when you sell. What Does This Mean for Sellers Today? You might already realize this enables you to sell at a good price, but you’re also in a great position to get the best terms to suit your needs. According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average home sold is receiving 4.8 offers. That’s why there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, you should look closely at the terms of each offer to find out which one has the best options for you. And if you have questions at any point in the process, remember your trusted real estate advisor can help. They’re experts who understand the fine print, know how to compare the terms of various offers, and will help you select the best one for your situation. Bottom Line If you’re thinking of selling your home, know buyer demand in today’s market gives you a great opportunity to get the best terms and price when you sell your house. Connect with a real estate professional today to discuss how much leverage you have as a seller in today’s market. Source: KCM #ForSellers#HousingMarketUpdates#StephenSimardRealtor #RealBrokerLLC What does the rest of the year hold for the #housingmarket? #Homeprices are projected to rise and so are #mortgagerates. Experts are also forecasting another strong year for home sales as people move to meet their changing needs. DM me so you can make your best move this year.
Source: KCM #expertanswers #housingmarketupdates #confidentdecisions #realestate #homevalues #homeownership #sellyourhouse #moveuphome #dreamhome #justsold #keepingcurrentmatters#StephenSimardRealtor #RealBrokerLLC Should You Update Your House Before Selling? Ask a Real Estate Professional. [INFOGRAPHIC]5/13/2022 Some Highlights
Source: KCM #ForSellers#Infographics#SellingMyths#StephenSimardRealtor #RealBrokerLLC According to experts, home prices will continue rising over the coming year. And when prices rise, you end up paying more for the home you purchase the longer you wait. If you want to learn more about home prices and get expert advice on how to time your move, DM me today.
Source: KCM #homeprices #homebuying #expertanswers #stayinformed #staycurrent #powerfuldecisions #confidentdecisions #realestate #instarealtor #realestatetipsoftheday #realestatetipsandadvice #keepingcurrentmatters #StephenSimardRealtor #RealBrokerLLC While you may have seen recent stories about the volume of foreclosures today, context is important. During the pandemic, many homeowners were able to pause their mortgage payments using the forbearance program. The goal was to help homeowners financially during the uncertainty created by the health crisis. When the forbearance program began, many experts were concerned it would result in a wave of foreclosures coming to the market, as there was after the housing crash in 2008. Here’s a look at why the number of foreclosures we’re seeing today is nothing like the last time. 1. There Are Fewer Homeowners in Trouble Today’s data shows that most homeowners are exiting their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The graph below depicts those findings from the Mortgage Bankers Association (MBA): The same MBA report mentioned above estimates there are approximately 525,000 homeowners who remain in forbearance today. Thankfully, those people still have the chance to work out a suitable repayment plan with the servicing company that represents their lender. 2. Most Homeowners Have Enough Equity To Sell Their Homes For those who are exiting the forbearance program without a plan in place, many will have enough equity to sell their homes instead of facing foreclosures. Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home. Marina Walsh, CMB, Vice President of Industry Analysis at MBA, says: “Given the nation’s limited housing inventory and the variety of home retention and foreclosure alternatives on the table across various loan types, . . . Borrowers have more choices today to either stay in their homes or sell without resorting to a foreclosure.” 3. There Have Been Fewer Foreclosures over the Last Two Years One of the seldom-reported benefits of the forbearance program was it gave homeowners facing difficulties an extra two years to get their finances in order and work out a plan with their lender. That helped prevent the foreclosures that normally would have come to the market had the new forbearance program not been available. Even as people leave the forbearance program, there are still fewer foreclosures happening today than before the pandemic. That means, while there are more foreclosures now compared to last year (when foreclosures were paused), the number is still well below what the housing market has seen in a more typical year, like 2017-2019 (see graph below): 4. The Current Market Can Easily Absorb New Listings
When the foreclosures in 2008 hit the market, they added to the oversupply of houses that were already for sale. It’s exactly the opposite today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) reveals: “Total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). Unsold inventory sits at a 2.0-month supply at the present sales pace, up from 1.7 months in February and down from 2.1 months in March 2021.” A balanced market would have approximately a six-month supply of inventory. At 2.0 months, today’s housing market is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand. Bottom Line If you see headlines about the increasing number of foreclosures today, remember context is important. While it’s true the number of foreclosures is higher now than it was last year, foreclosures are still well below pre-pandemic years. If you have questions, reach out to a real estate professional who can help explain the latest market conditions and what they mean for you. Source:KCM #DistressedProperties#Foreclosures#HousingMarketUpdates#StephenSimardRealtor #RealBrokerLLC If this is your first time selling a house, let’s connect. It isn't intimidating when you have a professional on your side who can walk you through the process from start to finish. DM me so you have a partner to help you sell your house and find your next home.
Source: KCM #sellyourhouse #dreamhome #justsold #emptynest #downsizing #expertanswers #realestate #homeownership #homebuying #realestategoals #realestatetips #realestatelife #keepingcurrentmatters#StephenSimardRealtor #RealBrokerLLC According to a recent survey from the National Association of Realtors (NAR), one of the top challenges buyers face in today’s housing market is finding a home that meets their needs. That’s largely because the inventory of homes for sale is so low today. If you’re looking to buy a home, you may have noticed this yourself. But there is good news. Recent data shows more sellers are listing their houses this season, which may give you more options for your home search. Early Signs Inventory May Be Growing The latest data from realtor.com shows the number of listings coming onto the market, known in the industry as “new listings,” has increased since the start of the year (see graph below): This indicates more sellers are listing their homes for sale each month this year. And according to realtor.com, this growth is expected to continue. Their research finds the majority of potential sellers plan to list their homes over the next six months. Realtor.com says: “. . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.” Homes Are Still Selling Quickly But while new listings are increasing, it’s important to know they’re also selling quickly. The latest Realtors Confidence Index from NAR shows the median days on market for recently sold homes since the beginning of the year (see chart below). The time on market has decreased month-over-month. That means homes are selling even faster than they did the previous month. What That Means for You
While a low-inventory market is difficult to navigate as a buyer, there is hope. The growing number of new listings and the expectation more sellers will list their homes in the coming months is great news if you’ve had a hard time finding a home that fits your needs. Just remember, those new listings are going fast. That means you’ll want to keep your foot on the gas and be ready to act if you find a home you love this season. Your agent can help you stay on top of the latest listings in your area so you can find the home that’s right for you and submit your strongest offer as quickly as possible. Bottom Line If you’ve been having a hard time finding your dream home, stick with your search. More options are coming to market and your ideal home could be one of them. Partner with a real estate professional to stay up to date on the latest listings in your market, so you can be ready to move fast when you find the one that’s right for you. Source: KCM #FirstTimeHomeBuyers#ForBuyers#HousingMarketUpdates#MoveUpBuyers#StephenSimardRealtor #RealBrokerLLC Many people are wondering: will home prices fall this year? Whether you’re a potential homebuyer, seller, or both, the answer to this question matters for you. Let’s break down what’s happening with home prices, where experts say they’re headed, and how this impacts your homeownership goals. What’s Happening with Home Prices? Home prices have seen 121 consecutive months of year-over-year increases. CoreLogic says: “Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.” So why are prices climbing so much? It’s because there are more buyers than there are homes for sale. This imbalance is expected to maintain that upward pressure on home prices because homes for sale are a hot commodity in today’s low-inventory housing market. Where Do Experts Say Prices Will Go from Here? Experts say the housing market isn’t set up for a price decline due to that ongoing imbalance between supply and demand. In the latest home price forecasts for 2022, they’re calling for ongoing appreciation throughout the year (see graph below): While the experts are forecasting more moderate price appreciation, the 2022 projections show price gains will remain strong throughout this year. First American explains it like this:
“While house price growth is expected to moderate from the rapid pace of 2021, strong home buyer demand against a backdrop of historically tight inventory of homes for sale will likely keep appreciation positive in the coming year.” What Does That Mean for You? The biggest takeaway is that none of the experts are projecting depreciation. If you’re a homeowner thinking about selling, the higher price appreciation over the last two years has been great for your home’s value, but it’s also something you should factor in when planning your next steps. If you’ll also be buying a home after selling your current house, you shouldn’t wait for prices to fall. Waiting will only cost you more in the long run because climbing mortgage rates and rising home prices will have an impact on your next home purchase. Freddie Mac says: “If you’re thinking about waiting until next year and that maybe rates are higher, but you’ll get a deal on prices – well that’s risky. It may be more advantageous to purchase this year relative to waiting until 2023 at this time.” Bottom Line If you’re thinking of selling to move up, you shouldn’t wait for prices to fall. Experts say prices will continue to appreciate this year. That means, if you’re ready, buying your next home before prices climb further may make the most financial sense. Partner with a real estate professional to begin the process of selling your current home and looking for your next one before prices rise higher. Source:KCM #ForBuyers#ForSellers#HousingMarketUpdates#MoveUpBuyers#Pricing#SimardRealtyGroup #RealBrokerLLC |
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